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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
At-will employment is neither recognized nor permitted under Philippine Labor Law. While in cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by Title I, Book 6 of the Labor Code.
At-Will employment is when an employer may terminate employment at any time and without need of any cause or ground. As the term suggests, the employment is at the will or desire of the employer.
While certain countries allow at-will employment, the Philippines follow due process termination. In such a framework, the employee may only be dismissed via just or authorized causes, accompanied by the corresponding two notices. This is in line with the constitutional right to security of tenure by the employees.
Even if at-will employment is stipulated in the employment contract or in the Company Policies, it will be declared invalid or void for being contrary to labor law. Under Contract Law, it is a basic principle that “laws are written into contracts.” Meaning, even if not agreed upon, applicable laws can render certain contractual provisions without any legal effect.
Further, the principle of autonomy in contracts allows parties to enter into terms and conditions that they are willing to agree on provided they are not contrary to law, morals, good customs, or public policy. Thus, any agreement to at-will employment will go against the law on due process termination in Labor Law and thus will result in its invalidity.
On the other hand, contract employment refers to an employment arrangement in which the terms and conditions of work, including duration, duties, and compensation, are defined in a written employment contract.
Article 294 of the Labor Code provides that in cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by Title I, Book 6 of the Labor Code. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.
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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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