2020-21 The Law Pertaining to the State and Its Relationship with Its Citizens, Q14

Upon the owner’s instructions, the restaurant manager served a notice of termination on a cashier who has been employed in that restaurant for more than five years. Effective immediately, the notice was based on the alleged insubordination of the cashier. The owner had ordered the termination immediately after learning from the manager that the cashier was asking whether the restaurant was remitting Social Security System contributions deducted from employees’ salaries. Will an action for illegal dismissal filed by the cashier prosper? Explain briefly.

Quick check

Under Article 297 of the Labor Code, what element is essential for willful disobedience or insubordination to justify dismissal?

Why does an employee's inquiry regarding mandatory Social Security System (SSS) deductions not constitute insubordination?

What notice requirement must an employer observe when dismissing a regular employee for an alleged just cause?

What is the legal consequence when an employer terminates a regular employee effective immediately without substantive and procedural due process?

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Which element must be proven to show that a directive violated by an employee supports a charge of insubordination?

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1. Illegal Dismissal
Under Articles 292 and 297 of the Labor Code, a regular employee enjoys security of tenure and cannot be dismissed without substantive and procedural due process. Substantive due process requires that dismissal be grounded on a just or authorized cause recognized by law. Procedural due process mandates serving twin written notices and granting an opportunity to be heard. Dismissing an employee without proving a valid statutory cause and without observing procedural notice requirements renders the termination illegal, entitling the worker to reinstatement, full backwages, and statutory monetary benefits.

2. Insubordination Requisites
To constitute willful disobedience or insubordination as a just cause for termination under Article 297, two requisites must concur: first, the employee's conduct must be willful or intentional, characterized by a wrongful and perverse attitude; second, the order violated must be reasonable, lawful, made known to the employee, and pertain to the duties for which the worker was engaged. Exercising statutory rights, such as inquiring about mandatory Social Security System remittance deductions, does not constitute insubordination because the employee violates no lawful order nor exhibits any perverse attitude.

3. Procedural Due Process
Procedural due process in just cause dismissals requires strict compliance with the statutory twin-notice rule. The employer must issue a first written notice specifying the particular grounds for termination and giving the employee at least five calendar days to submit a written explanation. After evaluating the employee's defense and conducting a hearing if necessary, the employer must serve a second written notice informing the worker of the final decision. Terminating an employee effective immediately without prior written charges or an opportunity to be heard violates procedural due process.

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