Notice To Explain is a letter from the employer to the employee as a notice to require the employee to provide an explanation for an incident. It is also known as a show cause letter.

  • What is Notice to Explain
  • Format of the Notice to Explain
  • How to issue the Notice to Explain
  • Penalty for failure to follow Due Process

Notice to Explain

The issuance of the Notice to Explain is a legal requirement as part of the due process.

The employer must provide the employee at least 5 calendar days from receipt of the notice to study the accusation, consult a union official or lawyer, gather data and evidence, and decide on the defenses against the complaint.

Furthermore, for sanctions of suspension or dismissal, the employer must conduct an administrative hearing to ensure that ample opportunity is provided for the employee to be heard. However, this may not be required if the employee expressly admits to committing the infractions.

After determining that the sanction of suspension or dismissal is justified, the employer shall serve the employee the 2nd written notice indicating that all circumstances involving the charge against the employee have been considered; and the grounds have been established to justify the corresponding sanction.

Format of Notice to Explain

  • Date of issuance
  • Who is being charged
  • Date and time of the offense
  • What was the offense
  • Who was involved
  • How much was involved (estimated value if applicable)
  • How did the offense affect the company
  • Company rule or the ground of Art. 297 that is being charged
  • Acknowledgment of the Notice to Explain
  • Witnesses and evidence of the incident

Download a sample Notice to Explain here.

How to issue Notice to Explain

  • Prepare 2 copies of the Notice to Explain (NTE)
  • Serve the NTE to the charged employee with a witness
  • Have the charged employee to fill up and sign the ‘Acknowledgement Receipt of Notice’ on the company’s copy of the NTE
    • If the charged employee refuses to sign, the ‘Serving Officer’ shall fill up and sign on behalf of the charged employee with a note ‘Employee Refused to Receive’
    • Send a registered mail of the NTE to the charged employee last known address
    • Keep the copy of the receipt of the registered mail for documentation purpose
  • Have the witness to fill up and sign the ‘Witness to the Service of this Notice’
  • Keep a copy of the NTE for documentation purpose

Penalty for failure to follow Due Process

In cases whereby the employer fails to comply with the due process requirements before terminating the employee for a just cause, the employer may have to indemnify the employee of not more than 30,000 pesos.