Getting Fired

This Article was Published in Manila Bulletin last September 12, 2010.

Getting fired from one’s job is one of the most traumatic circumstances any employee can ever experience. No doubt, it is extremely painful and a blow to one’s ego. It causes uncertainty, depression, anger, feelings of inadequacy and momentary fear of the future.

People who have experienced getting terminated from their jobs react in different ways. Some cry, others get weak on the knees, some faint… there are those who are able to quietly accept it with maturity, yet there are a few who get angry, extremely angry.

The recent tourist bus hostage-crisis drama that happened in Manila is an extreme worst case scenario of how a disgruntled terminated employee can go amok and wreak havoc, endangering innocent lives to express his grievance. It shocked the world and affected our nation. It literally became a life and death situation.

Although this is an extreme case of what a disgruntled employee can do, it serves as a good trigger for employers and HR practitioners to ensure that they have proper procedures and the appropriate avenues to discuss employee grievances. It also shows employees what not to do when angry.

As an employer and HR practitioner, I can honestly tell you that firing an employee is one of the most difficult and painful parts of the job. Telling an employee whom you’ve gotten to know and care for that he or she is no longer wanted or needed by the company is not something you can casually say. It is a sensitive matter---one that needs much thought, sensitivity, investigation and proper procedure.

Based on the Labor Code of the Philippines, there are two main grounds for termination of employment. These are:
1. Just Causes
2. Authorized Causes

To help employers and employees understand the termination process, allow me to explain these in layman’s terms.

Just causes

These are acts that are not in accordance with company policies. See, each company has their own set of rules and regulations. This is written in black and white, commonly known as Employee Policies. Normally, a list of offenses and their corresponding penalties are stated in the Employee Policies.

The offenses are classified according to the gravity of the offense. For example, theft or assault is often considered a major offense and most companies will give preventive suspension to the suspect while the case is being investigated or immediately terminate an employee who has been found guilty after a disciplinary hearing.

Meanwhile, minor offenses such as absences and tardiness will correspond to proper disciplinary actions such as verbal warnings, followed by written warnings, then suspension without pay. If the employee has received all these disciplinary action with no signs of improvement, the company may terminate one’s employment due to just causes.

Now, employers cannot just terminate regular employees on a whim. You just cannot suddenly and without warning say, “You’re fired.”

When terminating an employee due to Just Causes, employers need to have written documentation of the offenses and disciplinary action taken, plus this must be signed and acknowledged by the employee. And for cases of termination, there should be a documented investigation and proper administrative/disciplinary hearing that is conducted by the company’s Disciplinary Committee which is usually composed of representatives from the HR department, the management and the direct supervisor of the employee. Disciplinary hearings are conducted to ensure that the side of the employee is heard.

If you are fired due to just causes, you will not be paid any separation pay.
In some cases and depending on company policies, pending benefits may be forfeited.

Authorized Causes

Sometimes, a company may terminate your employment due to no fault of your own.

For instance, the company could be facing a huge loss or bankruptcy and they have no choice but to close down. Depending on the financial situation and company’s ability to pay remuneration, you may or may not be given separation pay in such cases.

There are also times wherein the company needs to reduce staff because they purchased a new system or equipment that makes your job redundant. Under such cases, companies are required to pay separation pay.

There may also be instances wherein an employee is suffering from a lingering illness. Any illness that is incurable within 30 days is usually considered lingering. And an employer may opt to terminate the employee. In such cases, separation pay is also given as an aid for the ill employee.

Companies who terminate employees due to business closure and staff reduction need to coordinate with the agencies of the Department of Labor and Employment. Proper procedures need to be followed to avoid disputes and complaints.

Following Termination Procedures

As you can see, there are a lot of processes, tasks and procedures that need to be followed when terminating an employee. I think it is wise and fair for employers and employees to follow the prescribed guidelines of the Labor Code and their company policies so that both parties are protected. Getting fired is painful but it is not the end of the world. Let us do the right thing to prevent worst-case scenarios and to preserve the dignity of employees and even employers during sensitive times.


About the Author:
Jhoanna O. Gan-So is president of Businessmaker Academy and the managing director for HR Club Philippines. Her company conducts seminars on Labor Law and Relations, Labor Disputes Handling, Human Resource Management, Corporate Skills Development, Business and Finance Management. To know more about the seminars that they offer, you may visit www.businessmaker-academy.com or call (632)6874645. You may also visit www.hrclubphilippines.com for more Work-life articles. Email your comments and questions to: mbworklife@gmail.com