Complete guide to hiring employees in the Philippines. From taxation to salary standards, here's everything you need to know about having employees in the Philippines.
Terminating an employee is a sensitive process that must be done carefully and following precisely the law. Labor disputes due to unlawful termination of employment are common.
The key deadline to pay attention to is when the employee is completing their probationary period which can be a maximum of six months since the start of the employment and must be clearly stated in the employment contract. Once your employee passes the probationary period, terminating them becomes significantly more complicated, although still possible.
A common mistake is to either forget or not pay attention to the ending of the probationary period – use this time wisely to decide whether you want to work with the employee for the foreseeable future.
Terminating an employee on a probationary period must consist of the following steps:
Terminating a regular employee follows the steps outlined below:
If an employee does not respond to the Notice to Explain (NTE) within five days, it is considered that the employee has had an adequate opportunity to respond to the accusations and the employer can serve the termination notice.
As you can see from the termination processes above, it’s important to sign proper employment contracts with employees that clearly outline the employee’s responsibilities. It’s important for both parties to know their rights and responsibilities and when either one of them has been violated.
The following is an incomplete list of just termination causes:
Emerhub's employer of record service allows you to hire anyone in the Philippines with minimum bureaucracy. Your employees will be formally on our payroll while working entirely for your company.
No need to set up a local company in the Philippines. You manage your employee, we take care of taxes, local HR matters, etc.