Laborel Group 6

8/3/2019 Laborel Group 6

1/25

Consequences of Termination

Group 6:Camacho, Ferrer, Go, Garcia, Limpo, Ngo, Roque


2/25

Indemnity

the obligation [or duty] resting on one

person to make good any loss or damageanother has incurred or may incur byacting at his request for his benefit

BARRONS LAW DICTIONARY, 264 (6th ed. 2010)

When applicable:

When there is valid cause of termination, butinvalid procedure

When beyond the 30-day preventivesuspension CES AZUCENA, EVERYONE'S LABOR CODE 335 (2010).


3/25

Requisite for Valid Termination

Just cause

Due process

CES AZUCENA, EVERYONE'S LABOR CODE 332 (2010).


4/25

Wenphil Doctrine:

When the employee is dismissed for avalid reason yet the employer fails tocomply with the proper dismissal

procedure, the dismissal may still bedeemed valid but the employer stands topay indemnity

Extent of indemnity: facts of the case andthe gravity of the omission



5/25

Serrano vs. NLRC

If proper procedure is not observed, theemployee is still dismissed but theemployer shall pay his full backwages

(from the time of his dismissal to thefinality of the courts decision).



6/25

Agabon vs. NLRC

Not observing the proper procedure, theemployer shall pay higher indemnity inform of nominal damages (middle ground)

rather than full backwages.

The amount is not fixed but depends onthe gravity of the employers disregard for

the procedural due process

Includes separation pay if under Articles283 and 284.



7/25

JAKA Food Processing Corp. vs. Pacot, et al.

If the dismissal is based on just cause, theliability of the employer is more lenientthan in the case where the dismissal is

based on the authorized causes underArticle 283.



8/25

Valid Cause, Invalid Procedure

There is still an on going debate on theliability of the employer in failure toobserve procedural due process.



9/25

Preventive Suspension

Imposed where the employees continued

employment poses a serious andimminent threat to the life or property of

the employer or of the co-workers

If it exceed the maximum period of 30days, the employer will be required to pay

the employees pay and benefits, and maybe required to pay indemnity



10/25

Reinstatement

restore to a former state, authority, station from

which one has been removedBARRONS LAW DICTIONARY, 453 (6th ed. 2010)

There is no break in the length of service of theemployee

There is no loss of seniority rights and other

privileges

One of the usual consequences in cases ofillegal dismissal

Reinstatement immediately executoryCES AZUCENA, EVERYONE'S LABOR CODE 344-45 (2010).


11/25

Reinstatement

Payroll reinstatement

Instead of actual reinstatement, employermay opt to only include the employee in the

payment of wages and benefit without havingto actually report for work

Ted Ferrolino, Payroll Reinstatment, available at http://www.laborlaw.usc-

law.org/2009/08/03/payroll-reinstatement/ (last accessed December 6, 2011)


12/25

Reinstatement

Payroll reinstatement

Allowed in cases of

preventive suspension and,

under Article 223 of the Labor Code (LC), wherethe Labor Artbiter ordered reinstatement with theoption of payroll reinstatement

Not allowed in cases of Labor Dispute (Article263 par. g) --- return to work order

Ted Ferrolino, Payroll Reinstatment, available at http://www.laborlaw.usc-

law.org/2009/08/03/payroll-reinstatement/ (last accessed December 6, 2011)


13/25

Reinstatement

When applicable:

In cases of dismissal as punishment deemedto be too harsh

Illegal retrenchment

Requisites for Valid Retrenchment:

substantial losses, imminent loss, reasonably necessary,sufficient and convincing evidence

Instead of reinstatement, separation pay may bepaid (employees decision)

a months pay for every year of service

CES AZUCENA, EVERYONE'S LABOR CODE 336, 340 (2010).


14/25

Reinstatement

When not applicable:

Strained Relations Principle

Instead of reinstatement, separation pay, along

with backwages, would be ordered by the court Applicable in cases where

the employee holds a position imbued with trust and

confidence of the employee, and

the creation of an atmosphere of antipathy andantagonism may be generated that would negatively

affect the employee (as a result of reinstatement)



15/25

Damages

monetary compensation which the law

awards to one who has been injured bythe action of the other; to recompense for

a legal wrongBARRONS LAW DICTIONARY, 135 (6th ed. 2010)

When applicable:

Absence of due process / defective procedure

CES AZUCENA, EVERYONE'S LABOR CODE 326-50 (2010).


16/25

Damages

Labor Arbiter and the NLRC can imposedamages as sanction:

Section 9. Article 217 of the same code, as amended, is hereby further amendedto read as follows:

"Article 217. Jurisdiction of Labor Arbiters and the Commission. - (a) Except asotherwise provided under this Code, the Labor Arbiters shall have the originaland exclusive jurisdiction to hear and decide... the following cases involving allworkers, whether agricultural or non-agricultural:

... (4) Claims for actual, moral, exemplary and other forms ofdamages arising from the employer-employee relations...

AN ACT TO EXTEND PROTECTION TO LABOR, STRENGTHEN THE CONSTITUTIONAL RIGHTS OF WORKERS TO SELF-ORGANIZATION, COLLECTIVE BARGAINING AND PEACEFUL CONCERTED ACTIVITIES, FOSTER INDUSTRIAL PEACE AND

HARMONY, PROMOTE THE PREFERENTIAL USE OF VOLUNTARY MODES OF SETTLING LABOR DISPUTES, ANDREORGANIZE THE NATIONAL LABOR RELATIONS COMMISSION, AMENDING FOR THESE PURPOSES CERTAIN

PROVISIONS OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE

PHILIPPINES, APPROPRIATING FUNDS THEREFORE AND FOR OTHER PURPOSES, art.2 17(1989).


17/25

Damages

Types of Damages in Dismissal Cases

Moral damages include physical suffering, mental anguish, fright, serious

anxiety, besmirched reputation, wounded feelings, moralshock, social humiliation, and similar injury...proximate resultof the defendant's wrongful act for omission. (Article 2217 ofthe Civil Code)

Recoverable in cases of:

Bad faith Oppressive acts against labor

Acts against labor contrary to morals, good customs orpublic policy


(Reaffirmed in the Eastern

Shipping Lines, Inc. Vs. FerrerD. Antonio, G.R. No. 171587)


18/25

Damages

Types of Damages in Dismissal Cases

Exemplary damages

imposed, by way of example or correction for the

public good, in addition to the moral, temperate,liquidated or compensatory damages. (Art. 2229of the Civil Code)

cannot be recovered as a matter of right; the court

will decide whether or not they should beadjudicated. (Art.2233 of the Civil Code)

Recoverable when the dismissal was effected in a

wanton, oppressive or malevolent mannerCES AZUCENA, EVERYONE'S LABOR CODE 348 (2010).


19/25

Attorneys Fees

Recoverable in cases of dismissal involving bad

faith, whimsicality and oppression

Award of attorney's fees when employee is forced tosue. - It is settled that in actions for recovery of wages orwhere an employee was forced to litigate and has

incurred expenses to protect his rights and interests,even if not so claimed, an award of attorney's feesequivalent to ten percent (10%) of the total award islegally and morally justifiable.

Joselito Guianan Chan, Labor Laws of the Philippines, available athttp://www.chanrobles.com/PART3.pdf (last accessed December 6, 2011)


20/25

Financial Assistance

Sometimes referred to as separation pay

Different from the separation pay requiredunder Articles 283 and 284 (authorized

causes).

Based on compassion and social justice



21/25


May be required in the ff. cases:

Valid dismissal with causes not relating to theemployees moral character or serious

misconduct In consideration of the long years of service,

age, and economic status of the employee



22/25


Not applicable in the cases of termination due tojust causes, involving moral turpitude or aquestion on the moral character of the

employee, without prejudice to his other rightsand privileges in the CBA

See Omnibus Rules Implementing the Labor Code,Book VI, Rule I, Section 7

Reaffirmed in Juliet Apacible vs. Multimed Industries,et al., G.R. No. 178903, May 30, 2011



23/25


Computation:

Include basic pay, transportation andemergency living allowances (must be

regular)



24/25


Recent cases that where Financial Assistance wasgranted:

Eastern Shipping Lines, Inc. vs. Ferrer D. Antonio, G.R. No.171587, Oct. 13, 2009

Financial Assistance in lieu of retirement benefits (since thepetitioner did not qualify for the retirement benefits)

Romeo Villaruel vs. Yeo Han Guan, June 1, 2011

Financial assistance in lieu of separation pay (since the petitionerdid not qualify for separation pay)

Juliet Apacible vs. Multimed Industries, et al., G.R. No. 178903,May 30, 2011

Financial assistance not given due to termination with just causes

***cases accessed vis www.lawphil.net


25/25

Sources

PRIMARY AUTHORITIES Codes and Statutes

An Act To Extend Protection To Labor, Strengthen The Constitutional Rights Of Workers To Self-organization, CollectiveBargaining And Peaceful Concerted Activities, Foster Industrial Peace And Harmony, Promote The Preferential Use Of VoluntaryModes Of Settling Labor Disputes, And Reorganize The National Labor Relations Commission, Amending For These PurposesCertain Provisions Of Presidential Decree No. 442, As Amended, Otherwise Known As The Labor Code Of The Philippines,Appropriating Funds Therefore And For Other Purposes, art.2 17(1989).

A Decree Instituting A Labor Code Thereby Revising And Consolidating Labor And Social Laws To Afford Protection To Labor,Promote Employment And Human Resources Development And Insure Industrial Peace Based On Social Justice (1974)[hereinafter Labor Code].

An Act to Ordain And Institute The Civil Code Of The Philippines (1949) [hereinafter Civil Code]. Omnibus Rules Implementing the Labor Code, Book VI, Rule I, Section 7.

Cases Eastern Shipping Lines, Inc. vs. Ferrer D. Antonio, G.R. No. 171587, in Oct. 13, 2009, available at

http://www.lawphil.net/judjuris/juri2009/oct2009/gr_171587_2009.html. Juliet Apacible vs. Multimed Industries, et al., G.R. No. 178903, May 30, 2011, available at

http://www.lawphil.net/judjuris/juri2011/may2011/gr_178903_2011.html. Romeo Villaruel vs. Yeo Han Guan, June 1, 2011, available at

http://www.lawphil.net/judjuris/juri2011/jun2011/gr_169191_2011.html.

SECONDARY AUTHORITIES BOOKS

BARRONS LAW DICTIONARY, 135 (6th ed. 2010) CES AZUCENA, EVERYONE'S LABOR CODE (2010).

Internet Sources Joselito Guianan Chan, Labor Laws of the Philippines, available athttp://www.chanrobles.com/PART3.pdf (last

accessed December 6, 2011) Ted Ferrolino, Payroll Reinstatment, available athttp://www.laborlaw.usc-law.org/2009/08/03/payroll-reinstatement/

(last accessed December 6, 2011)

Date post:	06-Apr-2018
Category:	Documents
Upload:	cal-ngo
View:	220 times
Download:	0 times

Laborel Group 6

Documents