In Philippine labor law, the power of an employer to discipline employees—often called Management Prerogative—is recognized but not absolute. It is strictly hemmed in by the twin requirements of Substantive and Procedural Due Process. When an employee commits multiple violations, the complexity of managing these legal requirements increases, necessitating a robust Progressive Discipline framework.
I. The Foundation: Management Prerogative vs. Security of Tenure
The Philippine Constitution and the Labor Code guarantee Security of Tenure. This means no employee can be dismissed except for a just or authorized cause and after following due process.
However, the Supreme Court acknowledges that employers have the right to regulate all aspects of employment, including discipline. Progressive discipline is the practical application of this right—a system where the severity of the penalty increases as the violations recur or escalate in gravity.
II. Substantive Due Process: The "Why"
Substantive due process refers to the valid grounds for discipline. Under Article 297 (formerly 282) of the Labor Code, the just causes for termination include:
- Serious misconduct or willful disobedience;
- Gross and habitual neglect of duties;
- Fraud or willful breach of trust;
- Commission of a crime against the employer or their family; and
- Other analogous cases.
Dealing with Multiple Violations
When an employee commits multiple, distinct violations, the employer must categorize them:
- Habituality: A single minor offense (e.g., being late once) is rarely a ground for dismissal. However, under the doctrine of Gross and Habitual Neglect, a series of minor offenses, when taken together, can justify termination.
- Totality of Infractions: The Supreme Court often applies the "Totality of Infractions" rule. This allows an employer to consider the employee’s entire record. If a worker has a history of various violations (even if previously penalized), the current offense can be the "last straw" that justifies dismissal.
III. Procedural Due Process: The "How"
For multiple violations, the employer must strictly follow the Twin-Notice Rule. Failure to do so, even if there is a valid reason to fire the employee, results in the payment of "Nominal Damages" (the Agabon Doctrine).
The Standard Procedure:
- The First Written Notice (Notice to Explain/NTE): * This must detail the specific acts or omissions, including the dates and specific company policies violated.
- For multiple violations, each infraction must be clearly stated.
- It must contain a directive giving the employee at least five (5) calendar days to submit a written explanation.
- The Administrative Hearing/Conference:
- The employee must be given a chance to present evidence and, if they choose, be assisted by counsel or a representative.
- The Second Written Notice (Notice of Decision):
- This notice informs the employee of the penalty. If dismissal is the outcome, the notice must clearly state that all circumstances and defenses were considered.
IV. The Mechanics of Progressive Discipline
A standard progressive discipline policy typically follows this hierarchy:
- Verbal Warning: (Usually documented via a file note) for first-time minor offenses.
- Written Warning: For a second minor offense or a first-time moderate offense.
- Suspension: For recurring issues or serious breaches.
- Note: Preventive suspension is allowed if the employee poses a threat to life or property, but it cannot exceed 30 days without pay.
- Termination: The ultimate penalty for just causes or habitual violations.
Legal Pitfall: An employer cannot "jump" to termination for a minor offense unless the company policy (Employee Handbook) explicitly classifies that specific act as a "Serious Offense" justifying immediate dismissal, and provided such classification is reasonable.
V. Key Principles and Jurisprudence
| Principle | Description |
|---|---|
| Proportionality | The penalty must fit the offense. Dismissing a 20-year veteran for a single, minor lapse of judgment is often viewed by the NLRC as "too harsh." |
| Condonation | If an employer ignores a violation for a long time or promotes the employee despite the violation, they may be deemed to have "waived" or condoned the act, making it harder to use as a ground for discipline later. |
| Equal Protection | Discipline must be applied uniformly. If Employee A is fired for theft but Employee B is only suspended for the same act, the employer may be liable for discrimination or illegal dismissal. |
VI. Conclusion for Practitioners
To successfully defend a case of progressive discipline involving multiple violations, the employer must maintain a meticulous paper trail.
Each violation must be met with an NTE and a corresponding penalty. You cannot use a "secret" folder of past mistakes that were never officially flagged to the employee to justify a sudden termination. The essence of due process is notice and the opportunity to be heard—at every stage of the progression.