JUST CAUSES

Requisites

Serious Misconduct

Serious
(a) Grave and aggravated character,
(b) In connection with work; and
Shows that Employee is unfit to work for
Employer.

Willful Disobedience

Willful conduct wrongful and perverse

attitude; and
Order violated must be:
(a) Reasonable,
(b) Lawful,
(c) Sufficiently known to Employee,
(d) In connection to the duties.

Gross and Habitual Neglect

Neglect must be both gross and habitual.

Fraud or Willful Breach of Trust

Loss of Confidence
(a) Committed against the Employer or his
representative [direct];
(b) willful since fraud implies wrongful intent;
(c) EE concerned holds a position of trust and
confidence [Mabeza vs. NLRC, 1997];
(d) Act complained of must be work-related.
Additional Guidelines
(a) NOT simulated;
(b) NOT used as a subterfuge;
(c) NOT arbitrarily asserted; and
(d) genuine, NOT a mere afterthought [Vitarich
v. NLRC, 1999; Coca-Cola Bottlers, Phils., Inc.
v. Kapisanan ng Malayang Manggagawa sa
Coca-Cola, 2005]

Commission of a crime or offense against

Employer

Crime against the

(a) Employer,
(b) Immediate member of employers family, or
(c) Employers duly authorized representative;
and
Conviction or prosecution NOT required.

Analogous causes

Due to a voluntary and/or willful act or

omission by Employee [Nadura vs. Benguet
Consolidated, 1962]

AUTHORIZED CAUSES
Requisites
Installation of Labor Saving Devices

(a) 1 month written notice to DOLE and

Employee
(b) separation pay equivalent to one month
pay or one month pay for every year of

service, whichever is higher

Separation pay:
Equivalent to at least 1 month pay or at least 1
month pay for every year of service, whichever
is higher

Redundancy

(a) 1 month written notice to DOLE and

Employee
(b) separation pay equivalent to one month
pay or one month pay for every year of
service, whichever is higher;
(c) Good faith in abolishing the redundant
positions; and
(d) Fair and reasonable criteria in choosing
those affected [Asian Alcohol Corp. v. NLRC,
1999], such as but not limited to: preferred
status [e.g. temporary, casual or regular
Employees]efficiency, or seniority. [Panlilio v.
NLRC, 1997; Golden Thread Knitting
Industries, Inc. v. NLRC, 1999]
Separation pay:
Equivalent to at least 1 month pay or at least 1
month pay for every year of service, whichever
is higher

Retrenchment

Basic Requisites: (NNSGF)

(1) Necessary to prevent or minimize losses
and such losses are proven
(2) 1 month written notice to DOLE and the
Employees
(3) Separation pay equivalent to at least one
month pay or at least 1/2 month pay for every
year of service, whichever is higher;
(4) Exercise is in good faith; and
(5) Fair and reasonable criteria in
ascertaining who will be affected
(a) preferred status (e.g. temporary, casual or
regular Employees)
(b) efficiency,
(c) physical fitness,
(d) age,
(e) financial hardship, or
(f) seniority. [Asian Alcohol Corp. v. NLRC,
1999]
General Standards: (SINS for when
retrenchment is preventive rather than
curative
(a) Losses expected are substantial and not
merely de minimis in extent;
(b) Apprehended losses are reasonably
imminent;
(c) Retrenchment must be reasonably
necessary to prevent the expected losses; and

(d) Expected or actual losses must be proved

by sufficient and convincing evidence. [Lopez
Sugar Corp. vs. Federation of Free Workers,
1990]
Separation pay:
Equivalent to 1 month pay or at least month
pay for every year or service

Closure or Cessation of Operations

(a) Must be done in good faith [bona fide]

(b) 1 month written notice to DOLE and
Employee
(c) Separation pay equivalent to one month
pay or 1/2 month pay for every year of service,
whichever is higher.
Separation pay:
Equivalent to at least 1 month pay or at least 1
month pay for every year of service (if due to
severe financial losses, no separation pay

Disease

(a) Employee is suffering from any disease;

(b) His continued employment is prohibited by
law or is prejudicial to his health as well as as
to the health of his co-employees. [Art. 284]
(c) Separation pay equivalent to at least one
month pay or at least 1/2 month pay for every
year of service, whichever is higher; and
(d) Medical certification by a competent public
health authority that the disease cannot be
cured within 6 mos even with proper medical
treatment. [IRR Book VI Rule I Sec. 8]
Separation pay:
Equivalent to at least 1 month pay or at least
month pay for every year of service,
whichever is higher