Tag - good faith

Proof of Good Faith in Redundancy

Redundancy is one of the authorized causes of employee termination under Article 298 of the Labor Code, as amended. The employer who intends to terminate the employee for cause has to comply with two aspects of due process. These are the substantive aspect and the procedural aspect. The substantive aspect pertains to the ground or basis of termination which should be in accordance with law and jurisprudence. The procedural aspect refers to the required notices, which in the case of redundancy, [...]

Good Faith of the Employer is Required in Redundancy Program

Under Article 298 (formerly 283) of the Labor Code, redundancy is recognized as an authorized cause for dismissal, viz.: Article 298 [283]. Closure of Establishment and Reduction of Personnel. – The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving [...]


As a matter of general principle, the Court upholds these management prerogatives so long as they are exercised in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws and valid agreements. As long as the company’s exercise of management prerogatives is in good faith in order to advance its interests and not for the purpose of defeating or circumventing the rights of the [...]

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