In the Philippine workplace, a heated argument between an employee and a supervisor or co-worker is a common occurrence. However, when an employer uses such an altercation as the sole basis for termination, the legal lines between management prerogative and illegal dismissal often blur.
Under Philippine Labor Law, the security of tenure is a constitutionally protected right. An employer cannot terminate an employee without Just Cause and compliance with Due Process.
1. Just Cause: When an Argument Becomes Terminable
Not every workplace spat justifies the "capital punishment" of labor law (dismissal). To terminate an employee for an argument, the employer usually cites Serious Misconduct or Willful Disobedience under Article 297 (formerly 282) of the Labor Code.
Serious Misconduct
For an argument to qualify as serious misconduct, it must:
- Be of such a magnitude that it renders the employee unfit to continue working.
- Relate to the performance of the employee's duties.
- Show that the employee is motivated by a "wrongful intent."
The "Verbal Abuse" Threshold: Courts generally look at the gravity of the words used. Simple discourtesy or a "flare-up" of temper is often not enough. However, using obscene, insulting, or scurrilous language against a superior—especially in front of subordinates—is frequently upheld as a valid ground for dismissal.
Willful Disobedience (Insubordination)
If the argument involves a refusal to follow a lawful and reasonable order from the employer, it may be classified as insubordination. The order must be:
- Reasonable and lawful.
- Sufficiently known to the employee.
- Pertain to the duties the employee is engaged to discharge.
2. The Twin-Notice Rule: Procedural Due Process
Even if the employee was clearly in the wrong during the argument, the dismissal is illegal if the employer fails to follow the "Twin-Notice Rule."
| Step | Requirement | Purpose |
|---|---|---|
| First Notice | Notice to Explain (NTE) | Specifies the grounds for termination and gives the employee at least 5 calendar days to submit a written explanation. |
| Hearing/Conference | Administrative Investigation | Provides the employee an opportunity to present evidence or be heard with the assistance of counsel (if desired). |
| Second Notice | Notice of Decision | Communicates the final decision of the employer after considering the employee’s defense. |
Note: Failure to observe this process, even if there is a valid reason to fire the employee, will result in the employer being liable for nominal damages (usually ranging from ₱30,000 to ₱50,000).
3. Illegal Dismissal Claims and Remedies
If an employee feels the termination was disproportionate to the offense (e.g., a first-time minor argument resulting in immediate firing), they may file a complaint for illegal dismissal with the National Labor Relations Commission (NLRC).
Common Defenses for Employees:
- Proportionality: The penalty must fit the offense. If the employee has a long, clean record, a single verbal altercation might only merit a suspension, not dismissal.
- Provocation: If the supervisor baited or provoked the employee into the argument, the court may rule in favor of the employee.
- Condonation: If the employer allowed the employee to keep working for a long period after the argument before suddenly firing them, it may be argued that the offense was forgiven.
Consequences for the Employer:
If the dismissal is found to be illegal, the employee is entitled to:
- Full Backwages: Payment of salary from the time of dismissal until the finality of the decision.
- Reinstatement: Getting their old job back without loss of seniority.
- Separation Pay: If "strained relations" make reinstatement impossible (often the case after a major argument), the employer pays one month's salary for every year of service.
- Moral/Exemplary Damages: If the dismissal was done in a wanton or oppressive manner.
Summary Checklist
Before terminating for an argument, a Philippine employer must ensure:
- The language/conduct was "serious" and not just a minor lapse in courtesy.
- The employee was given 5 days to explain their side.
- The penalty is consistent with the company’s Employee Handbook and previous cases.
Would you like me to draft a sample Notice to Explain (NTE) for a workplace misconduct scenario involving an argument?