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OFW Advisory
OFWGuide: Valid Reasons Why a Work Contract Gets Terminated (Part 1 of 2)
Mar 31, 2014
(part 1 of 2)
This first of the two parts of this article will discuss the just causes why a foreign employer decides to terminate an overseas Filipino worker's (OFW) employment contract prior to fulfilling the two-year duration agreed by both party.
It is not unknown that Filipinos working overseas should have signed employment contracts prior to departing the Philippines to work for a foreign employer. This overseas employment contract, however, only stays effective for two years and right after, the employer may decide if he would renew the employee's contract for a new 2-year service or conclude the contract and send the employee back to the Philippines.
In some cases though, an employment contract gets terminated even before the duration (2 years) of service is fulfilled. This happens due to various reasons, either at the employer's or employee's (OFW) side.
Contract termination leads to repatriation of the OFW, or simply stated, his return to the Philippines.
JUST CAUSES FOR TERMINATION OF AN OFW'S CONTRACT BY THE FOREIGN EMPLOYER
The employment contract of an OFW may get terminated prior to completion of a two-year service due to the following reasons/causes:
- serious misconduct
- willful disobedience of employer's lawful orders
- habitual neglect of duties
- absenteeism
- Insubordination
- Revealing secrets of establishment
- Violating customs, traditions and laws of host country
- Violating terms and conditions of the employment contract
If the employer decides to terminate the contract and services of the OFW employee, the OFW must shoulder costs of repatriation. However, due process must be observed and the OFW may have the chance to explain his side.
If due process is not given to the OFW employee, the employer, together with the recruitment agency, will be held liable under Philippine courts.
Look forward to the second and last part of this article. This time, we will talk about the just reasons why an employee may want to terminate his contract prior to ending its 2-year duration. Keep posted! Follow @OFW_Guide on Twitter!
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