Dear PAO,

I have just been regularized as a real estate sales associate. During my probationary period, I met the company-enforced productivity standards by offering condominium units, mostly to my relatives and friends, to meet my monthly sales quota. However, now that I am a regular employee, I have difficulty selling and finding prospective clients outside my circle of family and friends. I fear that I might be unable to meet our monthly sales quota in the coming months. Can I be terminated even if I’m already a regular employee?

Lance

Dear Lance,

We regret to inform you that you may still be dismissed from employment for failure to meet the productivity standards set by your company even if you are a regular employee. In the case of Sameer Overseas Placement Agency, Inc. vs. Cabiles (G. R. No. 170139, 5 August 2014, Ponente: Honorable Senior Associate Justice Marvic Mario Victor F. Leonen), the Supreme Court ruled in favor of a company’s prerogative to impose productivity and quality standards at work. “They may also impose reasonable rules to ensure that the employees comply with these standards. Failure to comply may be a just cause for their dismissal. Certainly, employers cannot be compelled to retain the services of an employee who is guilty of acts that are inimical to the interest of the employer.”

In Philippine National Oil Company-Energy Development Corporation vs. Buenviaje (G. R. No. 183200-01, 183253 & 183257, 29 June 2016, Ponente: Honorable Associate Justice Francis H. Jardeleza), the Supreme Court explained that failure to meet work goals or work quotas is tantamount to gross and habitual neglect of duty which is a just cause for dismissal:

“‘Gross inefficiency’ is closely related to ‘gross neglect,’ for both involve specific acts of omission on the part of the employee resulting in damage to the employer or to his business. 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 allotted reasonable period, or by producing unsatisfactory results. This management prerogative of requiring standards may be availed of so long as they are exercised in good faith for the advancement of the employer’s interest.”

Furthermore, in the case of Buiser vs. Leogardo, Jr., (G. R. No. L-63316, 31 July 1984, Ponente: Honorable Associate Justice Juvenal K. Guerrero) it was further explained that:

“The practice of a company in laying off workers because they failed to make the work quota has been recognized in this jurisdiction. 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 allotted 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.”

Thus, it is clear from the above that even a regular employee may be dismissed from employment for failure to meet sales quotas or productivity standards imposed by the employer as the same is tantamount to gross and habitual neglect of duty which is a just cause for dismissal.

We hope that we are able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]