Redundancy Exists When an Employee’s Services are in Excess of What is Reasonably Demanded by the Enterprise
Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. Succinctly put, a position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufacture or undertaken by the enterprise. (Page 221, Guide to Valid Dismissal of Employees, 2nd Edition, by Atty. Elvin B. Villanueva, citing oats Manila Bay, Inc. vs. Ortega, supra, citing Wiltshire File Co., Inc., vs. NLRC, G.R. No. 82249, 7 February 1991, 193 SCRA 665)
While a declaration of redundancy is ultimately a management decision, and the employer is not obligated to keep in its payroll more employees than are needed for its day-to-day operations, management must not violate the law nor declare redundancy without sufficient basis.
A valid redundancy program requires the following: (1) written notice served on both the employees and the Department of Labor and Employment (DOLE) at least one [1] month prior to the intended date of termination of employment; (2) payment of separation pay equivalent to at least one [1] month pay for

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every year of service; (3) good faith in abolishing the redundant positions; and [4] fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished, taking into consideration such factors as (a) preferred status; (b) efficiency; and (c) seniority, among others. (Aparicio vs. Manila Broadcasting Company, G.R. No. 220647, December 10, 2019)
In the case of MBC cited above, the employees were served notices of retrenchment which took effect thirty (30) days later. MBC also submitted its Establishment Termination Report to the DOLE containing the reasons for its adoption and implementation of the redundancy program. The employees were likewise promptly given their separation pay.
Courts will not interfere unless management is shown to have acted arbitrarily or maliciously. For it is the management which is clothed with exclusive prerogative to determine the qualification and fitness of an employee for hiring or firing, promotion or reassignment. Indeed, an employer has no legal obligation to keep more employees than are necessary for its business operation. (Aparicio vs. Manila Broadcasting Company, G.R. No. 220647, December 10, 2019)
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