Due
process refers to the procedure in which an employee is terminated. It is a
requirement by law to provide fairness to the employee by being notified of the
reason for dismissal and in some cases, to give the employee ample opportunity
to defend himself or herself.
In
just causes of termination, the due process involves a 2-notice rule while in
authorized causes of termination, the due process is deemed complied by serving
a 30 days notice to the employee.
If due process is not accorded to the
employee before the termination of the employment, the employee shall be
entitled to payment of indemnity or nominal damages even if the
termination is for a valid cause.
Penalty for
failure to follow Due Process
In
cases whereby the employer fails to comply with the due process requirements
before terminating the employee for a just cause, the employer may have to
indemnify the employee of not more than 30,000
pesos. In the case of an authorized cause, it’s 50,000 pesos.