Grounds for Terminating a Spouse and a Paramour from Employment in the Philippines

Last updated based on the Labor Code (as renumbered), DOLE rules, and mainstream Supreme Court doctrine. This is general information, not legal advice.

Quick map of the law

Termination in the Philippines is never “at will.” An employer may end employment only for:

Just causes (employee fault) under Article 297 (formerly 282) of the Labor Code; and
Authorized causes (business/health reasons) under Articles 298–299 (formerly 283–284).

Because this article is about a spouse and a paramour (i.e., employees in an extra-marital relationship), the relevant grounds—if any—will almost always be just causes. Authorized causes (redundancy, retrenchment, closure, disease) are generally irrelevant to affairs and cannot be used to “target” particular individuals.

Core just causes that may apply to affairs between co-employees

The mere fact of an extra-marital relationship, by itself and outside of work, is usually not a legal ground to dismiss a private-sector employee. There must be a clear work-related breach and substantial evidence of it.

1) Serious misconduct (Art. 297[a])

What it is. Improper or wrongful conduct of a grave character, related to the performance of the employee’s duties, showing unfitness to continue working.

When it can fit an affair.

Sexual acts or romantic liaisons in the workplace or during work hours.
Public scandal or repeated altercations at work causing material workplace disruption.
Using company time/resources to carry on the affair in a way that impairs work (e.g., skipping sales calls to meet; explicit acts on premises).

What to prove. Specific acts; when/where they happened; how they connect to work (CCTV, logs, emails, incident reports, witness statements).

2) Willful disobedience of lawful orders (Art. 297[a])

What it is. Intentional violation of a lawful, reasonable, known, and work-related company rule.

How it applies.

Violation of a valid anti-fraternization policy, no-relationships-in-line-of-authority rule, or conflict-of-interest rule (e.g., supervisor dating a direct report; or an employee dating someone in a role where confidential information or vendor/customer leverage is at stake).
Refusal to comply with relocation, reassignment, or “cooling-off” directives designed to remove a direct reporting relationship.

Notes on policy validity

Policies must be lawful (not discriminatory), reasonable, clearly communicated, and consistently enforced.

Blanket “no marriage/no spouse employed here” rules are generally invalid discrimination. However, narrowly-tailored rules against relationships that create actual conflicts (e.g., direct-report romances) are commonly upheld.

Rules banning relationships with competitor’s employees can be valid when the employer proves a genuine business necessity (e.g., trade-secret risk).

3) Fraud or willful breach of trust (Art. 297[c])

What it is. Acts showing that the employer can no longer trust the employee in a position of trust and confidence.

How it applies.

A manager favors a paramour in hiring, pay, scheduling, or evaluations (nepotism-like favoritism).
Manipulating records, approvals, or access to benefit the paramour.
Using confidential information obtained through the relationship.

What to prove. Concrete acts: tampered ratings, unusual approvals, audit trails, emails, system logs.

4) Commission of a crime or offense against the employer or their family (Art. 297[d])

When it can apply.

If the paramour is an employee who commits adultery or concubinage with the employer’s spouse (the offended spouse is the employer).
If the affair involves coercion, threats, physical injury, estafa, theft, etc., against the employer or their immediate family or duly authorized representative.

Key points.

A criminal conviction is not required to terminate under labor standards; what’s needed is substantial evidence of the acts constituting the offense.
Adultery/concubinage are “private crimes” that normally require a complaint by the offended spouse for criminal prosecution; but for labor dismissal, the employer may rely on proven acts (e.g., admissions, messages, eyewitness accounts) when the offense is against the employer or immediate family.

5) Other analogous causes (Art. 297[e])

“Immorality” or “disgraceful conduct” can be an analogous cause only if:

The conduct is gross, public, and work-connected (e.g., overt sexual acts in the office; scandal that harms the employer’s reputation or operations); and
There’s clear company policy or the conduct plainly undermines the business.

Courts are cautious here: private consensual relationships outside the workplace, without work impact, seldom qualify.

Special statutory angles that often matter

Sexual harassment in employment
- RA 7877 (Anti-Sexual Harassment Act) and RA 11313 (Safe Spaces Act) cover workplace sexual harassment, including situations with a power imbalance (supervisor–subordinate), even if labeled “consensual.”
- Employers must have a policy, a Committee on Decorum and Investigation (CODI), conduct prompt investigations, and impose sanctions when warranted. A substantiated case can be serious misconduct or breach of trust.
Data privacy (RA 10173)
- Investigations must collect only necessary personal data, use it fairly and lawfully, secure it, and limit disclosure.
- Avoid illegal recordings (Anti-Wiretapping Act) and overbroad “snooping.” Prefer official devices/logs, work emails, and voluntary submissions.
Women’s protections
- Policies or actions that punish an employee for marrying or getting pregnant are unlawful discrimination (e.g., Magna Carta of Women). A “no-marriage” rule or firing someone because they married a co-employee is generally invalid.

Due process: how termination must be done

Even with cause, procedural due process is mandatory:

First written notice (charge sheet).
- State the specific acts, dates, places, policies violated, and proposed ground (e.g., serious misconduct / disobedience / breach of trust).
- Give the employee at least 5 calendar days to submit a written explanation and evidence.
Opportunity to be heard.
- Hearing or conference (especially if facts are disputed or credibility matters). Allow counsel/representative if requested.
Second written notice (decision).
- Issued after considering the explanation and evidence. Clearly state the findings, ground, and effectivity.

Preventive suspension. If the employee’s continued presence poses a serious and imminent threat to persons or property, or risks evidence tampering, you may impose preventive suspension up to 30 calendar days (extension allowed with pay if investigation needs more time).

Standard of proof. “Substantial evidence”—relevant evidence that a reasonable mind might accept as adequate. You need not prove criminal guilt.

Equal treatment. If both the spouse and the paramour committed the same work-related violation (e.g., both breached the fraternization rule), inconsistent discipline can be attacked as discriminatory unless you can show material differences (e.g., one is the supervisor; one has prior infractions; one cooperated and accepted reassignment).

What typically does not justify dismissal (by itself)

A consensual extra-marital relationship entirely outside work, not affecting business or violating any valid rule.
Mere moral disapproval or gossip without concrete, work-related harm.
A blanket “no-spouse/no-marriage” policy or firing because employees married each other.
Pregnancy outside marriage, absent a specific, work-connected ground (e.g., a religious school’s well-defined code can be stricter for certain posts, but private secular employers generally cannot rely on “immorality” alone).

Practical scenarios (how tribunals tend to view them)

Manager–direct report affair (both in the same company).
- Strongest grounds: willful disobedience (violating no-dating-in-line-of-authority rule), serious misconduct, and/or breach of trust (favoritism).
- Usual remedy short of dismissal when facts are murkier: reassignment to remove reporting lines; written warning; last-chance agreement.
Two rank-and-file employees having an affair off-site, no disruption.
- Weak ground for dismissal. At most, counseling or admonition if there’s a reputational clause and some concrete effect (e.g., uniformed staff publicly identified with the brand engaged in scandal during a company event).
Employee as paramour of the employer’s spouse.
- Potential ground under Art. 297(d) “offense against employer or family.” Gather solid evidence; follow due process. A criminal case is not a prerequisite for labor dismissal, but evidence must be credible and specific.
Affair conducted on premises (e.g., CCTV in a company vehicle or storeroom).
- Serious misconduct is likely available.

Employer “do’s and don’ts” (checklist)

Adopt a narrowly tailored fraternization/conflict-of-interest policy (especially banning relationships in direct reporting lines; requiring disclosure and mitigation).
Train managers and enforce no-retaliation rules.
Set up and use a CODI for harassment issues.
Preserve evidence properly (CCTV retention, access logs, duty rosters).
Use progressive discipline where appropriate (warning → suspension → dismissal), unless the act is gravely dismissible at first instance.
Document business impact (missed targets; client complaints; disruption).

Don’t

Fire based on rumor or morality alone.
Impose blanket bans on marriage or relationships across the company.
Publicly shame employees (risk of damages and privacy claims).
Rely on illegally obtained recordings or chats.
Skip the twin-notice process (even if you believe the evidence is overwhelming).

Evidence that commonly matters

Company policies/handbooks acknowledged by the employees.
CCTV / access logs tied to time records.
Emails/messages on company systems (handled per data privacy rules).
Audit trails (approvals, HRIS changes, rating edits) showing favoritism.
Incident reports and sworn statements from witnesses.
Admissions (written or in meetings—documented).

Remedies and exposure if the dismissal is illegal

Reinstatement without loss of seniority rights and full backwages from dismissal to reinstatement; or separation pay in lieu of reinstatement (if reinstatement is no longer viable) plus backwages.
Nominal damages for due-process lapses even when cause exists.
Possible moral/exemplary damages and attorney’s fees if the employer acted in bad faith (e.g., public shaming, discriminatory enforcement).
In harassment cases, separate statutory penalties and administrative sanctions may attach for failing to organize a CODI or to act on complaints.

Model policy language (tight and defensible)

Personal Relationships and Conflicts of Interest

Employees must disclose any romantic or sexual relationship with another employee where a reporting, evaluative, auditing, or financial-control relationship exists or may arise.

No employee may supervise, directly or indirectly, a person with whom they have a romantic or sexual relationship. HR will implement separation of authority (reassignment, transfer, or change of approver) or, if not feasible, other proportionate measures.

Favoritism, misuse of authority, or any retaliatory act arising from a relationship is serious misconduct and willful breach of trust subject to dismissal.

Romantic or sexual conduct on company premises or on duty is serious misconduct.

Relationships with employees of a competitor/vendor/customer that pose a concrete conflict of interest must be disclosed; the Company may impose mitigation or, if risks are unmanageable, prohibit the relationship as a bona fide business necessity.

This Policy is gender-neutral, applies to all employees (managerial and rank-and-file), and is enforced consistently. It does not prohibit lawful marriage or discriminate based on civil status.

Templates (for HR use)

First Notice (Charge Sheet) – key elements

Facts (who/what/when/where), attach evidence excerpts.
Specific policy clauses allegedly violated and proposed legal ground (e.g., serious misconduct, willful disobedience, breach of trust).
Advise the employee they have at least 5 calendar days to submit a written explanation and evidence, and that a hearing will be scheduled.

Second Notice (Decision) – key elements

Findings of fact; why the explanation was/was not persuasive.
The legal ground under Art. 297 and the specific policy breached.
Sanction (e.g., termination effective on ___).
Clearance/payroll instructions; appeal/HR contact.

Frequently asked questions

Can the company fire only the manager but retain the rank-and-file paramour? Yes, if grounds differ (e.g., the manager violated a duty of trust or a supervisory ban). Inconsistent discipline with no real distinction can be challenged.

Do we need a criminal case for adultery/concubinage before dismissing the paramour who is our employee? No, not for labor purposes—substantial evidence of the offense against the employer or their immediate family can suffice. A criminal case may still proceed separately (and has different rules).

If both spouses work here and later marry each other—can we terminate one? Generally no. A no-spouse/no-marriage rule is typically invalid unless the employer proves a bona fide occupational qualification and applies the rule narrowly and fairly (e.g., purely to reporting-line conflicts, solved first by reassignment).

Is pregnancy outside marriage a ground to dismiss? In the private sector, generally no. Without a specific, job-related ground, dismissal risks an illegal discrimination finding.

Bottom line

You can terminate a spouse and/or paramour who are co-employees only when their conduct satisfies a just cause—typically serious misconduct, willful disobedience of a valid rule, breach of trust, or an offense against the employer or family—and after strict due process.
You cannot terminate based solely on private morality or a blanket anti-marriage policy.
The safest path is a narrow, business-necessity policy, consistent enforcement, and careful, privacy-compliant investigations.

If you want, tell me your exact workplace setup (org chart, roles, any existing policies), and I can draft a tailored policy and a step-by-step investigation/notice pack you can use right away.