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A Termination Letter For Dishonesty is a formal legal document that concludes the employment relationship when an employee has committed acts of dishonesty that breach the trust essential to the employment contract. Under Philippine law, this letter serves as the final step in a carefully regulated termination process that must comply with strict procedural requirements to be legally valid.

When do you need this document?

You need this termination letter when substantial evidence proves an employee has engaged in dishonest conduct that constitutes serious misconduct under Article 297 of the Labor Code. Common scenarios include when employees steal company property, falsify timesheets or expense reports, forge documents, misappropriate funds, or provide false information during the hiring process. The letter is also necessary when employees breach confidentiality agreements by sharing trade secrets, engage in fraudulent activities that harm the company, or deliberately provide misleading information to clients or supervisors. You must issue this letter only after completing a thorough investigation and providing the employee with proper notice and opportunity to respond as required by law.

Key legal considerations

The termination letter must demonstrate that you followed the two-notice rule mandated by DOLE Department Order No. 147-15, which requires issuing a written notice specifying the charges and allowing the employee to respond, followed by a notice of decision after evaluation. Your letter must clearly state the specific dishonest acts with dates, times, and detailed descriptions of the violations. Include references to company policies that were violated and cite the specific provisions of Article 297 that justify the termination for cause. The document must show that the dishonesty constitutes a serious breach of trust that makes continued employment impossible. Ensure you have documented evidence supporting each allegation, as you may need to defend your decision before labor tribunals if the employee files a complaint for illegal dismissal.

Legal requirements in Philippines

Under Philippine labor law, your termination letter must comply with constitutional due process requirements and specific Labor Code provisions. The document must be properly served to the employee, either personally or through registered mail, and you must maintain proof of service in your records. Article 297 requires that the dishonest acts constitute serious misconduct or fraud that breaches the trust reposed by the employer, making the violations willful and deliberate rather than mere negligence. Your letter must reference any previous disciplinary actions and show progressive discipline where applicable, unless the dishonesty is so severe that immediate termination is justified. Include the effective date of termination, final pay computation, and information about terminal benefits. If the employee is a union member, ensure compliance with any collective bargaining agreement provisions regarding disciplinary procedures and representation rights during the termination process.