AT A GLANCE:

Willful disobedience or insubordination is a just cause for termination of the employment relationship, wherein the employee knowingly and willingly refuses to obey a lawful and reasonable order which his superior is entitled to give and have obeyed, as it pertains to his duties. However, when minor and not serious, while penalizable, it does not constitute a just cause for dismissal.

What is Willful Disobedience or Insubordination?

Under Article 297 of the Labor Code of the Philippines, an employer may terminate an employment for:

(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;

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While insubordination refers to the refusal to obey some order which a superior is entitled to give and have obeyed. It is a willful or intentional disregard of the lawful and reasonable instructions of the employer. (Department Order No. 147-15)

What Are the Elements of Willful Disobedience?

For willful disobedience to be a valid cause for dismissal, these two elements must concur: 

1. the employee’s assailed conduct must have been willful or intentional, the willfulness being characterized by a wrongful and perverse attitude; and 
2. the order violated must have been reasonable, lawful, made known to the employee, and must pertain to the duties which he had been engaged to discharge. (Systems and Plan Integrator and Development Corp. v. Ballesteros, G.R. No. 217119, April 25, 2022.)

These requirements are likewise reflected under Section 5.2(b), Rule 1-A of the Omnibus Rules Implementing the Labor Code of the Philippines,which lists the following: 

1. There must be disobedience or insubordination;
2. The disobedience or insubordination must be willful or intentional characterized by a wrongful and perverse attitude;
3. The order violated must be reasonable, lawful, and made known to the employee; and
4. The order must pertain to the duties which he has been engaged to discharge.

What Orders May an Employee Be Required to Obey?

There are two possible bases for disobedience: (a) company policies, and (b) day-to-day instructions. In Benguet Electric Cooperative v. Fianza, G.R. No. 158606, March 9, 2004, the Court ruled that company policies ought to be assumed to be reasonable, until properly contested or negotiated:

“To sanction the disregard or disobedience by employees of a reasonable rule or order laid down by management would be disastrous to the discipline and order within the enterprise. It is in the interest of both the employer and the employee to preserve and maintain order and discipline in the work environment. Deliberate disregard of company rules or defiance of management prerogative cannot be countenanced. This is not to say that the employees have no remedy against rules or orders they regard as unjust or illegal. They can object thereto, ask to negotiate thereon, bring proceedings for redress against the employer. But until and unless the rules or orders are declared to be illegal or improper by competent authority, the employees ignore or disobey them at their peril.”

Thus, an employee may be required to comply with reasonable company rules and policies, as well as lawful and reasonable instructions issued in connection with the employee’s duties.

May an Employer Prescribe Rules and Regulations for Its Employees?

Yes. In Soco v. Mercantile Corporation of Davao (G.R. No. L-53364-65, March 16, 1987, the Supreme Court has maintained a stance of protecting management prerogative in its issuance of rules and policies. What should not be overlooked is the prerogative of an employer company to prescribe reasonable rules and regulations necessary or proper for the conduct of its business and to provide certain disciplinary measures in order to implement said rules and to assure that the same would be complied with.

An employer may therefore establish workplace rules and impose appropriate disciplinary measures. Such rules, however, must remain reasonable, lawful, and connected with the employee’s work in order for disobedience thereof to constitute a valid ground for termination.

Does Every Act of Willful Disobedience Justify Dismissal?

No. Although willful disobedience may constitute a just cause for termination, the law requires the violation to fall within serious misconduct or willful disobedience under Article 297(a) of the Labor Code.

In Gold City Integrated Port Services Inc. v. NLRC, G.R. No. 86000, September 21, 1990, the Supreme Court held:

“It does not follow, however, that private respondent Bacalso‘s services were lawfully terminated either under Article 282 (a) of the Labor Code or under the CBA Schedule of penalties. We believe that not every case of insubordination or wilful disobedience by an employee of a lawful work-connected order of the employer or its representative is reasonably penalized with dismissal. For one thing, Article 282 (a) refers to “serious misconduct or wilful disobedience”. There must be reasonable proportionality between, on the one hand, the wilful disobedience by the employee and, on the other hand, the penalty imposed therefor. Examination of the circumstances surrounding private respondent’s assault upon his co-employee shows that no serious or substantial danger had been posed by that fistfight to the well-being of his other co-employees or of the general public doing business with petitioner employer; and neither did such behavior threaten substantial prejudice for the business of his employer.

The Court further held:

Considering that private respondent Bacalso’s unruly temper did not become an effective threat to his co-workers or the safety of the customers dealing with his employer, or to the goodwill of his employer, and considering further that he had been quite candid in admitting that he had been at fault as soon as the investigation began in the company level, we agree with the NLRC that termination of his services was a disproportionately heavy penalty. We believe that suspension without pay for three (3) months would be an adequate penalty for the assault on a co-worker and act of insubordination that private respondent Bacalso actually committed.”

Read also: What Are the Procedural Requirements in Dismissing an Employee Based on Just Causes?

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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