Termination of Employment

Good day to all!

I’ve been searching the net for some time now, looking for some sort of free legal advice, as I’m in some financial difficulty recently, but am able to make ends meet.

My dilemma is this:

I’m married with two kids, the eldest being in 2nd year in High School and the youngest in Nursery. I’m working for an insurance company that is tied-up with one of the biggest bank in the country. I sell life insurance products to bank clients.

I’ve been with the company for more than 5 years now. The company hired me as a regular salaried employee. My job is different of that of an insurance agent, whereas an agent relies only to the commissions earned and agents have to look for their own client. Mine is different. I sell life insurance products to bank referred clients, and if I hit or exceed my assigned target for the month, I get some sort of incentives (either in cash or qualify for travel incentives) aside from my regular semi-monthly pay.

Sometime early this year, the management gave us a letter, which states that if we do not hit our monthly targets for three consecutive months, a notice of termination will be given to each of us in our division, based on our company’s Code of Conduct. I was forced to sign and acknowledge the said letter. I signed the letter noting that the letter states that upon signature, I “acknowledged & receipt” the letter. I read, and re-read my copy of our company’s Code of Conduct but couldn’t find any statements there regarding that type of termination. I also heard from my colleagues that the management’s strategy is they will talk to an employee and tell them to just resign instead of being terminated.

Fortunately for me, I’ve been hitting out targets consistently, until recently. From August until now, I’ve been having trouble in getting a sale. It’s been almost 4 months now (going 5) and I’m getting a bit nervous. I’m afraid of losing my job, since I’m sort of the breadwinner. My wife is also working as a contractual employee, but her salary is just enough for her transportation and school allowance our kids.

My questions are:

- Does the Management have a legal basis on terminating my employment with them if I didn’t achieve or hit the assigned target?
- Does DOLe have some sort of an office where I could get some free legal advice or
- Could you please provide me a place to go where I could get free legal advice, so I could also visit them personally?

Hoping for your immediate advice on this issue.

Thank you so much.

1. Under the Labor Code, the following are the grounds for the employer to terminate the employment of an employee:

“(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;

(b) Gross and habitual neglect by the employee of his duties;

(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;

(d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and

(e) Other causes analogous to the foregoing.”

It is generally the employer’s prerogative to discipline the employee for the latter’s failure to reach the company-mandated quota. In one case the Supreme Court ruled:

“In the case at bar, the petitioners' failure to meet the sales quota assigned to each of them constitute a just cause of their dismissal, regardless of the permanent or probationary status of their employment. Failure to observe prescribed standards of work, or to fulfill reasonable work assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is understood to mean failure to attain work goals or work quotas, either by failing to complete the same within the alloted reasonable period, or by producing unsatisfactory results. This management prerogative of requiring standards availed of so long as they are exercised in good faith for the advancement of the employer's interest.”

In any case, you can always argue that your failure to meet the required quota is not due to your negligence or inefficiency but rather due to causes beyond your control, such as the economic slump being experienced in the country which makes it very hard for you to generate a sale.

Whatever happens, I advise you not to sign or execute any resignation letter.


2. Try calling the DOLE hotline 527-2917.

3. In the event that you are terminated from your employment, there is no need for you to immediately secure the services of a lawyer. You can easily file a complaint with the NLRC. It is very easy. You will simply fill up a form and indicate your demands, among others, such as reinstatement, backwages, etc. NLRC employees will even assist you in filling up the form. Thereafter, your complaint will be assigned to a Labor Arbiter who will preside over the case. You and the other party will be notified to appear on a certain hearing date. On the said date, you and your employer will face each other in front of the Labor Arbiter for an opportunity to settle the matter amicably. In case a settlement is not reached, the Labor Arbiter will direct both parties to submit their respective Position Papers. That is the time for you to secure the services of a lawyer for the preparation of the Position Paper. If you cannot afford your own lawyer, the NLRC can refer you to a Public Attorney.

I cannot thank you enough sir! This is exactly what I need! Now I know where I stand. Salute!

This is one good site! You guys don't know how happy I am to get this advice!

This site is a Godsend!

Again, thank you so much!