Legally Terminating an Employee: Due Process Requirements in the Philippines

Employee termination is one of the most legally sensitive actions an employer can take. Philippine labor law strongly protects employee tenure, and failure to follow proper procedures can result in expensive illegal dismissal awards.

Just Causes vs. Authorized Causes

The Labor Code distinguishes between:

**Just Causes** (employee fault): - Serious misconduct - Willful disobedience - Gross and habitual neglect of duties - Fraud or breach of trust - Commission of a crime

**Authorized Causes** (business reasons): - Installation of labor-saving devices - Redundancy - Retrenchment to prevent losses - Closure of business - Disease

Twin Notice Rule

For just cause terminations, employers must provide:

1. **First Notice** - A written notice specifying the grounds for termination and giving the employee at least 5 days to explain
2. **Opportunity to be Heard** - A meaningful chance to respond, either in writing or through a hearing
3. **Second Notice** - A written notice of decision, clearly stating the reasons for termination

Common Mistakes

Employers frequently fail by: - Rushing the process - Not documenting the misconduct properly - Failing to give adequate notice - Not conducting a fair investigation - Using termination as a first resort instead of progressive discipline

Consequences of Illegal Dismissal

If found illegally dismissed, an employer may be ordered to: - Reinstate the employee - Pay back wages (up to the date of finality) - Pay separation pay (if reinstatement is not viable) - Pay moral and exemplary damages - Pay attorney's fees

Best Practices

1. Document everything
2. Follow your company's code of conduct
3. Use progressive discipline when appropriate
4. Consult with legal counsel before terminating
5. Ensure thorough investigation

Proper legal guidance before termination can prevent costly litigation and ensure fair treatment for all parties.