business closure, cessation of operation, retrenchment (reduction of costs) to prevent losses, etc. Regular or Permanent Employment is when an employee performs activities that are usually necessary or desirable in the usual business or trade of the employer. Labor Laws in the Philippines allow employers to terminate employees. Burden of proof is on the employer to prove that an employee is a non-regular. Address: 8-C Marajo Tower, 312 26th Street West corner 4th Avenue, Bonifacio Global City, Taguig, Philippines 1634, Are You Hiring the Right Candidates? It is resorted to during periods of business recession, industrial depression, or seasonal fluctuations or during lulls occasioned by lack of orders, shortage of materials, conversion of the plant for a new production program or the introduction of new methods or more … It includes all the amount they could have earned starting from the date of dismissal up to the time of reinstatement. When an employee resigned voluntarily, is he or she entitled to separation pay? If they do not submit a notification, you can charge them for any concurrent damages. In establishments with a collective bargaining agreement (CBA), the dismissal may be questioned through the grievance machinery established under the CBA. Good faith in abolishing redundant position; and. As the employer, you will want to retain a copy of the termination letter in the employee's personnel file so that you preserve a record for potential future use. Types of Employment Termination. The legality of a dismissal may be questioned before the Labor Arbiter of a Regional Arbitration Branch of the National Labor Relations Commission (NLRC) of the Philippines, through a complaint for illegal dismissal. Dismissals based on just causes involve the two-notice rule: Dismissals based on authorized causes involve the following: -The right to security of tenure is a Constitutional guarantee that means an employee cannot be dismissed from the service for causes other than those provided by the law and only after due process is accorded to them. The due process is different for both authorized and just causes. If the complaint is not resolved at this level, it may be submitted to voluntary arbitration. Author: Atty Elvin Villanueva. Yes. Before terminating the services of an employee, what procedure should the employer observe? Legal grounds, on the other hand, are the basis for authorized termination. According to Article 282 of the Labor Code, an employer can terminate an employee for just causes, which could be any of the following: Employers can also terminate an employee based on authorized causes like business and health reasons. The decision to close business is a management prerogative exclusive to the employer, the exercise of which no court or tribunal can meddle with, except only when the employer fails to prove compliance with the requirements of Art. -Yes, but only on grounds where the employee’s continued presence inside the company premises poses a serious and imminent threat to the life or property of the employer and/or the other employees in the company. An employee who participates in a lawful strike is not deemed to have abandoned their employment but is merely exercising their constitutional right to self-organization to protect their rights as an employee and/or obtain better working conditions. Art. 5.4 Can employees be dismissed in connection with a business sale? 8. The Bureau, Its History, Mandate and Mission, Appeals and Review Unit – Mediation-Arbitration Unit, Union Registration and Workers’ Empowerment Division, Program Management and Technical Support Services Division, Bureau of Workers with Special Concerns (BWSC), National Reintegration Center for OFWs (NRCO), National Conciliation and Mediation Board (NCMB), National Labor Relations Commission (NLRC), National Wages and Productivity Commission (NWPC), Occupational Safety and Health Center (OSHC), Overseas Workers Welfare Administration (OWWA), Philippine Overseas Employment Administration (POEA), Technical Education and Skills Development Authority (TESDA). If this could not be possible, the employer can extend the period of suspension provided that during such period, he or she pays the wages and other benefits due to the employee. 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. 22. 28. There are types of employment termination: first is termination by the employer. Regular employment is the default status of an employee. An employee who is dismissed without just cause is entitled to any or all of the following: a) reinstatement without loss of seniority rights; b) in lieu of reinstatement, an employee may be given separation pay of one month pay for every year of service (Golden Ace Builders, et. Termination by employee. Just causes are based on acts attributable to an employee’s own wrongful actions or negligence while authorized causes refer to lawful grounds for … Substantive due process means that the termination must be based on just and/or authorized causes for dismissal. An employer can only terminate an employee if there is just cause or an authorized reason. A written notice, commonly referred to as a notice to explain specifying the grounds for termination and giving the employee ample opportunity to explain their side; A hearing or conference to allow the employee to respond to the charge/s, present evidence, or rebut the evidence presented against them; and. MANILA, Philippines — The planned mass termination of 2,400 Philippine Airlines (PAL) employees is unlikely to push through, the Department of Labor and Employment (DOLE) said yesterday. Termination by employer. 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. Employee termination letter template. Where termination of employment will follow a business sale, employees would have to be notified 30 days ahead of their termination. In what forms may reinstatement be affected? Yes, provided it is permitted under circumstances for a period of not more than six (6) months. In case of separation pay in lieu of reinstatement, the employee is entitled to receive the equivalent of one month pay for every year of service. -An employee may question their dismissal based on substantive or procedural grounds: Suppose the employer denies dismissing the employee, who has the duty to prove that the dismissal is without valid cause? Reinstatement means restoration of the employee to the position from which he or she has been unjustly removed. What are they? What are the rights accorded to an unjustly dismissed employee? A just cause can be an employee’s unethical behavior or negligence. -Yes. Thus, terminating an employee in the country is taken VERY seriously and can be a complex process, especially since, when in doubt, the Labor Code of the Philippines is construed in favor of employees. temporary employee), efficiency and seniority (Asian Alcohol Corp. vs. NLRC, 305 SCRA 416); A one-month prior notice is given to the employee and DOLE Regional Office as prescribed by law. 11. Yes, provided that these are voluntarily signed and the consideration is reasonable and is not against the law or public policy. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. Yes. BOOK SIX. Philippine laws only grant separation pay to those who were dismissed from service not due to their own fault or negligence but for reasons that are beyond their control, i.e. The employer must obtain from a competent public health authority a certification that the employee’s disease is of such a nature and at such a stage that it can no longer be cured within a period of six (6) months even with medical attention. reinstatement without loss of seniority rights; separation pay equivalent to the employee’s one-month salary for every year of service if reinstatement cannot be provided; full backwages, inclusive of allowances and other benefits or their monetary equivalent from the time compensation was withheld up to the time of reinstatement; and. According to Section 9 of Rule XXIII, Book V of the Omnibus Rules Implementing the Labor Code, as amended by Department Order No. May an employer dismiss an employee? 13. 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