Chapter 12

• What is the relationship between employer and employee regarding termination in the Philippines?

  Equality of rights exists between both parties.
• What must an employer prove in a dismissal case?

  The lawfulness of the employee's dismissal.
• What are just causes for termination of employment?

  Blameworthy acts like serious misconduct.
• What are authorized causes for termination?

  Business reasons and disease-related issues.
• What are examples of business reasons for termination?

  Installation of labor-saving devices and redundancy.
• What must an employer obtain before terminating an employee due to disease?

  A certification from a public health authority.
• What are contractual employees in the Philippines?

  Employees hired for a fixed term or period.
• What happens when a contractual employee's contract expires?

  No illegal dismissal occurs upon termination.
• What is separation pay based on?


  The reason for termination of employment.
• How much separation pay is given for redundancy?


  One month’s pay for every year of service.
• What is the separation pay for retrenchment to prevent losses?


  Half a month’s pay for every year of service.
• When is separation pay not required?

  If the business closes due to financial losses.
• What is the difference between just cause and authorized cause of termination?

  • Just cause: Wrongdoing by employer or employee.
  • Authorized cause: Economic or business condition changes.
• What are some just causes for termination by the employer?

  -Serious misconduct

  -Fraud or breach of trust

  -Crime or offense against other employer

  -Willful disobedience.

  -Gross and habitual neglect of duty

  -other analogous causes
• What are just causes for termination by the employee?

  -Serious insult

  -Inhuman treatment

  -Commission of a crime

  -other analogous causes
• What are authorized causes for termination?

  -Redundancy

  -Retrechment to prevent losses

  -Closure of business

  -Disease not curable within six months.
• What does due process in termination mean?


  Notification of dismissal reason and defense opportunity.
• What is required for termination due to authorized cause?

  A written notice at least 30 days prior.
• What does Article 279 of the Labor Code state about regular employment?

  Termination requires just cause or authorization.
• What is the maximum duration of probationary employment?

  Six months from the start date.
• What is the compulsory retirement age in the Philippines?

  Sixty to sixty-five years old.
• What is the retirement pay calculation for employees?

  At least half a month’s salary per year.
• What does the term "one-half month salary" include?

  Fifteen days plus one-twelfth of 13th month pay.
• Who is exempt from retirement benefits provisions?

  Establishments with fewer than ten employees.
• What is the significance of seniority rights in termination cases?

  Employees unjustly dismissed retain seniority rights.
• What does Article 280 of the Labor Code state about regular employment?

  Regular employment is based on necessary activities.
• What is required for a written agreement regarding employment?

  It must specify the terms of employment clearly.
• What is the role of the Department of Labor and Employment in termination processes?

  To receive copies of dismissal notices.
• The Labor Code of the Philippines

  Title I:

  Termination of Contract
• What is in Article 278?

  Coverage- The provisions of this Title shall apply to all establishments undertakings, whether for profit or not.
• What is in Article 279?

  Security of Tenure
• What is in Article 280?

  Regular and Casual Employment
• What is in Article 281?

  Probitionary Employment
• The Labor Code of the Philippines Title II:

  Retirement from the Service
• What is in Article 287?

  Retirement