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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 [...]

Resigned Employees are not Entitled to Separation Pay

Resignation is provided under Art. 300 of the Labor Code. There is nothing in such article that mandates the payment of separation pay to resigned employee. In a case of Italkarat 18, Inc. vs. Gerasmio, (G.R. No. 221411, September 28, 2020), the Supreme Court held that as a general rule, the law does not require employers to pay employees that have resigned any separation pay, unless there is a contract that provides otherwise or there exists a company practice of [...]

Claim of Involuntariness in Employee Resignation

Resignation is one of the rights granted to employees under Article 300 of the Labor Code, as amended. In the case of Italkarat 18, Inc. vs. Gerasmio (G.R. No. 221411, September 28, 2020), the Supreme Court (SC) held that records are bereft of substantial evidence that will unmistakably establish a case of constructive dismissal. An act, to be considered as amounting to constructive dismissal, must be a display of utter discrimination or insensibility on the part of the employer so intense [...]

Notes on Bona Fide Suspension of Operations and Extension

Below is a quick guide on doctrines, rules, and principles governing the bonafide suspension of operations and its extension per D.O. 215, Series of 2020. This is useful in refreshing the concepts and rules involved: For full discussion on this matter, read here. Terminologies used: Temporary off-detail; Temporary layoff; bonafide suspension of operations Period not exceeding six months So before 6 months, Employer (ER) has to decide whether to Resume or to Close If ER Resumes Reinstate without loss of seniority rights if Employee (EE) indicates [...]

Retrenchment Criteria Used in Employee Termination

Retrenchment is one of the authorized causes to dismiss an employee under Article 298 of the Labor Code. It involves a reduction in the workforce, resorted to when the employer encounters business reverses, losses, or economic difficulties, such as “recessions, industrial depressions, or seasonal fluctuations.” (La Consolacion College of Manila v. Pascua, 828 Phil. 182, 191-192 (2018)) This is usually done as a last recourse when other methods are found inadequate. A valid retrenchment may only be exercised after the employer has [...]

Retrenchment Based on Lack of Order

Retrenchment is one of the grounds for dismissal under Art. 298 of the Labor Code, as amended. Retrenchment usually pertains to financial difficulty encountered by the employer. It can include business hardship due to lack of order. The rule in this case states that if the ground cited by the employer for retrenchment is lack of order the same must be of such nature as would severely affect the business operations. In a 2013 case the employer pointed out as reason for [...]

Retrenchment Should be the Last Resort and Other Issues

The prerogative of an employer to retrench its employees must be exercised only as a last resort, considering that it will lead to the loss of the employees’ livelihood. It is justified only when all other less drastic means have been tried and found insufficient or inadequate. (Philippine Carpet Employees Association [PHILCEA] vs. Hon. Sto. Tomas, G.R. No. 168719, February 22, 2006 citing Guerrero vs. National Labor Relations Commission, 329 Phil. 1069, 1076 (1996)) Retrenchment under Article 298 does not [...]

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