Terminating Employees due to Financial Distress (Part 2 of the Authorized Causes)

Christian Andrew Labitoria Gallardo[1] and Atty Juan Miguel de Leon[2]


“We are at war against a vicious and invisible enemy. One that cannot be seen by the naked eye. In this extraordinary war, we are all soldiers” – President Rodrigo Roa Duterte, 16th of March 2020.


It might be sounding overdramatic, but for those gravely affected by the pandemic, it is an understatement to the reality that they had to, or have to continually, face everyday. With the lockdown that went on in the Metro for almost 6 months, many businesses were closed, and several employees had to be terminated due to lack of funds. The big question therefore is that, is it legal?