Below are some of the valid reasons for terminating an employee.

          1. Violation of the work rules, regulations or orders. This may be used to terminate an employee if prior proper warning has been given by the employer. A written warning is effective for one year from the date of the violation. Before this ground can be used though, the employee must have been properly informed of the work rules at the onset of the employment. The work rules, moreover, must be both lawful and fair. Otherwise, it is a mere scrap of paper under which neither legal rights nor obligations may arise. It is null and void.

          2. Incompetence. This perhaps is the most difficult to prove of all the valid grounds for termination, but is the most commonly used. To be able to use this as a ground, the employer must make sure that periodical performance appraisals are conducted and duly documented. The scope and nature of the work and the manner the work is to be conducted must be carefully explained to the employee not only to achieve the desired result but also to avoid incompetence in the work environment.

          3. Excessive and unexplained absences. Absences for short periods and for reasonable causes are allowed under the labor laws. Public holidays are required to be observed. Maternity, sick and annual leaves are statutorily granted to the employees as well. Taking all these into consideration, a long term unexplained absence should certainly be a lawful reason for termination.

          4. Intentionally causing loss to an employer. Every business employs a sales approach one way or the other. That is precisely why it is called a "business", an income-generating activity. Every employee is hired because he or she has something to offer to add up to the income of the business, not the other way around. Losses can be expected. Difficulties are met and addressed. But when the employee intentionally sabotages the business of his employer, he or she ceases to do the job he or she was hired for, thus justifying the need to terminate the relationship.

          Note however that this ground for termination must be proved with clear and convincing evidence. The "intention" is a mere state of mind and remains unknown absent overt acts tending to cause the losses contemplated herein.

          5. Commission of a criminal offense against the employer. Naturally, if a criminal offense is committed against the employer, termination follows. The fact of commission must however be proved beyond reasonable doubt. Serious accusations are involved here and will likely destroy a person's life, liberty and honor. False accusations of a crime are equally punishable. Therefore, if an employer intends to use this ground, he must do so in good faith and with no malice.

          6. Imprisonment under a final court judgment. Note that the imprisonment must have been caused by a final court judgment and not just some petty offense.

          The bottom line really is that the employees must be treated fairly and nothing should be left to memory. Have everything in writing. The success of any organization depends largely on a fair and well thought-out system. When in doubt, consult an experienced labor lawyer.