Sunday, November 13, 2005
Employees in the Philippines can be terminated only for cause. Philippine law apparently provides for two broad categories, those based on defalcations by the employee and those based on economic motives. There are separate "due process" procedures that must be followed depending on the motives.
So what happens when an employer has valid cause to fire an employee but fails to follow the due process procedures? Ernesto Caluya of Makati City's Jimenez Gonzales Liwanag Bello Valdez Caluya & Fernandez outlines two recent decisions in which the Supreme Court has set out the penalties.