Due process in employee termination has two facets - substantive and procedural aspects. The substantive aspect refers to dismissal under valid legal grounds, while the procedural aspect refers to a valid manner of dismissal. Both aspects must be complied with to guarantee due process. Procedurally, for just causes an employer must give two written notices - a notice to explain the charges and a notice of decision. For authorized causes, a single 30 day notice is required. An administrative hearing is necessary if the employee denies the charges but not if they are admitted. The hearing must be conducted fairly and a decision supported by substantial evidence.

1. DUE PROCESS

2. two facets of
valid termination:
(a) the legality of the act of dismissal; that is, dismissal
under the grounds provided for under Article 282 of the
Labor Code (substantive aspect); and,
(b) the legality of the manner of dismissal (procedural
aspect)
Due process then necessitates the compliance of both the substantive
and the procedural aspects.
The guarantee of due process is afforded to all employees, including
managerial employees.

3. SUBSTANTIVE DUE
PROCESS

4. SUBSTANTIVE DUE PROCESS
No arbitrary dismissal of an employee may
be effected by the employer
Valid termination: just cause and authorized
cause
Illegal dismissal: no clear, valid and legal
cause for the termination of employment

5. SUBSTANTIVE DUE PROCESS
As provided under Article 282 of P.D. 442 ( Labor Code ), the following are
the JUST causes for terminating employment :
a) Serious Misconduct or willful disobedience by the employee of the
lawful orders of his
employer or representative in connection with his work ;
b) Gross and Habitual Neglect by the employee of his duties ;
c) Fraud or willful breach by the employee of the trust reposed in him
by his employer or duly
authorized representative ;
d) Commission of a crime or offense by the employee against the
person of his employer or
immediate member of his family or his duly authorized
representative ; and
e) Other causes analogous to the foregoing.

6. SUBSTANTIVE DUE PROCESS
As provided under Art. 283 of P.D. 442, the AUTHORIZED causes are as
follows :
a) Installation of Labor Saving devises
b) Redundancy
c) Retrenchment to prevent losses
d) Closure or cessation of operations of estabishment not due to
serious business losses or financial reverses.

7. PROCEDURAL DUE
PROCESS

8. PROCEDURAL DUE PROCESS
mode of procedure which employers follow in the
termination of employment
hear before condemning = proceed upon inquiry and
render judgment only after trial
“Strike me if you must, but hear me out first.”
employee is given the right to explain or present his side;
otherwise, it will be a violation of his right to security of
tenure
The right to labor is a constitutional as well as a statutory right. He thus
cannot be denied of this right without the due process of law.

9. PROCEDURAL DUE PROCESS
• Does not necessarily entail lengthy oral arguments
• Non verbal means like written explanation, affidavits,
position papers or other pleadings can establish just as
clearly an aggrieved party’s defenses
• Management must accord the employee every kind of
assistance to prepare adequately for his defense

10. PROCEDURAL DUE PROCESS: JUST CAUSE
• If the dismissal is based on a just cause as defined in
Article 282, the law requires an employer to give the
employee two written notices before terminating his
employment
• TWO-NOTICE RULE
(1) a notice charging the employee of the particular acts
or omissions that may cause his dismissal;
(2) the subsequent notice which informs the employee of
the employer’s decision

11. PROCEDURAL DUE PROCESS: JUST CAUSE
First Notice (Notice To Explain) : The Written Charge
 must detail and specify particular acts, commissions, and
omissions that the employee allegedly did
 specifies that the employee is being charged formally with a
violation of rules , which management must specify
 should specify what options there are for the employee : either to
explain, to air his side, to confront the witnesses

 Management must give the employee ample opportunity to defend
himself, the period of which is duly stipulated in the notice

12. PROCEDURAL DUE PROCESS: JUST CAUSE
The Second Notice : Notice of Decision
 Result of an objective evaluation of the charges against the employee,
whether such results are considered favorable or not the part on the erring
employee
 It should consider his defenses and explanations
 If management sustains its actions, this notice should contain why it is
sustaining its actions, and why management did not consider the defenses of
the employee (due consideration of all circumstances, grounds have been
established, etc.)
 It should inform without equivocation management’s decision to discipline or
dismiss
 Sent to the last known address of the employee, through registered mail

13. TERMINATION
START
PROCESS FOR JUST
HR - ER
HR is notified or discovers the Notice to Explain (NTE) CAUSE
violation
The employee is given 48
Imposition of 30 days suspension if
hrs to submit explanation.
there is threat to Company plus
Notice to withhold salary to
Payroll
Surrender ID and access badge to HR
Administrative Hearing
Guilty Not Guilty
HR HR
Notice of Notice of
Termination Reinstatement
Employee to process exit Full payment if
requirements with HR suspended with
notice to
Payroll to
release withheld
pay
END Return of ID and access
budge upon return to
work

14. point of origin
Admin
Notice to Explain
Notice of
Hearing
Termination
Deny Accept
WRITTEN REPLY/ EXPLANATION

15. ADMINISTRATIVE
HEARING PROCESS

16. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process: When to Conduct
Hearing and When Not to Conduct Hearing?
 When employee denies allegations = HEARING
 When employee expressly admits the charges against him as
stipulated in his letter of explanation = HEARING NOT
REQUIRED
Employee just needs to be informed of the findings of
management pertaining to his case through a formal
notice of decision/termination

17. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process
 In other words, hearing is necessary when employee denies
allegations/charges against him to thresh out all doubts
 Management must accord hearing, especially when the
employee responds in writing but raised issues, and
questioned the weakness and relevance of the evidences
presented by management

18. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process
 Failure of the employer to give the employee the benefits of a
hearing and investigation before his termination constitutes
an infringement of his constitutional right to due process of
law
 There must be substantial evidence to support the
allegations of management to justify the termination as valid

19. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process: Guidelines
 The right to a hearing which includes the right of the affected party to
present his own case and submit evidence in support thereof
 Administrative hearing committee which must consider the evidence
presented before making the final decision
 The Admin hearing committee must always, by necessity, have
something to support its decision
 Not only must there be some evidence to support a conclusion but the
evidence must be “ substantial “ or that which is adequate to support a
finding or ruling

20. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process: Guidelines
 The decision must be rendered on the evidence presented at the
hearing, or contained in the record and disclosed to the parties affected
 The Committee must act on their own independent consideration of the
policy and the facts of the controversy, and not simply accept the views
of other members
 The Committee must render its decision in such a manner that the
parties can know the various issues involved and the reasons for the
decision rendered
NOTE: Admin Hearing Committee should normally consist of different
levels of employees from different Departments.

21. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process
What is done in a fair and just hearing ?
1. Inform the employee about the reason for the meeting through a
formal notice of hearing
2. Present your charges, any witness account, and your evidences
one by one
3. Permit the employee to challenge these evidences
4. Allow the employee ( or representative ) to present counter-
evidences

22. PROCEDURAL DUE PROCESS: JUST CAUSE
The Administrative Hearing Process
What is done in a fair and just hearing ?
5. When you have presented and listened to both sides, sum up the
hearing, and summarize what transpired
6. Inform the employee when he might know your decision or
recommendation to management
7. Formally close the hearing, and thank the employee and his
counsel (if any) for attending the hearing

23. 1st NOTICE HEARING 2ND NOTICE
NOTICE OF
NOTICE TO ADMINISTRATIVE DISCIPLINARY
INFRACTION ANSWER
EXPLAIN HEARING ACTION
What do you do
Required form Need to inform the
if employee refuses
of employee’s Employee of right to
to receive or receives
answer counsel EVALUATION &
but refuses to sign?
RECOMMENDATION
What if employee Number of hours
What if employee
is on AWOL? Refuses to appear?
What to do if
employee refuses
When can you to answer? Is hearing
preventively suspend
dispensable?
an employee?
What if employee
offers to resign?

24. PROCEDURAL DUE PROCESS: AUTHORIZED
CAUSE
• If the dismissal is based on authorized causes under
Articles 283 or 284, the requirements of due process shall
be deemed complied with upon service of a written notice
to the employee and to DOLE at least 30 days before the
effectivity of the termination, specifying the ground/s for
termination = 30 Day Rule

25. START
TERMINATION
PROCESS FOR
Confirmation of the Need to Notice of HR AUTHORIZED CAUSE
reduce FTE Termination
T o e ffe c t wit h i n 3 0 d a ys
Supervisor
Confirmation of &HR
Termination Date
HR
Issuance of
Clearance Form
Routing of
Clearance Form
Financ
Approval of Final e
Pay
Payroll
Processing of Final
Pay

26. PROCEDURAL DUE PROCESS: OTHER CAUSES
• Termination due to completion of a contract or a phase
thereof = no prior notice is required
• Termination due to failure of the employee to meet the
standards of the employer in the case of a probationary
employment = a written notice that is served to the
employee within a reasonable time from the effective date
of termination would suffice

27. Preventive suspension

28. PREVENTIVE SUSPENSION
• Justified where the employee’s continued employment poses a serious
and imminent threat to the life or property of the employer or of the co-
workers. Without this kind of threat, preventive suspension is not
proper
• Maximum period of suspension is 30 days
• Preventive suspension is incident to investigation, not in itself a penalty
for the offense
• Beyond that, the employee becomes entitled to his pay and benefits and
the employer may be required to pay indemnity

29. End 