When can an employee be dismissed?
Under the Labor Code, an employer may dismiss an employee only for a valid cause and with due process.
- Just causes (Article 297 of the renumbered Labor Code) relate to the employee's fault, such as serious misconduct, willful disobedience, gross and habitual neglect of duty, fraud or breach of trust, and commission of a crime against the employer or the employer's family.
- Authorized causes relate to business reasons (Article 298), such as installation of labor-saving devices, redundancy, retrenchment and closure, or to disease (Article 299). These generally require separation pay.
Due process
For just causes, the employer generally must follow the two-notice rule: a first written notice stating the charges and giving the employee a chance to explain, then a second written notice of the decision after the employee is heard.
For business-related authorized causes under Article 298, the employer must give written notice to both the employee and the DOLE at least 30 days before the dismissal takes effect.
For dismissal due to disease, the Supreme Court requires a certification from a competent public health authority that the disease cannot be cured within six months even with proper treatment, and the employee must also be given the two written notices.
If the dismissal was illegal
An illegally dismissed employee may be entitled to reinstatement without loss of seniority and full backwages. When reinstatement is no longer possible, separation pay may be awarded instead. Unpaid wages and benefits may also be claimed.
Deadlines
- A complaint for illegal dismissal is generally filed within four years from the dismissal.
- Money claims, such as unpaid wages and benefits, are generally filed within three years from when they became due.
Where to file
Most labor complaints start with a request for assistance under SEnA at the DOLE or NLRC office. If no settlement is reached, the complaint goes to the Labor Arbiter.
Tips
- Keep your payslips, ID, contract and all notices from the employer.
- Read any quitclaim or release carefully before signing.
- Write down the dates of important events, such as when you were told to stop working.
This guide is general legal information as of October 2026. It is not legal advice. Laws and rules change, and the facts of each case matter. Consult a lawyer about your specific situation.