Tag - labor

Diminution in Rank or Diminution of Responsibilities

Diminution is usually associated with benefits. However, in a Supreme Court (SC) decision, the concept of diminution in rank or diminution of responsibilities was established. In the case of Isabela-I Electric Coop, Inc. vs. Del Rosario (July 17, 2019, G.R. No. 226369), the SC discussed diminution in rank of employee whose position was changed from Internal Audit Manager to Area Manager. Although the employee’s position bears the appellation “manager,” the responsibilities he used to discharge as manager in his former position [...]

Resignation and Illegal Dismissal

While the rules on resignation is settled, especially under Article 300 of the Labor Code, as amended, in actual situations, resignation is a confused subject matter especially if attended with claim of illegal dismissal. So, what is the legal perspective on this matter? It is good to revisit the 2020 case of Italkarat 18, Inc. vs. Gerasmio, G.R. No. 221411, September 28, 2020. The Supreme Court (SC) held that the fact of dismissal must first be proven, especially considering the existence [...]

Affidavit as Evidence in Labor Cases

Affidavit may be admissible in evidence even in labor cases. Case in point is the holding of the Supreme Court in the case of JR Hauling Services vs. Solamo, (G.R. No. 214294, September 30, 2020) The employer in such case holds the employees liable for the shortages in the delivery of broilers, sale of live chickens and other relate irregularities in the farm. The employer, on this point, bring to fore sworn statements or affidavits of several individuals to corroborate the fact [...]

Employer may Resort to Redundancy since it has no legal obligation to keep more employees than are necessary

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. A valid redundancy program must comply [...]

Redundancy Scheme is Ineffective if there is no Power to Terminate Services

Redundancy is one of the grounds to terminate services under authorized cause in Article 298 of the Labor Code, as amended. Termination letter is usually signed by the individual holding the authority to execute the act. However, in the case of Alfredo American Power Conversion Corporation, et al. vs. Lim, G.R. No. 214291, January 11, 2018, the Supreme Court held, in part, that the termination is ineffective where there is no authority to effect redundancy. In this case, the employee, Lim [...]

No-Spouse Employment Policy that is Discriminatory is Illegal

One Network Bank, Inc. hired Catherine as an Accounting Specialist.On May 1, 2006, it implemented what it called an “Exogamy Policy,” which stated: Effective May 1, 2006, when two employees working for One Network Bank are subsequently married through Church or Civil Court rites, one must terminate employment immediately after marriage. This policy shall not affect co-employees of the bank who are already married to each other as of the end of April 2006. On October 31, 2009, Catherine married her co-worker, [...]

Holiday Pay Sample Computation for 2022 National Heroes Day Using New NCR Minimum of P570

Holiday pay should be paid accordingly, particularly the regular holiday. Proclamation No. 1236 issued on 29 October 2021, declared, among others, National Heroes Day as a regular holiday to be observed in the country falling on 29 August 2021 (Last Monday of August). See PDF Copy of Proclamation No. 1236 (Original File not mine). Hence, on 25 August 2021 the Department of Labor and Employment (DOLE) issued Labor Advisory 16, Series of 2022 on the computation of pay during this regular holiday. Thus, [...]

Rules on Pay During Weather Disturbances 2022

On 23 August 2022, the Malacanang issued an order suspending work in the government offices and school activities for from 23 August 2022 to 24 August 2022. This was due to the inclement weather. Accordingly, the Department of Labor and Employment (DOLE) issued a Labor Advisory providing the rules of pay during weather disturbances. Notably, employees shall not be held administratively liable for not reporting for work in the event if imminent danger resulting from weather disturbances. Below is the PDF copy [...]

Retrenchment Due to Existence or Imminence of Substantial Losses

Retrenchment is one of the grounds for dismissal under the Labor Code. In the case of Team Pacific Corporation vs. Parente, G.R. No. 206789, July 15, 2020. The employer claiming “existence or imminence of substantial losses” that would warrant the retrenchment, must prove the same. In Lopez Sugar Corporation v. Federation of Free Workers: Firstly, the losses expected should be substantial and not merely de minimis in extent. If the loss purportedly sought to be forestalled by retrenchment is clearly shown to be insubstantial and [...]

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