Tag - Labor Code

Notice Requirement in Redundancy and Issue on Bad Faith

Notice is required to be given to affected employee and the Department of Labor and Employment (DOLE) as part of the procedural due process for termination due to authorized cause. It is clear from the wordings of Article 298 of the Labor Code, as amended, that notice to the employee should be made at least one month before the redundancy takes effect. If the employee consents to the redundancy, will the lack of notice comply with the procedural requirement? In the case [...]

Use of Criteria in Termination due to Redundancy and the LIFO Method

In several instances, the Court has held that it is important for a company to have fair and reasonable criteria in implementing its redundancy program, such as but not limited to, (a) preferred status, (b) efficiency and (c) seniority. CBA may dictate the rules to be followed in case of redundancy. Parties may stipulate that LIFO rule shall apply in case of termination in the line of work. However, where two positions are involved, last in first out rule may yield [...]

Redundancy Program Requisites for Validity

Redundancy exists when the service capability of the workforce is in excess of what is reasonably needed to meet the demands of the business enterprise. A position is redundant where it had become superfluous. Superfluity of a position or positions may be the outcome of a number of factors such as over-hiring of workers, decrease in volume of business, or dropping a particular product line or service activity previously manufactured or undertaken by the enterprise. (3M Philippines, Inc. vs. [...]

Resignation Becomes Complete Once the Employer Accepts

Resignation is one of the rights of the employee set forth under Article 300 of the Labor Code, as amended. It can be voluntary or involuntary. The latter being based on just cause enumerated in the article like serious insult, abuse, etc. In the case of Intertrod Maritime, Inc. vs. National Labor Relations Commission (G.R. No. 81087, June 19, 1991), the Supreme Court held that resignation is the voluntary act of an employee who “finds himself in a situation where [...]

Hepatitis B Prevention and Control Policy is Required by DOLE Under D.O. 198 Series of 2018

Department Advisory No. 5, Series of 2010 of the Department of Labor and Employment mandating the institution of policies and programs on the prevention and control of Hepatitis B in the workplace. This is pursuant to DOLE D.O. 198, Series of 2018, providing for the Rules on Occupational Safety And Health Standards. D.O. 198 is the IRR of Republic Act No. 11058 or An Act Strengthening Compliance with Occupational Safety and Health Standards and Providing Penalties for Violations Thereof. The State [...]

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 [...]

Valid Termination due to Redundancy

For purposes of the Labor Code, 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 manufactured or undertaken [...]

Burden of Proof in Termination Due to Authorized Cause

The authorized causes under Article 298 are as follows: Installation of labor-saving devices; Redundancy; Retrenchment; and Closure or cessation of business operations of an establishment or an undertaking. It appears that the enumeration is exclusive. Meaning, there can be no other grounds that can be invoked other than those stated. This is so because the precursor of Article 298, Article 299, previously carried a comprehensive phrase “other similar causes” which was repeated twice in the old provision. While in the new provision as presently worded, [...]

Effect of Long Employment Tenure Against the Charge of Loss of Trust and Confidence

There is a thought that an employee who has rendered several years of service is accorded leniency in disciplinary situations. However, this is not always the case since under certain circumstances, long years of service may aggravate the offense involving loss of trust. In a case where the two employees had spent twenty-two (22) and nineteen (19) years of service with the company respectively and although they committed their only first offense, the Supreme Court upheld their dismissal nonetheless. The [...]

Loss of Trust and Confidence Applies to Confidential Employees

There are rank-and-file employees who hold highly confidential positions due to their fiduciary responsibilities and proximity to the management that makes important decisions pertaining to labor relations. In one of my clients’ organizational setup, an employee who used to be a holder of supervisory position being an assistant to the SVP for Marketing was demoted to rank-and-file status. But he was classified as a confidential employee. This kind of confidential employee is not a holder of a trusted position but [...]

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