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EMPLOYMENT AS A PROPERTY RIGHT

(The case of Verizon Communications Philippines vs. Lauren Margin, G.R. No. 216599, September 16, 2020)

Photo from Unsplash | Andrea De Santis

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:

A worker’s employment is their property in a constitutional sense, and he/she cannot be deprived thereof without due process and unless the deprivation is commensurate to his/her acts and degree of moral depravity. (Verizon Communications Philippines vs. Lauren Margin, G.R. No. 216599, September 16, 2020)


 

A person’s job is not just a means of earning a living. It is much more; it is a property right which is something that cannot be taken away without due process.

 

Constitutional Safeguards

 

The Philippine Constitution guarantees the security of tenure for all workers. It ensures that employees are protected from unjust dismissal and are given the opportunity to defend themselves. This protection extends to both substantive and procedural aspects of termination.

 

The law says:

 

Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.

 

It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

 

The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.

 

The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. (Section 3, Article XIII, 1987 Constitution)

 

Jurisprudence says:

 

The law and jurisprudence guarantee to every employee security of tenure. This textual and the ensuing jurisprudential commitment to the cause and welfare of the working class proceed from the social justice principles of the Constitution that the Court zealously implements out of its concern for those with less in life. Thus, the Court will not hesitate to strike down as invalid any employer act that attempts to undermine workers’ tenurial security. All these the State undertakes under Article 279 (now Article 293)22 of the Labor Code which bar an employer from terminating the services of an employee, except for just or authorized cause and upon observance of due process.

 

An Employee Cannot be Terminated without Due Process of Law

 

When it comes to terminating an employee, there are two essential aspects of due process: substantive and procedural. Substantive due process means that the dismissal must be based on valid grounds, as provided by law or company regulations. On the other hand, procedural due process requires that the employee be given notice and an opportunity to be heard before any decision is made.

 

In the Supreme Court ruling in the case of Alhambra Industries, Inc. vs. National Labor Relations Commission and Danilo Rupisan (G.R. No. 106771, November 18, 1994):

 

Today’s employment is no longer just an ordinary human activity. For most families the main source of their livelihood, employment has now leveled off with property rights which no one may be deprived of without due process of law.

 

Termination of employment is not anymore a mere cessation or severance of contractual relationship but an economic phenomenon affecting members of the family. This explains why under the broad principles of social justice the dismissal of employees is adequately protected by the laws of the state. Hence, Art. 277, par. (b), of the Labor Code of the Philippines, as amended by Sec. 33, R.A. 6715, provides —

 

Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. The Secretary of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass lay-off.

 

Substantive Due Process

 

Substantive due process means that the dismissal must be for any of the: (1) just causes provided under Article 297 of the Labor Code or the company rules and regulations promulgated by the employer; or (2) authorized causes under Article 298 and 299 thereof. None of these causes exist in the case at bar. (Redentor Agustin vs. Alphaland Corporation, G.R. No. 218282, September 9, 2020)

 

Procedural Due Process

 

Procedural due process means that the employee must be accorded due process required under Article 292(b) of the Labor Code, the elements of which are the twin-notice rule and the employee’s opportunity to be heard and to defend himself. (Ibid.)

 

Employment is more than just a job; it is a property right protected by law. Employers must respect this right and ensure that any termination is done in accordance with due process.

 

Read also: Due Process in Labor Proceedings

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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