Library of PH Labor Law

1 – Just Causes

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Summary

▪ Just causes are grounds for termination of employment due to employee violations.

▪ The employer is justified dismissing an employee for just cause.

▪ There are standards for each just cause set or prescribed by Supreme Court Decisions or Jurisprudence, as well as DOLE regulations.

▪ There are analogous causes to just causes found in Supreme Court Decisions or Jurisprudence.

▪ If there is no just cause in the termination of employment, the employer may be held liable for illegal dismissal.

2. Concept

Just causes are grounds for termination of employment.

It is called just causes because the termination of employment is justified due to an employee’s actions, behavior, or omission, either of which resulted in a serious or grave violation of the law, employment contract, company policies, collective bargaining agreement, and any other employment agreement.

In these situations, and in the exercise of its management prerogative, the employer is justified in imposing the penalty of dismissal on the erring employee.

3. Coverage

Just causes cover all employees, regardless of rank or status, whether rank-and-file, supervisory, managerial in rank, as well as whether regular, probationary, casual, project, seasonal, or fixed-term.

4. The just causes

The Labor Code provides for the following just causes:

1. Serious misconduct;

2. Willful disobedience of a lawful order;

3. Gross and habitual neglect of duty;

4. Fraud;

5. Willful breach of trust;

6. Commission of a crime against the person of the employer or any immediate member of his family or his duly authorized representatives; and,

7. Analogous causes.

Standards for just causes

Standards have been set or prescribed for each just cause through Supreme Court Decisions and DOLE regulations, such as DOLE Department Order No. 147, series of 2015 (DOLE D.O. 147-15).

Consequence if no just cause

If there is no just cause in the termination of employment of an employee, the employer may be held liable for illegal dismissal.

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References

▪ 1987 Philippine Constitution

▪ Presidential Decree No. 442, a.k.a. Labor Code

▪ Department of Labor and Employment, Department Order No. 147, Series of 2015

▪ Jurisprudence or Supreme Court Decisions

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