How to Respond to a Workplace Notice to Explain

Philippine Legal Guide – updated 1 June 2025

1. What exactly is a Notice to Explain (NTE)?

An NTE (sometimes called a show-cause letter or charge sheet) is the first written notice in the twin-notice or two-notice rule that governs employee discipline and dismissal in the Philippines. It:

informs the employee of the specific act or omission allegedly committed;
cites the company rule, Labor-Code ground, or law violated;
tells the employee that dismissal or another penalty is being considered; and
gives a reasonable period—at least five (5) calendar days— to submit a written explanation. (RESPICIO & CO., Respicio & Co.)

The NTE is not yet a penalty; it merely triggers due-process proceedings.

2. Legal framework

Source	Key provisions on NTE & due process
1987 Constitution	Security of tenure; no dismissal without due process (Art. XIII §3).
Labor Code (renumbered): Art. 292 (b) (old 277 (b))	Requires notice & hearing before dismissal. (Lawphil)
DOLE Dept. Order 147-15 (2015)	Codifies the two-notice rule, 30-day limit on preventive suspension, & “reasonable period” for replies. (PASEI, RESPICIO & CO.)
Supreme Court jurisprudence	King of Kings Transport v. Mamac (2007) detailed the notice contents; Perez v. PT&T (2009) explained ample opportunity to be heard; Agabon v. NLRC (2004) & Jaka Food (2005) fixed nominal damages for procedural lapses, among many later cases up to 2024. (Lawphil, Lawphil, Lawphil)

3. The twin-notice procedural flow

First notice – NTE (as above).
Opportunity to be heard
- Written explanation and/or administrative hearing.
- Hearing is mandatory only if requested in writing, if substantial factual disputes exist, or when company rules so require. (Rippling, Labor Law Philippines)
Second notice – Notice of Decision / Termination
- Issued after evaluating the reply & evidence; must state the facts established and the sanction imposed. (Labor Law Philippines)

Failure to observe any step does not automatically void a dismissal if the substantive ground is proven, but it exposes the employer to nominal damages (₱30 000 for just-cause cases, ₱50 000 for authorized-cause cases). (Lawphil, Lawphil)

4. Time lines that matter

Reply period: reasonable = ≥ 5 calendar days. (Respicio & Co., P&L Law Firm | Philippines)
Preventive suspension: may be imposed only if the employee’s continued presence poses “a serious and imminent threat” and must not exceed 30 days. Beyond that, the employee must be reinstated or start receiving wages. (RESPICIO & CO.)
Authorized-cause retrenchment/closure: 30-day advance notice to both employee and DOLE. (Lexology)

5. What an NTE must contain (checklist for employers)

Specific acts/omissions in detail (dates, times, witnesses, documents).
Rule or law violated (e.g., Article 297 [serious misconduct], “Section 6 of the Code of Conduct”).
Possible sanction (warning, suspension, dismissal).
Clear directive to submit a written explanation within 5 days and/or attend a hearing.
Right to representation by counsel or union officer.
Statement that preventive suspension (if any) is procedural, not a penalty, and its duration. (ACCRALAW, JLP Law)

6. Crafting your written explanation – employee’s perspective

A. Before you write

Read the NTE word-for-word; note the deadline.
Gather evidence: CCTV clips, e-mails, logs, chat threads, medical certificates.
Seek advice from a lawyer, union, or trusted HR officer.

B. Suggested structure

(i)  Heading – “Re: Notice to Explain dated …”
(ii) Introduction – confirm receipt; state purpose of letter.
(iii) Statement of facts – chronological, cite exhibits (Annex “A”, etc.).
(iv) Defenses/mitigating circumstances – legal or factual.
(v) Prayer – e.g., “In view of the foregoing, I respectfully pray …”
(vi)  Closing & signature over printed name.

Attach copies (not originals) of documents and label them.

C. Tone & style

Be factual, avoid adjectives.
Admit mistakes only if indisputable; otherwise present your side firmly.
If you need more time, request an extension in writing before the deadline explaining why. (RESPICIO & CO.)

7. Your rights during the process

Right	Basis	Practical tip
Due process – notice & hearing	Constitution; Art. 292 (b)	If skipped, you can claim nominal damages even if dismissal is valid.
Counsel or union assistance	King of Kings; DO 147-15 §5	Bring a representative to the hearing.
Access to evidence	Perez v. PT&T	Ask HR for copies; refusal can taint the process.
Freedom from retaliation	Art. 118 Labor Code	Retaliatory acts (e.g., sudden demotion) can be an unfair labor practice.
Data privacy	Data Privacy Act 2012	Sensitive personal data in the NTE should be redacted from public postings.

8. Employer exposure for non-compliance

Illegal dismissal – reinstatement + backwages if both substantive and procedural requisites absent.
Nominal damages – ₱30 000/₱50 000 when substantive ground exists but procedure flawed. (Lawphil)
Constructive dismissal – e.g., excessive preventive suspension > 30 days. (Legal 500)
NLRC fines & contempt for ignoring reinstatement orders.

9. Special situations

Probationary employees: If dismissal is for failure to meet standards properly made known at hiring, NTE is not always mandatory, but recent SC opinions (2024, G.R. 228357) suggest giving an NTE is the safer course. (Lawphil)
Project / seasonal staff: Still entitled to notice if dismissal is for cause, but expiration of project itself needs only written notice of completion.
Off-site / remote workers: Electronic service of NTE (corporate e-mail) is acceptable if receipt can be proven.
Criminal conduct: An NTE and administrative investigation may proceed independently of any police complaint.
Executive employees / corporate officers: If they are also stockholders/directors, dismissal disputes may fall under intra-corporate jurisdiction, not NLRC; but the NTE requirement remains good practice.

10. Best-practice checklist for employers

Use templates vetted by counsel but customize the facts.
Document service (personal receipt with signature, registered mail, or e-mail with read-receipt).
Allow ≥ 5 days for reply; suspend deadlines falling on weekends/holidays.
Hold a hearing where factual issues are substantial or employee asks for it; minute the proceedings.
Deliberate in writing; keep an investigation report signed by the panel.
Issue a reasoned decision notice, attach the investigation report, and serve it the same way as the NTE.
Archive all docs for at least four (4) years (Labor Code prescriptive period + cushion).

11. Pro-tips for employees

Stay professional – your explanation may reach the NLRC or the Court.
Cite evidence precisely (“See Annex ‘B’, e-mail dated 12 May 2025”).
Focus on facts & law; do not attack personalities.
Keep copies of everything (NTE, reply, proof of submission).
If dismissed: File a complaint within 4 years (illegal dismissal) or 3 years (money claims) at the NLRC.

12. Frequently-asked questions

Question	Short answer
Can I ignore the NTE?	You may, but silence is deemed waiver; employer can decide based on available evidence.
What if I’m on leave or abroad?	Deadline runs only upon actual receipt; prove your absence and request a new schedule.
Must I sign the NTE?	Acknowledging receipt is not admission; note “Received only.”
Can I sue for libel because my NTE was posted on the bulletin board?	Potentially yes—privacy & libel laws may apply.
Employer skipped the 2nd notice, but I was paid separation pay—legal?	Payment does not cure a procedural defect; nominal damages still due.

13. Key take-aways

Due process is both substantive and procedural. A solid substantive ground does not excuse a defective process, and vice-versa.
The NTE anchors fairness. Employees get a real chance to defend themselves; employers insulate decisions from future litigation.
Five days & thirty days are the magic numbers—five to reply, thirty maximum for preventive suspension.
Document everything. In labor disputes, what is written prevails over what is alleged.
Latest trend (2024-2025): The Supreme Court is tightening scrutiny on due-process shortcuts, particularly in probationary and remote-work settings, and upholding bigger nominal damages for repeat offenders. (Global Practice Guides, Lawphil)