Labor issues and challenges

SEVERAL companies are closing during this COVID-19 pandemic. Due to poor business, many Filipinos couldn’t work anymore.

Sadly, there are employers taking advantage of the pandemic to terminate employment. Employees are left with nothing and empty stomachs.

The Labor Code of the Philippines provides that an employer may terminate an employee for two reasons – just and authorized causes.  This is one of the topics discussed by Atty. Cecilio Duka during the webinar organized by the Integrated Bar of the Philippines (IBP) with the theme “Laborem Iura: Labor Rights, Issues, and Challenges of Workers in the New Normal.”

An employer may dismiss an employee for reason of just causes:

a) serious misconduct;

b) wilful disobedience;

c) gross and habitual neglect of duty;

d) fraud or breach of trust;

e) commission of a crime or offense against the employer, his family or representative; and

f) other similar causes.  

An employer may also terminate an employee for reason of authorized causes:

a) installation of labor-saving devices;

b) redundancy;

c) retrenchment to prevent losses;

d) closure and cessation of business; and

e) disease or illness.

Before an employer can dismiss an employee, he or she must observe the two-fold due process requisites – substantive and procedural aspect.

Substantive aspect means that the dismissal must be for any just or authorized causes under the Labor Code.

Procedural aspect means that the employee must undergo due process. The employee must be notified and given the opportunity to be heard.

When termination is for just cause, there should be a notice of intent to dismiss an employee. The latter should have the opportunity to be heard and defend his or her side. Thus, a hearing is required.

After due consideration and when the ground for termination is established, a notice of dismissal should be served to the employee.

When termination is for authorized cause, there should also be a written notice of dismissal. However, notice should be furnished to the employee at least 30 days before the date of termination.

The employer should also furnish a copy of the notice to the Regional Office of the Department of Labor and Employment (DOLE) where the employer is located.

An employee may question his or her dismissal based on substantive or procedural grounds.

There is high unemployment and falling income due to the pandemic. Business and trade activities in the entire country are iced up by quarantine measures. I hope that the government will address this issue by lessening the percentage of unemployment and by providing enough assistance to the people./PN

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