Security Guard v. Security of Tenure: SC Reaffirms that Barring Workers from the Workplace is Illegal Dismissal

In the evolving landscape of Philippine labor law, few issues are as deeply contested as what actually constitutes a dismissal. Employers may argue that without a written notice of termination, no dismissal has occurred. Workers, on the other hand, frequently find themselves locked out of company premises and left to wonder whether they still have a job to return to. The Supreme Court, through its Second Division, recently put this debate to rest in Amor, et al. v. Constant Packaging Corporation (G.R. No. 259988, May 19, 2025).

This recent Philippine labor jurisprudence is a welcome reaffirmation of the constitutional policy on security of tenure. For labor lawyers, HR practitioners, unions, and rank-and-file employees alike, the ruling sharpens the rules on what it means to be illegally dismissed in the Philippines, particularly for workers compensated on a pakyaw or piece-rate basis.

The Facts: A Lockout After a DOLE Complaint

Constant Packaging Corporation, a manufacturer of printed packaging materials, engaged the petitioners as sorters, revisers, and packers on a pakyaw or piece-rate arrangement. Over time, the workers raised serious grievances against the company. They complained of earnings that fell below the prescribed minimum wage, gruelling twelve-hour workdays, a seven-day workweek, and the non-remittance of their mandatory SSS, PhilHealth, and Pag-IBIG contributions. They also flagged delays in the release of their salaries.

When they aired their concerns, management reportedly responded with the now-infamous line, "Kung ayaw mo ng patakaran ng kumpanya, maluwag ang pinto (If you don't like the company's rules, the door is open)." Shortly after the workers escalated their complaint to the Department of Labor and Employment (DOLE), Constant Packaging's security guard prevented twelve of them from entering the company premises. Two other workers, Busel and Tordillo, resigned, citing health reasons and pressure from their supervisor.

The Road to the Supreme Court

The Labor Arbiter ruled that the petitioners were regular employees and that the twelve who had been barred from work were illegally dismissed. The two who resigned were found to have done so voluntarily. On appeal, however, the National Labor Relations Commission (NLRC) reversed the finding of illegal dismissal, opining that the act of preventing entry to the workplace was not an overt act of termination. The Court of Appeals affirmed the NLRC, ordering the workers to return to work. The case eventually reached the Supreme Court.

The Issues Presented

The Supreme Court was asked to resolve three core questions of Philippine labor law:

• Whether the act of preventing an employee from entering the workplace is equivalent to a dismissal;

• Whether the two workers who resigned were constructively dismissed; and

• Whether workers paid on a pakyaw basis are entitled to 13th-month pay.

The Supreme Court's Ruling: A Clear Line on Illegal Dismissal

The Supreme Court partially granted the petition. Speaking through Justice Leonen, the Court was unequivocal: an employee who is able and willing to work is considered illegally dismissed when prevented from entering the workplace without a valid or lawful reason. The absence of a formal termination notice does not insulate the employer from liability. What matters is the practical effect on the worker — the loss of the ability to render service, earn a wage, and remain in the employment relationship.

Crucially, the Court reiterated the doctrine that the burden of proving abandonment lies with the employer. To establish abandonment, two elements must concur: (a) the employee's failure to report for work without a valid reason, and (b) a clear, overt act manifesting an intention to sever the employer-employee relationship. Constant Packaging produced neither. Filing a complaint for illegal dismissal, in fact, is the very opposite of abandonment — it shows the worker's desire to remain employed.

On the issue of constructive dismissal, the Court ruled against petitioners Busel and Tordillo. The burden of proof, the Court reminded, lies with the employee, who must show that the employer's actions were so unbearable that resignation became the only reasonable option. Their bare allegations of harassment and pressure did not meet that standard.

Finally, the Court affirmed that workers paid on a pakyaw or task basis are expressly excluded from the coverage of Presidential Decree No. 851 and are therefore not entitled to 13th-month pay. The pakyaw classification carries real consequences — both for what workers may demand and for what employers must concede.

Why This Case Matters for Philippine Labor Practitioners

Amor v. Constant Packaging is not the first case to say that lockouts can amount to dismissal, but it is among the clearest reaffirmations in recent years. For decades, employers have used informal tactics — withdrawing access credentials, refusing schedules, instructing security to bar entry — hoping to avoid the procedural and substantive requirements of due process under Article 297 (formerly Article 282) of the Labor Code. This decision closes that gap. If the practical effect is exclusion from work, the legal consequence is dismissal, full stop.

For employees, the case reinforces a vital protection. A worker who is told to leave, barred at the gate, or simply removed from the schedule without explanation need not wait for a written notice to file a complaint. The act itself is the dismissal. This empowers workers, particularly those in precarious, piece-rate, or informal arrangements, to assert their rights without fear that procedural technicalities will defeat their claim.

For employers, the case is a cautionary tale. Knee-jerk reactions to employee grievances — especially after a DOLE complaint — can ripen into illegal dismissal claims with substantial monetary consequences. Constant Packaging was ordered to pay separation pay, back wages, service incentive leave pay, and holiday pay. Better practice is to engage workers through proper grievance machinery, conduct fair investigations, and observe the twin-notice rule before any termination.

The Pakyaw Doctrine: A Reminder on 13th-Month Pay

The Court's ruling on 13th-month pay deserves special attention. Section 3 of the Rules and Regulations Implementing P.D. 851 expressly excludes employees paid on a purely commission, boundary, task, pakyaw, or piece-rate basis. This exclusion has long been a sore point for workers, who often perform essential, sustained functions yet are denied the year-end benefit enjoyed by their salaried co-workers.

Practitioners should remember, however, that the pakyaw label is not magic. Courts look at the actual nature of the work, the degree of control exercised by the employer, and the manner of payment. A worker mislabeled as pakyaw but in fact paid on a time basis may still qualify for 13th-month pay. Conversely, a genuine pakyaw worker remains outside the coverage even if regular in status.

Key Takeaways for Employers, Employees, and Unions

• Lockouts equal dismissal. Preventing an able and willing employee from entering the workplace, without a lawful cause, is illegal dismissal — no written notice required.

• Burden of proof on abandonment is on the employer. Employers must show both failure to report and a clear intent to sever the relationship.

• Constructive dismissal must be proven by the employee. Allegations of harassment or pressure need solid evidence.

• Pakyaw workers are not entitled to 13th-month pay, but their security of tenure and right to due process remain fully protected.

• Always observe the twin-notice rule before terminating any employee, and document every step of the disciplinary process.

Final Thoughts

Amor v. Constant Packaging is a quiet but powerful reaffirmation of the worker's constitutional right to security of tenure. It strips away the fiction that the absence of a termination letter means no termination has occurred. In a labor market still grappling with informality, contractualization, and piece-rate arrangements, this ruling sends a clear message: substance prevails over form. Employers who lock the gate must be prepared to answer for it; workers who are locked out have a remedy under Philippine labor law.

For labor law practitioners advising clients on either side, the lesson is the same. Document everything, respect due process, and recognize that what looks like a simple refusal of entry may, in the eyes of the Supreme Court, be the dismissal itself.

Disclaimer: This article was prepared with the assistance of artificial intelligence and may contain errors. It is intended solely for educational and informational purposes. It does not constitute legal advice, nor does it create an attorney-client relationship. Readers should note that the applicable laws and jurisprudence may vary depending on the specific facts of each case.

For advice regarding your particular circumstances, please consult our qualified legal professionals at Sun Law Office.

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