Understanding Employment Termination in the Philippines


Termination of employment is strictly regulated.

For dismissals based on just cause—

such as misconduct or negligence—

the Labor Code requires a two-fold due process:

First, issue a written notice to explain the specific grounds, and

Second, provide a hearing where the employee can defend themselves.

For authorized causes like redundancy, retrenchment, business closure, or incurable disease:

A 30-day notice is mandatory,

Along with adherence to prescribed separation pay rules.

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