CHAPTER 12 : SEPARATION

AND TERMINATION OF
EMPLOYMENT
 LEARNING OUTCOMES (L0) CHAPTER 12: AFTER
READING THE CHAPTER, STUDENTS SHOULD BE
ABLE TO:

 LO 1:Cite the difference between just causes and authorized causes of termination
 LO2:Describe Due Process in the context of termination of employment
 LO3:Discuss and explain the provisions of the Labor Code of the Philippines on

Termination of Employment and Retirement from Service

- Terminating an employee in the Philippines is taken
VERY seriously and can be a complex process,
especially after the employee is regularized.The
Philippine Constitution says, no involuntary servitude in
any form shall exist, except as punishment for a crime
whereof the party shall have been duly convicted.In
view of the prohibition on involuntary servitude, an
employee is given the right to resign under Art. 285 of
the Labor Code.
The provision recognizes TWO KINDS OF
RESIGNATION – WITHOUT CAUSE AND WITH
CAUSE. If the resignation is without cause, the
employee is required to give a 30-day advance written
notice to the employer, to enable the employer to look
for a replacement to prevent work disruption.If the
employee fails to give a written notice, he or she runs
the risk of incurring liability for damages
DISMISSAL OF AN EMPLOYEE IN THE
PHILIPPINES
- The employer may terminate the services of an employee for just or
authorized causes after following the procedure laid down by lawbut the
employer has the burden of proving the lawfulness of the employee’s
dismissal in the proper forum.
- Just causes are blameworthy acts on the part of the employee such as
serious misconduct, willful disobedience, gross and habitual neglect of
duties, fraud or willful breach of trust, commission of a crime and other
analogous causes (Art. 282, (Labor Code).
Authorized causes are of two types – business
reasons and disease.The business reasons could
be:

• installation of labor-saving devices

• redundancy,
• retrenchment and
• closure or cessation of operation (Art. 283,
Labor Code
- Before the employer can terminate employment on the ground of disease, he
must obtain from a competent public health authority a certification that the
employee’s disease is of such a nature and at such a stage that it can no longer
be cured within a period of six months even with medical attention (Art. 284,
Labor Code; Implementing Rules of - Book VI, Labor Code).
- Those hired on temporary basis, that is, for a “term” or “Fixed Period” are
not regular employees but are “contractual employees.” Consequently, there is
no illegal dismissal when their services are terminated by reason of the
expiration of their contracts.Lack of notice of termination is of no consequence
because a contract for employment for a definite period terminates by its own
term at the end of such period.
 DIFFERENCE BETWEEN A JUST AND
AUTHORIZED CAUSE OF TERMINATION

- Just cause refers to a wrong doing committed by the

employer or employee on the basis of which the aggrieved
party may terminate the employer- employee relationship.

- Authorized cause refers to a cause brought about by

changing economic or business conditions of the employer
 JUST CAUSES FOR TERMINATION BY THE
EMPLOYEE

 Serious insult by the employer or his or her representative on the honor and
person of the employee;

 Inhuman and unbearable treatment accorded the employee by the employer or

his or her representative;

 Commission of a crime by the employer or his or her representative against the

person of the employee or any of the immediate members of his or her family;
and,

 Other analogous causes

AUTHORIZED CAUSES FOR
TERMINATION

 Installation of labor-saving device;

 Redundancy;
 Retrenchment to prevent losses;
 Closure or cessation of business; and,
 Disease not curable within six months as certified by competent
public authority, and continued employment of the employee is
prejudicial to his or her health or to the health of his or her co-
employees.