When Can You Fire an Employee for Fighting? Understanding ‘Just Cause’ in the Philippines

G.R. No. 109609, May 08, 1996

Imagine a workplace dispute escalating into a physical altercation. Can the employer immediately terminate the employees involved? Philippine labor law protects employees, but it also recognizes the employer’s right to maintain a safe and productive work environment. This case clarifies the boundaries of ‘just cause’ for termination when employee misconduct disrupts workplace order.

Introduction

Workplace harmony is crucial for productivity and a positive work environment. However, disputes can arise, and sometimes, these disputes turn physical. The case of Segundino Royo, German Royo and Cipriano Royo vs. The Hon. National Labor Relations Commission, Second Division, Standard Alcohol, Inc., and Ramon Chuanico delves into the complexities of employee termination due to misconduct, specifically a physical altercation within company premises. This case highlights the importance of due process and the definition of ‘just cause’ in Philippine labor law.

The Royo brothers and son were terminated after physically assaulting a co-worker who accused them of theft. The Supreme Court’s decision hinged on whether this act constituted ‘serious misconduct’ justifying termination and whether the employer followed proper procedure.

Legal Context: Defining ‘Just Cause’ and Due Process

The Labor Code of the Philippines outlines the grounds for which an employer can legally terminate an employee. Article 282 (now Article 297) of the Labor Code specifies these grounds, including ‘serious misconduct.’ Serious misconduct implies improper or wrong conduct and transcends mere minor or trivial acts. It must be of such a grave and aggravated character as to justify termination.

According to the Labor Code, Article 297(a) states that an employer may terminate an employment for “Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work”.

Beyond ‘just cause,’ employers must also adhere to ‘procedural due process.’ This means providing the employee with notice of the charges against them and an opportunity to be heard. Failure to comply with due process can render a termination illegal, even if just cause exists. The twin requirements of procedural due process are:

• Notice: Informing the employee of the specific charges against them.
• Hearing: Providing the employee an opportunity to explain their side and present evidence.

For example, imagine an employee is caught stealing company property. While theft is a valid ground for termination, the employer must still issue a notice of investigation, allow the employee to explain, and then issue a notice of termination if found guilty. Failure to do so could result in an illegal dismissal ruling.

Case Breakdown: The Royo Brothers’ Fight

The Royo brothers and son, employed by Standard Alcohol, Inc., were accused of theft by a co-worker, Mario Alvarez. This accusation led to a physical altercation where the Royos assaulted Alvarez within company premises. The company immediately suspended them and later issued a notice of investigation. The Royos, however, refused to participate.

Here’s a breakdown of the case’s timeline:

• February 28, 1990: The Royos assaulted Mario Alvarez.
• March 1, 1990: Standard Alcohol, Inc. issued a memo suspending the Royos.
• March 2, 1990: Criminal charges were filed against the Royos by Alvarez.
• March 5, 1990: The Royos filed a complaint for illegal suspension. Standard Alcohol, Inc. notified the Royos of an investigation.
• March 6, 1990: The Royos did not attend the investigation and were subsequently terminated.

The Labor Arbiter initially ruled in favor of the Royos, citing illegal dismissal, but the National Labor Relations Commission (NLRC) reversed this decision, finding ‘serious misconduct.’ The case eventually reached the Supreme Court.

The Supreme Court, in its decision, emphasized the seriousness of the Royos’ actions. “Even if it was a purely private quarrel between petitioners and Alvarez, the fact is that, as a result of what they had done, they disturbed the peace in the company and committed a breach of its discipline,” the Court stated. This highlighted that even a seemingly personal fight could have serious repercussions for workplace order.

However, the Court also noted a procedural lapse. While the company initiated an investigation, they failed to provide a formal notice of termination. The Court explained, “Nonetheless, we think that private respondents should have given petitioners notice of their dismissal. As it is, because no such notice was given, the suspension of petitioners became indefinite…”

Practical Implications: Maintaining Workplace Discipline

This case provides valuable lessons for employers. It reinforces the importance of having clear policies against workplace violence and the need to act decisively when such incidents occur. However, it also underscores the critical importance of following due process, even when the employee’s actions seem egregious.

The Supreme Court’s decision highlights that fighting within company premises constitutes just cause for termination, as it disrupts workplace order and breaches company discipline. However, employers must still adhere to procedural due process by providing notice and opportunity to be heard.

Key Lessons:

• Implement Clear Policies: Establish a clear code of conduct prohibiting violence and disruptive behavior.
• Act Promptly: Address incidents of misconduct swiftly to maintain order.
• Follow Due Process: Provide notice of charges and an opportunity for the employee to respond.
• Document Everything: Keep detailed records of the incident, investigation, and disciplinary actions.

For instance, imagine two employees arguing heatedly in the office. If the argument escalates into a physical fight, the employer has grounds for disciplinary action, potentially including termination. However, the employer must first conduct a fair investigation, giving both employees a chance to explain their side of the story before making a final decision.

Frequently Asked Questions

Q: What constitutes ‘serious misconduct’ in the workplace?

A: ‘Serious misconduct’ involves improper behavior that is grave and aggravated, significantly disrupting the workplace or violating company policies. It goes beyond minor infractions and demonstrates a serious disregard for workplace rules.

Q: Can an employee be fired immediately for fighting?

A: While fighting can be grounds for termination, employers must still follow due process, providing notice and an opportunity for the employee to explain their actions.

Q: What is ‘procedural due process’ in termination cases?

A: ‘Procedural due process’ requires employers to provide employees with notice of the charges against them and an opportunity to be heard before termination.

Q: What happens if an employer fails to follow due process?

A: Failure to follow due process can result in a finding of illegal dismissal, even if there was just cause for termination. The employer may be required to pay back wages, separation pay, and damages.

Q: Is verbal abuse considered ‘serious misconduct’?

A: Depending on the severity and context, verbal abuse can be considered ‘serious misconduct,’ especially if it creates a hostile work environment or violates company policies.

Q: What should an employer do if they suspect an employee of misconduct?

A: The employer should conduct a thorough investigation, gathering evidence and providing the employee an opportunity to respond to the allegations.

Q: Can an employee be suspended before an investigation?

A: Yes, an employee can be preventively suspended if their continued presence poses a threat. However, the suspension should not exceed 30 days without pay, unless the employer extends it while paying wages and benefits.

Q: What kind of evidence is needed to prove misconduct?

A: Evidence can include witness statements, video recordings, documents, and any other information relevant to the incident.

Q: Does off-duty misconduct affect employment?

A: Off-duty misconduct can affect employment if it reflects poorly on the company or affects the employee’s ability to perform their job.

ASG Law specializes in labor law and employment disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.