Notice to Explain (NTE): Sample Templates, Requirements, and Best Practices in the Philippines
A Notice to Explain (NTE) is a formal written document issued by employers to employees in the Philippines when there are allegations of misconduct or policy violations that may warrant disciplinary action.
This document serves as the first step in the procedural due process mandated by Philippine labor laws, giving employees a fair opportunity to present their side before any disciplinary measures are imposed.
In the Philippine employment context, the NTE plays a crucial role in upholding due process in disciplinary cases. It protects both the employer’s right to maintain workplace discipline and the employee’s right to fair treatment.
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Under the Labor Code of the Philippines (Article 297, formerly Article 282) and Department of Labor and Employment (DOLE) Department Order No. 147-15, employers must follow proper procedures when addressing workplace infractions.
Key takeaways:
- The NTE must contain specific details about alleged violations
- Employees have at least five (5) calendar days to respond, per Supreme Court jurisprudence, not “5 working days”
- The process must follow the two-notice rule established by the Labor Code and DOLE DO 147-15
- Consistency and fairness in implementation are essential
Sample Notice to Explain Templates
Template 1: NTE for attendance/tardiness issues
Outlined below is a sample Notice to Explain (NTE) for attendance or tardiness issues. You can also download the notice to explain sample by clicking the download button below.
[Company Letterhead]
NOTICE TO EXPLAIN
Date: [Date of Issuance]
[Employee’s Complete Name]
[Position]
[Department]
Dear Mr./Ms. [Employee’s Last Name]:
This Notice is being issued to require you to explain in writing why no disciplinary action should be imposed on you for the following attendance violations:
Based on our attendance records, you have been tardy on the following dates:
- [Date 1] – Late by [duration]
- [Date 2] – Late by [duration]
- [Date 3] – Late by [duration]
You have also been absent without approved leave on:
- [Date 1]
- [Date 2]
These incidents appear to violate Section [X] of our Company Code of Conduct which states: “[Quote relevant company policy on attendance and punctuality]”
You are hereby directed to submit your written explanation regarding these matters within five (5) calendar days from receipt of this Notice. You may also submit any evidence to support your explanation.
Should you fail to submit your explanation within the prescribed period, the Company shall consider your silence as a waiver of your right to be heard and shall proceed to evaluate the case based on available information.
Depending on the result of the investigation, you may face disciplinary action up to and including termination of employment in accordance with company policies and Philippine labor laws.
Very truly yours,
[Name of HR Manager/Department Head]
[Position]
[Contact details]
Received by:
Template 2: NTE for misconduct or policy violations
Here’s a sample Notice to Explain (NTE) for misconduct or policy violations. You can also download the notice to explain sample by clicking the download button below.
[Company Letterhead]
NOTICE TO EXPLAIN
Date: [Date of Issuance]
[Employee’s Complete Name]
[Position]
[Department]
Dear Mr./Ms. [Employee’s Last Name]:
This is to formally require you to submit a written explanation regarding an incident that occurred on [date] at approximately [time] at [location], wherein you allegedly [describe the specific misconduct with details].
Based on the initial report submitted by [source of information/complainant], you were observed [provide specific details of the alleged violation]. This incident was also witnessed by [names of witnesses, if any].
Your alleged actions appear to violate the following company policies:
- Section [X] of the Company Code of Conduct which states: “[quote the relevant provision]”
- Section [Y] of the Employee Handbook which prohibits “[quote relevant provision]”
You are required to submit your written explanation regarding this matter within five (5) working days from receipt of this Notice. You may also include any evidence to support your explanation and you may request to examine evidence in the company’s possession related to this matter.
Please be advised that a formal administrative hearing may be conducted where you will be given the opportunity to present your side and confront the evidence against you. You may opt to be assisted by a representative of your choice during this process.
Depending on the findings, this incident may result in disciplinary action up to and including termination of employment in accordance with company policies and Philippine labor laws.
Very truly yours,
[Name of HR Manager/Department Head]
[Position]
[Contact details]
Received by:
_________________________ ___________________
[Employee’s Signature over printed Name] [Date]
Template 3: NTE for performance-related concerns
Below is a sample Notice to Explain (NTE) for performance-related concerns. You can also download the notice to explain sample by clicking the download button below.
[Company Letterhead]
NOTICE TO EXPLAIN
Date: [Date of Issuance]
[Employee’s Complete Name]
[Position]
[Department]
Dear Mr./Ms. [Employee’s Last Name]:
This Notice is being issued to require you to explain in writing why no disciplinary action should be taken against you for poor performance and failure to meet job expectations.
Specifically, the following performance issues have been observed:
1. Failure to meet the following Key Performance Indicators (KPIs):
• [Specific KPI 1] – Target: [X], Your performance: [Y]
• [Specific KPI 2] – Target: [X], Your performance: [Y]
2. Quality issues in your deliverables, as evidenced by:
• [Specific example with date and details]
• [Specific example with date and details]
3. Failure to complete assigned tasks within deadlines:
• [Project/Task name] – Due on [date], Submitted on [date]
• [Project/Task name] – Due on [date], Still incomplete as of [date]
These performance issues persist despite previous coaching sessions conducted on [dates of previous coaching/warning].
Your actions appear to violate Section [X] of your Employment Contract and Section [Y] of the Employee Handbook which states: “[quote relevant provisions regarding performance standards]”
You are required to submit your written explanation regarding these matters within five (5) working days from receipt of this Notice. You may include any evidence to support your explanation.
A performance review meeting will be scheduled where you will have the opportunity to discuss these concerns. Depending on the outcome of this process, disciplinary action may be imposed in accordance with company policies and Philippine labor laws.
Very truly yours,
[Name of HR Manager/Department Head]
[Position]
[Contact details]
Received by:
_________________________ ___________________
[Employee’s Signature over printed Name] [Date]
Template 4: Notice to explain response format
If you’re the receiving end of the NTE, here’s a sample NTE response that you can use. You may copy and paste the document below or download the .docx document.
[Date]
[Addressee’s Name]
[Position]
[Company Name]
[Address]
RE: Response to Notice to Explain dated [date of NTE]
Dear Mr./Ms. [Last Name]:
I am writing in response to the Notice to Explain dated [date] regarding [brief description of the alleged violation].
After carefully reviewing the allegations, I would like to provide the following explanation:
[Provide a clear, factual account of your side, addressing each allegation specifically]
To support my explanation, I am attaching the following documents:
- [Document description]
- [Document description]
- [Document description]
I believe the above explanation and supporting documents clarify the circumstances of the incident. I hope this helps in your fair evaluation of the matter.
I remain committed to my responsibilities and to upholding company policies. Should you require any additional information, I am willing to discuss this matter further.
Respectfully yours,
[Your Signature]
[Your Printed Name]
[Position]
[Contact Information]
How long does an employee have to respond to an NTE in the Philippines?
An employee must be given at least five (5) calendar days from receipt of the Notice to Explain to submit a written explanation. This standard comes from the Supreme Court’s 2007 ruling in King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007), which held that “reasonable opportunity” means a period of at least 5 calendar days, not working days, and not the 24-48 hour windows some companies mistakenly use. Giving less than this is a due-process violation even if the underlying cause for discipline is valid.
Some templates online cite “5 working days.” This is a common but inaccurate shorthand. The Supreme Court’s own language specifies calendar days, which include weekends and holidays unless the deadline itself falls on one, in which case it moves to the next working day.
Using a shorter window doesn’t cancel the disciplinary case, but it does expose the employer to nominal damages. In Mamac itself, the Court ordered ₱30,000 in nominal damages purely for the procedural defect, even though the underlying dismissal was for a valid cause.
What is the Twin-Notice Rule?
The Twin-Notice Rule requires employers to serve two separate written notices before terminating an employee for just cause: (1) the Notice to Explain, describing the specific allegations and giving the employee at least five calendar days to respond, and (2) the Notice of Decision, issued after evaluating the employee’s explanation, stating the findings of fact and the penalty imposed. Skipping either notice, even when the underlying cause for termination is valid, exposes the employer to nominal damages for a due-process violation.
This rule traces back to Article 297 of the Labor Code and is codified procedurally in DOLE Department Order No. 147-15. The NTE is the first notice; it is not itself a decision, and using language that presumes guilt inside it is one of the most common ways employers accidentally undermine their own case.
The Notice of Decision, sometimes overlooked entirely by employers who stop after the NTE, is what actually authorizes any disciplinary action. Issuing an NTE and then acting without ever sending a Notice of Decision is procedurally incomplete on its own.
What are the essential elements of a valid Notice to Explain?
A legally valid NTE must contain: complete employer identification, the employee’s full name and position, the date of issuance, a specific and detailed statement of the alleged violation (what, when, where, how, and which policy), a clear directive to submit a written explanation within at least five calendar days, a statement of possible disciplinary consequences, and a signature block for both issuer and recipient. Vague allegations like “violation of company policy” without specifics can invalidate the notice entirely.
Why specificity in allegations matters
The allegations must be detailed enough to inform the employee exactly what they’re being accused of. Vague statements like “violation of company policies” are insufficient.
Instead, it should specify:
- What: exact nature of the violation
- When: date and time of the incident
- Where: location of the incident
- How: manner in which the violation occurred
- Which: specific company policy or rule violated
The Supreme Court has consistently invalidated vague or general allegations as violations of due process. The Court’s own language in Mamac requires “a detailed narration of the facts and circumstances” and states plainly that “a general description of the charge will not suffice.”
How should an NTE be delivered?
Proper service of the NTE is crucial for its validity.
Acceptable methods include personal service, registered mail to the employee’s last known address, or company email with confirmed receipt.
Regardless of method, employers must keep proof of delivery – signed acknowledgment receipts, registered mail return cards, or email delivery/read confirmations.
What common mistakes invalidate an NTE?
Several errors can render an NTE legally defective: vague allegations, insufficient response time (anything under 5 calendar days), language that presumes guilt before hearing the employee’s side, improper or undocumented delivery, missing policy references, and intimidating or threatening language.
How do you serve an NTE if the employee refuses to sign?
If an employee refuses to receive or sign an NTE delivered in person, the employer should have the incident witnessed by at least two company representatives, prepare a written record of the refusal signed by those witnesses, then send the NTE via registered mail to the employee’s last known address as a backup. Refusal to receive or sign does not invalidate the notice as long as this documentation trail exists.
Document every delivery attempt. If the notice is later challenged before the NLRC, the paper trail of the refusal, not the employee’s signature, is what protects the employer’s due-process record.
Step-by-Step Guide to Writing an Effective NTE
Drafting a compliant NTE follows eight steps: identify the specific infraction with full details, gather preliminary evidence, review company policy to confirm which rule was violated, select the matching template, customize it with case-specific facts, have HR or legal review it, prepare copies for all parties, and have it signed by an authorized company representative.
- Identify the specific infraction with details of what happened, when, where, and how.
- Gather preliminary evidence to ensure there’s a reasonable basis for issuing the NTE.
- Review company policies to identify which specific rules were allegedly violated.
- Use the appropriate template based on the nature of the infraction.
- Customize the template with specific details of the case.
- Have legal or HR review the draft for compliance with labor laws.
- Prepare multiple copies for the employee, HR files, and delivery documentation.
- Sign the notice by an authorized company representative.
What happens after the employee responds?
After receiving the employee’s written explanation, employers should document the date and time of receipt, review the explanation objectively, conduct an administrative hearing if the employee requested one or if disputed facts exist, evaluate all evidence impartially, and issue a Notice of Decision (the second notice), stating the findings and any disciplinary action.
FAQ
How many days does an employee have to respond to an NTE in the Philippines?
The standard timeframe is 5 calendar days from receipt of the notice, per King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007). This is calendar days, not working days. Employers who use “5 working days” language are giving less time than the law requires.
Is an NTE required before any disciplinary action?
Yes, for serious infractions that may lead to suspension or termination. Under Philippine law, particularly as established in the King of Kings Transport case, the NTE is a mandatory component of due process for major disciplinary actions.
Can an employer terminate an employee immediately after issuing an NTE?
No. After issuing an NTE, employers must:
1. Wait for the employee’s explanation
2. Conduct an investigation and/or hearing
3. Evaluate all evidence fairly
4. Issue a Notice of Decision
Immediate termination without following these steps would constitute illegal dismissal under Philippine law.
What happens if an employee refuses to receive or sign the NTE?
If an employee refuses to receive or sign an NTE when delivered in person, the employer should:
1. Have the incident witnessed by at least two company representatives
2. Prepare a written record of the refusal signed by the witnesses
3. Send the NTE via registered mail to the employee’s last known address
4. Document all attempts at delivery
Refusal to receive or sign does not invalidate the notice if proper documentation of the attempt exists.
How specific must the allegations be in an NTE?
Allegations must be highly specific, including:
1. Exact dates and times
2. Precise description of the alleged misconduct
3. Specific company policies violated
4. Names of witnesses (where appropriate)
5. Details of how the violation occurred
The Supreme Court has consistently invalidated vague or general allegations as violations of due process.
What remedies does an employee have if termination occurs without proper NTE?
If termination occurs without proper NTE or due process, an employee can:
1. File a complaint with DOLE’s SEnA for initial conciliation
2. File an illegal dismissal case with the NLRC
3. Seek reinstatement with full backwages and benefits
4. Claim damages and attorney’s fees
Under Philippine jurisprudence, dismissal without due process may be declared illegal even if there was just cause for termination.
Conclusion
Properly issuing a Notice to Explain is a critical step in ensuring due process in employee discipline cases in the Philippines. Both employers and employees benefit from understanding the legal requirements and best practices surrounding this important document.
For employers, following the proper procedures not only ensures legal compliance but also promotes a culture of fairness and transparency. Cutting corners in the disciplinary process can lead to costly legal battles, damaged employee relations, and potential liability for backwages and damages.
For employees, understanding your rights when receiving an NTE allows you to respond appropriately and protect your interests. The right to due process is fundamental in Philippine labor law and should be exercised responsibly.
