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Authorized cause termination
Authorized cause termination is dismissal for business or health grounds: labor-saving devices, redundancy, retrenchment, closure, or disease, with notice to worker and DOLE and separation pay when the Code says so.
How it works
Thirty days’ notice is the usual statutory pattern. You cannot relabel a performance problem as redundancy to skip twin-notice. Redundancy needs a real surplus of the role. Retrenchment needs honest losses. Paper the facts. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.
Example: closing the PH support experiment, one seat, notice 1 March effective 31 March, separation pay computed, DOLE notice filed by the local employer.
How it differs
Just cause is fault. Separation pay usually attaches here, not there. Floating status is a limited holding pattern, not a silent authorized cause.
Common errors
‘Restructuring’ one EA after a fight. No plan, no pay, no notice.
In practice
Treat Authorized cause termination as a week-one operating object. Ask who signs the notice, who remits, and who would answer DOLE. If three vendors each point at the other, you have a story rather than a file. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have authorized cause termination yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.