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 desire to resume work not later than one month from resumption of operations
If suspension lasts longer than 6 months, there is constructive dismissal
If ER closes
- Pay separation pay 1 month or ½ month per year of service, whichever is greater (WIG)
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Notice requirement
- One month before to EE
- One month before to ER
DO 215 – Extension of Suspension
In case of
- Declaration of war
- Pandemic
- Similar emergencies
Employer and employee shall meet in good faith for the purpose of extending the suspension not exceeding 6 months
Employer shall report to DOLE the extension 10 days prior to effectivity
EE finds work during extension; not deemed terminated
If EE resigns, he shall lose employment
If retrenchment necessary before or after the expiration of extension, EE entitled to SP
EE has priority in hiring if indicates desire to resume work not later than one month from resumption of operations
First 6 months of suspension shall be included in the computation of separation pay.
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Read more on procedural due process discussion by Atty. Elvin:
Read more on procedural due process by Atty. Villanueva:
Twin Requirements of Notice and Hearing