Employee termination
in the Philippines.

In the Philippines, termination of employment must be based on valid and just causes as defined by the Labor Code of the Philippines. There are two main categories of termination:

1. Termination for Just Causes

• Inefficiency or Poor Performance: Termination may be justified if an employee consistently fails to meet the required performance standards despite sufficient training.
• Gross Negligence: If an employee shows a wilful disregard for their duties, they may be terminated. 
• Fraud or Willful Breach of Trust: If an employee engages in dishonesty, fraud, or embezzlement that causes financial harm to the employer, it may be considered a just cause for termination.
• Commission of a Crime: Conviction of a crime that significantly impairs the employee’s ability to perform their job duties.
• Willful Disobedience: Refusal to follow lawful and reasonable instructions from superiors can be grounds for termination.

2. Termination for Authorized Causes

• Business Closure: If the employer needs to close down the business or retrench employees due to financial losses or restructuring, termination for authorized causes may apply.
• Redundancy: If the employee’s position becomes redundant due to technological advancements, operational streamlining, or other valid reasons, termination for authorized causes may be justified.
• Disease or Illness: If an employee suffers from a disease or illness that cannot be cured or would impair their ability to perform their job duties, termination for authorized causes may apply.
• Retirement: When an employee reaches the mandatory retirement age as specified in the employment contract or company policy, termination may be considered as authorized cause.