Basic employee rights
Philippine workers generally have rights to lawful wages, safe working conditions, rest periods, statutory benefits, and due process before dismissal. Specific rights depend on your employment status, contract, industry, location, and facts.
Common issues to check
- Termination: Ask whether there was a just or authorized cause and whether due process was followed.
- Wages: Compare your pay with the applicable regional minimum wage and your actual hours worked.
- Overtime: Work beyond eight hours may require overtime pay, subject to legal rules and exemptions.
- 13th month pay: Rank-and-file employees are generally entitled to 13th month pay under Presidential Decree No. 851.
- Final pay: Keep records of unpaid salary, pro-rated benefits, leave conversions if applicable, and deductions.
Just cause vs. authorized cause
The Labor Code (Articles 297–299, formerly numbered 282–284) generally splits valid termination grounds into two categories, and the difference affects both the process and whether separation pay is owed:
- Just causes relate to something the employee did — serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud or willful breach of trust, or commission of a crime against the employer. The employer generally does not owe separation pay for a valid just-cause dismissal, but must still observe due process: a first written notice stating the specific grounds and giving the employee a real opportunity to explain, and a second written notice of the decision after considering that explanation (commonly called the "two-notice rule").
- Authorized causes are business-related and not the employee's fault — redundancy, retrenchment to prevent losses, closure or cessation of business, installation of labor-saving devices, or a disease that can't be treated within six months and continued employment is prohibited by law or prejudicial to health. These generally require written notice to both the employee and DOLE at least 30 days before the termination date, and separation pay is generally owed.
Separation pay basics
Separation pay amounts depend on the specific authorized cause, and are generally computed as whichever is higher between a minimum flat amount and a per-year-of-service amount (a fraction of a year of at least six months is usually counted as one whole year):
- Redundancy or installation of labor-saving devices: at least one month's pay, or one month's pay per year of service, whichever is higher.
- Retrenchment, closure not due to serious business losses, or disease: at least one month's pay, or one-half month's pay per year of service, whichever is higher.
These are general defaults — company policy, a collective bargaining agreement, or your specific facts can change the actual computation, so verify with DOLE or a lawyer before relying on a number.
Documents to prepare
- Employment contract, appointment letter, or offer letter
- Payslips, bank records, attendance logs, schedules, or time records
- Termination notice, memo, screenshots, emails, or messages
- Company handbook or policy if available
- Names of witnesses and timeline of events
Where to ask for help
For labor standards issues, workers commonly start with the Department of Labor and Employment (DOLE). For illegal dismissal and money claims, the National Labor Relations Commission (NLRC) may be relevant. A lawyer or PAO can help assess the proper forum.
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