QuestionsQuestions (Republic Act No. 1787)
RA 1787 amended Sections 1 and 2 of Republic Act No. 1052. Its purpose was to regulate termination of employment without a definite period and to set the notice/termination pay rules, including when termination is allowed for just causes.
In cases of employment without a definite period, either employer or employee may terminate at any time with just cause.
The employee must serve written notice on the employer at least one month in advance.
The employer must serve written notice to the employee at least one month in advance, or one-half month for every year of service of the employee—whichever is longer. A fraction of at least six months is considered as one whole year.
If no such notice was served, the employer may hold the employee liable for damages (as stated in the text regarding the party “upon whom no such notice was served” in termination without just cause).
The employer shall be entitled to compensation from the date of termination in an amount equivalent to the employee’s salaries or wage corresponding to the required period of notice.
The law lists: (1) closing/cessation of operation unless to defeat the law’s intention; (2) serious misconduct or willful disobedience; (3) gross and habitual neglect of duties; (4) fraud or willful breach of trust; (5) commission of a crime/offense against the employer or immediate family; and (6) other causes analogous to any of the foregoing.
The law lists: (1) serious insult by employer/representative on honor or person of employee; (2) inhuman and unbearable treatment; (3) commission of a crime/offense by employer/representative against the employee or immediate family; and (4) other causes analogous to any of the foregoing.
Closing or cessation of operation is a just cause unless the closing is for the purpose of defeating the intention of the law.
No. Suspension for a period not exceeding six months, if not attributable to the employer’s fault, does not terminate employment.
No. Fulfillment of a military or civic obligation or privilege prescribed by law shall not terminate employment.
The employer must return the employee to the former job, provided the employee indicates desire to return within a reasonable time not exceeding sixty days from relief.
Failure to comply renders the employer liable for damages.
Any contract or agreement contrary to Section 1 is null and void.
Yes. The law provides that nothing prevents employers and employees (or their representatives) from entering into a collective bargaining agreement with terms more liberal than those provided for in the Act in favor of employees.
RA 1787 took effect upon its approval.