Knowing your rights: Philippine labor laws
I have worked for my present company for several years. My position has given me the opportunity to oversee the work of several employees. And in all those years, I have witnessed my share of new hires, experienced hires, resignees, and applicants.
Because of my work and my position, I have learned a lot about the Philippine labor laws. Add to that, my brother is in the human relations industry and has even been the head of labor relations for a multinational company.
Mr T is a manager at a local company in the metro. He has just been hired and is serving the first month of his probationary term. Mr T is a normal decent man - a bit shy at times, but at most serious. He has an exceptional CV that got him the position he now enjoys. Now all this may sound familiar to you - or to those who have been once a new employee. (If you must know, the probationary period is 6 months. After which, you become a regular employee unless otherwise notified.) Mr T then is allowed 6 months to show what he can do before he is evaluated if he will be regularized or not. After the first month of his employment, he was called in by the more senior manager in the company and told that the boss did not like him and he did not have the kind of rapport with the other employees that the boss expected. As such, the company was letting him go. A few seconds later he was escorted out the door.
I have witnessed similar situations as the one of Mr T that occurred at our client’s company. Our client is foreign. Mr T is not. He is a Filipino working in the Philippines.
Now what is wrong with that picture?
In my experience with human relations processes, it is a difficult process to terminate or dismiss an employee in the Philippines. Our laws ensure that employees are protected. Our laws ensure that employers are protected. There are defined processes when termination of employment is being implemented. Even when the employee has failed the set standards of the company, it will still be a long process to get that resource dismissed. Countless documentation of failure needs to be done, proof that the employee has failed or has violated company processes or policies. Evidence needs to be produced. Hearsay is unacceptable. In short - employers here in the Philippines cannot terminate anyone without just cause. Employers cannot just call you up and tell you not to come to work because you have been fired. Employers cannot escort you out the door on the same day they tell you that the boss did not like the way you bonded with the staff.
Due process dictates that “no person shall be deprived of life, liberty or property without due process of law”.
Here is what I found out on the different scenarios where termination of employment has been applied and whether it is legal or not.
- The dismissal is for a just cause under Article 282, for an authorized cause under Article 283, or for health reasons under Article 284, and due process was observed – The dismissal is LEGAL.
- The dismissal is without just or authorized cause but due process was observed – The dismissal is ILLEGAL.
- The dismissal is without just or authorized cause and there was no due process – The dismissal is ILLEGAL.
- The dismissal is for just or authorized cause but due process was not observed – The dismissal is LEGAL but the employer is liable to pay indemnity in the form of nominal damages. The amount of nominal damages vary from case to case.
- The dismissal is for a cause which later on is proven to be non-existent – The dismissal is NOT EFFECTIVE therefore the employee should be reinstated.
- The dismissal is not supported by evidence – NO DISMISSAL TO SPEAK OF; SO EMPLOYEE SHOULD BE REINSTATED.
**For details on just causes you can get them here.
What category do you gather Mr T belongs to? Its not hard to tell… really. What do you think?
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sIR, i was a store manager before under probationary period from Aug.23,2007-February 22,2008. I was terminated immediately last Jan.11,2008.Termination letter was given to me Jan,10,2008 at around 4:00-5:00 in the afternoon.I did not go to work the next day.No evaluation was done,no performance appraisal was given and discussed to me before it happened.Not even a single idea that they will terminate me.Termination letter was hand carried by my senior manager.Reason is low sales.
sir, can I file a complain or charges against them?should an employee be informed first before the termination for how many days maybe?is it ok for a company not to give performance appraisal to me?was there due process lieu of the tremination?pls i really need an answer.
Just started working with a company. They’re new and still starting to develop their rules and regulation. This last pay day “15th”, I’ve heard that they’ve deducted 2 days pay from my colleagues’ salary for failing to inform the company that she won’t be coming to work one day.
This rule was written in the contract we’ve signed. We need to sign the contract, if not, then might as well find another job.
Is this policy legal?
drew - Without having the whole story I cannot say whether or not it is legal. Also I do not have a law degree to give an accurate assessment of your situation. However I feel that everyone should know what they are signing into (i.e. understanding the contract) before actually inking a contract with your signature.
currently im a sales manager in a company and iv been in the company for more than 7 years now. i was promoted to sales manager last 2003 and signed appointment papers with the company. the appointment papers included compensation, benefits, duties and responsibilities, and car plan. It was stated that after 5 consecutive years of service the car will be transfered to and owned by the sales manager. But unfortunately i was informed that the mgt change the policy from 5 to 6 years… i was not aware of any changes even my co-employees, I was told that its the owner’s decision to change the policy if they wanted to and the papers signed by the company and me will be nullified… Is this proper? legal? Do i have the right to complain? Thank you.
Art. 281. Probationary employment. Probationary employment shall not exceed six
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.
Source: Labor Code of the Philippines (http://www.dole.gov.ph/laborcode/book6.asp)
tj - Thanks for the reference.
if i was fired due to absence last Friday can i still get the days i had work today which is the salary date? i worked on the days for the cut off period but the company said i dont know when you can get the salary? we didnt sign a contract and we really dont know if the company is legal
Hi
I would like to know if the company has the right to not give our salary if they’ve decided to have us on a “floating stage” that means, the company was very promising at first that if we did not meet the targets expected from us in one department, they will be looking for another department that would somehow suit our profile (we still go to the office to login and logout). I have been in this “floating stage” for about 2 months now, but I’m still paid though all I do is login and logout on time. But the company has decided to not pay us in the following months to come. Please advise. I’m really not familiar with my rights as an employer.
iv got fired from work this month.. do i have the right to get my seperation fee or backpay or somethin even i just worked for 9 months ??
and the main reason i’ve got termenated was not connected to my work co’z my boss wants me to leave my former girlfriend.. i think thats not fair..what should i do? i need your comments and sugestions..
All - I know I wrote about employment in the Philippines and the conflicts that employees have. However, I am not an expert nor a lawyer and do not have the right to tell you about what you should or should not do. All I can recommend is that if you feel deprived then dont hesitate and go immediately to the Department of Labor and file your complaint. That’s what most people I know do in these situations.
It’s just so sad that a lot of our laborers are not aware that they cannot get fired without due process. I know of a certain company that fires employees on the spot because the owner got upset. The owner even yelled “You’re fired!” in front of everyone, and left thereafter. Unfortunately, the aggrieved party did not go to DOLE, because she did not know that it was illegal to do that.
Also, there was a time when employees of a company would just get escorted out the door with their things in tow. Unfortunately, those employees who were unjustly dismissed did not go to DOLE.
I have a concern to raise and I need an advise. I work in a call center owned a by a Filipino with Australian Client. Ive been with the company for about a month now and as I could see how the system goes here, everything seems to be wrong. I wanna know my rights and so I could dispute all the unjustifiable charges given to all the employees. To start with, I was on 7am-4pm schedule and as a policy we have to notify our direct Team Leader in case we need to be absent or late. Oct 13, 2008, I texted my Team leader as early as 4AM that I will be late due to allergic reaction, I dint get response till I was already on my way to work at 7:30 AM saying that the Australian Clients would send everyone who came in late without prior notice. And so I was sent home, the next day I was given a citation form for No Call No Show as my Team Leader claims that she did not receive my text. First of all it wasnt my fault if she did not receive my text so I disputed the charges providing a copy of a sent message as a proof. The sanction was then voided however they did not consider the absence as paid. Then again it was not my intention not to report to work as I was illegally suspended. Although I am not too knowledgeable about the labor law but in my understanding if the company unjustifiably suspended an employee, they then should pay for the damages equivalent to how many days they put an employee on suspension.
Can anyone help me in this situation as I want to know what my rights are. Thanks.
Good read and very timely as I’m seriously rallying for employees to know their rights