Termination of Employment
The Labor Code provides specific grounds and procedures for lawful termination.
Just Causes (No Separation Pay):
- Serious misconduct
- Willful disobedience
- Gross and habitual neglect of duty
- Fraud or breach of trust
- Commission of a crime against employer or co-employee
Authorized Causes (With Separation Pay):
- Redundancy
- Retrenchment to prevent losses
- Closure of business
- Disease not curable within 6 months
Separation Pay Computation:
- Redundancy: 1 month pay per year of service
- Retrenchment/Closure: ½ month pay per year of service
- Minimum: 1 month pay in any case
Due Process Requirements:
- Written notice specifying grounds (1st notice)
- Opportunity to explain/hearing
- Written notice of decision (2nd notice)
Legal Basis
Articles 297-299, Labor Code of the Philippines