Retrenchment without Notice Grants Employees Award of Nominal Damages
Retrenchment is a management prerogative consistently recognized and affirmed by this Court. It is, however, subject to faithful compliance with the substantive and procedural requirements laid down by law and jurisprudence. [EMCO Plywood Corporation vs. Abelgas, 427 SCRA 496, 511 (2004)] Article 283 of the Labor Code provides, that 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 [...]