In the Philippines, employment termination can occur for various reasons. However, employers must follow due process and adhere to the provisions set forth in the Labor Code to ensure that the termination is legally valid. Some of the authorized causes for termination in the Philippines include:
Just Causes:
a. Serious misconduct or wilful disobedience to lawful orders.
b. Gross and habitual neglect of duties.
c. Fraud or wilful breach of trust.
d. Commission of a crime or offense against the employer or a co-worker.
e. Loss of trust and confidence due to a legitimate reason, such as unauthorized disclosure of company trade secrets or confidential information.
Authorized Causes:
a. Retrenchment or downsizing to prevent losses.
b. Closure or cessation of operations due to business reasons.
c. Disease or illness that renders the employee unfit for continued employment.
If the employer has one of the above reasons to terminate employment then the process is to give written notice 30 days’ prior to going into effect, hold a hearing with the employee so they know the reason, and last, hold an exit interview.