Security of Tenure and Security of Tenure and Kinds of EmploymentKinds of Employment

Prepared by: Ruth P. MocorroLegal Aspects of Management

Security of TenureSecurity of Tenure

Article 279. Security of tenure.

In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

Security of TenureSecurity of Tenure It is one of the Basic Rights of workers

(BWC-DOLE) Every employee shall be assured security of

tenure. The right NOT TO BE REMOVED from work

except for a just or authorized cause, and only after due process.

Security of TenureSecurity of Tenure

Excerpt from Sec. 3 Art. XIII of the 1987 Philippine Constitution.

“The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full

employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization,

collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane

conditions of work, and a living wage.”

Security of TenureSecurity of Tenure

JUST CAUSE(any wrongdoing committed by an

employee)

•serious misconduct•willful disobedience of employers' lawful orders connected with work•gross and habitual neglect of duty•fraud or willful breach of trust•commission of crime or offense against the employer, employer's family member/s or representative•other analogous case

AUTHORIZED CAUSE(an economic circumstance not due to

the employee's fault)

•the introduction of labor-saving devices•redundancy•retrenchment to prevent losses•closure or cessation of business

DUE PROCESS in cases of just cause involves:

• notice to employee of intent to dismiss and grounds for dismissal• opportunity for employee to explain his or her side• notice of decision to dismiss

Kinds of EmploymentKinds of Employment

Article 280. Regular and casual employment.

The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.

Kinds of EmploymentKinds of Employment

An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

Kinds of EmploymentKinds of Employment

Article 281. Probationary employment.

Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee.

Sample CaseSample Case

[G.R. NO. 177937. 19 JANUARY 2011]

ROBINSONS GALLERIA/ ROBINSONS SUPERMARKET CORPORATION AND/OR JESS MANUEL,Petitioner,

VS.

IRENE R. RANCHEZ,Respondent.

Sample Case Sample Case [G.R. NO. 177937. 19 JANUARY 2011][G.R. NO. 177937. 19 JANUARY 2011]

THE FACTS:•Sanchez was a probationary employee of Robinsons Galleria/Robinsons Supermarket Corp for a period of five (5) months, or from Oct 15, 1997 to Mar 14, 1998. •She underwent 6 weeks of training as cashier before she was hired last Oct 15, 1997.•She reported loss of Php20,000 to management. Management ordered that Sanchez be strip-searched but yielded nothing.•Sanchez acknowledged her responsibility and requested that she be allowed to settle and pay the lost amount. However, petitioner Manuel did not heed her request and instead reported the matter to the police.•Sanchez was jailed for two weeks and charged for qualified theft. •On Nov 25, 1997, Sanchez filed a case for illegal dismissal and damages.•Petitioners sent to respondent by mail a notice of termination and/or notice of expiration of probationary employment dated March 9, 1998.•Labor arbiter dismissed complaint but ordered reinstatement. NLRC ruled that there was constructive dismissal and ordered reinstatement and backwages. CA affirmed but ruled that separation pay would be paid in lieu of reinstatement.

Sample CaseSample Case[G.R. NO. 177937. 19 JANUARY 2011][G.R. NO. 177937. 19 JANUARY 2011]

THE ISSUE:•Whether there was illegal dismissal.

THE RULING:•Yes, Sanchez was not afforded due process. As probationary employee, she could be dismissed for just cause, authorized cause or for failure to meet the standards set. •The due process requirements under the Labor Code are mandatory and may not be supplanted by police investigation or court proceedings. Thus, employers are mandated to conduct their own separate investigation, and to accord the employee every opportunity to defend himself.•Respondent was constructively dismissed by petitioner Supermarket effective October 30, 1997. It was unreasonable for petitioners to charge her with abandonment for not reporting for work upon her release in jail.•As an illegally or constructively dismissed employee, respondent is entitled to: (1) either reinstatement, if viable, or separation pay, if reinstatement is no longer viable; and (2) backwages.THE DECISION:•That petitioners were ordered to pay respondent Irene R. Ranchez separation pay equivalent to one (1) month pay and backwages from October 30, 1997 to March 14, 1998.

ReferencesReferences• http://www.dole.gov.ph/labor_codes/view/7• http://www.bwc.dole.gov.ph/FAQ/ViewDetails.aspx?id=2• http://www.chanrobles.com/republicactno6656.htm#.VbzC9_mqqkq• http://sc.judiciary.gov.ph/jurisprudence/2011/january2011/177937.htm• http://sc.judiciary.gov.ph/jurisprudence/2007/july2007/164532.htm• http://jabbulao.com/2011/02/13/legal-note-0029-illegal-dismissal-of-a-

probationary-employee-how-is-backwages-computed-and-more-issues/