Illegal dismissal and your rights
When an employer may let you go, the notices the law requires, and what you can recover if it did not follow them.
Last reviewed October 30, 2026
This is general information, not legal advice. Every case turns on its own facts and documents, and the rules and periods can change. Talk to a lawyer about your situation before you act.
A regular employee has security of tenure: the employer may end the employment only for a cause the Labor Code allows, and only after following the required procedure.
The allowed causes
- Just causes, which are the employee's fault: serious misconduct, wilful disobedience of a lawful order, gross and habitual neglect of duties, fraud or wilful breach of trust, a crime against the employer or the employer's family, and similar causes (Article 297).
- Authorized causes, which are not the employee's fault: installation of labor-saving devices, redundancy, retrenchment to prevent losses, closure of the business, and a disease that cannot be cured within six months (Articles 298 and 299). These carry separation pay.
The procedure
- For a just cause, the twin-notice rule: a first written notice stating the specific charge, with a reasonable time — at least five calendar days — to explain in writing; a chance to be heard; and a second written notice of the decision.
- For an authorized cause: written notice to the employee AND to DOLE at least thirty days before the dismissal takes effect, and separation pay.
- Being told not to report anymore, being made to resign, or having your work made unbearable can be constructive dismissal, which the law treats as a dismissal too.
What you can recover
If the dismissal was illegal, the usual remedy is reinstatement without loss of seniority and full backwages from the dismissal until reinstatement. Where reinstatement is no longer practical, separation pay may be awarded instead. Damages and attorney's fees may also be granted in proper cases.
Where and when to file
- Most labor disputes start with a request for assistance under the Single Entry Approach (SEnA) at DOLE or the NLRC — a short conciliation, usually within thirty days.
- If it is not settled, a complaint is filed with the Labor Arbiter of the NLRC.
- An action for illegal dismissal is generally filed within four years; money claims, such as unpaid wages, within three years. Do not wait.
Before you sign anything
Do not sign a resignation letter or a quitclaim you do not agree with. A quitclaim for less than what the law gives may be set aside, but it makes the case harder. Keep your contract, payslips, ID, memos, notices and messages from your employer.