Notice and Liability for Failure to Serve Notice
- Employer failing to serve required notice when terminating without just cause may hold employee liable for damages.
- Conversely, employer who fails to serve notice in such termination is liable to pay compensation equivalent to salary or wages for the notice period.
Just Causes for Termination by Employer
- Closure or cessation of operations, except if intended to evade the law.
- Serious misconduct or willful disobedience related to work.
- Gross and habitual neglect of duties.
- Fraud or wilful breach of trust.
- Commission of crime/offense against employer or immediate family.
- Other analogous causes to the foregoing.
Just Causes for Termination by Employee
- Serious insult by employer or representative to employee's honor or person.
- Inhuman or unbearable treatment by employer or representative.
- Commission of crime/offense by employer or representative against employee or immediate family.
- Other analogous causes to the foregoing.
Suspension of Operations and Military/Civic Obligations
- Suspension of business operation up to six months without employer fault does not terminate employment.
- Military or civic obligations of employee do not terminate employment.
- Employer duty to restore employee to former job upon return within 60 days after such obligation.
- Employer failure to reinstate employee incurs liability for damages.
Nullity of Agreements Contrary to the Law
- Contracts or agreements contrary to these provisions are null and void.
- Collective bargaining agreements may establish more favorable terms than the law.
Effectivity
- The Act takes effect immediately upon approval.