Termination of Employment

A weak economy sees the emergence of more small and medium enterprises and the closure or re-engineering of large companies. To stay afloat, a business establishment usually resorts to cutting costs, including that of manpower.
Termination of employment by retrenchment is usually to prevent serious business losses. Existing labor laws require the employer to give a 30-day notice to the employee regarding management’s decision to terminate the employment and to submit an Employment Retrenchment Report to the Department of Labor and Employment at least 30 days prior to the intended date of termination.  Click here for a template of this report.
Upon the expiry of the 30-day notice, the employer then becomes liable to pay the terminated employee his separation pay, computed at a minimum of a half-month’s salary for every year of service. Those employed for less than a year with the company shall be entitled to the equivalent of one month’s salary.

4 thoughts on “Termination of Employment

    1. Atty. Post author

      Lucille: In cases of termination before the expiration of the contract term/period, the right of the employee to receive termination pay under the Labor Code will apply. If termination of employment is due to the expiration of the fixed term then the employee will not be entitled to separation pay. But do check the employment contract for separation or retirement benefits that the employer may have stipulated at the onset of employment.

      I hope this helps.

  1. Mex

    Atty. I want to purchase your book is this available in bookstores? How much is this?
    Re: Valid termination

    Thank you very much
    I’ll be waiting for your respond


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