Security of Tenure: Meaning in Philippine Labor Law
Quick answer
Security of tenure is the rule that an employer cannot dismiss an employee at will. The employer may end the employment only for a just cause or an authorized cause that the Labor Code lists, and only after following the required steps. An employee dismissed without a valid cause is entitled to reinstatement and full backwages.
Also called: Right to security of tenure
What does the Labor Code say about security of tenure?
The rule is in Article 294 of the Labor Code. Before the 2015 renumbering it was Article 279, so it is often written as [Article 294 [279]](/law/labor-code/article-294). Its first sentence says:
In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title.
So the employer needs a reason that the law accepts. A dismissal without such a reason is an illegal dismissal.
What causes allow an employer to dismiss an employee?
The Labor Code has two groups:
- Just causes are faults of the employee, listed in [Article 297 [282]](/law/labor-code/article-297): serious misconduct or willful disobedience, gross and habitual neglect of duties, fraud or willful breach of trust, a crime against the employer, any immediate member of the employer's family or the employer's representative, and other causes analogous to these.
- Authorized causes are business or health reasons that are not the employee's fault, in [Article 298 [283]](/law/labor-code/article-298) (labor-saving devices, redundancy, retrenchment to prevent losses, closure) and in [Article 299 [284]](/law/labor-code/article-299) (disease). These usually come with separation pay.
The steps also matter. [Article 292 [277]](/law/labor-code/article-292) requires the employer to give the worker a written notice stating the causes for termination and an ample opportunity to be heard. For authorized causes, Article 298 [283] adds a written notice to the workers and to the labor department at least one month before the intended date. See Fired without notice?
Who has to prove that the dismissal was valid?
The employer. Article 292 [277] says:
The burden of proving that the termination was for a valid or authorized cause shall rest on the employer.
The same paragraph says that the worker keeps the right to contest the dismissal by filing a complaint with the regional branch of the National Labor Relations Commission.
Do probationary employees have security of tenure?
Yes, but the grounds are wider. Under [Article 296 [281]](/law/labor-code/article-296), a probationary employee may be terminated for a just cause or for failing to qualify as a regular employee under reasonable standards made known by the employer at the time of hiring. In C.P. Reyes Hospital v. Barbosa (2024), the Supreme Court held that probationary employees who are illegally dismissed also get backwages. See When does an employee become regular?
What happens when security of tenure is violated?
The second sentence of Article 294 [279] gives the remedy: reinstatement without loss of seniority rights and other privileges, and full backwages, inclusive of allowances and other benefits, from the time pay was withheld up to actual reinstatement. See Illegally dismissed: what can you get?
An employer can also violate security of tenure without a formal dismissal, for example by a demotion or a pay cut that forces the employee out. That is called constructive dismissal.
If the cause was valid but the employer skipped the notice steps, the dismissal is not void. In Agabon v. NLRC (2004), the Supreme Court held that the dismissal stands and the employer pays nominal damages instead.
Example
Made-up illustration: Liza has worked for three years as a bookkeeper in a Davao City hardware store. One day the owner tells her to stop reporting because his nephew will take her job. No fault of Liza is cited and no business reason is given. Replacing a regular employee with a relative is not a just or authorized cause, so a labor tribunal may find that Liza was illegally dismissed and order her reinstatement with full backwages.
Which provisions use this term?
Which Supreme Court rulings are relevant?
Frequently asked questions
What is security of tenure in simple words?
It is the rule that an employer cannot end a person's employment at will. Under Article 294 [279] of the Labor Code, the employer may terminate a regular employee only for a just cause or when the law authorizes it.
Where is security of tenure in the Labor Code?
In Article 294, which was Article 279 before the 2015 renumbering. Article 292 [277] also refers to the constitutional right of workers to security of tenure when it sets the notice and hearing rule.
Who must prove that a dismissal was valid?
The employer. Article 292 [277] says the burden of proving that the termination was for a valid or authorized cause rests on the employer.
Do probationary employees have security of tenure?
Yes, within the limits of Article 296 [281]. A probationary employee may be dismissed only for a just cause or for failing to meet reasonable standards that the employer made known at the time of hiring.
What can an employee get if security of tenure is violated?
Under Article 294 [279], an unjustly dismissed employee is entitled to reinstatement without loss of seniority rights and to full backwages, inclusive of allowances and other benefits, from the time pay was withheld up to actual reinstatement.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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