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PREVENTIVE SUSPENSION
-is a disciplinary measure for the protection of the company's property
pending investigation of any alleged malfeasance or misfeasance
committed by the employee.
Situation
Validity of Dismissal
Just or Authorized Cause
+ Due Process
Valid
authorized cause
No Just or Authorized Cause
+ Due Process
separation pay.
Liability of ER
No liability.
Separation pay only in
Invalid
Reinstatement or
If reinstatement not possible,
+ full backwages
No Just or Authorized Cause
+ No Due Process
pay.
Invalid
Reinstatement or separation
If reinstatement not possible, +
full backwages
Just or Authorized Cause
+ No Due Process
procedural infirmity.
Valid
authorized cause
Non-Compliance with Due Process Requirements
Before the Agabon case, the doctrine in Serrano v. NLRC was followed. It states
that termination due to authorized cause without giving the notice required
under the Labor Code is not a violation of due process. It is valid although
declared irregular/ineffectual. He shall however be entitled to SEPARATION PAY
AND BACKWAGES
AGABON V. NLRC 17 November 2004 Modifies SERRANO Case.
Dismissal for a an authorized or just cause, without procedural due process is not
an illegal dismissal which warrants backwages; employee entitled only to
nominal damages.
The Court interpreted Art. 279 to the effect that termination is illegal only if it is
not for any of the justified or authorizes causes provided by law. Payment of
backwages and other benefits, including reinstatement, is justified only if the
employee was unjustly dismissed.
The Court decided to follow WENPHIL CORP. v. NLRC that where the dismissal is
for a just cause, the lack of statutory due process should not nullify the dismissal
or render it illegal. However, the employer should indemnify the employee for
the violation of his rights. The indemnity should be stiffer than that provided in
WENPHIL to discourage the practice of dismiss now pay later.
The indemnity should be in the form of nominal damages, which is adjudicated
in order that a right of plaintiff, which has been violated by the defendant, may
be vindicated.