Labor Law Q&A details

Chapter 5 Dismissals

What is the prescribed notice period? Is it possible for the employer to pay the notice period in lieu (i.e. the employee is not obliged to serve the notice period but gets paid for it instead)? What are the penalties if either party does not respect the notice period?

Article 26 (Advance Notice of Dismissal), Labor Standards Act, as last amended by Act No. 12325, Jan. 21, 2014

In case of dismissal, an employer shall give at least 30 day notice to an employee in advance or 30 days of ordinary wage in lieu of the early notice.

*Labor Standards Act

Article 26 (Advance Notice of Dismissal)

When an employer intends to dismiss a worker (including dismissal for managerial reason), he/she shall give the worker a notice of dismissal at least 30 days in advance of such dismissal, and, if the employer fails to give such advance notice, he/she shall pay that worker ordinary wages for not less than 30 days: Provided, That this shall not apply where a natural disaster, calamity or other unavoidable circumstances prevent the continuance of the business or where the worker has caused a considerable hindrance to the business or inflicted any damage to the property on purpose, cases that fall under any cause determined by Ordinance of the Ministry of Employment and Labor.

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