Employment 2025

PHILIPPINES Law and Practice Contributed by: Rashel Ann C Pomoy and Paolo Miguel Consignado, Villaraza & Angangco

Other Forms of Summary Dismissals in the Philippine Labour Code Employees may be terminated for violating a Union Security Clause under Article 259 (c) of the Philip - pine Labour Code if such a clause is included in the CBA. This grants the SEBA the authority to request an employer to dismiss any employee who fails to comply with the union security agreement, such as by refusing to join the union or failing to maintain membership in good standing, provided that there is sufficient evidence for the violation thereof. This only applies to new employees hired after the signing of the CBA containing the union security clause, unless they are religious objectors. Termination based on Article 259 (c) of the Philippine Labour Code shall follow the procedural requirements for just cause. Article 279 (a) of the Philippine Labour Code provides for termination upon the commission of prohibited activities. Union officers who knowingly participate in an illegal strike are deemed to have lost their employ - ment status. In addition, any employee, union officer or ordinary member who knowingly participates in the commission of illegal acts during a strike (irrespective of whether the strike is legal or illegal) is also deemed to have lost their employment status. The due process here does not require a notice and hearing, as the act itself results in automatic loss of employment status. Under Article 278 (g) of the Philippine Labour Code, strikers who violate orders, prohibitions and/or injunc - tions as are issued by the DOLE Secretary or the National Labour Relations Commission (NLRC) may be subject to immediate disciplinary action, including dismissal. Lastly, under Article 296 of the Philippine Labour Code, the employment of a probationary employee may be terminated if he/she fails to meet the reason - able standards for regular employment, as long as the employer clearly communicated these standards at the time of hiring. 7.4 Termination Agreements Termination Agreements Termination agreements or mutual separation agree - ments are permissible in the Philippines, provided that the terms are mutually agreed upon by both the

• separation pay equivalent to one month’s pay or at least half a month’s pay for every year of service: (a) retrenchment; (b) closure or cessation of business operations not due to serious business losses (when closure or cessation of business operations is due to serious business losses or financial reverses, no separation pay is required); or (c) disease. For purposes of computing separation pay, a frac - tion of six months’ service is considered as one whole year. For just causes, no separation pay is required unless specified by company policy or the CBA. 7.3 Dismissal for (Serious) Cause Just Causes for Termination In the Philippines, summary dismissal or dismissal for serious cause is not defined under the law. However, it is akin to termination for just cause under the Philippine Labour Code, as discussed in 7.1 Grounds for Termination . Both refer to the dismissal of an employee due to serious offences, such as gross misconduct, wilful disobedience, fraud, or other grave violations of company policies or the law. As indicated in 7.2 Notice Periods , the employer must adhere to due process, which involves issuing two written notices. The first notice must clearly state the specific reasons for termination and include detailed facts supporting the charge. After this, the employee must be provided with an opportunity to explain their side, either verbally or in writing, and within five days from receipt of the first notice. If, after considering the employee’s explanation, the employer determines that dismissal is justified, a second notice must be issued to confirm the termination. Failure to follow the proper procedural due process will not invalidate the dismissal; however, the employee will be entitled to receive nominal damages amounting to PHP30,000 as indemnity for the violation of their rights.

434 CHAMBERS.COM