Saturday, January 27, 2018

Notice to Explain (NTE)

The issuance of the Notice to Explain is a legal requirement as part of the due process of termination but even it’s not the case of termination, you’d better follow the procedure for documentation purpose.
The employer must provide the employee at least 5 calendar days from receipt of the notice to study the accusation, consult a union official or lawyer, gather data and evidence, and decide on the defenses against the complaint.
Furthermore, for sanctions of suspension or dismissal, the employer must conduct an administrative hearing to ensure that ample opportunity is provided for the employee to be heard. However, this may not be required if the employee expressly admits to committing the infractions.
After determining that the sanction of suspension or dismissal is justified, the employer shall serve the employee the 2nd written notice indicating that all circumstances involving the charge against the employee have been considered; and the grounds have been established to justify the corresponding sanction.

Prepare 2 copies of the Notice to Explain (NTE)
Serve the NTE to the charged employee with a witness

Have the charged employee to fill up and sign the ‘Acknowledgement Receipt of Notice’ on the company’s copy of the NTE
If the charged employee refuses to sign, the ‘Serving Officer’ shall fill up and sign on behalf of the charged employee with a note ‘Employee Refused to Receive’
Send a registered mail of the NTE to the charged employee last known address
Keep the copy of the receipt of the registered mail for documentation purpose
Have the witness to fill up and sign the ‘Witness to the Service of this Notice’

Keep a copy of the NTE for documentation purpose


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MARKET ISSUES

[last partial update : 02/28/2018] Macro and Overseas (a) US interest rate : 1.25 ~ 1.5%, May increase 3 times in 2018 (b) US 10 yr bond...