Termination Notice Periods for Project-Based Employees in the Philippines

Query: Is a 30-day notice required for terminating a project-based employee due to poor performance in the Philippines?

In the Philippines, the rules surrounding the termination of employment, including that of project-based employees, are guided primarily by the Labor Code. This code stipulates the rights and protections of employees as well as the obligations of employers. Termination of employment, especially due to poor performance, must adhere to procedural and substantive due process.

Project-based employment in the Philippines is characterized by an employment arrangement where an individual is hired for a specific project or undertaking, and the duration of employment is predetermined, usually by the completion of the project. The terms of engagement, including the duration, scope, and conditions of termination, are typically specified in the employment contract.

Regarding the specific inquiry about whether a 30-day notice is required for terminating a project-based employee due to poor performance, it is essential to clarify that there is no explicit mention in the Philippine Labor Code requiring a 30-day notice period for termination due to poor performance. Instead, the employer is required to follow due process, which involves two parts:

1. Substantive due process: The termination must be for just or authorized causes as prescribed by law. Poor performance can be a valid reason under "just causes," provided it meets the criteria of gross and habitual neglect of duties.
2. Procedural due process: This involves giving the employee written notice stating the specific causes for termination, providing an opportunity for the employee to explain or defend themselves, and then a subsequent notice of decision.

If the employment contract specifies a notice period, such as 30 days, this term must be honored as it is part of the contractual agreement between the employer and the employee. However, in the absence of such a stipulation, the general due process requirements outlined above must be followed.

It is important for employers to ensure that any termination, particularly for poor performance, is backed by documented performance issues and previous feedback given to the employee, as this establishes the habitual nature of the poor performance. This documentation helps defend against any potential legal challenges.

In conclusion, while there is no statutory requirement for a 30-day notice specifically for terminating project-based employees for poor performance in the Philippines, adhering to the procedural steps of due process is crucial. Employers should review employment contracts and consult legal expertise to ensure compliance with all applicable laws and regulations.