Circumstances that Would Substantiate Termination due to Redundancy

Circumstances that Would Substantiate Termination due to Redundancy

Redundancy as a ground for dismissal for authorized cause requires existence of business exigency allowed by law as basis to declare position surplusage. For most employers, the question is what circumstances would justify the redundancy?

While there is no hard and fast rule since every business situation may be unique in its own way, the Supreme Court provided examples in its decision.

In Panlilio vs. National Labor Relations Commission, it was held that the following evidence may be proffered to substantiate redundancy:

  1. The new staffing pattern,
  2. Feasibility studies/proposal on the viability of the newly created positions, and
  3. Job description and the approval by the management of the restructuring.

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How about the documents required to prove the circumstances supporting the decision to declare redundancy?

The Supreme Court in another case ruled the following documents as competent proof of redundancy: (Soriano vs. NLRC, G.R. No. 165594, April 23, 2007)

1) A letter notifying the Director of the DOLE-NCR of the impending termination from work of the employee by reason of redundancy and stating the grounds/reasons for the implementation of the redundancy program;

2) A letter apprising the employee of his dismissal from employment due to redundancy;

3) A receipt certifying that the employee had al- ready received his separation pay from the company;

4) A release/waiver/quitclaim executed by the employee in favor of the company; and

5) Affidavits executed by the officers of the company explaining the reasons and necessities for the implementation of the redundancy program.

Although in the above case the Court declared that the documents were considered because the employee failed to question, impeach or refute the existence, genuineness, and validity of these documents.

It is clear that the foregoing documentary evidence constituted substantial evidence to support the findings of the Labor Arbiter and the NLRC that employment was terminated due to a valid or legal redundancy program since substantial evidence merely refers to that amount of evidence which a reasonable mind might accept as adequate to support a conclusion.


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