This document summarizes key provisions around termination of employment from the Labor Code of the Philippines. It discusses termination by the employee, including requirements for notice and just causes. Just causes include serious insults, inhumane treatment, and crimes committed against the employee. It also covers termination not deemed to have occurred, such as during a business suspension. The document outlines retirement provisions, including entitlement to retirement pay after 5 years of service at age 60 or 65. It exempts small establishments and allows Pag-IBIG membership as a substitute retirement plan.

1. Book 6 , Labor Code
TERMINATION OF
EMPLOYMENT
PRESENTED BY:
Shirley Poliquit
MBACOG2 M530-8:30

2. TERMINATION OF EMPLOYMENT
BY EMPLOYEE (ART.285)
Requisites for termination of
employment by employee without just
cause:
-In case of termination without just cause, the
following requisites must be complied with
the employee:
1. written notice of the termination;
2. service if such notice to the employer at
least one(1) month in advance.
- employee may be held liable for damages for
failure to give notice.

3. Termination of employee with just
cause
-
An employee may put an end to the
relationship without serving any notice on
the employer for any of the following just
causes:
1. Serious insult by the employer or his
representative on the honor and person of
the employee;
2. inhumane and unbearable treatment
accorded the employee by the employer of
his representative;
3. Commission of a crime or offense by the
employer or his representative against the

4. Requisites of Serious insult as a ground to
terminate employment by employee:
- In order to be considered a just cause to warrant
the valid termination of employment be the
employee without notice, the ff. requisites must
concur:
o the insult must be serious in character
o It must be committed by the employer or his
representative;
o It must injure the honor and person of the
employee.
Requisites for serious and inhumane and
unbearable treatment as a ground to terminate
employment by employee:

5. Requisites for commission of the crime as
ground to terminate employment by employee
-the requisites for these ground are as
follows:
o a crime of offense is committed
o it was committed by the employer or his
representative
o it was perpetrated against the person of
the employee or any of the immediate
members of his family.
Analogous causes that may invoked as a
ground to terminate employment by employee

6. Employment Not Deemed
Terminated (Art. 286)
bona-fide suspension of the operation of a
business/undertaking for a period of not
more than 6 months
b. Fulfillment by the employee of a military or
civic duty
- Employer shall reinstate the employee to his
former position without loss seniority rights
IF employee indicates his desire to resume
his work not later than one (1) month from
resumption of operations of his employer or
his relief from the military of civic duty.
a.

7. Retirement (Art. 287)
Definition:
- Retirement has been defined as a
withdrawal from office, public
station, business, occupation, or public duty.

8. Art. 287.(Original)
“Any employee may be retired upon
reaching the retirement age established in
the collective bargaining agreement or other
applicable employment contract.
 In case of retirement, the employee shall be
entitled to receive such retirement benefit as
he may have earned under existing laws and
any CBA or other agreements”


9. Art. 287 (amended)
“Any employee may be retired upon reaching
the retirement age established in the
collective bargaining agreement or other
applicable employment contract.
 In case of retirement, the employee shall be
entitled to receive such retirement benefit as
he may have earned under existing laws and
any CBA or other agreements…

- Provided, however, that an employee’s
retirement benefits under any collective
bargaining and other agreements shall not be

10. Art. 287 (amended)

“In the absence of a retirement plan or
agreement providing for retirement benefits
of employees in the establishment, an
employee upon reaching the age of sixty (60)
years or more, but not beyond sixty-five (65)
years which is hereby declared the
compulsory retirement age, who has served
at least five (5) years in the said
establishment, may retire and shall be
entitled to retirement pay equivalent to at
least one-half (1/2) month salary for every
year of service, a fraction of at least six(6)

11. Art. 287 (amended)
 “Unless
the parties provide for broader
inclusions, the term “one-half (1/2) month
salary” shall mean 15days plus one-twelfth
(1/12) of the 13th month pay and the cash
equivalent of not more than 5 days of
service incentive leaves.
 An underground mining employee upon
reaching the age 50 years or more, but not
beyond 60 years which is hereby declared
the compulsory retirement age for
underground mine workers, who was served
at least 5 years as underground mine

12. Art. 287 (amended)

Retail, service and agricultural
establishment or operations employing not
more than 10 employees or workers are
exempted from the coverage of this
provision.

13. Coverage
 Applies
to private
sector employees
- Full time, part
time, regular or nonregular.
 Retiree must have
served the
establishment for at
least 5 years.
 Retiree must have
reached the age of 60(
for optional or 65 (for

14. 2 types of Retirement
1. Optional retirement
- In the absence of a retirement plan or
other applicable agreement providing for
retirement benefits of employees in an
establishment, an employee may retire upon
reaching the age of sixty (60) years or more if
he has served for at least five years in said
establishment.
2. Compulsory retirement
- where there is no such retirement plan
or other applicable agreement providing for
retirement benefits of employees in an

15. PAG-IBIG as substitute for
Retirement Plan
 As
provided in R.A 7742, a private employer
shall have the option to treat the coverage of the
Pag-IBIG Fund as a substitute retirement
benefit for the employee concerned within the
purview of the Labor Code as amended;
provided such option does not in any way
contravene an existing collective bargaining
agreement or other employment agreement.
 Thus, the Pag-IBIG Fund can be considered as
a substitute retirement plan f the company for its
employees provided that such scheme offers
benefits which are more than or at least equal to
the benefits under R.A. 7641. If said scheme