1) The core idea: “Age” is not a general ground to end employment

In Philippine labor law, employees enjoy security of tenure: employment may be ended only for causes recognized by law and only with the required procedure. Ending employment because a worker is “too old”—outside lawful retirement rules or a narrowly valid job requirement—can expose an employer to liability for illegal dismissal, discrimination, or constructive dismissal.

Two legal pillars shape this topic:

Security of tenure and statutory termination rules under the Labor Code (renumbered articles shown first, with old numbers in brackets), plus jurisprudence on due process; and
Republic Act No. 10911 (Anti-Age Discrimination in Employment Act), which prohibits adverse employment actions primarily because of age, including termination and forced resignation/retirement, subject to limited exceptions.

2) Key Philippine legal sources you should know

A. Constitutional and policy foundations

The Constitution recognizes labor protection and security of tenure as part of social justice policy. These principles influence how courts interpret dismissal disputes—often resolving doubts in favor of labor where facts support that.

B. Labor Code provisions on dismissal and retirement

1) Security of tenure / illegal dismissal remedies

Labor Code Art. 294 [279] (Security of tenure): A regular employee may be dismissed only for a just cause or authorized cause, and with due process.

2) Just causes (disciplinary / fault-based)

Art. 297 [282] (Just causes): serious misconduct, willful disobedience, gross and habitual neglect, fraud/willful breach of trust, commission of a crime against employer/representative, and analogous causes.

3) Authorized causes (business / health-based)

Art. 298 [283]: installation of labor-saving devices, redundancy, retrenchment, closure/cessation (with distinctions on whether due to serious business losses).
Art. 299 [284]: termination due to disease (with strict requirements, including medical certification).

4) Retirement

Art. 302 [287] (as amended by RA 7641, the Retirement Pay Law): sets default rules when there is no retirement plan or agreement, and recognizes retirement ages under a CBA/employment contract/retirement plan.

Default statutory framework (common baseline):

Optional retirement at 60 (subject to statutory conditions and/or plan);
Compulsory retirement at 65 (employer may retire employee at this age under the default rule);
Minimum retirement pay under RA 7641 (when no better plan exists): at least ½ month salary per year of service (with “½ month salary” defined by law to include components such as 15 days + a fraction of the 13th month + up to 5 days SIL cash equivalent, per the statutory formula).

Retirement is lawful only when it is authorized by law or a valid plan/agreement, and when it is not used as a tool to disguise an unlawful termination.

C. Republic Act No. 10911 — Anti-Age Discrimination in Employment Act

RA 10911 generally makes it unlawful to discriminate on the basis of age in employment decisions, including:

Termination, forced resignation, and forced retirement motivated by age;
Age-based limitations in job ads, hiring, training, promotion, or continued employment—except in limited situations.

RA 10911 also recognizes exceptions (conceptually), including when:

Age is a bona fide occupational qualification (BFOQ) reasonably necessary for the business; or
A different treatment is required or permitted by law, regulation, or a valid retirement plan/CBA/employment contract; or
Other narrowly-defined lawful factors apply (the key is that “age” cannot be a convenient substitute for lawful cause).

Violations can carry penal consequences (fines and/or imprisonment) and may also support labor claims depending on the facts (for example, if “retirement” was used to remove an employee without lawful basis).

3) “Contract termination due to age” can mean different things—classification matters

In the Philippines, the legality of ending work often depends on the worker’s employment status, not just what the paper says.

A. Regular employment

A regular employee (one who performs tasks usually necessary/desirable to the employer’s business, or who has completed probation and continues working) can be terminated only for just/authorized causes with due process.

B. Probationary employment

A probationary employee can be terminated for:

Failure to meet reasonable standards made known at engagement, or
Just/authorized causes with due process. Age is not a probation standard by itself.

C. Fixed-term employment (“endo” and legitimate fixed term are different)

Philippine law recognizes legitimate fixed-term contracts when the term is knowingly and voluntarily agreed upon and not used to defeat security of tenure.

But common disputes arise where:

A worker is repeatedly renewed for years; or
The role is necessary/desirable to business; or
The “fixed term” appears imposed to avoid regularization.

Important for age issues:

Natural expiration of a legitimate fixed term is generally not “dismissal.”
However, mid-term termination because of age can be illegal (breach of contract and/or illegal dismissal depending on status).
Non-renewal motivated by age can implicate RA 10911 and may be treated as a form of discriminatory adverse action—especially where “fixed term” is being used to mask what is effectively regular employment.

D. Project or seasonal employment

Project employees can be separated upon project completion, seasonal upon end of season. But if “project completion” is invoked as a pretext to remove an older worker while the job continues or the project is ongoing, illegal dismissal issues can arise.

E. Independent contractor vs employee

Some “contracts” are consultancy agreements, but if the relationship shows control, the worker may be deemed an employee, making Labor Code protections apply.

4) When termination “due to age” can be lawful

Age becomes legally relevant mainly through retirement rules and genuine job requirements, not through a general employer preference.

A. Compulsory retirement under law or valid plan/agreement

Compulsory retirement at 65 is the most common lawful basis (default statutory rule when applicable). Employers may lawfully retire an employee at the applicable compulsory retirement age if the legal/plan basis is valid and benefits are properly paid.

If the company has a retirement plan/CBA/employment contract that sets a retirement age, that can be enforceable—provided it is valid, not contrary to law/public policy, and not used as a device to circumvent security of tenure.

B. Optional retirement (voluntary)

Optional retirement is lawful when the employee chooses to retire under:

A valid retirement plan, CBA, or employment contract; or
The statutory framework where applicable.

Voluntariness is crucial. A “retirement” that is coerced—through pressure, threats, demotion, or forced signing—can be treated as constructive dismissal.

C. Age as a BFOQ (rare and narrowly construed)

Age may be relevant where it is genuinely necessary for safe and effective performance of the job, often tied to regulatory standards (certain safety-critical roles). This is not a blanket license; it must be job-related, proportionate, and not a convenient excuse.

D. Termination for lawful causes that happen to affect older workers

An employer may terminate an older worker for the same lawful causes as anyone else:

Just causes (misconduct, neglect, etc.)
Authorized causes (redundancy/retrenchment/closure)
Disease under strict legal requirements

But selection and implementation must be non-discriminatory, based on fair criteria, and with due process.

5) When termination or non-renewal due to age is unlawful (common patterns)

A. Forced early retirement without a lawful basis

If an employer “retires” someone because they are “old,” “slowing down,” or “near retirement,” before the applicable retirement age and without a valid retirement plan/CBA/contract basis (or without true voluntariness), it can be:

Illegal dismissal, and/or
Constructive dismissal, and/or
Age discrimination under RA 10911.

B. “End of contract” used as a pretext

Employers sometimes:

End a fixed-term contract early, or
Refuse renewal after years of renewals …then replace the worker with someone younger.

If facts show the worker is actually regular, or that the fixed-term scheme is a circumvention device, the “expiration” defense weakens and the case may become illegal dismissal.

Even if the contract structure is valid, age-driven non-renewal can still create RA 10911 exposure.

C. Age-based criteria in redundancy/retrenchment

In authorized cause terminations like redundancy or retrenchment, employers must apply fair and reasonable selection criteria. Using “older employees first” as a rule is high-risk and may be attacked as discriminatory or bad faith, especially if performance is adequate and positions remain.

D. Pressure tactics: “voluntary resignation” that isn’t voluntary

Demotions, humiliating assignments, removing responsibilities, cutting pay, isolating the employee, or repeatedly saying “you’re too old for this job” can amount to constructive dismissal. A resignation or retirement letter signed under pressure may be invalid.

E. “Medical unfitness” assumed from age

Terminating someone for supposed inability to work because of age is not the same as lawful termination for disease under Art. 299 [284]. Disease-based termination has strict requirements (including appropriate medical certification and standards). Age alone is not disease.

6) Due process rules: what must be followed (Philippine standards)

Philippine dismissal law distinguishes:

Substantive due process (there must be a valid cause), and
Procedural due process (proper notices and opportunity to be heard).

A. Due process for just cause termination (the “two-notice rule”)

For just causes (Art. 297 [282]), procedural due process generally requires:

First written notice (Notice to Explain)
- States the specific acts/omissions and the rule/policy violated;
- Gives a reasonable opportunity to respond (commonly understood in practice as several days, not immediate).
Opportunity to be heard
- A hearing or conference where the employee can explain, present evidence, and respond to accusations, especially when requested or when facts are disputed.
Second written notice (Notice of Decision/Termination)
- Informs the employee of the decision and the reasons after considering the defense.

Age is not a just cause. If “age” is the real reason but the employer dresses it up as “performance” without proof and process, the dismissal is vulnerable.

B. Due process for authorized cause termination (30-day notice requirement)

For authorized causes (Art. 298 [283] and Art. 299 [284]):

Written notice to the employee at least 30 days before the effectivity date; and
Written notice to DOLE at least 30 days before effectivity.

In addition, the employer must pay the correct separation pay when required (authorized causes have different formulas), and must show the authorized cause is real (e.g., true redundancy with good faith; true retrenchment with proof of losses/necessity; valid closure, etc.).

C. Due process for retirement

Retirement is often treated differently from “dismissal,” but it still has legal requirements:

A lawful basis
- Statutory compulsory retirement age; or
- A valid retirement plan/CBA/employment contract provision.
Clear documentation and communication
- Retirement notices, computation of benefits, and compliance with plan rules.
Voluntariness (for optional/early retirement)
- The employee’s decision must be free, informed, and not coerced.

If the employer labels the separation as “retirement” but it is actually a forced exit lacking lawful basis, the event is litigated like a dismissal.

D. What happens when cause exists but procedure is defective

Philippine jurisprudence distinguishes between:

Dismissals that are invalid because there is no lawful cause (illegal dismissal), and
Dismissals where a lawful cause exists but procedural due process was not followed (often resulting in monetary awards such as nominal damages, even if termination is upheld).

For age-related separations, this becomes especially relevant when an employer claims redundancy or retirement but fails notice requirements or cannot prove good faith.

7) How illegal dismissal is evaluated in age-related terminations

A. Burden of proof

In illegal dismissal cases, the employer generally bears the burden to prove:

The dismissal was for a valid cause, and
Due process was observed.

Where discrimination is alleged, the employee typically presents facts showing age-related animus (statements, patterns, replacement by younger worker, sudden policy changes, etc.), and the employer must credibly show a lawful, non-discriminatory reason supported by evidence.

B. Evidence that commonly matters in “age” cases

Written communications referencing age (“too old,” “need younger team,” “retire now,” “age limit”)
Sudden performance write-ups after long satisfactory service
Replacement by younger workers shortly after separation
Comparators: similarly situated younger employees not terminated
Retirement plan provisions and how they were applied to others
Whether the employee truly applied for retirement (signed forms, initiated request)
How benefits were computed and whether the employee protested promptly
Company policies and the consistency of their implementation

C. Retirement vs dismissal: a frequent legal battleground

A common employer defense is: “Not dismissed—retired.” The legal questions then become:

Was retirement authorized by law/plan/contract?
Was it voluntary (if optional/early)?
Was it used to defeat security of tenure or avoid dismissal requirements?

If “retirement” fails these tests, it can be treated as illegal dismissal/constructive dismissal.

8) Remedies and liabilities when termination due to age is unlawful

A. Remedies in illegal dismissal (Labor Code framework)

When illegal dismissal is found, typical relief includes:

Reinstatement without loss of seniority rights (when feasible), and
Full backwages from dismissal to reinstatement (subject to case-specific rules), or, when reinstatement is no longer viable (strained relations, position abolished, business closure, or retirement-age realities),
Separation pay in lieu of reinstatement, plus backwages as awarded.

B. Damages and attorney’s fees

In appropriate cases—especially where bad faith, malice, or oppressive conduct is shown—courts may award:

Moral damages
Exemplary damages
Attorney’s fees (often when the employee is compelled to litigate to recover lawful benefits)

C. Monetary consequences for procedural violations

Where a lawful cause exists but due process was violated, courts may still impose monetary awards (commonly nominal damages), as a sanction for failure to observe required procedure.

D. Retirement pay vs separation pay (avoid double-counting assumptions)

Retirement pay is a benefit tied to retirement rules/plan/law.
Separation pay is typically tied to authorized causes (redundancy, retrenchment, closure, disease) or awarded in lieu of reinstatement in illegal dismissal. Whether both may be recovered depends on the legal basis, plan/CBA provisions, and case-specific rulings; double recovery is not automatic.

E. Liability under RA 10911

RA 10911 includes penal sanctions for age discrimination acts. Corporate officers or responsible persons may be exposed depending on how the discriminatory decision was made and implemented. Even where a labor case focuses on illegal dismissal, discriminatory facts can increase overall exposure and influence findings on bad faith.

9) Procedure and timing: where claims are filed and deadlines that matter

A. Forums

Illegal dismissal / money claims: typically filed before the NLRC (Labor Arbiter).
Many disputes pass through SEnA (Single Entry Approach) conciliation-mediation as a pre-litigation step.

B. Prescriptive periods (practical guide)

Illegal dismissal actions are commonly treated as actions involving injury to rights and are often pursued within four (4) years (case law basis).
Money claims arising from employer-employee relations are commonly subject to a three (3) year prescriptive period under the Labor Code.

Because age-based terminations often combine claims (illegal dismissal + benefits), timing can be critical.

10) High-risk scenarios and how the law typically analyzes them

Scenario 1: “We won’t renew your contract because you’re turning 60.”

If the employee is regular, non-renewal is effectively dismissal → must be for just/authorized cause with due process.
If genuinely fixed-term, expiration alone may be allowed, but refusal to renew because of age can trigger RA 10911, and may still be attacked if the fixed-term arrangement is a circumvention device.

Scenario 2: Forced “optional retirement” with threats

Likely constructive dismissal + illegal dismissal exposure, plus RA 10911 implications.

Scenario 3: Redundancy program where older employees are prioritized for separation

Authorized cause rules require good faith, fair criteria, and genuine redundancy. Using age as a shortcut is vulnerable to being characterized as discriminatory and bad faith.

Scenario 4: “Fitness for work” as a euphemism for age bias

If true medical incapacity is invoked, it must satisfy Art. 299 [284] requirements (including proper medical certification and standards). Otherwise it risks being treated as pretext.

Scenario 5: Employee is 65+ and terminated without retirement pay

If separated on “retirement,” ensure lawful basis and proper computation/payment.
If separated without lawful cause or proper benefits, exposure can include illegal dismissal-type relief (modified by feasibility) and benefit recovery.

11) Compliance principles (what “right looks like” in Philippine practice)

For employers (risk control principles)

Treat “age” as not a general termination ground.
Maintain a valid, written retirement plan or clear CBA/contract provisions if deviating from default rules.
Make early retirement truly optional; avoid coercive tactics.
In redundancy/retrenchment, use objective, job-related, documented criteria and apply them consistently.
Follow statutory notice rules (two-notice rule for just causes; 30-day notices for authorized causes and DOLE notice).
Document business justifications and avoid age-coded language.

For employees (substance of what must be shown)

Identify whether the exit was retirement, dismissal, or constructive dismissal in reality.
Collect documents and messages showing age-related motive or coercion.
Compare treatment with younger employees in similar roles.
Challenge pretextual “performance” or “contract end” narratives using work history, renewals, and job necessity.

12) Bottom line

In the Philippines, ending employment “because of age” is lawful only in narrow, structured circumstances—principally valid retirement (statutory or plan-based) or rare, genuine job-required age qualifications. Outside those, age-based termination, forced retirement, coerced resignation, or discriminatory non-renewal can lead to findings of illegal dismissal, constructive dismissal, and/or violations of RA 10911, with significant monetary and potential penal consequences. The legal outcome usually turns on (1) the worker’s true employment status, (2) whether a lawful cause exists, (3) whether the employer complied with required notices and hearings, and (4) whether “retirement/contract end” is genuine or a pretext for age bias.