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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 employee’s removal for just or authorized cause but without complying with the proper procedure, on the other hand, does not invalidate the dismissal. (Distribution & Control Products, Inc. vs. Jeffrey Santos, G.R. No. 212616, July 10, 2017)
- The law and jurisprudence allow the award of nominal damages in favor of an employee in a case where a valid cause for dismissal exists but the employer fails to observe due process in dismissing the employee. (Libcap Marketing Corp. vs. Lanny Jean Baquial, G.R. No. 192011, June 30, 2014)
Invalid vs. Valid but Defective Dismissal
If an employee is dismissed without a valid cause, the dismissal is invalid, and the employee is entitled to reinstatement and back pay. However, if the dismissal is for a valid cause but proper procedure is not followed, the dismissal remains valid, but the employer may be required to pay nominal damages to the employee.
Jurisprudence says:
In determining whether an employee’s dismissal had been legal, the inquiry focuses on whether the dismissal violated his right to substantial and procedural due process. An employee’s right not to be dismissed without just or authorized cause as provided by law, is covered by his right to substantial due process. Compliance with procedure provided in the Labor Code, on the other hand, constitutes the procedural due process right of an employee.
The violation of either the substantial due process right or the procedural due process right of an employee produces different results. Termination without a just or authorized cause renders the dismissal invalid, and entitles the employee to reinstatement without loss of seniority rights and other privileges and full backwages, inclusive of allowances, and other benefits or their monetary equivalent computed from the time the compensation was not paid up to the time of actual reinstatement.
An employee’s removal for just or authorized cause but without complying with the proper procedure, on the other hand, does not invalidate the dismissal. It obligates the erring employer to pay nominal damages to the employee, as penalty for not complying with the procedural requirements of due process.
Thus, two separate inquiries must be made in resolving illegal dismissal cases: first, whether the dismissal had been made in accordance with the procedure set in the Labor Code; and second, whether the dismissal had been for just or authorized cause. (Distribution & Control Products, Inc. vs. Jeffrey Santos, G.R. No. 212616, July 10, 2017)
The Role of Nominal Damages
Nominal damages are symbolic payments awarded to vindicate or recognize a violated right, rather than compensate for actual losses. They can be awarded when an employer fails to observe due process in a dismissal based on a valid cause.
The law says:
Article 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.
Article 2222. The court may award nominal damages in every obligation arising from any source enumerated in article 1157, or in every case where any property right has been invaded.
Article 2223. The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and assigns. (New Civil Code of the Philippines)
Jurisprudence says:
The law and jurisprudence allow the award of nominal damages in favor of an employee in a case where a valid cause for dismissal exists but the employer fails to observe due process in dismissing the employee. (Libcap Marketing Corp. vs. Lanny Jean Baquial, G.R. No. 192011, June 30, 2014)
In summary, while a dismissal based on just or authorized cause remains valid even if procedural requirements aren’t met, the employee may be entitled to nominal damages as a form of recognition for the infringement of their rights.
Related Article/s:
Employer’s Non-Compliance with Procedural Due Process
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