Before an employee is disciplined or dismissed for misconduct, Philippine law requires two written notices: one that tells them what they are charged with and asks for their side, and one that tells them the decision. This is the twin-notice rule. The samples below follow what the Supreme Court has said each notice must contain.
- Notice to explain (NTE): the charge, the facts and the rule broken, with at least five calendar days to answer.
- A chance to be heard: a written explanation, and a hearing when asked for or when the facts are disputed.
- Notice of decision (NOD): the findings and the penalty, served even if the employee did not answer.
- Skipping a step costs ₱30,000 in nominal damages even when the dismissal was justified.
The steps
| Step | What happens | Keep in the 201 file |
|---|---|---|
| 1. Incident report | Whoever saw it writes what happened, when and who was there | The report, photos, CCTV, witness statements |
| 2. Notice to explain | Served on the employee with at least five calendar days to answer | The NTE with the date and how it was received |
| 3. Explanation | The employee answers in writing, alone or with counsel or a union representative | The written explanation |
| 4. Hearing (when needed) | Held when the employee asks, when the facts are disputed or when company rules require it | Minutes signed by those present |
| 5. Notice of decision | States the facts found, the rule broken and the penalty | The NOD with the date served |
What a notice to explain must contain
In King of Kings Transport v. Mamac, the Supreme Court said the first notice must contain:
- the specific acts the employee is charged with, not a general reference to “misconduct”
- a detailed narration of the facts: what happened, when and where
- the company rule or the ground under Article 297 that the acts violate, and whether dismissal is being considered
- a reasonable period to answer in writing, which the Court set at at least five calendar days from receipt
Notice to explain sample
November 5, 2026
To: Juan P. Santos, Warehouse Supervisor
Subject: Notice to explain
On October 28, 2026, at about 3:15 p.m., you were seen by the security guard on duty, Mr. Ramon Cruz, loading two boxes of company stock (item no. 4471, 24 units each) into a private vehicle at the warehouse exit without a gate pass. The stock count on October 29 found 48 units of item no. 4471 missing.
If true, these acts violate Section 3.2 of the Code of Conduct (taking company property without authority), which carries the penalty of dismissal on the first offense, and may constitute serious misconduct and fraud under Article 297 of the Labor Code. Dismissal is being considered.
You are directed to explain in writing why no disciplinary action, including dismissal, should be taken against you. Submit your written explanation to the HR office within five (5) calendar days of receiving this notice, or by November 10, 2026. You may attach any documents and name any witnesses, and you may consult a lawyer or a union representative. You may also ask in writing for a hearing.
If you do not submit an explanation by that date, the company will decide on the basis of the evidence on hand.
Ana P. Reyes
HR and Admin Manager
Received by: ______________________ Date and time: ______________
Is a hearing required?
Not always. Perez v. PT&T held that “ample opportunity to be heard” means a fair chance to explain, which a written answer can give. A formal hearing or conference is required when the employee asks for one in writing, when the facts are seriously disputed and cannot be settled on paper, or when the company's own rules or practice provide for one. When in doubt, hold one and keep the minutes.
Notice of decision sample
November 14, 2026
To: Juan P. Santos, Warehouse Supervisor
Subject: Notice of decision
On November 5, 2026, you received a notice to explain the removal of 48 units of item no. 4471 from the warehouse on October 28, 2026. You submitted your written explanation on November 9, 2026, and a hearing was held at your request on November 12, 2026, attended by you, your representative, Mr. Ramon Cruz and the undersigned.
After considering your explanation, the guard's statement, the CCTV footage and the October 29 stock count, the company finds that you took the stock without authority, in violation of Section 3.2 of the Code of Conduct. This is serious misconduct and fraud under Article 297 of the Labor Code.
You are therefore dismissed effective November 15, 2026. Your final pay will be released within 30 days after you complete your clearance, and a certificate of employment will be issued upon your request.
Ana P. Reyes
HR and Admin Manager
Received by: ______________________ Date and time: ______________
Preventive suspension
When an employee's presence poses a serious and imminent threat to life or property, or to coworkers, they can be placed on preventive suspension while the case is investigated. It may last at most 30 days. If the investigation needs longer, the employee is reinstated or kept on suspension with pay. Preventive suspension is not a penalty, so it must not be counted as one in the decision.
Authorized causes use different notices
Redundancy, retrenchment, closure and disease are authorized causes, not misconduct. They need a written notice to the employee and to DOLE at least 30 days before the separation date, and separation pay. Use the separation pay calculator for the amount. Skipping those notices costs nominal damages of ₱50,000 (Jaka Food Processing v. Pacot).
Keeping the record
Every notice, explanation and set of minutes belongs in the employee's 201 file. In Payslip.ph, a discipline case keeps the steps in order: the notice to explain cannot give fewer than five calendar days, the decision waits for the answer or the deadline, and a suspension in the decision flows into payroll as unpaid days.