The Supreme Court (SC) concluded that this constitutes retrenchment by, and not closure of, the enterprise or the company itself as SMC has not totally ceased operations but is still very much an on-going and highly viable business concern.

Retrenchment is a management prerogative consistently recognized and affirmed by this Court. It is, however, subject to faithful compliance with the substantive and procedural requirements laid down by law and jurisprudence.

For retrenchment to be considered valid the following substantial requirements must be met: (a) the losses expected should be substantial and not merely de minimis in extent; (b) the substantial losses apprehended must be reasonably imminent such as can be perceived objectively and in good faith by the employer; (c) the retrenchment must be reasonably necessary and likely to effectively prevent the expected losses; and (d) the alleged losses, if already incurred, and the expected imminent losses sought to be forestalled, must be proved by sufficient and convincing evidence.

In the discharge of these requirements, it is the employer who has the onus, being in the nature of an

affirmative defense.

Normally, the condition of business losses is shown by audited financial documents like yearly balance sheets, profit and loss statements and annual income tax returns. The financial statements must be prepared and signed by independent auditors failing which they can be assailed as self-serving documents.

In the case of SMC, company losses were duly established by financial documents audited by Joaquin Cunanan & Co. showing that the aquaculture operations of SMC’s Agribusiness Division accumulated losses amounting to Php145,848,172.00 in 1992 resulting in the closure of its Calatrava Aquaculture Center in Negros Occidental, PhP11,393,071.00 in 1993 and PhP80,325,608.00 in 1994 which led to the closure of its San Fernando Shrimp Processing Plant in Pampanga and the Bacolod Shrimp Processing Plant in 1995.

SMC has thus proven substantial business reverses justifying retrenchment of its employees.

For termination due to retrenchment to be valid, however, the law requires that written notices of the intended retrenchment be served by the employer on the worker and on the DOLE at least one (1) month before the actual date of the retrenchment, in order to give employees some time to prepare for the eventual loss of their jobs, as well as to give DOLE the opportunity to ascertain the verity of the alleged cause of termination.

Affected employees, however, were merely verbally informed on September 10, 1995 by SMC Prawn Manager Ponciano Capay that effective the following day or on September 11, 1995, they were no longer to report for work as SMC would be closing its operations.

Where the dismissal is based on an authorized cause under Article 283 [now Art. 301] of the Labor Code but the employer failed to comply with the notice requirement, the sanction should be stiff as the dismissal process was initiated by the employer’s exercise of his management prerogative, as opposed to a dismissal based on a just cause under Article 282 [Art. 297] with the same procedural infirmity where the sanction to be imposed upon the employer should be tempered as the dismissal process was, in effect, initiated by an act imputable to the employee.

In light of the factual circumstances of the case at bar, the SC awarded PhP50,000.00 to each complainant as nominal damages.

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Notice to Explain: Contents and Requirements

Art. 277 [now Art. 294] of the Labor Code provides the manner of termination of employment, thus:

“xxx

Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer.”

Accordingly, the implementing rule of the aforesaid provision states:

SEC. 2. Standards of due process; requirements of notice.––In all cases of termination of employment, the following standards of due process shall be substantially observed:

1. For termination of employment based on just causes as defined in Article 282 of the Code:

(a) A written notice served on the employee specifying the ground or grounds for termination, and giving said employee reasonable opportunity within which to explain his side.

(b) A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires is given opportunity to respond to the charge, present his evidence, or rebut the evidence presented against him.

(c) A written notice of termination served on the employee, indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination.

In case of termination, the foregoing notices shall be served on the employee’s last known address.

To clarify, the following should be considered in terminating the services of employees:

(1) The first written notice to be served on the employees should contain the specific causes or grounds for termination against them, and a directive that the employees are given the opportunity to submit their written explanation within a reasonable period. “Reasonable opportunity” under the Omnibus Rules means every kind of assistance that management must accord to the employees to enable them to prepare adequately for their defense.15 This should be construed as a period of at least five (5) calendar

days from receipt of the notice to give the employees an opportunity to study the accusation against them, consult a union official or lawyer, gather data and evidence, and decide on the defenses they will raise against the complaint. Moreover, in order to enable the employees to intelligently prepare their explanation and defenses, the notice should contain a detailed narration of the facts and circumstances that will serve as basis for the charge against the employees. A general description of the charge will not suffice. Lastly, the notice should specifically mention which company rules, if any, are violated and/or which among the grounds under Art. 282 [now Art. 297] is being charged against the employees.

(2) After serving the first notice, the employers should schedule and conduct a hearing or conference wherein the employees will be given the opportunity to: (1) explain and clarify their defenses to the charge against them; (2) present evidence in support of their defenses; and (3) rebut the evidence presented against them by the management. During the hearing or conference, the employees are given the chance to defend themselves personally, with the assistance of a representative or counsel of their choice. Moreover, this conference or hearing could be used by the parties as an opportunity to come to an amicable settlement.

(3) After determining that termination of employment is justified, the employers shall serve the employees a written notice of termination indicating that: (1) all circumstances involving the charge against the employees have been considered; and (2) grounds have been established to justify the severance of their employment.

As to whether or not the company should conduct a hearing or conference prior to dismissal, the Supreme Court held in the case of Perez vs. PT&T (G.R. NO. 152048 : April 7, 2009]), that:

The following are the guiding principles in connection with the hearing requirement in dismissal cases:

(a) “ample opportunity to be heard” means any meaningful opportunity (verbal or written) given to the employee to answer the charges against him and submit evidence in support of his defense, whether in a hearing, conference or some other fair, just and reasonable way.

(b) a formal hearing or conference becomes mandatory only when requested by the employee in writing or substantial evidentiary disputes exist or a company rule or practice requires it, or when similar circumstances justify it.

(c) the “ample opportunity to be heard” standard in the Labor Code prevails over the “hearing or conference” requirement in the implementing rules and regulations.

Below is a sample script or guide to follow in conducting a hearing / conference on the part of HR Practitioner or Business Owner (in Filipino). The sample is about a case involving moonlighting:

Preliminaries:

Good morning!

Maraming Salamat sa pagdalo sa hearing/conference na ito. Ang proceeding ay isang conference para kay _______________________________, na sumasailalim sa imbestigasyon hinggil sa moonlighting o pagkakaroon ng ibang employer habang siya ay empleyado ng kompanyang ito.

Ang pagdinig na ito ay pagkakataon sa iniimbestigahan upang lalo pang maipaliwanag ang kanyang panig. Hindi ito korte para magpatagisan ng argumento kundi upang ihayag ang katotohanan. Pinaiiral natin ang respeto sa isa’t-isa.

Panatilihin nating maayos, payapa at matiwasay ang proseso. Kapag nagkaroon ng hindi magandang pangyayari ang proseso ay isususpinde o hindi na itutuloy kung hinihiling ng pagkakataon.

Ayon sa talaan ng attendance sheet, ang mga dumalo sa pagdinig na ito ay sina:

X, who represents HR

Y, who represents the management

Z, who is the employee being charged

AA, is Z’s support person

Ang tanong ay dapat sagutin ng empleyado. Kung ang sagot ay oo dapat banggitin ito at hindi lamang ang pag-tango. Kung hindi ang sagot dapat din banggitin at hindi sapat ang pag-iling lamang.

Bilang panuntunan sa hearing/conference, ang empleyadong iniimbestigahan lamang ang maaring sumagot sa mga tanong. Hindi maaring sumagot ang kanyang support person. Ang support person ay maaring magbigay ng payo sa pribadong paraan subalit hindi siya maaring sumagot ng tanong para sa empleyado.

Hindi maaring magresolba ng anumang objection ang hearing officer. Maari nya lamang isulat ang anumang objections ngunit hindi ito dahilan para hindi sagutin ang tanong.

Ang pagdinig ay naka-rekord at mayroong Minutes na gagawin.

1. Ms. ______________________, makikita sa record na natanggap mo ang NTE noong ____________, 202__, tama ba?

2. Nagsumite ka rin ng iyong written reply, tama ba?

3. Ikaw ay pinagpapaliwanag sa diumano’y pag-moonlighting o pagkakaroon ng iba pang employer maliban sa Company X.

4. Maari mo bang banggitin ang pangalan ng employer na pinasukan mo na pinagsabay mo sa Company X?

5. Kailan ka pa nagsimula sa kompanya na ‘yan? Alam ba ng may-ari na ikaw ay may trabaho sa Company X?

6. Anong araw ang pasok mo sa employer na yan at anong oras?

7. Mga Gaano karami ang inaasikaso mong Kliyente sa Competitor, Inc. sa isang araw?

8. Hanggang sa pagakakataong ito nanatili ka bang namamasukan sa Competitor, Inc. na ‘yan?

9. Ano ang iyong ginagawa o function sa Competitor, Inc.?

10. May naghimok ba sa ‘yo na pumasok sa Competitor, Inc. kasabay ng employment mo sa Company X? Kung meron, sino?

11. Hanggang kelan mo balak na mamamasukan sa Competitor, Inc.?

Iyon lamang ang mga katanungan.

Ang lupon na ito ay susumite ng report sa pamunuan hinggil sa resulta ng pagdinig. Walang kapangyarihan ang lupon na ito upang magbigay ng pagpapasya. Ang rekomendasyon ay isusumite upang pag-aralan ng pamunuan.

Kung mayroon ka pang nais isumite, binibigyan ka ng hanggang tatlong araw para ibigay sa HR.

Muli, maraming Salamat at magandang araw.

See here the procedure to observe when the employee refuses to receive employer’s notice.

In addition, the company should send another copy by registered mail and keep the registry receipt for future reference.

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Twin Requirements of Notice and Hearing

Procedural Due Process for Other Types of Employment

Notice to Explain: Contents and Requirements

In the case of Distribution & Control Products, Inc. vs. Santos, G.R. No. 212616, July 10, 2017 the Supreme Court (SC) held that the settled rule is that in termination proceedings of employees, procedural due process consists of the twin requirements of notice and hearing.

The employer must furnish the employee with two written notices before the termination of employment can be effected: (1) the first apprises the employee of the particular acts or omissions for which his dismissal is sought; and (2) the second informs the employee of the employer’s decision to dismiss him.

The requirement of a hearing is complied with as long as there was an opportunity to be heard, and not necessarily that an actual hearing was conducted.

In Unilever Philippines, Inc. vs. Rivera, the SC laid down the guidelines on how to comply with procedural due process in terminating an employee, to wit:

(1) The first written notice to be served on the employees should contain the specific causes or grounds for termination against them, and a directive that the employees are given the opportunity to submit their written explanation within a reasonable period. “Reasonable opportunity” under the Omnibus Rules means every kind of assistance that management must accord to the employees to enable them to prepare adequately for their defense. This should be construed as a period of at least five (5) calendar days from receipt of the notice to give the employees an opportunity to study the accusation against them, consult a union official or lawyer, gather data and evidence, and decide on the defenses they will

raise against the complaint. Moreover, in order to enable the employees to intelligently prepare their explanation and defenses, the notice should contain a detailed narration of the facts and circumstances that will serve as basis for the charge against the employees. A general description of the charge will not suffice. Lastly, the notice should specifically mention which company rules, if any, are violated and/or which among the grounds under Art. 282 is being charged against the employees.

(2) After serving the first notice, the employers should schedule and conduct a hearing or conference wherein the employees will be given the opportunity to: (1) explain and clarify their defenses to the charge against them; (2) present evidence in support of their defenses; and (3) rebut the evidence presented against them by the management. During the hearing or conference, the employees are given the chance to defend themselves personally, with the assistance of a representative or counsel of their choice. Moreover, this conference or hearing could be used by the parties as an opportunity to come to an amicable settlement.

(3) After determining that termination of employment is justified, the employers shall serve the employees a written notice of termination indicating that: (1) all circumstances involving the charge against the employees have been considered; and (2) grounds have been established to justify the severance of their employment.

Considering that the burden of proving compliance with the procedural requirements lies with the employer, optimum effort should be exerted to obtain proof of compliance.

Hence, in service of the NTE, the employer has to ensure that it has proof that it was received by the employee. The usual approach is directing the employee to receive his copy of the NTE and to affix his signature in the company’s copy to prove receipt.

However, there have been cases where the employee refuses to receive the NTE. In this case, the company should observe the procedure in indicating refusal to receive.

See here the procedure to observe when the employee refuses to receive employer’s notice.

In addition, the company should send another copy by registered mail and keep the registry receipt for future reference.

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Twin Requirements of Notice and Hearing

Procedural Due Process for Other Types of Employment

Notice to Explain: Contents and Requirements

The two-notice rule refers to the two notices required in employee dismissal. These are the first notice or Notice to Explain / NTE or Show Cause, etc., and the Notice of Dismissal, Notice of Termination.

Every company has terminology for the notices issued in dismissal cases. So, it is not about the term being used but the substance and contents of the notices being issued. However, I prefer to use the NTE term for consistency.

The term “twin requirements” refers to the notices and the hearing. The hearing does not require formal hearing seen in courtrooms. Just a usual meeting discussing the charges and allowing the employee being charged to explain would suffice.

However, in the case of Perez vs. PT&T, the Supreme Court (SC) declared that actual hearing is not necessary. Unless it is mandated in the company policy or so demanded by the employee in writing.

At any rate, it is better to overdo the due process compliance than to fall short. Optimizing the ample

opportunity for discussion of the charges would always be a better policy.

Non-compliance with the procedural due process at present does not have the fatal consequences it has in the past. Prior to the case of Agabon vs. NLRC, failure to comply with the procedure in employee dismissal could result in illegal dismissal.

The doctrine in Serrano vs. NLRC had already been abandoned in Agabon v. NLRC by ruling that if the dismissal is done without due process, the employer should indemnify the employee with nominal damages.

Thus, for non-compliance with the due process requirements in the termination of employment, the employer can be sanctioned to pay the employee the amount of thirty thousand pesos (PhP 30,000) as damages, whether or not the dismissal is illegal.

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Notice to Explain: Contents and Requirements

Especially in the case of employee dismissal, the law strictly requires adherence to the notice requirements and imposes indemnity for employer’s violation.

In the case of King of Kings Transport, Inc. vs. Mamac, the Supreme Court (SC) laid down the procedural due process required in employee termination. First, there should be notice to explain or NTE. Then a hearing/conference. Finally, a notice of dismissal.

As can be observed, there are several notices in a single act of dismissal. These are know as the two-notice rule. While the holding of hearing / conference is still contentious, it is best to err on the side of caution by holding the same anyway.

In the case of Perez vs. PT&T, G.R. No. 152048, April 7, 2009,  the SC held that a formal or trial type hearing is not at all times and in all instances essential to due process, the requirements of which are satisfied where the parties are afforded fair and reasonable opportunity to explain their side of the controversy. It is deemed sufficient for the employer to follow the natural sequence of notice,

hearing and judgment.

After receiving the first notice apprising him of the charges against him, the employee may submit a written explanation (which may be in the form of a letter, memorandum, affidavit or position paper) and offer evidence in support thereof, like relevant company records (such as his 201 file and daily time records) and the sworn statements of his witnesses.

For this purpose, he may prepare his explanation personally or with the assistance of a representative or counsel. He may also ask the employer to provide him copy of records material to his defense. His written explanation may also include a request that a formal hearing or conference be held.

In such a case, the conduct of a formal hearing or conference becomes mandatory, just as it is where there exist substantial evidentiary disputes or where company rules or practice requires an actual hearing as part of employment pretermination procedure. To this extent, the SC refined the decisions we have rendered so far on this point of law.

In sum, the following are the guiding principles in connection with the hearing requirement in dismissal cases:

(a) “ample opportunity to be heard” means any meaningful opportunity (verbal or written) given to the employee to answer the charges against him and submit evidence in support of his defense, whether in a hearing, conference or some other fair, just and reasonable way.

(b) a formal hearing or conference becomes mandatory only when requested by the employee in writing or substantial evidentiary disputes exist or a company rule or practice requires it, or when similar circumstances justify it.

(c) the “ample opportunity to be heard” standard in the Labor Code prevails over the “hearing or conference” requirement in the implementing rules and regulations.

The 2019 Amendments to the Rules of Court duly recognize the computer printouts as original documents. Thus, computer printouts of text, chat, or any form of electronic medium that is readable may be used as proof of compliance with the procedural due process nowadays. This is just my personal view.

It has to be seen whether the courts also see it this way.

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Twin Requirements of Notice and Hearing

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Notice to Explain: Contents and Requirements

“Dismissible offense” means violation of company rules where the penalty is dismissal from service. Under the law and rules, this requires observance of procedural due process which is a notice and a hearing.

To summarize, the steps to dismiss an employee where there is a just cause are as follows:

Step 1. Notice to explain (first notice).—The common line used in this case is:

“Please explain within five (5) calendar days57 from receipt of this notice why no disciplinary action should be taken against you for the following acts…”

Step 2. Hearing or conference.—The employee must be informed that he may bring along a

representative or a lawyer. Sample phrase:

“In relation to the notice to explain sent to you on ______ which you received on _________, you are hereby being invited to a hearing/conference to be held on December ___ 2014, at Never Ending Floor, Skyhigh Bldg., Ayala Ave., Makati, at 8:00 a.m. You may bring with you your counsel or support person, if you desire.

Failure on your part to attend the hearing/conference shall be deemed as waiver of your right to due process. Please be guided accordingly.”

Step 3. Notice of dismissal (second and final notice)

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Notice to Explain: Contents and Requirements

After evaluating the pieces of evidence, testimony of witnesses, reply of the employee and result of the hearing/conference, the employer now makes his final assessment. If he thinks grounds have been established to justify the dismissal, he should issue the final notice of termination or the second notice.

The question is when should the termination take effect? Should the employer observe the 30-day period before making the dismissal effective? Not necessarily. The employer may even make the dismissal effective immediately upon receipt by the employee of the second and final notice.

As already mentioned, the procedure however is different if the ground for termination is the authorized cause (redundancy, retrenchment, etc.), or those grounds expressly provided under Article 298 of the Labor Code, as amended. Unlike in Article 297 where the employee is at fault, the notices required in Article 298 are as follows:

1. Notice to the employee at least 30 days before the effectivity date of his redundancy, retrenchment, etc.; and
2. Notice to the DOLE at least 30 days before the effectivity date of the employee’s redundancy, retrenchment, etc. using the DOLE-prescribed re- ports and form.

Once the above requisites have been complied with, the dismissal is already on solid ground. However, this does not mean that the employee cannot challenge his dismissal.

The employer’s inherent right to discipline is subject to reasonable regulation by the State in the exercise of its police power.

The employer’s rules cannot preclude the State from inquiring whether the strict and rigid application or interpretation thereof would be harsh to the employee.

The dismissed or terminated employee has a right to contest his dismissal in labor court.

Although the law and jurisprudence have been very emphatic in mandating the observance of hearing as part of the due process requirement, there are certain instances when hearing can be dispensed with. Further, caveat has to be made since there is also a decision holding that hearing is required in authorized cause.

At any rate, the following discussions make mention of the cases wherein there is severance of employment relationship and yet no hearing is required.

1. When there is an admission of guilt by the employee.

In the case of Philippine Pizza, Inc. vs. Bungabong the SC held that it is well settled that if the employee denies the charges against him, a hearing is necessary to thresh out any doubt.

But if the employee admits his responsibility for the act he was accused of, a formal hearing is no longer necessary.

There must be admission of guilt. If the employee merely narrated and explained what he did, without admitting his guilt, then conducting a hearing is required; otherwise, there is failure of due process and the dismissal may be declared illegal.

2. Admission by silence

An act or declaration made in the presence and within the hearing or observation of a party who does or says nothing when the act or declaration is such as naturally to call for action or comment if not true, and when proper and possible for him to do so, may be given in evidence against him.

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Notice to Explain: Contents and Requirements

Silence constitutes an admission that fortifies the truth of the employee’s narration.

3. When termination is due to authorized cause

When termination is due to authorized causes under Article 298.

No hearing is required for the termination due to authorized causes or those grounds under Article 298 of the Labor Code, as amended.

But there must be at least one-month notice to the employee and a report to the DOLE for the same period prior to the effective date of the termination.

In employment terminations due to authorized causes, the due process requirement is not completely

done away with. Investigation and hearing need not be done by the employer. The reason is obvious, there is no need for investigation and hearing since no allegations of malfeasance or nonfeasance on the part of the employee have been made.

Thus, to require the employer to hold a hearing, at which the employee would have had the right to be present, on the business and financial circumstances compelling retrenchment and resulting in redundancy, would be to impose upon the employer an unnecessary and inutile hearing as a condition for legality of termination.

During the hearing or conference, the employees are given the chance to defend themselves personally, with the assistance of a representative or counsel of their choice. Moreover, this conference or hearing could be used by the parties as an opportunity to come to an amicable settlement.

It is better if before the hearing, the employee should be apprised in writing of the conference stating the time, date, place and the fact that he could bring along his counsel or support person if he so desires.

What if despite such notice the employee refused or did not attend the hearing/conference? Does that mean failure to accord hearing?

No, since the employee was already given an opportunity to such hearing/conference by sending an invitation to him. If he refused to participate despite due notice, that is not the fault of the employer. It

is best practice for employers to have an attendance sheet or record of such meeting showing the persons who are supposed to attend with their signature beside their name.

It would appear that in such attendance record the space corresponding the name of the employee who failed or refused to participate despite due notice would bear no signature. This can be used as evidence to prove that ample opportunity was given to the worker. It is not required that an actual hearing should occur as long as ample opportunity was given.

The essence of due process is simply an opportunity to be heard or, as applied to administrative proceedings, an opportunity to explain one’s side or an opportunity to seek reconsideration of the action or ruling complained of.

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Twin Requirements of Notice and Hearing

Procedural Due Process for Other Types of Employment

Notice to Explain: Contents and Requirements

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In a regular trial court procedure, the parties present evidence in the manner provided by the Rules of Court, except in certain instances where these requirements are not mandatory. The parties are subjected to direct, cross, re-direct and re-cross examinations. The technical rules of evidence apply in regular procedure but not strictly in labor cases, subject to certain exceptions.

All the more that such kind of court jostle does not govern the hearing or conference initiated by the employer for the dismissal of the employee.

Notice and hearing in termination cases do not connote full adversarial proceedings as elucidated in numerous cases decided by the court. The essence of due process is simply an opportunity to be heard, or as applied to administrative proceedings, an opportunity to explain one’s side.

In the case of IBM Philippines, Inc. vs. NLRC, the Court held that ample opportunity means every kind of assistance that management must accord to the employee to enable him to prepare adequately for his defense.

Basically, an NTE apprises the employee about the offense being charged. In case of termination, the notices shall be served on the employee’s last known address. This is usually found in the HR databases or 201 file. It is a good practice to update these records or to require employees to provide changes in their personal information.

As a good practice, it is suggested that employers should update the 201 file by requiring employees to update their records periodically especially their place of residence. There are instances wherein employees change residence without informing HR and in effect not updating the 201 file. In such case, whenever a notice is sent to them they would claim that they did not receive it because it was sent to the wrong address.

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Notice to Explain: Contents and Requirements

For example, the company may issue a notice every six months to employees asking them to update their personal information. Attached to such notice is the form containing entries related to such

information including the employee’s address. The employer may issue a warning that failure of the employee to fill out the form and submit to HR within the prescribed period it shall be deemed that the employee is retaining his record on file.

The twin requirements of notice and hearing constitute the essential elements of procedural due process, and neither of these elements can be eliminated without running afoul of the constitutional guarantee. In dismissing employees, the employer must furnish them the two written notices.

Read more on notices required in employee dismissal here.

According to C.A. Azucena, the implementing Rules of Book V prescribe the standards of due process, varying according to the cause of the termination.

He said that in all cases of termination of employment, the following standards of due process shall be substantially observed:

For termination of employment based on just causes as defined in Article 282 of the Code:

1. A written notice served on the employee specifying the ground or grounds for termination, and giving to said employee reason- able opportunity within which to explain his side;
2. A hearing or conference during which the employee concerned, with the assistance of counsel if the employee so desires, is given opportunity to respond to the charge, pre- sent his evidence or rebut the evidence presented against him; and
3. A written notice of termination served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify his termina tion.

In case of termination, the foregoing notices shall be served on the employee’s last known address.

1. For termination of employment based on authorized causes defined in Article 298 of the Labor Code, the requirements of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department at least thirty days before the effectivity of the termination, specifying the ground or grounds for termination.

III. If the termination is brought about by the completion of the contract or phase thereof, no prior no- tice is required. If the termination is brought about by the failure of an employee to meet the standards of the employer in the case of probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination.

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In a long line of cases, the Supreme Court repeatedly emphasized that the requirement of twin notices must be met.

Twin requirements refer to Notice to Explain (NTE), Notice of Dismissal, and an administrative Hearing / Conference. This differs from the two-notice rule which pertains to the NTE and the final Notice of Dismissal.