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MMODULE I:ODULE I:INTRODUCTION TOINTRODUCTION TO

PHILIPPINE LABORPHILIPPINE LABOR

LAWLAW(DUE PROCESS)(DUE PROCESS)

Section 1. No person shall be deprived of life,liberty, or property without due process of law,

nor shall any person be denied the equalprotection of the laws.

(1987 Philippine Constitution, Article III Bill of Rights)

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 Topics To Be Discussed

Definition of Due Process

Types of Due Process

Procedural Due Process

Substantive Due Process

Security of Tenure

Effects of Termination

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Due Process

Due process of law simply means givingopportunity to be heard before judgment is rendered.

Due process of law is a law which hearsbefore it condemns, which proceedsupon inquiry and renders judgmentonly after trial.

( G.R. No. 80587 February 8, 1989 WENPHIL CORPORATION vs. NATIONAL

LABOR RELATIONS COMMISSION AND ROBERTO MALLARE)

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 Two Types of DueProcess

SubstantiSubstanti

veveProcedurProcedur

alal

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Procedural Due Process

Requires that he can only be dismissed after he hasgiven a reasonable opportunity to be heard.

“Reasonable opportunity" under the Omnibus Rules

means every kind of assistance that managementmust accord to the employees to enable them toprepare adequately for their defense.

This shall include the following;

○ Written Notice (Notice to Explain)○ Administrative Hearing○ Notice of Dismissal or Termination

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Substantive Due Process

Mandates that an employee can only be dismissed based on just and authorized causes.

JUST CAUSES are the following;

○ Serious misconduct or willful disobedience by theemployee of the lawful orders of his employer or representative in connection with his work;

○ Gross and habitual neglect by the employee of hisduties;

○ Fraud or willful breach by the employee of the trust

reposed in him by his employer or duly authorizedrepresentative;

○ Commission of a crime or offense by the employeeagainst the person of his employer or any immediatemember of his family or his duly authorizedrepresentatives; and

○ Other causes analogous to the foregoing.

○

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Substantive Due Process

Here are the example of ANALOGOUSCAUSES

○ Abandonment

○ Gross inefficiency○ Disloyalty/conflict of interest○ Dishonesty

An employee who is terminated fromemployment for a just cause is not entitled to payment of separationbenefits.

○

○

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Substantive Due Process

AUTHORIZED CAUSES are thefollowing;

○ Installation of labor-saving devices○ Redundancy

○ Retrenchment to prevent losses

○ Closure or cessation of operations

○ Disease○

○

○

○

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Security of Tenure

Every employee shall be assuredsecurity of tenure. No employee can bedismissed from work except for a just

or authorized cause and only after dueprocess. ( http://www.blr.dole.gov.ph/  opened Feb. 11, 2009.)

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Effects of TerminationJUST CAUSE MATRIXJUST CAUSE MATRIX

With Due ProcessWith Due Process Without Due ProcessWithout Due Process

With Just CauseWith Just Cause Dismissal LegalDismissal Legal Dismissal legal, but employee entitled to:Dismissal legal, but employee entitled to:

1. Employer must pay indemnity1. Employer must pay indemnity2. Full Backwages (Serrano vs. NLRC)2. Full Backwages (Serrano vs. NLRC)

Without Just CauseWithout Just Cause Dismissal is Illegal andDismissal is Illegal and

employee entitled to theemployee entitled to thefollowing;following;

The Dismissal is PERFECTED and theThe Dismissal is PERFECTED and the

employee is entitled to;employee is entitled to;1. Separation Pay in lieu of 1. Separation Pay in lieu of reinstatement reinstatement 

1. Reinstatement 1. Reinstatement 

2. Backwages2. Backwages 2. Separation pay in lieu of reinstatement 2. Separation pay in lieu of reinstatement 

3. Damages and attorney’s fees if 3. Damages and attorney’s fees if in bad faithin bad faith

3. Backwages3. Backwages

4. Reinstatement 4. Reinstatement  4. Damages and attorney’s fees if in bad faith4. Damages and attorney’s fees if in bad faith

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Effects of Termination

AUTHORIZED CAUSES MATRIXAUTHORIZED CAUSES MATRIX

With Due ProcessWith Due Process Without Due ProcessWithout Due Process

WithWith

AuthorizedAuthorized

CauseCause

Legal Dismissal but employeeLegal Dismissal but employeeis entitled to:is entitled to:

Dismissal legal, but employeeDismissal legal, but employee

entitled to:entitled to:

1. Separation Pay1. Separation Pay 1. Separation Pay1. Separation Pay

2. Full Backwages (Serrano vs. NLRC)2. Full Backwages (Serrano vs. NLRC)

WithoutWithout

AuthorizedAuthorized

CauseCause

Illegal Dismissal, but employeeIllegal Dismissal, but employee

entitled to:entitled to:Illegal Dismissal, but employeeIllegal Dismissal, but employee

entitled to:entitled to:

ReinstatementReinstatement ReinstatementReinstatement

Separation pay in lieu of Separation pay in lieu of 

reinstatementreinstatement

Separation pay in lieu of reinstatementSeparation pay in lieu of reinstatement

BackwagesBackwages BackwagesBackwages

Damages and attorney’s fees if inDamages and attorney’s fees if in

 bad faith bad faithDamages and attorney’s fees if in bad faithDamages and attorney’s fees if in bad faith

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DISCIPLINARY DUE PROCESS FLOW

Immedia

te

Superi

or

Hu

manRe

Employee

 Yes

No

Provides reason/s andexplanation as to why the

Incident Report wasdeemed invalid

Accepts WrittenExplanation and prepares

for the resolution of thecase

Validates Incident Report

END

Prepares Incident Report and NTE, issues the

same to the employee

START

CASE DISMISSED

Conducts AdministrativeHearing together withProgram Supervisor 

IR valid?  Major or Terminal Offense? 

ProvidesRecommendations to HRon the deliberation of the

case

 Yes

No

Finalizes decision

Files all documents

Serves Decision Notice to the employee

CASE CLOSED

Provides WrittenExplanation to ProgramHR within 48-120 hours

(depending onclassification of offense)

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References

http://www.blr.dole.gov.ph/

Azucena, C., The Labor Code withcomments and cases. Vol 11, 6th Ed.

2007