Dismissal of employee is one of the crucial decisions of an employer. The rules have been duly established. But the mentality required in handling the dismissal situation form the perspective of the employer should be clearly understood. Where the fact of employee’s dismissal from service is undisputed by the parties, the crux of the issue […]

Overtime work is performed beyond eight hours of work. This should be compensable at a rate provided by law. Overtime may be required by the employer under certain circumstances. Under Article 83 of the Labor Code work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime […]

The Philippine labor laws traditionally require the service of notice to employees to be in writing. A written document is the best possible way to prove performance of legal duties by the employer in such case. Especially in the case of employee dismissal, the law strictly requires adherence to the notice requirements and imposes indemnity […]

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, […]

Notice to Explain (NTE) is a document issued by employer to employees to afford an opportunity for the latter to explain the charge. This is a disciplinary document employed when an offense is committed inside the company. Service of the NTE may be done personally or through registered mail. Modern practices that are may be […]

In the case of Italkara 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 by the employee, especially considering the existence of a resignation letter signed by him. Indeed, in illegal dismissal cases, the burden of proof is on the […]

Retrenchment is one of the authorized causes to dismiss an employee. 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.” This is usually done as a last recourse when other methods are found inadequate. (Team Pacific Corporation […]

The basic requisites for a valid retrenchment to exist are as follows: (1) That the retrenchment is reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis, but substantial, serious, actual and real, or if only expected, are reasonably imminent as perceived objectively and in good faith by […]

It is well-established that retrenchment is part of management prerogative. Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place and manner of work, work supervision, transfer of employees, lay-off of […]

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 […]