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This document outlines labor laws regarding termination of employment and retirement from service in the Philippines. It discusses different types of employment (regular, casual, probationary), acceptable reasons for termination by an employer or employee, requirements for closing an establishment, and retirement benefits. Employees have security of tenure in regular employment and can only be terminated for just cause. The document also specifies separation pay amounts for different circumstances.
This document outlines labor laws regarding termination of employment and retirement from service in the Philippines. It discusses different types of employment (regular, casual, probationary), acceptable reasons for termination by an employer or employee, requirements for closing an establishment, and retirement benefits. Employees have security of tenure in regular employment and can only be terminated for just cause. The document also specifies separation pay amounts for different circumstances.
This document outlines labor laws regarding termination of employment and retirement from service in the Philippines. It discusses different types of employment (regular, casual, probationary), acceptable reasons for termination by an employer or employee, requirements for closing an establishment, and retirement benefits. Employees have security of tenure in regular employment and can only be terminated for just cause. The document also specifies separation pay amounts for different circumstances.
POST EMPLOYMENT An employment shall be deemed to be Title I casual if it is not covered by the TERMINATION OF EMPLOYMENT preceding paragraph: Provided, That any employee who has rendered at least Art. 278. Coverage. The provisions of one year of service, whether such this Title shall apply to all service is continuous or broken, shall be establishments or undertakings, whether considered a regular employee with for profit or not. respect to the activity in which he is employed and his employment shall Art. 279. Security of tenure. In cases continue while such activity exists. of regular employment, the employer shall not terminate the services of an Art. 281. Probationary employee except for a just cause or employment. Probationary employment when authorized by this Title. An shall not exceed six (6) months from the employee who is unjustly dismissed date the employee started working, from work shall be entitled to unless it is covered by an apprenticeship reinstatement without loss of seniority agreement stipulating a longer period. rights and other privileges and to his full The services of an employee who has backwages, inclusive of allowances, and been engaged on a probationary basis to his other benefits or their monetary may be terminated for a just cause or equivalent computed from the time his when he fails to qualify as a regular compensation was withheld from him up employee in accordance with to the time of his actual reasonable standards made known by reinstatement. (As amended by Section the employer to the employee at the 34, Republic Act No. 6715, March 21, time of his engagement. An employee 1989) who is allowed to work after a probationary period shall be considered Art. 280. Regular and casual a regular employee. employment. The provisions of written agreement to the contrary Art. 282. Termination by employer. An notwithstanding and regardless of the employer may terminate an employment oral agreement of the parties, an for any of the following causes: employment shall be deemed to be regular where the employee has been a. Serious misconduct or willful engaged to perform activities which are disobedience by the employee of usually necessary or desirable in the the lawful orders of his employer usual business or trade of the employer, or representative in connection except where the employment has been with his work; fixed for a specific project or undertaking the completion or termination of which b. Gross and habitual neglect by the has been determined at the time of the employee of his duties; engagement of the employee or where the work or service to be performed is c. Fraud or willful breach by the of at least six (6) months shall be employee of the trust reposed in considered one (1) whole year. him by his employer or duly authorized representative; Art. 284. Disease as ground for termination. An employer may d. Commission of a crime or offense terminate the services of an employee by the employee against the who has been found to be suffering from person of his employer or any any disease and whose continued immediate member of his family employment is prohibited by law or is or his duly authorized prejudicial to his health as well as to the representatives; and health of his co-employees: Provided, That he is paid separation pay e. Other causes analogous to the equivalent to at least one (1) month foregoing. salary or to one-half (1/2) month salary for every year of service, whichever is Art. 283. Closure of establishment greater, a fraction of at least six (6) and reduction of personnel. The months being considered as one (1) employer may also terminate the whole year. employment of any employee due to the installation of labor-saving devices, Art. 285. Termination by employee. redundancy, retrenchment to prevent losses or the closing or cessation of a. An employee may terminate operation of the establishment or without just cause the employee- undertaking unless the closing is for the employer relationship by serving purpose of circumventing the provisions a written notice on the employer of this Title, by serving a written notice at least one (1) month in on the workers and the Ministry of Labor advance. The employer upon and Employment at least one (1) month whom no such notice was served before the intended date thereof. In case may hold the employee liable for of termination due to the installation of damages. labor-saving devices or redundancy, the worker affected thereby shall be entitled b. An employee may put an end to to a separation pay equivalent to at least the relationship without serving his one (1) month pay or to at least one any notice on the employer for (1) month pay for every year of service, any of the following just causes: whichever is higher. In case of retrenchment to prevent losses and in 1. Serious insult by the cases of closures or cessation of employer or his operations of establishment or representative on the undertaking not due to serious business honor and person of the losses or financial reverses, the employee; separation pay shall be equivalent to one (1) month pay or at least one-half 2. Inhuman and unbearable (1/2) month pay for every year of treatment accorded the service, whichever is higher. A fraction employee by the employer or his representative; agreements shall not be less than those provided therein. 3. Commission of a crime or offense by the employer or In the absence of a retirement plan or his representative against agreement providing for retirement the person of the benefits of employees in the employee or any of the establishment, an employee upon immediate members of his reaching the age of sixty (60) years or family; and more, but not beyond sixty-five (65) years which is hereby declared the 4. Other causes analogous to compulsory retirement age, who has any of the foregoing. served at least five (5) years in the said establishment, may retire and shall be Art. 286. When employment not entitled to retirement pay equivalent to deemed terminated. The bona-fide at least one-half (1/2) month salary for suspension of the operation of a every year of service, a fraction of at business or undertaking for a period not least six (6) months being considered as exceeding six (6) months, or the one whole year. fulfillment by the employee of a military or civic duty shall not terminate Unless the parties provide for broader employment. In all such cases, the inclusions, the term ‘one-half (1/2) employer shall reinstate the employee to month salary’ shall mean fifteen (15) his former position without loss of days plus one-twelfth (1/12) of the 13th seniority rights if he indicates his desire month pay and the cash equivalent of to resume his work not later than one (1) not more than five (5) days of service month from the resumption of operations incentive leaves. of his employer or from his relief from the military or civic duty. Retail, service and agricultural establishments or operations employing Title II not more than ten (10) employees or RETIREMENT FROM THE SERVICE workers are exempted from the coverage of this provision. Art. 287. Retirement. Any employee may be retired upon reaching the Violation of this provision is hereby retirement age established in the declared unlawful and subject to the collective bargaining agreement or other penal provisions under Article 288 of this applicable employment contract. Code.
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