Introduction
In Philippine labor law, “dismissal papers” is the catch-all term used by practitioners for the written notices that an employer must serve on an employee when ending the employment relationship for a cause attributable to the employee (“just cause”) or to the business (“authorized cause”). Their validity determines whether the termination will be upheld or declared illegal dismissal, with consequences that can reach many years of back-wages, reinstatement, damages, and even criminal liability for unfair labor practices.
1. Constitutional and Statutory Foundations
| Level | Source | Key principle |
|---|---|---|
| Constitution | Art. XIII, §3 | Labor is entitled to security of tenure; dismissal is allowed only for a just or authorized cause and with due process. |
| Labor Code (PD 442, as amended) | Book VI, Arts. 294-305 (old 278-299) | Enumerates the grounds and outlines basic procedure. |
| Implementing Rules | D.O. 147-15 (2015) | Clarifies the twin-notice rule, hearing, and DOLE reporting. |
| Special laws | Kasambahay Law, Magna Carta for PWD, etc. | Modify or add protections for specific categories. |
2. “Just Causes” (Art. 297) – Employee’s Fault
- Serious misconduct
- Willful disobedience of lawful orders
- Gross and habitual neglect of duties
- Fraud or willful breach of trust
- Commission of a crime against the employer, its family, or representative
- Analogous causes (e.g., habitual absenteeism, loss of confidence in managerial employees)
Substantive test: The act must be real, serious, and proven by substantial evidence (not proof beyond reasonable doubt). Failure to meet this test nullifies the dismissal regardless of perfect paperwork.
3. “Authorized Causes” – Business or Health Reasons
| Provision | Cause | Mandatory monetary package |
|---|---|---|
| Art. 298(a) | Installation of labor-saving devices | 1 month salary + separation pay = 1 month per year of service |
| Art. 298(b) | Redundancy | Same as above |
| Art. 298(c) | Retrenchment to prevent losses | 1/2 month per year of service |
| Art. 298(d) | Closure or cessation not due to serious losses | 1 month per year of service |
| Art. 299 | Disease not curable within 6 months | 1/2 month per year of service |
Probationary employees may be terminated for failure to qualify but still require notice and proof of reasonable standards made known at hiring (Art. 296).
4. The Twin-Notice Rule (Procedural Due Process)
A. For Just-Cause Dismissal
| Step | Timing | Contents |
|---|---|---|
| First Notice – “Notice to Explain” (NTE) | Serve immediately after discovery. Give the employee 5 calendar days (D.O. 147-15) to respond. | 1) Specific acts or omissions; 2) rule violated; 3) possible penalty of dismissal; 4) reasonable period to answer. |
| Opportunity to be heard | After receipt of the NTE and before decision. | Written explanation, clarificatory hearing, or conference. |
| Second Notice – “Notice of Decision” | After evaluation of explanation/hearing; effectivity may be immediate. | 1) Findings of fact; 2) applicable law/policy; 3) decision to dismiss and date of effectivity; 4) information on final pay, COE, clearance. |
B. For Authorized-Cause Dismissal
| Recipient | Lead time | Purpose |
|---|---|---|
| Employee | ≥ 30 days before effectivity | Allow time to seek new work. |
| DOLE Regional Office | Same 30-day notice | Enables DOLE to verify legitimacy and mediate. |
No hearing is required because the act is not attributed to employee fault.
5. Form and Substance of Dismissal Papers
| Formal Element | Practical Tips |
|---|---|
| Written and in a language understood by the employee | Provide Filipino translation if the worker is not proficient in English. |
| Specific – avoid vague accusations | Quote the exact company rule or policy number. |
| Signed by the proper officer | Board resolution or HR authority letter should exist if questioned. |
| Proof of service | Personal delivery with employee’s signature of receipt, registered mail with return card, or reputable courier. |
| Attachments | Incident reports, audit findings, sworn statements, CCTV stills, medical certificate, or DOLE-acknowledged 30-day notice. |
Key jurisprudence: King of Kings Transport v. Mamac requires the first notice to state that dismissal is being considered, not merely “investigated.”
6. Consequences of Defective Dismissal Papers
- Substantive + Procedural defects → Illegal dismissal Remedies: Reinstatement without loss of seniority, full back-wages, 13ᵗʰ-month, allowances, and moral/exemplary damages if bad faith.
- Substantive valid, procedural defective (e.g., Agabon doctrine) → Dismissal is upheld but employer pays nominal damages (₱30,000 for just cause, ₱50,000 for authorized cause; may vary by case).
- Failure to submit DOLE 30-day notice for redundancy, retrenchment, etc. → Termination becomes ineffective; separation pay cannot justify the defect.
- Criminal liability for unfair labor practice may arise if anti-union discrimination is involved.
7. Related Employer Deliverables on Termination
| Document | Legal Basis | Deadline |
|---|---|---|
| Certificate of Employment | Labor Code Art. 277(b) | Within 3 days from request (best practice: upon exit). |
| Final pay (last salary, accrued benefits) | DO 217-20 | 30 calendar days from date of separation. |
| BIR Form 2316 and Quitclaim/Release | Tax Code & jurisprudence | On or before release of pay; quitclaim must be voluntary, paid, and notarized to be valid. |
8. Special Categories and Nuances
- Probationary Employees – No fixed-term, dismissal anytime for failure to meet standards; still needs NTE and decision notice.
- Project & Seasonal Employees – End-of-project completion reports substitute for dismissal papers; premature dismissal still follows twin-notice.
- Fixed-Term Contracts – Expiration is not dismissal; but early termination follows standard rules.
- Union Officers – Stricter just-cause standard; dismissal during CBA negotiations may be unfair labor practice.
- Kasambahays (Domestic Workers) – Entitled to written notice but DOLE reporting is optional; DOLE-NCR Form must be used for termination due to disease or misconduct.
- Disease Termination – Requires competent public health authority certificate that the disease cannot be cured within six months even with proper medical treatment.
9. Best-Practice Checklist for Employers
- ☐ Draft or update a Code of Conduct with clear penalties.
- ☐ Train supervisors to document incidents contemporaneously.
- ☐ Use a standard NTE template that tracks D.O. 147-15.
- ☐ Keep stamped copies of the DOLE 30-day notices for redundancy/retrenchment.
- ☐ Conduct clarificatory hearings even when the employee waives appearance; document such waivers.
- ☐ Release COE and final pay simultaneously to avoid money claims.
- ☐ Preserve records for at least five years for NLRC cases and BIR audits.
10. Remedies for Employees
- HR Grievance Procedure – Exhaust in-house remedies if available.
- Single-Entry Approach (SEnA) – Mandatory 30-day conciliation at DOLE.
- NLRC Complaint – Six-year prescriptive period for illegal dismissal (Art. 1146, Civil Code, applied in Callanta v. Carnation).
- Small Money Claims ≤ ₱5,000 – File with DOLE Regional Arbitration Branch.
- Constructive Dismissal Cases – Same remedies as actual dismissal once proven.
11. Sample Skeletons (For Orientation Only)
Notice to Explain Date, Subject, Statement of acts, Rule violated, 5-day period, Signature.
Notice of Decision Recap of charges, Findings, Legal basis, Penalty, Effectivity date, Instructions for clearance/final pay, Signature.
(Appendices may include sample checklists, but these differ by industry and are not reproduced here.)
Conclusion
The validity of dismissal papers in the Philippines hinges on a tight weave of the Constitution, the Labor Code, implementing rules, and an ever-evolving body of Supreme Court jurisprudence. Employers must meet both substantive justifiability and procedural exactitude—the famous “twin requirements”—while employees should know that a single misstep in paperwork can spell the difference between a lawful termination and an illegal dismissal judgment worth millions. Mastery of the form, timing, and content of these notices is therefore indispensable on both sides of the employment aisle.
This material is for general educational purposes and is not a substitute for tailored legal advice.