2014 Labor Law, Q24

Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day, Lanz shouted invectives against Lee, a poor performing sales associate, calling him, among others, a “brown monkey.” Hurt, Lee decided to file a criminal complaint for grave defamation against Lanz. The prosecutor found probable cause and filed an information in court. Lobinsons decided to terminate Lanz for committing a potential crime and other illegal acts prejudicial to business. Can Lanz be legally terminated by the company on these grounds? (4%)

Quick check

Under Article 297(d) of the Labor Code, when does commission of a crime constitute a valid ground for termination?

What degree of misconduct is required under the Labor Code to justify the termination of an employee?

Does shouting offensive invectives at a co-employee automatically justify immediate dismissal for serious misconduct?

What essential element must be proven to connect an employee's misconduct to a lawful dismissal?

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Who among the following victims falls within the scope of Article 297(d) regarding crimes committed by an employee?

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1. Crime Against Employer
Under Article 297(d) of the Labor Code, commission of a crime or offense by an employee serves as a just cause for termination only when committed against the person of the employer, any immediate member of the employer's family, or the employer's duly authorized representative. Criminal acts committed against co-workers or subordinate employees, such as grave defamation, do not fall within this statutory provision. Therefore, an employer cannot legally terminate an employee under Article 297(d) unless the victim of the crime holds the specified statutory status.

2. Serious Misconduct Standard
To justify dismissal under Article 297(a) of the Labor Code, misconduct must be serious, meaning it is of such grave and aggravated character that it renders the employee unfit to continue working for the employer. While shouting offensive invectives at a subordinate constitutes improper workplace behavior, it does not automatically reach the threshold of serious misconduct. Unless accompanied by physical violence or severe operational disruption, an isolated verbal outburst does not warrant the ultimate penalty of employment termination.

3. Work-Connection Requirement
For misconduct or an offense to constitute a valid cause for dismissal, it must be directly related to the performance of the employee's duties. The improper act must show that the worker has become unfit to perform assigned job functions. Offenses that are personal disputes between co-employees without direct operational prejudice to the enterprise do not satisfy the work-connection requirement necessary to uphold a lawful dismissal.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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