Below is a comprehensive discussion on the legal considerations and ramifications of issuing an investigation letter after an employee has already been terminated under Philippine labor law. This article aims to provide a general overview; it should not be taken as legal advice for specific cases. Always consult with a qualified attorney for particular concerns.

1. Overview of Philippine Labor Law Requirements for Termination

1.1 Substantive and Procedural Due Process

In the Philippines, the Labor Code, Department of Labor and Employment (DOLE) regulations, and Supreme Court jurisprudence establish that the termination of employment must comply with two key aspects:

Substantive Due Process – The dismissal must be based on a valid or authorized cause under the law (e.g., those provided by Articles 297–299 of the Labor Code, formerly Articles 282–284).
Procedural Due Process – The employer must observe the legally prescribed procedure (e.g., for just cause terminations, typically the two-notice rule).

1.2 Two-Notice Rule in Just-Cause Terminations

Under Philippine law, if an employee is dismissed for a just cause (e.g., serious misconduct, willful disobedience, gross and habitual neglect of duty, fraud, or breach of trust):

First Notice (Notice to Explain or Show-Cause Memo): The employer must inform the employee in writing of the specific acts or omissions that may warrant termination. The employee should be given an opportunity to explain (commonly called an “NTE” or show-cause memo).
Opportunity to be Heard: The employee should be given a reasonable period to respond. Employers may conduct a hearing or conference where the employee can present evidence, if deemed necessary or if the employee requests it.
Second Notice (Notice of Decision): After due consideration of the employee’s explanation and any evidence presented, the employer issues another written notice informing the employee of the decision regarding dismissal or retention.

1.3 Authorized Cause Terminations

For authorized cause dismissals (e.g., redundancy, retrenchment, closure of establishment, or illness), the Labor Code outlines different procedural requirements, including advanced written notice both to the employee and to DOLE. Although not identical to the two-notice rule for just causes, proper notifications must still be in place.

2. Nature of an Investigation Letter

An “investigation letter,” sometimes called an “investigatory notice,” generally serves to notify an employee that the employer is looking into a particular incident or issue. It may request the employee’s presence in an administrative hearing or direct the employee to submit an explanation. Essentially, it is intended to fulfill or supplement the “first notice” or “notice to explain” phase of the two-notice rule in a just-cause dismissal.

An investigation letter ordinarily should:

State the specific allegations or violations being investigated.
Contain clear instructions on how and when the employee can respond or participate in the investigation.
Be issued before the employer makes a final determination on discipline or termination.

3. Issuing an Investigation Letter After Termination

3.1 General Rule: Procedural Due Process Is Already Breached

If an employer issues an investigation letter after it has already terminated the employee, this generally violates procedural due process. Under existing standards, the employee has the right to be informed of the charges and must be afforded an opportunity to respond prior to any decision to dismiss.

Defect in Notice: If the termination has already been effectuated, sending an investigation letter afterward suggests that no genuine opportunity to be heard was given. This undermines the spirit of the two-notice rule.
Undermines the Purpose of Investigation: By definition, an “investigation” aims to determine whether the allegations against the employee are substantiated enough to warrant disciplinary action or dismissal. Conducting the investigation after the fact indicates the termination decision might have been made arbitrarily or prematurely.

3.2 Legal Consequences of a Post-Termination Investigation Letter

Constructive Illegal Dismissal: If the termination was effected without due process, the employee may claim illegal dismissal. The employer then could be held liable for reinstatement (if feasible) or separation pay (if reinstatement is no longer viable) plus back wages from the time of dismissal up to finality of the decision.
Monetary Penalties: Philippine courts have imposed nominal damages against employers who fail to observe procedural due process, even if there is valid cause for dismissal. Typical amounts of nominal damages in procedural due process violations have ranged from PHP 30,000 to PHP 50,000 in certain Supreme Court rulings (amounts vary depending on the court’s discretion and the facts of the case).
Reputational Risk: Not following due process can tarnish an employer’s reputation and expose them to additional litigation risks, including labor claims that could have been avoided by adhering to correct procedures.

3.3 Exceptions or Special Circumstances

While the law requires notice and hearing before termination, there are extremely rare scenarios (e.g., the employee abandons the position, becomes unreachable, or commits a serious offense that requires immediate preventive suspension) in which an employer might issue a notice shortly after a disciplinary action. Still, termination decisions themselves must strictly follow the two-notice rule. Post-facto investigations usually fail to cure any procedural defects if the termination was already imposed.

4. Remedies for Employees and Employers

4.1 For Employees

Filing a Labor Complaint: An employee who receives a dismissal notice before any formal investigation, or receives an investigation letter post-termination, may file an illegal dismissal complaint with the National Labor Relations Commission (NLRC).
Settlement or Mediation: Many labor disputes are resolved at the Single Entry Approach (SEnA) stage or through mediation before the NLRC, avoiding prolonged litigation.

4.2 For Employers

Preventive Suspension (When Applicable): If the employer fears ongoing work may cause further harm (e.g., if there is fraud or potential sabotage), the employer can place the employee on preventive suspension during the investigation. However, the employer must still conduct the investigation and issue notices in proper sequence prior to terminating.
Proper Documentation: Keep thorough records of all steps taken in the disciplinary process—issuance of the notice to explain, conduct of hearings, employee’s response, final notice of decision, etc. This documentation will be crucial if the dismissal is challenged in court.
Legal Counsel Review: When in doubt, employers should consult with legal counsel or an experienced Human Resources specialist to ensure the legality of the entire process.

5. Illustrative Case Law on the Timing of Investigation Letters

The Philippine Supreme Court has consistently ruled that procedural due process is not satisfied by a post-termination notice or hearing. Among the Court’s key holdings in such cases:

No Cure for Premature Dismissal: Courts have held that issuing a notice after the employee has been dismissed cannot cure the lack of due process because the opportunity to respond must be meaningful and prior to final action.
Nominal Damages Awarded: Even if the employer later proves that the cause for dismissal was valid, failure to follow the mandated procedure often results in the award of nominal damages to the employee.
Strict Adherence Emphasized: The Court emphasizes that the best interests of both parties are served when employers strictly adhere to due process and employees are apprised of the charges before any irrevocable disciplinary measure is meted out.

6. Practical Tips and Best Practices

Issue a Prompt Notice to Explain: The first step in any disciplinary proceeding should be a clear, written notice specifying alleged infractions and giving the employee time to respond.
Conduct an Actual Investigation: If facts are disputed, hold a hearing or conference. Ensure the employee’s side is thoroughly heard and documented.
Make a Decision After the Investigation: Finalize the company’s decision only once the investigation process is complete. Then issue the notice of decision if termination or other disciplinary action is warranted.
Seek Professional Guidance: When dealing with complex or sensitive cases, consult a labor lawyer or HR consultant who is well-versed in Philippine labor laws.
Preventive Suspension vs. Summary Dismissal: In cases where the employee’s continued presence is detrimental, the correct approach is preventive suspension pending investigation, not immediate termination without due process.

7. Conclusion

In the Philippine labor law setting, the validity of an investigation letter issued after an employee’s termination is highly questionable, as it generally violates the procedural due process required under the two-notice rule. The entire purpose of an investigation letter or notice to explain is to give the employee a fair opportunity to address the allegations before the dismissal is finalized.

Failure to comply with these standards opens the employer to the risk of illegal dismissal complaints and potential liability for reinstatement (or separation pay), back wages, and damages. Both employers and employees should thus be fully aware of the required processes and the serious legal implications of failing to observe them.

Disclaimer: This article provides general information on Philippine labor law and does not constitute legal advice. For specific cases or further clarification, consult an attorney knowledgeable in labor law.