Philippines Employment Guide

Navigating Employment Termination Requirements

Terminating employment relationships requires strict adherence to complex regulations and country-specific labor laws. The separation process should always be managed collaboratively between employers and key stakeholders, potentially involving special considerations and mandatory steps depending on termination circumstances.

Under labor legislation, employees may be dismissed for just cause, with employers obligated to provide formal written termination notice.

Understanding Notice Period Requirements

The minimum notice period typically spans 30 days, though this may vary based on employment duration and local jurisdictional requirements.

Severance Payment Structures

Severance compensation varies significantly based on termination grounds, ranging from 0.5 to 1 month's salary per year of service.

For redundancy-based terminations, employees receive either one month's salary or one month's pay per service year, whichever amount proves higher.

In cases involving business loss prevention, operational cessation, or health-related dismissals, the compensation structure shifts to either one month's salary or half-month's pay per service year, selecting the greater value.

Notably, no statutory severance requirements apply when termination results from complete business closure or operational discontinuation.

Global Termination Management: SailGlobal's Approach

SailGlobal implements severance accrual mechanisms across all employment agreements to protect clients from unexpected financial liabilities. With extensive experience managing international litigation risks, our severance calculations incorporate current common law principles, statutory rights, and local best practices. Should employees resign or become ineligible for severance, any unused accruals are fully returned to clients.

International Case Examples

Consider a technology firm that recently expanded to Southeast Asia: SailGlobal's proactive severance management prevented six-figure liabilities when restructuring required workforce reductions. Similarly, a European manufacturer avoided legal complications by implementing our standardized termination protocols across their Latin American operations.