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Employee Termination Process Explained

The document outlines the procedural due process requirements for employee termination, which include providing two written notices and conducting a hearing for the employee to present defenses. It specifies that the first notice must detail the reasons for dismissal and allow the employee a minimum of 5 days to respond, followed by a hearing before a second notice of termination is issued. Additionally, it distinguishes between backwages and separation pay, and describes the four-fold test used to determine the existence of an employer-employee relationship.

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5 views1 page

Employee Termination Process Explained

The document outlines the procedural due process requirements for employee termination, which include providing two written notices and conducting a hearing for the employee to present defenses. It specifies that the first notice must detail the reasons for dismissal and allow the employee a minimum of 5 days to respond, followed by a hearing before a second notice of termination is issued. Additionally, it distinguishes between backwages and separation pay, and describes the four-fold test used to determine the existence of an employer-employee relationship.

Uploaded by

Jem
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The twin requirement of procedural due process is notice and hearing.

Before termination of
employee can be effected, the employer must furnish the employee two written notices. The first
written notice shall include the particular acts or omission of the employee which is the reason of
his dismissal, while the second written notice shall inform the employee the decision to dismiss
him.

The first written notice must contain detailed narration of the facts and circumstances, and
specific causes or grounds of termination. The employee must be informed that he has given an
opportunity to submit his written explanation within reasonable period. Case laws provide that
reasonable period shall be construed as at least 5 calendar days to provide the employee to seek
for legal assistance, come up with defenses and explanation.

After serving the first written notice, there must be a hearing or conference to give the employee
an opportunity to explain his defenses and present evidence in support of his defense. He shall
also be given opportunity to rebut the allegations and evidence presented by the employer.
During the hearing, the employer and employee may amicably settle their differences.

Lastly, if it was determined that termination is justified, the employer shall furnish the employee
a second written notice to inform employee of his termination or dismissal. The notice shall
include the circumstances involving the charge had been considered and the grounds for his
termination had been justified.

The basis of payment of backwages and award of separation pay is different. Backwages are paid
on the basis of the length of the employee’s service. However, separation pay is paid when
reinstatement of the employee is no longer viable because the relationship of the employee and
employer is already strained. The basis of separation pay is the actual period wherein the
employee was unlawfully prevented from working.

To determine the existence of an employer-employee relationship, case law has consistently


applied the four-fold test, to wit: (a) the selection and engagement of the employee; (b) the
payment of wages; (c) the power of dismissal; and (d) the employer’s power to control the
employee on the means and methods by which the work is accomplished. The so-called “control
test” is the most important indicator of the presence or absence of an employer-employee
relationship.

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