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PAST DISCUSSION: Termination by Employer

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33 views

PAST DISCUSSION: Termination by Employer

Uploaded by

Princess Magpatoc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PAST DISCUSSION: Termination by Employer

According to Article 282 of the Labor Code, an employer can terminate an


employee for just causes, which could be any of the following:

 serious misconduct or willful disobedience by the employee of the


lawful orders of his employer or representative in connection with his
work;
 gross and habitual neglect by the employee of his duties;
 fraud or willful breach by the employee of the trust reposed in him by
his employer or duly authorized representatives;
 commission of a crime or offense by the employee against the person
of his employer or any immediate member of his family or his duly
authorized representatives; and
 other similar causes.

CLOSURE OF ESTABLISHMENT AND REDUCTION OF PERSONNEL


Authorized causes for termination ARTICLE 297 (ART. 283)
NOTE: Should be done in GOOD FAITH (abuse of discretion, arbitrariness, or
maliciousness on the part of management)

Employers can also terminate an employee based on authorized causes like


business and health reasons.

Art. 283 of the Labor Code states that an employee can be terminated due to
business reasons such as:

 installation of labor-saving devices;


 redundancy;
 retrenchment (reduction of costs) to prevent losses; or
 the closing or cessation of operation.

Art. 283. Closure of establishment and reduction of personnel. The


employer may also terminate the employment of any employee due to the
installation of labor-saving devices, redundancy, retrenchment to prevent
losses or the closing or cessation of operation of the establishment or
undertaking unless the closing is for the purpose of circumventing the
provisions of this Title, by serving a written notice on the workers and the
Ministry of Labor and Employment at least one (1) month before the intended
date thereof. In case of termination due to the installation of labor-saving
devices or redundancy, the worker affected thereby shall be entitled to a
separation pay equivalent to at least his one (1) month pay or to at least one
(1) month pay for every year of service, whichever is higher. In case of
retrenchment to prevent losses and in cases of closures or cessation of
operations of establishment or undertaking not due to serious business losses
or financial reverses, the separation pay shall be equivalent to one (1) month
pay or at least one-half (1/2) month pay for every year of service, whichever is
higher. A fraction of at least six (6) months shall be considered one (1) whole
year.

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