Labor Law

Redundancy Scheme is Ineffective if there is no Power to Terminate Services

Redundancy is one of the grounds to terminate services under authorized cause in Article 298 of the Labor Code, as amended. Termination letter is usually signed by the individual holding the authority to execute the act. However, in the case of Alfredo American Power Conversion Corporation, et al. vs. Lim, G.R. No. 214291, January 11, 2018, the Supreme Court held, in part, that the termination is ineffective where there is no authority to effect redundancy. In this case, the employee, Lim [...]

Compensability of Illness under the Employee Compensation Law

The Labor Code defines sickness as “any illness definitely accepted as an occupational disease listed by the Commission, or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions.” To be compensable, the Implementing Rules of Presidential Decree No. 626 states that the sickness and the resulting death “must be the result of an occupational disease listed under Annex ‘A’ of these Rules[.]” If the illness is a non-occupational disease, [...]

No-Spouse Employment Policy that is Discriminatory is Illegal

One Network Bank, Inc. hired Catherine as an Accounting Specialist.On May 1, 2006, it implemented what it called an “Exogamy Policy,” which stated: Effective May 1, 2006, when two employees working for One Network Bank are subsequently married through Church or Civil Court rites, one must terminate employment immediately after marriage. This policy shall not affect co-employees of the bank who are already married to each other as of the end of April 2006. On October 31, 2009, Catherine married her co-worker, [...]

Holiday Pay Sample Computation for 2022 National Heroes Day Using New NCR Minimum of P570

Holiday pay should be paid accordingly, particularly the regular holiday. Proclamation No. 1236 issued on 29 October 2021, declared, among others, National Heroes Day as a regular holiday to be observed in the country falling on 29 August 2021 (Last Monday of August). See PDF Copy of Proclamation No. 1236 (Original File not mine). Hence, on 25 August 2021 the Department of Labor and Employment (DOLE) issued Labor Advisory 16, Series of 2022 on the computation of pay during this regular holiday. Thus, [...]

Retrenchment of Employees and Criteria Employed

Retrenchment is the termination of employment effected by management during periods of business recession, industrial depression, seasonal fluctuations, lack of work or considerable reduction in the volume of the employer’s business. Resorted to by an employer to avoid or minimize business losses. It is a reduction in manpower, a measure utilized by an employer to minimize business losses incurred in the operation of its business. (Philippine Carpet Employees Association [PHILCEA] vs. Hon. Sto. Tomas, G.R. No. 168719, February 22, 2006) Retrenchment [...]

Rules on Pay During Weather Disturbances 2022

On 23 August 2022, the Malacanang issued an order suspending work in the government offices and school activities for from 23 August 2022 to 24 August 2022. This was due to the inclement weather. Accordingly, the Department of Labor and Employment (DOLE) issued a Labor Advisory providing the rules of pay during weather disturbances. Notably, employees shall not be held administratively liable for not reporting for work in the event if imminent danger resulting from weather disturbances. Below is the PDF copy [...]

Venue in Labor Cases, in which Place should Labor Cases be Filed

Venue in labor cases means the place, city, or location where the case should be filed. This is governed by the rules on venue under Rule IV of the 2011 NLRC Rules of Procedure, as amended. All cases which Labor Arbiters have authority to hear and decide may be filed in the Regional Arbitration Branch (RAB) having jurisdiction over the workplace of the complainant or petitioner. For purposes of venue, the workplace shall be understood as the place or locality where [...]

Retrenchment Due to Existence or Imminence of Substantial Losses

Retrenchment is one of the grounds for dismissal under the Labor Code. In the case of Team Pacific Corporation vs. Parente, G.R. No. 206789, July 15, 2020. The employer claiming “existence or imminence of substantial losses” that would warrant the retrenchment, must prove the same. In Lopez Sugar Corporation v. Federation of Free Workers: Firstly, the losses expected should be substantial and not merely de minimis in extent. If the loss purportedly sought to be forestalled by retrenchment is clearly shown to be insubstantial and [...]

Solidary Liability of Owners in Labor Cases

In case of dismissals, directors and officers of corporations may only be held solidarily liable with the corporation if they acted in bad faith or with malice. In Mandaue Dinghow Dimsum House, Co., Inc. vs. National Labor Relations Commission[ 571 Phil. 108 (2008)], the Supreme Court (SC) held that a corporation is invested by law with a personality separate and distinct from those of the persons composing it as well as from that of any other legal entity to which [...]

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