Mutual Separation Agreement, A Better Understanding

The Philippine Labor Code only recognizes two modes of involuntary separating an employee from employment, namely: through just causes and authorized causes. In each of these modes of dismissal, there are stringent requirements under the law, not only on the threshold to qualify as either a just or authorized cause for dismissal, but also in the procedural requirements in effecting these dismissals.

There is an unexplored mode by which employment can be terminated, not through the rigors of just or authorized cause dismissals, but by mutual consent of the parties. Termed as Mutual Separation Agreements (MSAs) in other jurisdictions, this mode termination is not expressly provided under the Philippine Labor Code.