Termination of employment in the Philippines can be a complex process for employers since the Labor Code is construed in favor of employees. The law authorizes termination of employment on the ground of disease found in Article 284 [now Article 299 in a renumbered Labor Code] of the Labor Code. A look at the key legal provisions governing the termination of employment in Philippines, including grounds for dismissal, notice requirements and severance pay, among other things. 284 *299 or termination due to health reasons. The Supreme Court reasoned that, in cases of termination for blameworthy conduct, it could be said that the process is effectively initiated by the employee because he or she provided the grounds for the dismissal by committing the culpable act or omission. Losing one’s job for health reasons falls under authorized causes as stated on the Philippine Labor Code: Art. Before an employer dismisses an employee, the due process must be properly observed regardless of the ground for termination. For termination of employment based on just causes as … It is similar to the failure to observe the provisions of Art. Unlike the United States of America, which has an “at-will employment” doctrine, employers in the Philippines can only terminate their relationship with an employee if a “just” or “authorized” cause, as defined under the law, has been established, after undergoing due process. — Concept of dismissal of an employee. The Employers must take the components of procedural due process to prevent any violation of the labor code. Due process of law is an oft-invoked clause in most situations involving an individual’s relationship with others, especially with the Government or the State. Due process requirement. Today, we will talk about resignation . While a management prerogative, it is subject to the two-fold limitations of good faith and employee rights. There are five different types of employment in the Philippines and they are determined by the nature and/or existence of activities that an employee is required to perform. 1. terms of Employment 1.1 Status of Employee In the Philippines, blue-collar and white-collar workers are not explicitly described under the law or jurisprudence. With respect to Art. Termination of employment should undergo due process. The illegal dismissal of an employee is one of the most common labor cases filed in the Philippines. The employee will be given a chance to answer the allegations within a reasonable period. NOTICE TO EXPLAIN (SHOW CAUSE MEMO) [Sample Form] This is one of my suggested formats for the FIRST NOTICE in the observance of procedural due process under the Philippine law on termination of employment (otherwise known as the "two notice rule" or "twin notice rule"). Affording due process means recognizing the employee's right to be informed of unsatisfactory performance and to have a chance to defend himself and improve before an adverse employment … On the other hand, procedural due process in dismissal cases consists of the twin requirements of notice and hearing. Employees should be issued a written “Notice of Retrenchment” or other analogous memorandum to inform them that they have been retrenched from their employment. I. 283 of the Labor Code, the employer's failure to comply with the notice requirement does not constitute a denial of due process but a mere failure to observe a procedure for the termination of employment which makes the termination of employment merely ineffectual. Related Topic: How to Dismiss an Erring Employee the Right Way D ismissal for an authorized cause does not necessarily imply delinquency or culpability on the part of the employee. 147-15 expressly provides for the specific standards in applying the just and authorized causes and specifically outlines the due process of termination of employment. The post below is based on the book Guide to Valid Dismissal of Employees Second Edition by Atty. 1592, in relation to Art. For termination of employment as defined in Article 283 of the Labor Code, the requirement of due process shall be deemed complied with upon the service of a written notice to the employee and the appropriate Regional Office of the Department of Labor and Employment at least thirty days before [effectivity] of the termination, specifically the ground or grounds for termination. Due process and its associated elements is a rather complicated concept so it's not uncommon for issues to arise with its application to employee termination. There are two approaches to end employer-employee relationship, the first one is the ground zero of our recent blog series– employer initiated which is termination. Due Process in Termination of Employment due to Retrenchment. Potential Issues Regarding Due Process and Employee Termination. D.O. An employer may not be sure how to handle a situation, either due to their inexperience or the complexity of the circumstances, and mistakes can happen. The employer satisfies procedural due process, which constitutes compliance with the procedures laid down in the Labor Code, after serving a written notice of termination to the employee concerned, and the appropriate regional office of the Department of Labor and Employment, at least 30 days before the effective date of the termination, specifying the ground/s for termination. For termination of employment as defined in Article 283 of the Labor Code, the requirement of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department of Labor and Employment at least thirty days before effectivity of the termination, specifying the ground or grounds for termination. Dismissing employees is the act by the employer of terminating their employment on the ground of just causes and after observance of substantive and procedural due process. Termination by Employer An employer can terminate an employee based on a just or authorized cause. Elvin B. Villanueva.. No. A group termination of employment is the termination of employment of 50 or more employees working at a single industrial establishment either on the same date or within any 4 week period. 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