labor law Archives - Page 10 of 18

03 Jul

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 [...]

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02 Jul

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 [...]

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01 Jul

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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29 Jun

Retrenchment and Redundancy

Retrenchment is the termination of employment effected by management during periods of business recession, industrial depression, seasonal fluctuations, lack of work or considerable reduction in the volume of the employer’s business. Resorted to by an employer to avoid or minimize business losses. (Somerville Stainless Steel Corporation vs. National Labor Relations Commission, 350 Phil. 859, 869 (1998)) To prevent losses” means that retrenchment or termination of the services of some employees is authorized to be undertaken by the employer sometime before [...]

By Atty Elvin Labor Law atty. elvin, Authorized Cause, labor, Labor Code, labor law, Redundancy, Retrenchment 0 Comments Read more...

29 Jun

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 [...]

By Atty Elvin Labor Law atty. elvin, Authorized Cause, bad faith, employee termination, labor, Labor Code, labor law, Redundancy 0 Comments Read more...

28 Jun

Measure Giving Additional Benefits to Solo Parents has Lapsed Into Law

A solo parent is any individual who falls under any of the following categories: (1) A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the offender: Provided, That the mother keeps and raises the child; (2) Parent left solo or alone with the responsibility of parenthood due to death of spouse; (3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is serving [...]

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26 Jun

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 [...]

By Atty Elvin Labor Law atty. elvin, burden of proof, labor, Labor Code, labor law, last in first out, lifo, Redundancy 0 Comments Read more...

26 Jun

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. [...]

By Atty Elvin Labor Law atty. elvin, Authorized Cause, Labor Code, labor law, Redundancy, termination 0 Comments Read more...

24 Jun

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 [...]

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23 Jun

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 [...]

By Atty Elvin Labor Law atty. elvin, DOLE, hepatitis b prevention policy, labor, Labor Code, labor law, policy 0 Comments Read more...

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