When is a dismissal legal? (security of tenure)

Answer

Under Article 294 of the Labor Code (formerly Article 279), a regular employee enjoys security of tenure and may be dismissed only for a just cause or an authorized cause, and only with due process. Just causes (Article 297) arise from the employee's own fault — serious misconduct, wilful disobedience, gross and habitual neglect, fraud or breach of trust, or analogous causes.

Authorized causes (Articles 298 and 299) are business or health grounds and carry separation pay. A dismissal that lacks a valid cause or fails the two-notice due-process requirement is illegal, and an illegally dismissed employee is entitled to reinstatement and full backwages.

Sources & further reading

• Labor Code Art. 294 — security of tenure
• Labor Code Art. 297 — just causes
• Labor Code Art. 298 — authorized causes
• Full report: 13th month pay & final pay
• Labor Cases in the Philippines

Cases on this topic

• Alliance of Government Workers v. Minister of Labor and Employment
• Bani Rural Bank v. De Guzman
• Boie-Takeda Chemicals, Inc. v. De la Serna
• Brokenshire Memorial Hospital v. NLRC
• Central Azucarera de Tarlac v. CAT Labor Union-NLU
• Dario Nacar v. Gallery Frames
• Davao Fruits Corporation v. Associated Labor Unions
• Dentech Manufacturing Corporation v. NLRC

Related questions

• What is 13th month pay, and who is entitled to it?
• How is 13th month pay computed?
• Is 13th month pay taxable in the Philippines?
• What is separation pay, and how is it computed?