Theory of imputed knowledge - A rule in insurance law that any information material to the

transaction, either
possessed by the agent at the time of the transaction or acquired by him before its completion, is
deemed to be the knowledge of the principal, at least so far as the transaction is concerned, even
though in fact the knowledge is not communicated to the principal at all.

Those hired on a temporary basis, that is, for a term or fixed period are not
regular employees, but are contractual employees. Consequently, there is no
illegal dismissal when their services are terminated by reason of the expiration of
their contracts. Lack of notice of termination is of no consequence, because a
contract for employment for a definite period terminates by its own term at the end
of such period.

As stated above, dismissals based on just causes contemplate acts or omissions

attributable to the employee while dismissals based on authorized causes involve
grounds business or health allowing the employer to terminate. A termination for
an authorized cause requires payment of separation pay. When the termination of
employment is declared illegal, reinstatement and full backwages are mandated
under Art. 279 of the Labor Code. If reinstatement is no longer possible where the
dismissal was unjust, separation pay may be granted.

What are the components of procedural due process?

A. In a termination for just cause, due process involves the two-notice rule:
a) A notice of intent to dismiss specifying the ground for termination, and giving said
employee reasonable opportunity within which to explain his or her side;
b) A hearing or conference where the employee is given opportunity to respond to the
charge, present evidence or rebut the evidence presented against him or her;
c) A notice of dismissal indicating that upon due consideration of all the circumstances,
grounds have been established to justify termination.

B. In a termination for an authorized cause, due process means a written notice of dismissal to
the employee specifying the grounds at least 30 days before the date of termination. A copy of
the notice shall also be furnished the Regional Office of the Department of Labor and
Employment (DOLE) where the employer is located.
6. What is the sanction if the employer failed to observe procedural due process in cases of
legal and authorized termination?
In cases of termination for just causes, the employee is entitled to payment of indemnity or
nominal damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442 SCRA 573);
in case of termination for authorized causes, 50,000 pesos (Jaka Food Processing vs. Darwin
Pacot, 454 SCRA 119).

CONTRACT OF EMPLOYMENT FOR A FIXED PERIOD

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WITNESSETH: That
WHEREAS, the EMPLOYEE has applied for the position of
FORMATTER and in the course thereof and represented himself/herself to be
fully qualified and skilled for the said position;
WHEREAS, the EMPLOYER, by reason of the aforesaid representations,
is desirous of engaging that the (sic) services of the EMPLOYEE for a fixed
period;
NOW, THEREFORE, for and in consideration of the foregoing premises,
the parties have mutually agreed as follows:
TERM/DURATION
The EMPLOYER hereby employs, engages and hires the EMPLOYEE
and the EMPLOYEE hereby accepts such appointment as FORMATTER effective
FEB. 16, 1999 to FEB. 16, 2000 a period of ONE YEAR.

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TERMINATION
6.1 In the event that EMPLOYER shall discontinue operating its business, this CONTRACT
shall also ipso facto terminate on the last day of the month on which the EMPLOYER ceases
operations with the same force and effect as is such last day of the month were originally set as
the termination date of this Contract. Further should the Company have no more need for the
EMPLOYEEs services on account of completion of the project, lack of work (sic) business
losses, introduction of new production processes and techniques, which will negate the need for
personnel, and/or overstaffing, this contract maybe pre-terminated by the EMPLOYER upon
giving of three (3) days notice to the employee.
6.2 In the event period stipulated in item 1.2 occurs first vis--vis the completion of
the project, this contract shall automatically terminate.
6.3 COMPANYs Policy on monthly productivity shall also apply to the
EMPLOYEE.
6.4 The EMPLOYEE or the EMPLOYER may pre-terminate this CONTRACT,
with or without cause, by giving at least Fifteen (15) notice to that effect.
Provided, that such pre-termination shall be effective only upon issuance of the
appropriate clearance in favor of the said EMPLOYEE.
6.5 Either of the parties may terminate this Contract by reason of the breach or
violation of the terms and conditions hereof by giving at least Fifteen (15) days
written notice. Termination with cause under this paragraph shall be effective
without need of judicial action or approval.1[4]