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Commission of a Crime as a Just Cause for Termination

Photo from Unsplash | Maxim Hopman

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:

An employer may terminate an employment for the commission of the crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative and other causes analogous to the foregoing. (Article 297[282] of the Labor Code)


Employees are guaranteed that they can only be terminated from service for a just and valid cause and when supported by substantial evidence after due process. Similarly, Labor Laws and the Constitution recognize the right of the employers to regulate, according to their own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place, and manner of work, work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and recall of employees. (Telus International Philippines, Inc. vs. Harvey De Guzman, G.R. No. 202676, December 4, 2019)

THE LAW SAYS:

  1. Labor Code

Termination by Employer. – An employer may terminate an employment for any of the following causes:

xxx

(d) Commission of the crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative.

(e) Other causes analogous to the foregoing. (Article 297[282] of the Labor Code)

It is essential to emphasize that not every crime or offense can serve as grounds for termination. To be precise, termination must be justified by a crime or offense that directly involves physical harm or injury to an individual, as explicitly specified.

Nonetheless, this does not exclude the possibility of other crimes or offenses being considered as just cause for termination. Other crimes can be regarded as analogous reasons, akin to the commission of a crime, severe misconduct, fraud, or any other valid grounds for termination.

  1. DOLE Department Order

Standards on Just Causes. An employer may terminate an employee for any of the following grounds:

xxx

(f) Commission of a Crime or Offense – To be a valid ground for termination, the following must be present:

  1. There must be an act or omission punishable/prohibited by law; and,
  2. The act or omission was committed by the employee against the person of the employer, any immediate member of his/her family, or his/her duly authorized representative. (DOLE Department Order No. 147-15, series of 2015)

         Requisite No. 1: There must be an act or omission punishable/prohibited by law.

The act or omission in question must relate to a crime or offense that is subject to punishment under either the Revised Penal Code or Special Penal Laws.

         Requisite No. 2: The act or omission was committed by the employee against the person of the employer, any immediate member of his/her family, or his/her duly authorized representative.

The act or omission must be categorized as a crime against individuals as specified in the Revised Penal Code. These include, among others, offenses like Parricide, Murder, Homicide, Physical Injuries, Serious Physical Injuries, Less Serious Physical Injuries, Infanticide, and Mutilation.

 

JURISPRUDENCE SAYS:

Conviction for the crime involved is not required.

  1. Indeed, an employer may dismiss an employee for breach of trust in the handling of funds inspite of his having been acquitted in the course of a criminal prosecution. Conviction for a crime involving the loss of such funds is not necessary before the employee may be dismissed. (Warlito Piedad vs. Lanao Del Norte Electric Cooperative, Inc., G.R. No. 73735, August 31, 1987)
  1. The employer may validly dismiss for loss of trust and confidence an employee who commits an act of fraud prejudicial to the interest of the employer. Neither a criminal prosecution nor a conviction beyond reasonable doubt for the crime is a requisite for the validity of the dismissal. (Lolita S. Concepcion vs. Minex Import Corporation, G.R. No. 153569, January 24, 2012)
  1. Neither is SLMC’s non- filing of the appropriate criminal charges relevant to this analysis. An employee’s guilt or innocence in a criminal case is not determinative of the existence of a just or authorized cause for his or her dismissal. It is well-settled that conviction in a criminal case is not necessary to find just cause for termination of employment, as in this case. Criminal and labor cases involving an employee arising from the same infraction are separate and distinct proceedings which should not arrest any judgment from one to the other. (St. Luke’s Medical Center, Inc. vs. Maria Theresa Sanchez, G.R. No. 212054, March 11, 2015)

 

Read also: “Anything Under the Sun” Ground for Termination of Employment

 

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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