Assigned Reading VI

Assigned Reading VI
Guide Questions
What are the authorized causes for terminating an employee?
Art. 282. Termination by employer. An employer may terminate an employment for
any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or
duly authorized representative;
d. 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
e. Other causes analogous to the foregoing.
Art. 283. Closure of establishment and reduction of personnel. The employer may
also terminate the employment of any employee due to the installation of laborsaving
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.
Art. 284. Disease as ground for termination. An employer may terminate the services
of an employee who has been found to be suffering from any disease and whose
continued employment is prohibited by law or is prejudicial to his health as well as to the
health of his co-employees: Provided, That he is paid separation pay equivalent to at
least one (1) month salary or to one-half (1/2) month salary for every year of service,
whichever is greater, a fraction of at least six (6) months being considered as one (1)
whole year.
What is the procedure for termination?

An employer shall observe procedural due process before terminating one’s
employment.
Components of procedural due process

A. 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.
B. 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.
What is the separation pay due to terminated employee?

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 may also be granted to an illegally dismissed employee in lieu of
reinstatement.
How do you terminate an employee on the ground of disease?

The employer may terminate employment on ground of disease only upon the issuance
of a certification by a competent public health authority that the disease is of such
nature or at such stage that it cannot be cured within a period of six months even with
proper medical treatment.
When may termination be at the instance of the employee?
Art. 285. Termination by employee.
a. An employee may terminate without just cause the employee-employer relationship
by serving a written notice on the employer at least one (1) month in advance. The
employer upon whom no such notice was served may hold the employee liable for
damages.
b. An employee may put an end to the relationship without serving any notice on the
employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and person
of the employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or
his representative;
3. Commission of a crime or offense by the employer or his representative
against the person of the employee or any of the immediate members of his
family; and
4. Other causes analogous to any of the foregoing.
When employment deemed not terminated?

Art. 286. When employment not deemed terminated. The bona-fide suspension of
the operation of a business or undertaking for a period not exceeding six (6) months, or
the fulfillment by the employee of a military or civic duty shall not terminate employment.
In all such cases, the employer shall reinstate the employee to his former position
without loss of seniority rights if he indicates his desire to resume his work not later than
one (1) month from the resumption of operations of his employer or from his relief from
the military or civic duty
What is retirement?
Art. 287. Retirement. Any employee may be retired upon reaching the retirement age
established in the collective bargaining agreement or other applicable employment
contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits
as he may have earned under existing laws and any collective bargaining agreement
and other agreements: Provided, however, that an employee’s retirement benefits under
any collective bargaining and other agreements shall not be less than those provided
therein.
In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of sixty (60) years
or more, but not beyond sixty-five (65) years which is hereby declared the compulsory
retirement age, who has served at least five (5) years in the said establishment, may
retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month
salary for every year of service, a fraction of at least six (6) months being considered as
one whole year.
Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month salary’
shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash
equivalent of not more than five (5) days of service incentive leaves.
Retail, service and agricultural establishments or operations employing not more than
ten (10) employees or workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal
provisions under Article 288 of this Code
What is the retirement pay due to an employee?

The minimum retirement pay shall be equivalent to one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one (1) whole
year.
The term “one-half month salary” is equivalent to 22.5 days, as it consists of the
following:
1. Fifteen (15) days salary based on the latest salary rate;
2. Cash equivalent of five (5) days of service incentive leave;
3. One-twelfth (1/12) of the thirteenth-month
pay.
(1/12 x 365/12 = .083 x 30.41 = 2.5)
Computation
The retirement pay shall be computed as follows:
Minimum Retirement Pay = Daily Rate x 22.5 days x number of years in service

Assigned Reading VI

Uploaded by

Copyright:

Available Formats

Assigned Reading VI

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Assigned Reading VI

Uploaded by

Copyright:

Available Formats

Assigned Reading VI

What is the procedure for termination?

Components of procedural due process

What is the separation pay due to terminated employee?

How do you terminate an employee on the ground of disease?

When employment deemed not terminated?

What is the retirement pay due to an employee?

You might also like