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What's the difference between a just cause and an authorized cause for dismissal?

Last updated: 2026-07-11 ยท Educational content; not legal advice.

Short answer

A just cause is dismissal for something the employee did wrong โ€” Article 297 of the Labor Code lists serious misconduct, willful disobedience, gross and habitual neglect of duty, fraud or willful breach of trust, commission of a crime against the employer or family, and analogous causes. An authorized cause is dismissal for a business or health reason not blamed on the employee โ€” Article 298 covers installation of labor-saving devices, redundancy, retrenchment to prevent losses, and closure of the business; Article 299 covers disease. The key practical differences: authorized-cause terminations require a 30-day prior written notice to BOTH the employee and DOLE and generally carry separation pay, while just-cause dismissals require the twin-notice due process and generally carry no separation pay.

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Frequently asked

Does separation pay depend on which cause it is?

Yes. Authorized-cause terminations (redundancy, retrenchment, closure, disease) generally carry separation pay set by Articles 298โ€“299. Just-cause dismissals (for the employee's own fault) generally do not carry separation pay, though tribunals sometimes grant financial assistance in specific circumstances.

What notice does an authorized-cause termination need?

A written notice served on both the affected employee and the DOLE Regional Office at least 30 days before the intended date of termination.

Is 'redundancy' the same as being at fault?

No. Redundancy and retrenchment are authorized causes based on the employer's business needs, not employee misconduct โ€” so they require the 30-day dual notice and separation pay, and must be done in good faith with fair criteria.

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More on Employment & Pay โ†’

Boses ng kumakayod โ€” your everyday rights as a Filipino worker on pay and dismissal: when your final/back pay must be released (DOLE Labor Advisory 06-20 โ€” within 30 days of separation), 13th-month pay (PD 851 โ€” 1/12 of your basic salary, on or before December 24), legal vs illegal salary deductions, unpaid wages and overtime, the twin-notice due-process rule before you can be dismissed, just causes vs authorized causes, separation pay, your Certificate of Employment (within 3 days of request), resignation notice, the regional minimum wage set by your RTWPB, and how to file with DOLE (SEnA conciliation first) or the NLRC.

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