Illegal Dismissal

Summary

▪ Illegal dismissal is the termination or separation from employment without just cause or authorized cause.

▪ Illegal dismissal may result in reinstatement, full backwages, moral damages, exemplary damages, nominal damages, and attorney’s fees.

1. Concept

“Illegal dismissal” – refers to a termination or separation from employment without just cause or authorized cause.

“Constructive dismissal” – refers t o

A quitting because continued employment is rendered impossible, unreasonable or unlikely; as, an offer involving a demotion in rank and a diminution in pay.” (Philippine Japan Active Carbon Corporation v. Quiñanola, G.R. No. 83239, 08 March 1989)

2. Illegal dismissal

Under the principle on security of tenure, no employee may be dismissed without just cause or authorized cause and after observance of due process. (See Article 294, P.D. 442, Labor Code)

In several previous labor jurisprudence, illegal dismissal is the result of violating the security of tenure. Meaning, if a termination or separation of employment did not have either just cause nor authorized cause, as well as the corresponding due process was not observed, it would result in a finding of illegal dismissal.

However, in the landmark case of Agabon v. NLRC (2004), the dismissal of employees for just causes or authorized causes, even if without procedural due process, will be upheld subject to the employer being penalized with nominal damages.

Otherwise stated, an illeg...

 



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