A practical legal article in Philippine labor-law context, with templates, procedure, and pitfalls

1) What a “Notice to Explain” is (and what it is not)

A Notice to Explain (NTE)—often called a “show-cause memo”—is the employer’s written notice to an employee that:

a specific act/omission is being charged (e.g., insubordination, dishonesty, absenteeism),
the employee is given a fair chance to answer, and
the employer is initiating administrative due process that may lead to discipline up to dismissal.

It is not:

an automatic finding of guilt,
a termination letter, or
a substitute for the required two-notice rule in termination for just causes.

In Philippine practice, the NTE commonly functions as the first written notice in the two-notice requirement for termination for just causes (and for serious disciplinary sanctions even if not termination).

2) Why NTEs matter: Due process in Philippine employment discipline

In the Philippines, an employer generally needs both:

substantive due process (a valid ground), and
procedural due process (a fair process).

For dismissal due to just causes, procedural due process typically requires:

First written notice (the NTE / charge sheet)
Opportunity to be heard (written explanation + hearing/conference when needed)
Second written notice (decision/termination notice)

Failure in procedure can expose the employer to monetary liability even if the cause is valid. For employees, an inadequate or vague NTE can be a sign the process is defective.

3) Legal framework (Philippine context)

A. Substantive grounds: “Just causes” vs “Authorized causes”

Just causes (employee’s fault) include serious misconduct, willful disobedience/insubordination, gross and habitual neglect, fraud/breach of trust, commission of a crime against the employer or its reps, and analogous causes.

Authorized causes (not employee fault) include redundancy, retrenchment, installation of labor-saving devices, closure/cessation, and disease (subject to conditions).

Key point:

NTEs are most commonly used for just-cause discipline/termination.
For authorized-cause termination, the law emphasizes written notices to the employee and to the labor department, plus separation pay where applicable. The “explain yourself” format is not the core legal requirement (though employers sometimes issue notices for consultation/documentation).

B. Procedural due process concepts (workplace admin due process)

Philippine labor due process is not a full-blown court trial, but it requires:

clear charges,
real opportunity to respond, and
an impartial evaluation of the explanation and evidence.

A hearing is not always mandatory in every case, but it becomes important when:

the employee requests it in a meaningful way,
there are factual disputes,
credibility issues exist, or
company policy/CBA requires it.

4) When you should issue an NTE

Issue an NTE when:

the act/incident may result in disciplinary action, especially suspension or dismissal;
HR is starting a formal admin investigation;
you need to preserve a defensible record of due process;
company code of conduct requires it.

Common triggers:

attendance issues (AWOL, tardiness, undertime)
insubordination
harassment/bullying
fraud, theft, dishonesty
breach of confidentiality/data
safety violations
poor performance (often paired with coaching/PIP documentation)
conflict of interest, moonlighting
social media misconduct impacting the workplace
grave policy violations (drugs, violence, serious threats)

5) Core elements of a legally defensible NTE (Philippines)

A strong NTE is specific, complete, and fair. Include:

Employee details: name, position, department, employee no.
Date and reference: memo number, date issued
Subject: “Notice to Explain / Administrative Charge”
Statement of facts:
- What happened (acts/omissions)
- When (date/time)
- Where (location/system)
- How discovered (audit, incident report)
- Who involved (witnesses, counterparties)
Policy/rule violated: cite the company code section(s) and/or lawful directives
Evidence summary: attendance logs, CCTV reference, screenshots, emails, witness statements (attach or offer inspection where feasible)
Directive to explain: require a written explanation addressing the allegations
Reasonable deadline: commonly at least 5 calendar days is used in many workplaces as a safe practice for termination-level matters; shorter may be questioned depending on complexity and fairness
Opportunity for hearing/conference: indicate the option and how to request it (or schedule one)
Advisory on representation: where policy/CBA allows, the employee may be accompanied by a representative
Non-prejudgment clause: clarify no final decision has been made
Consequences: possible sanctions (up to dismissal) if proven
Service/receipt line: acknowledgement of receipt; alternative service if refusal (witnessed service, email to official address, courier)

Common drafting mistake: vague accusations like “you violated company rules” without details. That’s a due process weak point.

6) Timelines and “reasonable opportunity” to respond

There is no single magic number that fits all cases, but best practice is:

Give enough time to meaningfully answer, especially for serious charges.
Complexity matters: a simple tardiness incident can be answered quickly; an alleged fraud scheme needs more time and access to details.

Practical guidance:

Use a clear deadline (e.g., “within five (5) calendar days from receipt”).
If the employee asks for more time with a valid reason, document your response (granting a short extension often strengthens fairness).

7) Service of the NTE and proof of receipt

How you serve matters because due process is often litigated through records.

Acceptable service methods (document them):

personal service at workplace with signature
personal service with refusal noted + witnesses
email to official company email (ensure policy recognizes e-service)
registered mail/courier to last known address (keep tracking)
HRIS/employee portal acknowledgment logs

If the employee refuses to sign:

annotate “refused to receive/sign,” with two witnesses, and send a copy via email/courier.

8) The employee’s explanation and the hearing/conference

A. Written explanation

Employee should address:

admission/denial
factual narrative
defenses/justifications
mitigating circumstances
supporting documents (medical certs, approvals, messages, etc.)

B. Hearing or conference

Use a hearing when:

facts are contested,
witnesses must be clarified,
the allegation is grave, or
company rules/CBA require it.

Minimum fairness features:

give notice of schedule
allow employee to speak/submit documents
ask clarificatory questions
make minutes and have attendees sign

9) Decision notice (second notice) and proportionality of penalties

After evaluating:

charge(s)
evidence
explanation
hearing records
past offenses (if progressive discipline applies)

Issue the decision notice stating:

findings of fact
rules violated
penalty imposed and effectivity
rationale for penalty (especially if termination)
note of consideration of defenses/mitigation
final pay/clearance process (if termination)

Penalty proportionality matters. Even if a rule is violated, dismissal may be excessive depending on:

gravity of offense
intent
employee’s tenure and record
harm caused
consistency with how similar cases were treated

10) Special topics and common scenarios

A. Attendance (AWOL / abandonment)

“AWOL” is typically a policy violation (unauthorized absence).
“Abandonment” as a legal concept requires proof of intent to sever employment, not just absence. An NTE should separate: (1) unauthorized absences, and (2) whether facts indicate intent to abandon.

B. Preventive suspension

Preventive suspension is not a penalty; it’s used when the employee’s continued presence poses a serious and imminent threat to life/property or to the investigation. If used:

put it in writing
state reasons
keep within lawful limits and document extensions/updates carefully

C. Performance issues (poor performance)

For performance-based discipline/termination, fairness improves when you have:

clear KPIs/standards
coaching records
evaluation results
a performance improvement plan (PIP) where appropriate Then an NTE can cite specific metrics, dates, and prior coaching.

D. Harassment and sensitive investigations

Protect confidentiality, avoid retaliation, and use careful language. Provide enough detail for the respondent to answer while safeguarding complainants/witnesses as appropriate.

E. Remote work and digital evidence

If allegations rely on chats, screenshots, logs:

preserve metadata where possible
avoid selective excerpts
maintain chain-of-custody notes
ensure rules on acceptable use, monitoring, and privacy are in place

F. Data privacy considerations

Limit disclosure to what’s necessary for due process; circulate the NTE only to those with a legitimate need to know.

11) Typical employer pitfalls (and how to avoid them)

Vague charge → Use specific facts, dates, and rule citations.
Short, unrealistic deadlines → Give reasonable time and consider extensions.
Pre-judging (“You are guilty…”) → Use neutral language (“alleged,” “reported”).
No proof of service → Keep acknowledgments, email logs, courier tracking.
Ignoring the explanation → Decision notice must reflect evaluation of defenses.
Inconsistent penalties → Apply progressive discipline consistently unless justified.
No hearing when needed → Hold a conference where factual disputes exist or requested.
Mixing authorized cause with just cause → Use the correct legal pathway.
Retaliation optics → Document legitimate business reasons and timing.
Sloppy records → Keep a clean admin case file.

12) Sample Notice to Explain templates (Philippines)

Template 1: General Notice to Explain (Just Cause / Policy Violation)

[Company Letterhead] MEMORANDUM

To: [Employee Name], [Position], [Department] From: [HR Manager / Admin Officer] Date: [Date] Subject: NOTICE TO EXPLAIN (Administrative Charge)

In connection with our Company Code of Conduct and related policies, this serves as a Notice to Explain regarding the following reported incident(s):

Alleged act/omission: [Describe the act clearly, in complete sentences.]
Date/Time: [Insert specific date(s) and time(s).]
Place/Platform: [Worksite / system / online platform.]
Particulars: [Narrate what happened, how it occurred, and the specific behavior.]
Persons involved / witnesses (if any): [Names/roles, if appropriate.]
Initial reference/evidence: [Attendance log, CCTV reference, email thread dated __, incident report no. __, etc.]

The foregoing may constitute a violation of [specific policy / rule / handbook provision], particularly [section number/title], and may warrant the imposition of disciplinary action up to and including dismissal, depending on the results of the investigation.

You are hereby directed to submit a written explanation stating why no disciplinary action should be taken against you, and addressing the allegations above, within [five (5)] calendar days from receipt of this Notice, or on/before [exact deadline date].

You may attach supporting documents and/or identify witnesses. Should you wish to be heard in an administrative conference, you may indicate this in your written explanation (or contact [HR contact details] within the same period) so a schedule may be arranged.

This Notice is issued to afford you due process. No final decision has been made at this time.

Issued by: [Name] [Title] [Signature]

Received by: I acknowledge receipt of this Notice on ____________.

[Employee Name / Signature]

If refused to receive/sign: Served on ____________ at ____________ in the presence of:

____________________ 2) ____________________

Template 2: Attendance / AWOL NTE

Subject: NOTICE TO EXPLAIN – Unauthorized Absences (AWOL)

Records show that you incurred unauthorized absences on:

[Date], [shift/time]
[Date], [shift/time] despite the requirement to report for work and to notify your supervisor/HR of any inability to report.

You failed to:

[call/text/email supervisor] on [date/time], and/or
file an approved leave application for the dates stated.

Your absences may constitute violations of [Attendance Policy / Leave Policy] and [Code of Conduct – Neglect of Duty].

Submit your written explanation within [x] calendar days from receipt (deadline: [date]) and attach any supporting proof (e.g., medical certificate, emergency documentation, approvals).

Template 3: Insubordination / Willful Disobedience NTE

Subject: NOTICE TO EXPLAIN – Insubordination / Refusal to Comply with Lawful Order

On [date] at [time], you were directed by [manager name/title] to [specific lawful instruction]. Despite clarifications given, you allegedly refused/failed to comply and stated “[quote if documented]” in the presence of [witnesses].

This may constitute willful disobedience/insubordination and a violation of [policy section].

Explain in writing within [x] calendar days (deadline: [date]) why you should not be disciplined.

Template 4: Dishonesty / Fraud / Breach of Trust NTE (with evidence handling)

Subject: NOTICE TO EXPLAIN – Alleged Dishonesty / Fraud

An internal review on [date] found that [describe transaction/act] involving [amount/customer/order no.] was allegedly processed under your credentials/account. System logs show [log details] and supporting documents include [audit report, screenshots, emails].

These may constitute violations of [Integrity Policy / Fraud Policy] and may be grounds for severe disciplinary action, including dismissal.

You may inspect the relevant records by coordinating with [HR/Compliance] during business hours. Submit your written explanation within [x] calendar days (deadline: [date]).

13) Employee-facing guide: How to respond to an NTE (practically)

If you’re the employee receiving an NTE, a strong response is:

on time
factual and chronological
addresses each allegation point-by-point
attaches proof (approvals, chats, medical docs, screenshots)
states any procedural requests (e.g., conference, access to documents)
avoids emotional attacks; focuses on facts, intent, and mitigation

14) Checklist: What “good” looks like (quick reference)

Employer NTE checklist

Clear facts: who/what/when/where/how
Specific policy provisions cited
Evidence summarized and preserved
Reasonable deadline + method to submit
Option for hearing/conference
Neutral tone, no pre-judgment
Proper service + proof of receipt
Separate decision notice after evaluation

15) Bottom line

In Philippine labor practice, the NTE is the backbone of procedural fairness for discipline—especially termination for just causes. The most defensible NTEs are specific, evidence-based, neutrally worded, properly served, and paired with a genuine chance to be heard, followed by a well-reasoned written decision.

If you want, I can also provide:

an NTE tailored to a specific scenario (e.g., AWOL, theft, harassment, performance), or
a complete admin investigation pack (NTE + hearing notice + minutes template + decision notice).