What happens when an employee is terminated without complying with the requirements of substantive due process?
If the termination is not based on just or authorized cause as provided by law, the employee is considered illegally dismissed.’
What are the reliefs available to an employee upon finding that he/she was illegally dismissed?
A: Under Article 279 of the Labor Code, an illegally dismissed employee is entitled to the following:
1) Reinstatement without loss of seniority rights and other privileges, or separation pay if reinstatement is not viable.
2) Full backwages, inclusive of allowances and other benefits.
3) Moral and exemplary damages, where warranted.
What is reinstatement?
Reinstatement refers to the restoration to a state from which the employee has been removed or separated.’ Reinstatement would either be actual reinstatement or payroll reinstatement. ‘”
What is actual reinstatement?
Actual reinstatement refers to a restoration to a state from which one has been removed or separated as is the case when an employee is admitted back to work.
What is payroll reinstatement?
Payroll reinstatement refers to the case when an employee merely reinstated back into the payroll.
It is a means by which an employee is paid his or her wages and other benefits without allowing or requiring that they physically report back to work.
What is the “No Refund Doctrine”?
The “No Refund Doctrine” states that if an employee has been reinstated during the appeal period pursuant to an order of reinstatement, and that order is subsequently reversed with finality, the employee is not required to reimburse the salaries or wages received during the period of reinstatement. This principle applies particularly when the employee has rendered actual services during the reinstatement period. Even if the reversal of the reinstatement order nullifies the basis for continued employment, the employee is considered entitled to the salaries already paid, as they were earned in good faith and in compliance with the earlier reinstatement order
When can reinstatement not be made
When the continued relationship between the employer and employee is no longer viable due to strained relations or antagonism (“Doctrine of Strained Relations”);
2) When reinstatement proves impossible, impracticable, not feasible or unwarranted for various reasons and thus is hardly in the best interest of the parties;
3) When the employee decides not to be reinstated;
4) When reinstatement is rendered moot and academic; or
5) When further delay in the execution of the decision to the prejudice of the private respondent is sought to be prevented
When does the “Doctrine of Strained Relations” apply?
The Doctrine of Strained Relations applies when reinstatement would only exacerbate the tension and strained relations between the parties, or where the relationship between the employer and employee has been unduly strained by reason of their irreconcilable differences, particularly where the illegally dismissed employee held a managerial or key position in the company. In such cases, it would be more prudent to order payment of separation pay instead of reinstatement.
What are included in backwages?
1) Salaries withheld at the rate during dismissal.
2) Allowances and regular benefits.
3) Salary increases due during employment had the employee
not been dismissed. 55
When is the payment of separation pay applicable?
A: Separation pay is applicable when:
1) Reinstatement is no longer viable due to strained relations.
169
2) The employment contract or company policies provide for it.
What is the “Double Indemnity Rule”?
Employers who refuse or fail to pay the minimum wage prescribed by law shall be required to pay an amount equal to double the unpaid benefits owing to the employees.’
What are the cases falling under the jurisdiction of Labor Arbiters?
1 Unfair labor practice (ULP) cases;
2 Termination disputes (i.e., illegal dismissal cases);
3 Cases involving wages, rates of pay, hours of work, and other terms and conditions of employment, provided they are accompanied by a claim for reinstatement;
4 Claims for actual, moral, exemplary and other forms of damages arising from employer-employee relations;
5 Cases arising from any violation of Article 279 of the Labor Code, including questions involving the legality of strikes and lockouts;
6 Claims exceeding Five Thousand Pesos (P5,000.00), arising from employer-employee relations (except claims for
7 Employees’ Compensation, Social Security, Medicare/ PhilHealth, and maternity benefits), whether or not accompanied by a claim for reinstatement;
8 Wage distortion disputes in unorganized establishments not voluntarily settled by the parties pursuant to Republic Act No. 6727;177
9 Enforcement of compromise agreements when there is noncompliance by any of the parties pursuant to Article 227 of the Labor Code, as amended; 178
10 Money claims arising out of employer-employee relationship or by virtue of any law or contract, involving Filipino workers for overseas employment, including claims for actual, moral, exemplary and other forms of damages; 179
11 Contested cases under the exception clause of Article 128(b) of the Labor Code;’’ and
12 11) Other cases as may be provided by law.’!
Distinguish between the jurisdiction of the Labor Arbiter and the jurisdiction of the Regional Director.
1 Money claims cases. Labor Arbiters have jurisdiction over money claims arising from employer-employee relations in an amount exceeding P5,000 regardless of whether there is a claim for reinstatement. On the other hand, the Regional Director has jurisdiction over money claims arising from employer-employee relations in an amount not exceeding P5,000 per claimant, provided there is no claim for reinstatement.
2 Inspection of establishment cases. As duly authorized representatives of the DOLE Secretary, Regional Directors may exercise visitorial and enforcement powers in inspection of establishment cases, regardless of whether the total amount of claims per employee exceeds P5,000. The following requisites must concur:
a The employer-employee relationship should still exist;
b The findings in question were made in the course of inspection by labor inspectors; and
c The employees have not initiated any claim or complaint with the DOLE Regional Director under Article 129, or the Labor Arbiter under Article 217.
However, the Labor Arbiters have jurisdiction over contested cases involving inspection of establishments. The following elements must concur:
a That the employer contests the findings of the labor regulations officer and raises issues thereon;
b That in order to resolve such issues, there is a need to examine evidentiary matters; and
c That such matters are not verifiable in the normal course of inspection.
What are the requisites to perfect an appeal with the NLRC?
The appeal must be filed within the reglementary period;
The appeal must be verified by the appellant himself/herself;
3he appeal must be in the form of a memorandum of appeal which shall state:
The grounds relied upon and the arguments in support thereof,
a The relief prayed for, and
b A statement of the date the appellant received the appealed decision, award or order;
It must be filed in three (3) legibly typewritten or printed copies;
It must be accompanied by:
a Proof of payment of the required appeal fee and legal research fee;
b Posting of a cash or surety bond equivalent in amount to the monetary award, exclusive of damages and attorney’s fees; and
c Proof of service upon the other parties.
What is the effect of a perfected appeal with the NLRC?
The perfection of an appeal shall stay the execution of the decision of the Labor Arbiter except the execution for reinstatement pending appeal.
What are the cases falling under the original jurisdiction of the NLRC?
A: The NLRC has original jurisdiction over the following cases:
1) Injunction in ordinary labor disputes;
2) Injunction in strikes or lockouts, and
3) Certified cases for compulsory arbitration
What cases fall under the exclusive appellate jurisdiction of the NLRC?
A: The NLRC has exclusive appellate jurisdiction over the following
cases:
1) All cases decided by the Labor Arbiters including contempt
cases; and
2) Cases decided by the DOLE Regional Directors or his duly authorized Hearing Officers under Article 129.
What cases fall under the jurisdiction of the Regional Director?
The Regional Director has jurisdiction over the following cases:
1) Labor standards enforcement cases under Article 128 of the
Labor Code;
2) Small money claims from labor standards violations not exceeding P5,000 and not accompanied with a claim for reinstatement under Article 129;
3) Occupational safety and health standards violations;
4) Union registration and cancellations;
5) Complaints against private recruitment and placement agencies (PRPAs) for local employment; and
6) Cases submitted to voluntary arbitration in their capacity as Ex
Officio Voluntary Arbiters.
What cases fall under the original and exclusive jurisdiction of the Voluntary Arbitrator or a Panel of Voluntary Arbitrators?
A: A Voluntary Arbitrator or Panel of Voluntary Arbitrators has original and exclusive jurisdiction to hear and decide all unresolved grievances:
1) Arising from the interpretation or implementation of the CBA;
and
2) Arising from the interpretation or enforcement of company
personnel policies
Do gross violations of the CBA fall under the jurisdiction of the Voluntary Arbitrator?
No. Gross violations of the CBA, meaning flagrant and/or malicious refusal to comply with the economic provisions of such agreement, are treated as unfair labor practice. Hence, they fall under the jurisdiction of the Labor Arbiter and not the Voluntary Arbitrator.”
What is the prescriptive period of money claims arising from employer-employee relations?
Three (3) years from the time the cause of action accrued.
In what instances may the three-year prescriptive period be interrupted?
The prescriptive period of money claims under Article 291 of the Labor Code is interrupted by: (1) the filing of an action; (2) a written extrajudicial demand by the creditor; and (3) a _ written acknowledgment of the debt by the debtor
Prescriptive period for Illegal dismissal
Illegal dismissal shall be assailed within four (4) years from complete severance of employer-employee relationship, or date of salary/positional downgrade;
Prescriptive period for Unfair labor practices
Unfair labor practice shall be brought by complaint under the Labor Code not later than one (1) year from date of commission.” The criminal aspect shall be prosecuted within three (3) years from date of finality of the ULP judgment.
