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Philippine labour laws distinguish between two categories of employer-initiated terminations: (i) those involving blameworthy conduct (eg, serious misconduct, fraud, breach of trust, and gross and habitual neglect); and (ii) those involving economic motives (eg, redundancy, retrenchment, installation of labour-saving devices and closure).

An employee may only be dismissed if there is a just or authorised cause for the dismissal. This policy is anchored on the principle of the security of tenure of employees, which is not only statutorily provided...