Security of tenure is the cornerstone of Philippine labor law: an employee cannot be dismissed except for a just cause or an authorized cause, and only after observance of due process. Just causes relate to the employee's own acts or omissions (such as serious misconduct, willful disobedience, gross and habitual neglect, fraud or breach of trust, and commission of a crime against the employer). Authorized causes relate to business or health reasons not the employee's fault (such as redundancy, retrenchment, closure, installation of labor-saving devices, and disease). Both require the proper twin-notice or notice-to-DOLE procedure. This protection applies not only to regular employees but also, within the terms of their engagement, to probationary, project, seasonal, and fixed-term employees. A dismissal without a valid cause or without due process is an illegal dismissal, entitling the worker to reinstatement and back wages or separation pay.
If there is one principle at the heart of Philippine labor law, it is security of tenure — the guarantee that you cannot simply be fired at will.
The Guarantee
An employee cannot be dismissed except for a just or authorized cause, and only after due process. This is both a constitutional policy and a statutory right. It means the employer's power to terminate is limited by law, not left to the employer's whim.
Just Causes (Employee's Fault)
Just causes relate to the employee's own acts or omissions, such as:
- Serious misconduct or willful disobedience of lawful orders;
- Gross and habitual neglect of duties;
- Fraud or willful breach of trust;
- Commission of a crime against the employer or their representative; and
- Other analogous causes.
Authorized Causes (Business or Health)
Authorized causes are not the employee's fault — they arise from business or health reasons, such as:
- Installation of labor-saving devices;
- Redundancy;
- Retrenchment to prevent losses;
- Closure or cessation of business; and
- Disease (under the strict conditions the law sets).
Authorized-cause dismissals generally require separation pay.
Due Process Is Required Either Way
- For just causes — the twin-notice rule (a notice of the charges, an opportunity to be heard, and a notice of decision); and
- For authorized causes — a written notice to the employee and the DOLE at least one month before.
It Protects More Than Regulars
Security of tenure protects not only regular employees but also, within the terms of their engagement, probationary, project, seasonal, and fixed-term employees — they too cannot be dismissed before the end of their valid term except for cause and with due process.
The Consequence of Violation
A dismissal without a valid cause or without due process is an illegal dismissal, entitling the worker to reinstatement and back wages, or separation pay in lieu of reinstatement where appropriate.
Practical Takeaways
- You can be dismissed only for a just or authorized cause, and only with due process;
- Just causes are the employee's fault; authorized causes are business/health reasons (with separation pay);
- Security of tenure protects probationary, project, and fixed-term workers too — and a violation is illegal dismissal.
Frequently Asked Questions
What is security of tenure? The guarantee that an employee cannot be dismissed except for a just or authorized cause and only after due process. It is a constitutional and statutory right that limits the employer's power to terminate.
What is the difference between just and authorized causes? Just causes relate to the employee's own fault, like serious misconduct or breach of trust. Authorized causes are business or health reasons not the employee's fault, like redundancy, retrenchment, closure, or disease, and generally require separation pay.
Does security of tenure apply to probationary or project employees? Yes, within the terms of their engagement. Probationary, project, seasonal, and fixed-term employees cannot be dismissed before the end of their valid term except for cause and with due process.
What happens if a dismissal violates security of tenure? It is an illegal dismissal, entitling the worker to reinstatement and back wages, or separation pay in lieu of reinstatement where appropriate.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.