Employee suspension, whether for onsite or remote staff, is a serious matter that requires careful implementation to ensure fairness and compliance with Philippine labor laws. You must follow proper procedures when suspending employees for disciplinary reasons or as a preventive measure.
The Department of Labor and Employment (DOLE) has clear guidelines for suspending employees. These labor laws cover two types:
- Disciplinary suspension, a penalty for misconduct
- Preventive suspension, which temporarily removes an employee from work while an investigation is ongoing
Understanding DOLE’s rules on suspension and preventive suspension of employees can be tricky, but this guide is here to help. Read on to learn about employer responsibilities, employee rights, and best practices for handling suspensions fairly and legally.
DOLE Rules on Suspension and Preventive Suspension of Employees
Employee suspension requires strict adherence to labor laws. For one, preventive suspension under the labor code in the Philippines, such as those outlined in DOLE Department Order No. 147-15, provides clear rules on procedural fairness, suspension duration, and employee rights.
DOLE guidelines apply to:
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Due process requirement
You must issue a Notice to Explain (NTE) stating the alleged violation and give the employee at least five calendar days to submit a written explanation.
After receiving the response, your team must investigate and evaluate the grounds for employee suspension in the Philippine labor code. This process ensures fairness and allows the employee to present their side.
You can only impose punishment based on just or authorized causes outlined in the Labor Code of the Philippines for preventive suspension. These reasons include serious misconduct, willful disobedience, or gross negligence. It should go without saying that the suspension must be proportionate to the offense.
To protect against wrongful suspension claims, always document the entire due process, from issuing the NTE to the final decision.
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Disciplinary suspension (penalty suspension) rules
Grounds for disciplinary suspension in the Philippines cover valid reasons—from serious misconduct to fraud and habitual neglect of duties, like severe absenteeism. The suspension must align with the company’s code of conduct and policies to promote consistent disciplinary actions.
A DOLE-compliant suspension of an employee must have a specified duration and cannot be indefinite. You must indicate a clear start and end date to prevent any claims of illegal dismissal. Under the law, arbitrary or excessive suspension periods may be equivalent to constructive dismissal. This offense can lead to legal liabilities.
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Preventive suspension rules
Employers impose preventive suspensions so that employees facing disciplinary actions do not pose a serious and imminent threat to co-workers, company property, or operations while an investigation is ongoing.
Unlike disciplinary suspension, preventive suspension under DOLE is not a penalty but a temporary measure to safeguard workplace safety and order.
You may place an employee on preventive suspension for 30 days. After this period, you must either reinstate the employee or file formal charges. If you extend the 30-day suspension without cause, the employee may be entitled to compensation.
An investigation should not take more than 30 days, so you must conclude it promptly. Alternatively, you could temporarily reassign the employee since extending suspensions is not allowed.
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Compensation during suspension
By law, you don’t need to pay wages to employees under disciplinary suspension unless company policies state otherwise. You also have no obligation to pay employees during the first 30 days, as per DOLE’s rules on preventive suspension of employees.
However, depending on internal policies, employees may maintain certain benefits, such as healthcare coverage.
That said, if the suspension exceeds the legal limit or lacks justification, you must compensate the employee for the excess period and may need to reinstate them with full benefits.
To prevent misunderstandings and disputes, clearly state suspension-related compensation policies within employment contracts and have employees sign acknowledgment forms to confirm that they have read and understood them.
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Employer responsibilities
Always provide written documentation related to suspensions, including the NTE, suspension order, and final decision. Proper documentation demonstrates compliance with due process and protects your organization from legal disputes.
You also need to conduct a fact-based investigation before imposing suspensions. Gather evidence and interview witnesses so decisions are fair, reasonable, and in line with labor laws.
Ideally, a neutral HR representative or legal counsel oversees suspension cases and performs the necessary checks and balances of employer-employee relationships.
Suspensions Without Complications
Properly handling employee suspensions ensures compliance with labor laws and fosters a fair workplace. Always follow due process, issue proper documentation, and check that suspensions have justifiable grounds.
Ultimately, having the right team makes a difference. A strong, compliant workforce saves you from dealing with employee suspensions and instead drives your company to success.
Get expert recruitment solutions tailored to your business needs from Manila Recruitment, an offshore agency in the Philippines, that can help you find top-tier talent. Contact us today and start putting together your dream team!
DISCLAIMER: The information in this webpage/blog/article/infographic we have published and the associated commentary are presented as general information and are not a substitute for obtaining legal advice in this area. Manila Recruitment does not accept liability for any action taken based on the information presented or for any loss suffered as a result of reliance on the information provided.
Passionate about promoting the ingenuity of Filipino talent, Arvin is a sought-after resource person in the field of career development. He regularly delivers keynote speeches and conducts workshops throughout the Philippines, sharing his insights and strategies for improving employability and promotability.
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