Employee Termination for Unauthorized Absences: Lessons from a Landmark Philippine Case

---

When an employee stops reporting for work without notice, employers often assume they have the right to terminate immediately. However, Philippine labor law requires more than just a record of absences to justify dismissal. A recent Supreme Court case clarifies the rules surrounding termination for unauthorized absences and highlights the importance of due process in employment decisions.

The case of Gerodias v. Riveral (A.C. No. 12719, February 17, 2021) involved a disbarment complaint against three lawyers who represented a company in a labor dispute. While the case centered on professional responsibility, the underlying facts provide valuable insights into how Philippine courts view employee termination, particularly regarding abandonment of work and unauthorized absences.

The Facts of the Case

Sanny Gerodias was an employee of Oriental Port and Allied Services Corporation (OPASCOR). During his employment, he faced several disciplinary investigations for incidents including heated altercations with co-employees, damage to company property, and abandonment of work. The final incident involved stealing a box of perfumes belonging to OPASCOR's clients.

Instead of terminating Gerodias, the company offered him the option of voluntary resignation with separation pay. Gerodias instead requested early retirement, even though he was two years short of the 15-year service requirement. His request was approved, and he received retirement pay equivalent to 22 months.

A month after receiving his retirement pay, Gerodias filed a complaint for illegal dismissal. The Labor Arbiter dismissed his complaint for lack of merit, and the NLRC affirmed this decision. Gerodias then filed a disbarment case against the company's lawyers, alleging conspiracy to illegally terminate his employment.

The Legal Framework for Termination

Under Philippine labor law, employers may terminate employees for just causes, including serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, and abandonment of work. Unauthorized absences may constitute abandonment if the employee intended to sever the employment relationship.

For abandonment to be valid grounds for termination, employers must prove two elements: (1) the employee failed to report for work or was absent without valid reason, and (2) the employee clearly intended to discontinue employment. The burden of proof lies with the employer.

The Supreme Court's Ruling

The Supreme Court dismissed the disbarment complaint, finding no evidence of conspiracy or bad faith among the lawyers. The Court noted that the company president acted benevolently by approving Gerodias's early retirement request despite his failure to meet the service requirement.

More importantly, the Court emphasized that mere allegations are not evidence. The complainant failed to present clear and convincing proof to substantiate claims of illegal dismissal. The Court also noted that the company's decision to offer retirement instead of termination was actually favorable to the employee.

Due Process Requirements

Even when termination is justified, employers must observe procedural due process. This means providing the employee with: (1) a written notice specifying the grounds for termination, (2) an opportunity to be heard and defend oneself, and (3) a written notice of the decision after due consideration.

In cases of unauthorized absences, employers should first send a return-to-work notice requiring the employee to explain their absence. Only after the employee fails to comply without justifiable reason may the employer proceed with termination.

Practical Takeaways

• Document everything: Employers must maintain accurate attendance records and written communications regarding absences.
• Send formal notices: Before terminating for unauthorized absences, issue a written return-to-work order and allow the employee to explain.
• Prove intent: Abandonment requires showing the employee intended to sever the employment relationship, not just that they were absent.
• Avoid shortcuts: Offering retirement or resignation options may be more prudent than immediate termination, as demonstrated in this case.
• Seek legal advice: Labor disputes can lead to multiple legal actions, including criminal and administrative cases. Consult counsel before making termination decisions.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.