Fire-at-will - BusinessWorld Online

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Fire-at-will - BusinessWorld Online
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OPINION | Fire-at-will [Amicus Curiae By Miguel Antonio N. Alonzo] READ:

As a general proposition in the United States, particularly in the State of California, employment, having no specied term, may be terminated at the will of either party on notice to the other. An “at-will” employment may be ended by either party “at any time without cause,” for any or no reason, and subject to no procedure except the statutory requirement of notice.

The Philippines does not recognize this type of arrangement. As an aspect of due process under the Labor Code, an employer cannot terminate the services of an employee except for just or authorized cause, which arises out of the fault of the employee, or from business exigency, respectively. There must also compliance with procedural due process, i.e., twin notice and conduct of administrative hearing.

The Supreme Court ruled that “the Contract of Employment signed by the respondent [therein] is first and foremost a contract, which has the force of law between the parties as long as its stipulations are not contrary to law, morals, public order, or public policy.” Citing Avon Cosmetics v. Luna, where the Court held that either party may terminate a contract even without cause is legitimate if exercised in good faith.

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