by: Atty. Joshua Nathaniel C. Reyes
The proper procedures/requirements needed for laying-off employees depend on the reason of termination:
1. Just causes of termination refer to serious misconduct, willful disobedience or insubordination, gross and habitual neglect of duties, fraud or wilful breach of trust, loss of confidence, commission of a crime or offense, and analogous causes.
In a termination for just cause, due process involves the two-notice rule:
a) A notice of intent to dismiss specifying the ground for termination, and giving said employee reasonable opportunity within which to explain his or her side;
b) A hearing or conference where the employee is given opportunity to respond to the charge, present evidence or rebut the evidence presented against him or her;
c) A notice of dismissal indicating that upon due consideration of all the circumstances, grounds have been established to justify termination.
2. Authorized causes of termination refer to installation of labor-saving devices, redundancy, retrenchment or downsizing, closure or cessation of operation, and disease.
In a termination for an authorized cause, due process means a written notice of dismissal to the employee specifying the grounds at least 30 days before the date of termination. A copy of the notice shall also be furnished the Regional Office of the Department of Labor and Employment (DOLE) where the employer is located.
In termination for authorized causes, separation pay is the amount given to an employee terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of business or incurable disease.
Separation Pay
1. In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive the equivalent of one month pay or one month for every year of service, whichever is higher.
2. In cases of retrenchment, closure or cessation of business or incurable disease, the employee is entitled to receive the equivalent of one month pay or one-half month pay for every year of service, whichever is higher.
*Proof of actual or imminent financial losses that are substantive in character must be proven by the employer to justify retrenchment
A copy of the DOLE Notice of Retrenchment Form, if the termination is due to retrenchment, can be downloaded from its website.
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