▷ In 2022, the Department of Labour and Employment issued an officially renumbered edition of the Labour Code of the Philippines. This edition, initially released as Department Advisory No. 01, Series of 2015, reflects all amendments, repeals, and superseded provisions. However, no substantive amendments were introduced in 2022 affecting the rules on termination of employment. The applicable legal framework remains the Labour Code of the Philippines (Official Renumbered Edition) and Department Order No. 147-15, Series of 2015.

▶ Labour Code of the Philippines (LC)
→ Section 293 of the LC provides that the provisions on termination of employment shall apply to all establishments or undertakings, whether for profit or not.
▷ Exception
→ Section 291 LC indicates that: The terms and conditions of employment of all government employees, including employees of government-owned and controlled corporations, shall be governed by the Civil Service Law, rules and regulations. (...).
▶ Department Order No. 147-15, Series of 2015, regarding "APPLICATION OF JUST AND AUTHORIZED CAUSES OF TERMINATION"
→ Section 2 of Order No. 147-15 states that these Rules shall apply to all parties in work arrangements where an employer-employee relationship exists. It also applies to legitimate contracting and subcontracting arrangements with existing employer-employee relationships.

▶ Labour Code of the Philippines (LC)
→ Section 6 LC provides that all rights and benefits granted under the Code shall apply to all workers, whether agricultural or non-agricultural, except as otherwise provided.
→ Under section 13(a), "worker" is defined as: any member of the labour force, whether employed or unemployed.
→ Section 291 LC states that the terms and conditions of employment of all government employees, including employees of government-owned and controlled corporations, shall be governed by the Civil Service Law, rules and regulations.
→ In addition, the Labour Code contains specific provisions for apprentices (§§ 57-72 LC), trainees ("learners": §§ 73-77 LC), house helpers (§§ 139 - 150 LC), home workers (§§ 151-153 LC), and night workers (§§ 154-161 LC).

▷ In 2019, both houses of Congress passed the Security of Tenure Bill, which proposed significant amendments to the rules on just causes of termination and the regulation of subcontracting arrangements. The bill was vetoed by President in July 2019. Since, multiple bills have been filed in Congress to address issues of job security, just causes of dismissal, and the abuse of subcontracting and fixed-term employment.

▶ Labour Code of the Philippines (LC)
→ Section 295 LC defines regular, project, seasonal, and casual employment. It states that an employment shall be deemed regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee, or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.
▶ Department Order No. 174, Series of 2017
→ This Order contains rules on contracting and subcontracting arrangements. It provides for an absolute prohibition against labour-only contracting (§§ 4 and 5) and other illicit forms of employment arrangements (§ 6). Repeated engagement of workers under an employment contract of short duration is deemed an illicit form of employment arrangement (§ 6(h)).

▶ Labour Code of the Philippines (LC)
The LC provides for fixed-term employment in cases of project employment or seasonal work. However, an employee who has rendered at least one (1) year of service, whether continuous or broken, shall be considered a regular employee with respect to the activity in which he or she is employed, and his or her employment shall continue while such activity exists.
→ Section 295 LC indicates that: The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the du ration of the season.
▻ An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, that any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.
▶ Department Order No. 174 Series of 2017
Note: Department Order No. 174 contains rules regarding contracting and subcontracting arrangements which are applicable to all parties in an employer-employee relationship, providing for an absolute prohibition against labour-only contracting and other illicit forms of employment arrangements (Rules implementing §§ 106-109 LC).

▶ Labour Code of the Philippines (LC)
There is no statutory limit on the number of successive fixed-term contracts under the Labour Code. However, repeated renewals may lead to a finding of regular employment if the work performed is necessary and desirable to the business of the employer (§ 295 LC).

▶ Labour Code of the Philippines (LC)
→ Under Section 295 LC, an employee who has rendered at least one (1) year of service, whether continuous or broken, shall be considered a regular employee with respect to the activity in which he or she is employed.

▶ Labour Code of the Philippines (LC)
→ Section 296 LC provides that probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period.

No statutory provisions were found in the examined legislation in this respect.

▶ Labour Code of the Philippines (LC)
The LC prohibit discrimination and dismissal on grounds of sex, marriage, pregnancy, retaliatory discharge or discrimination against an employee who has filed a complaint or instituted proceedings under the Labour Code, unfair labour practices, including dismissal or discrimination against employees for trade union membership or activities (§§ 118, 133, 134, 135, 259 and 275 LC).
▷ Retaliatory Measures
→ Section 118 LC states that: lt shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings.
▷ Non-discrimination
→ Under section 133 LC, it is unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. (…).
▷ Stipulation against marriage
→ Section 134 LC provides that: It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.
▷ Pregnancy and maternity leave
→ Section 135 LC indicates that: lt shall be unlawful for any employer:
(1)To deny any woman employee the benefits provided for in this Chapter or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided under this Code;
(2)To discharge such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy;
(3)To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant.
→ In addition, section 158 LC, provides that during the period before and after childbirth (at least sixteen weeks, which may be extended on medical grounds), a woman night worker shall not be dismissed or given notice of dismissal, except for just or authorized causes provided under the Labour Code that are not connected with pregnancy, childbirth, and childcare responsibilities.
▷ Prohibition of unfair labour practices
→ Sections 259(f) LC prohibit an employer to commit unfair labour practices, including: To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code; (…).
▷ Exception: Union representatives and union activities
→ Sections 257 LC provides general protection for the right to self-organization, but does not expressly stipulates prohibitions against dismissal of union members and officers.
→ Sections 278(c) LC recognizes that the dismissal of duly elected union officers may constitute union busting, it does not prohibit such dismissal. It only allows the union to strike immediately without observing the 15-day cooling-off period.
→ Sections 279 LC stipulates that: (...) mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the employer during such lawful strike.
▷ Age
▶ Republic Act No. 10911 (Anti-Age Discrimination in Employment Act, 2016)
→ Section 5(6 and 7) of the Act No. 10911 prohibits dismissal or forced early retirement on the basis of age.
▷ HIV, Tuberculosis and Hepatitis B status
▶ Republic Act No. 8504 (Philippine AIDS Prevention and Control Act of 1998)
→ Section 35 of the Act No. 8504 prohibits termination of employment on the sole basis of actual, perceived, or suspected HIV status indicating: Discrimination in any form from pre-employment to post-employment, including hiring, promotion or assignment, based on the actual, perceived or suspected HIV status of an individual is prohibited. Termination from work on the sole basis of actual, perceived or suspected HIV status is deemed unlawful.
▶ Department Order No. 147-15, Series of 2015
→ Section 6 of the Order No. 147-15 prohibits termination of an employee based on actual, perceived, or suspected HIV status or Hepatitis B status.
→ An employee who has or had tuberculosis shall not be discriminated against and shall be entitled to work for as long as he/she is certified as medically fit.
▷ Persons with disabilities
▶ Republic Act No. 7277 providing Magna Carta for Disabled Persons
→ Section 32 (g) of the Act No. 7277 prohibits dismissal and termination of services of employees by reason of their disability unless the employer can prove that he impairs the satisfactory performance of the work involved to the prejudice of the business entity: Provided, however, that the employer first sought to provide reasonable accommodations for disabled persons.

▶ Labour Code of the Philippines (LC)
→ Sections 134 and 135 of the LC provide special protection for women against dismissal on grounds of marriage and/or pregnancy and maternity.
→ Section 158 LC further strengthens this protection for women night workers by prohibiting dismissal (or notice of dismissal) during the period before and after childbirth (at least sixteen weeks, extendable on medical grounds), except for just or authorized causes not connected with pregnancy, childbirth, and childcare responsibilities.
▶ Republic Act No. 10911 (Anti-Age Discrimination in Employment Act, 2016)
→ Section Protects employees from dismissal or forced early retirement on the basis of age.
▶ Republic Act No. 8504 (Philippine AIDS Prevention and Control Act of 1998) and Department Order No. 147-15, Series of 2015
→ Section 35 of the Act No. 8504 and section 6 of the Order No. 147-15 protect employees from termination based on actual, perceived, or suspected HIV status.
→ Section 6 of the Order No. 147-15 protects employees from termination based on actual, perceived, or suspected Hepatitis B status.
→ Section 6 of the Order No. 147-15 provides protection to employees who have or had Tuberculosis from discrimination and entitles them to continue working as long as they are certified as medically fit.
▶ Republic Act No. 7277 (Magna Carta for Disabled Persons)
→ Section 32 (g) of the Act No. 7277 protects persons with disabilities from dismissal by reason of their disability, unless the employer can prove that the disability impairs satisfactory performance of the work involved and that the employer has failed to provide reasonable accommodation.

▶ Labour Code of the Philippines (LC)
→ Section 292(b) LC provides that: (…) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under [section 298] of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labour and Employment (...).
▶ Department Order No. 147-15, Series of 2015
▷ For just cause dismissals, the employer must follow the twin-notice rule.
→ Section 5.1 of the Order 147-15 on "Termination of Employment Based on Just Causes" indicates that: As defined in section 297 of the Labour Code, as amended, the requirement of two written notices served on the employee shall observe the following:
(a) The first written notice should contain:
1. The specific causes or grounds for termination as provided for under section 297 of the Labour Code, as amended, and company policies, if any;
2. Detailed narration of the facts and circumstances that will serve as basis for the charge against the employee. A general description of the charge will not suffice, and
3. A directive that the employee is given the opportunity to submit a written explanation within a reasonable period.
"Reasonable period" should be construed as a period of at least five (5) calendar days from receipt of the notice to give the employee an opportunity to study the accusation, consult or be represented by a lawyer or union officer, gather data and evidence, and decide on the defenses against the complaint.
(b) After serving the first notice, the employer should afford the employee ample opportunity to be heard and to defend himself/herself with the assistance of his/her representative if he/she so desire, as provided in section 299 (b) of the Labour Code, as amended.
"Ample opportunity to be heard" means any meaningful opportunity (verbal or written) given to the employee to answer the charges against him/her and submit evidence in support of his/her defense, whether in a hearing, conference or some other fair, just and reasonable way. A formal hearing or conference becomes mandatory only when requested by the employee in writing or substantial evidentiary disputes exist, or a company rule or practice requires it, or when similar circumstances justify it.
(c) After determining that termination of employment is justified, the employer shall serve the employee a written notice of termination indicating that:
(1) all circumstances involving the charge against the employee have been considered; and
(2) the grounds have been established to justify the severance of their employment.
The foregoing notices shall be served personally to the employee or to the employee's last known address.

▶ Labour Code of the Philippines (LC)
▻ Note: The procedural requirements differ significantly between just cause and authorized cause dismissals (§ 294 LC).
▷ Just cause dismissals
▶ Labour Code of the Philippines (LC)
→ Under section 297 LC (just cause dismissal), there is no requirement for a notice period prior to dismissal. However, the employer must comply with due process requirements under section 292(b) LC.
▶ Department Order No. 147-15, Series of 2015
→ Section 5.1 of the Order No. 147-15 establishes the twin-notice rule. The employer must serve a first written notice specifying the grounds for termination and giving the employee at least five (5) calendar days to submit a written explanation. After considering the employee’s explanation, the employer shall serve a final written notice of termination.
▻ Note: The five (5) calendar days refer to the minimum period given to the employee to prepare and submit their written explanation. It is not a notice period before the termination takes effect.
▷ Authorized cause dismissals (installation of labour-saving devices, redundancy, retrenchment, or closure/cessation of operation
▶ Labour Code of the Philippines (LC)
For dismissals based on authorized causes (§§ 298 & 299 LC), which can be used for individual dismissals, the procedural requirements differ depending on the ground:
▷ Economic authorized causes (installation of labour-saving devices, redundancy, retrenchment, or closure/cessation of operation)
→ Section 298 requires the employer to serve a written notice to the affected employee at least thirty (30) days before the intended date of termination.
▷ Disease
→ Under section 299 LC, there is no 30-day notice requirement for termination due to disease. The employer must obtain a certification from a competent public health authority that the employee’s disease is incurable within six (6) months, even with proper medical treatment.
▷ Exceptions
▶ Labour Code of the Philippines (LC)
▷ House helpers
→ Section 148 LC (house helpers) states that: If the duration of the household service is not determined either in stipulation or by the nature of the service, the employer or the house helper may give notice to put an end to the relationship five (5) days before the intended termination of the service.

▶ Labour Code of the Philippines (LC)
→ Section 298 LC provides that the employer may terminate the employment of any employee due to the installation of labour-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking, by serving a written notice on the workers and the Department of Labour and Employment at least one (1) month before the intended date thereof. (...).
▶ Department Order No. 147-15, Series of 2015
→ Under section of the Order 147-15:
"Redundancy" refers to the condition when the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise or superfluous (§ 4(q)).
"Retrenchment" refers to the economic ground for dismissing employees and is resorted to primarily to avoid or minimize business losses (4(r)).
→ Section 5.4 of the Order 147-15 on "Standards on Authorized Causes" indicates that: An employer may terminate an employee for any of the following grounds:
(a) Installation of Labour-saving Devices - To be a valid ground for termination, the following must be present:
1. There must be an introduction of machinery, equipment or other devices;
2. The introduction must be done in good faith;
3. The purpose for such introduction must be valid, such as to save on cost, enhance efficiency and other justifiable economic reasons;
4. There is no other option available to the employer than the introduction of machinery, equipment or device and the consequent termination of employment of those affected thereby; and
5. There must be fair and reasonable criteria in selecting employees to be terminated.
(b) Redundancy - To be a valid ground for termination, the following must be present:
1. There must be superfluous positions or services of employees;
2. The positions or services are in excess of what is reasonably demanded by the actual requirements of the enterprise to operate in an economical and efficient manner;
3. There must be good faith in abolishing redundant positions;
4. There must be fair and reasonable criteria in selecting the employees to be terminated; and
5. There must be an adequate proof of redundancy such as but net limited to the new staffing pattern, feasibility studies/proposal, on the viability of the newly created positions, job description and the approval by the management of the restructuring.
(c) Retrenchment or Downsizing: To be a valid ground for termination, the following must be present:
1. The retrenchment must be reasonably necessary and likely to prevent business losses;
2. The losses, if already incurred, are not merely de minimis, but substantial, serious, actual and real, or if only expected, are reasonably imminent;
3. The expected or actual losses must be proved by sufficient and convincing evidence;
4. The retrenchment must be in good faith for the advancement of its interest and not to defeat or circumvent the employees' right to security of tenure; and
5. There must be fair and reasonable criteria in ascertaining who would be dismissed, and who would be retained among the employees, such as status, efficiency, seniority, physical fitness, age, and financial hardship for certain workers.
(d) Closure or Cessation of Operation: To be a valid ground for termination, the following must be present:
1. There must be a decision to close or cease operation of the
enterprise by the management;
2. The decision was made in good faith, and
3. There is no other option available to the employer except to close or cease operations.
(...).
In cases of the installation of labour-saving devices, redundancy, and retrenchment, the "Last-In, First-Out Rule" shall apply, except when an employee volunteers to be separated from employment.

▷ There is no general statutory requirement under the Labour Code to consult with trade unions or workers’ representatives prior to carrying out dismissals for economic reasons.

▶ Labour Code of the Philippines (LC)
→ Section 298 LC provides that the employer may terminate the employment of any employee due to the installation of labour-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking, by serving a written notice on the workers and the Department of Labour and Employment at least one (1) month before the intended date thereof.

There is no general statutory requirement under the Labour Code to consult with trade unions or workers’ representatives prior to carrying out dismissals for economic reasons.

No statutory provisions were found in the examined legislation in this respect.

No statutory provisions were found in the examined legislation in this respect.

▶ Department Order No. 147-15, Series of 2015
→ Under section 5.4(a)(5) of the Order 147-15, in cases of Installation of Labour-saving Devices: There must be fair and reasonable criteria in selecting employees to be terminated.
→ Under section 5.4(c)(5) of the Order 147-15 in cases of Retrenchment or Downsizing: There must be fair and reasonable criteria in ascertaining who would be dismissed and who would be retained among the employees, such as status, efficiency, seniority, physical fitness, age, and financial hardship for certain workers.
→ In addition, the last paragraph of section 5.4 of the Order 147-15 stipulates that: redundancy and retrenchment, the "Last-In, First-Out Rule" shall apply except when an employee volunteers to be separated from employment.

No statutory provisions were found in the examined legislation in this respect.

No statutory provisions were found in the examined legislation in this respect.

▷ Termination for just cause
▶ Labour Code of the Philippines (LC)
→ There is no statutory separation pay in case of termination for just cause under section 297 LC.
▶ Department Order No. 147-15, Series of 2015
→ Section 5.5 of the Order No. 147-15 provides that:
“An employee whose employment is terminated by reason of just causes is not entitled to separation pay except as expressly provided for in the company policy or Collective Bargaining Agreement (CBA).”
▷ Unjust dismissal
▶ Labour Code of the Philippines (LC)
→ Section 294 LC indicates that: (...). An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full back wages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.
▻ Note: For Statutory separation pay, which is only required in cases of termination for authorized causes under Sections 298 and 299 (see "Redundancy payment" below).
▷ Termination due to disease
▶ Labour Code of the Philippines (LC)
→ Section 299 LC indicates that: An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, that he is paid separation pay equivalent to at least one (1) month salary or to one-haIf (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.
▶ Department Order No. 147-15, Series of 2015
→ Section 5.5 of the Order No. 147-15 stipulates that: An employee terminated due to disease shall be paid by the employer a separation pay equivalent to at least one (1) month's salary or one-half (1/2) month salary for every year of service, whichever is higher, a fraction of six (6) months service is considered as one (1) whole year.
▷ Exceptions: House helpers
▶ Labour Code of the Philippines (LC)
→ Section 147 LC provides that: If the period of household service is fixed, neither the employer nor the house helper may terminate the contract before the expiration of the term, except for just cause. If the house helper is unjustly dismissed, they shall be paid the compensation already earned plus fifteen (15) days’ pay by way of indemnity.

Redundancy payment varies according to the cause for termination.
The amount provided here correspond to payment following "termination due to the installation of labour-saving devices or redundancy": one month's pay for every year of service or one month pay, whichever is higher.

See: Art. 283 LC and Omnibus Implementation Rules, Book 6, Title 1, sec. 9.