authorized cause

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 […]

Among the accepted criteria in implementing a redundancy are: (a) less preferred status, e.g., temporary employee; (b) efficiency; and (c) seniority The establishment and implementation of criteria are important feature of redundancy to give respect to the employee’s constitutionally enshrined security of tenure. In one case, the Supreme Court has refused to give credence to […]

The fact that the functions of a position were simply added to the duties of another does not affect the legitimacy of the employer’s right to abolish a position when done in the normal exercise of its prerogative to adopt sound business practices in the management of its affairs. In Wiltshire File Co., Inc. vs. […]

Redundancy is one of the authorized causes for the termination of employment provided for in Article 298 of the Labor Code, as amended: Article 298. Closure of Establishment and Reduction of Personnel. – The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses […]

Redundancy generally transpires because of excess positions. It is worthy of note that what becomes redundant is the position and not the holder. Hence, if X is a cashier, she may be terminated not because she is redundant, but because her position as cashier is. An interesting follow-up inquiry is if that is the case, […]

Modern business world is a slave to new technology. It is a fact that most business processes cannot be done without the aid of robots and computer. As the number of non-human labor forces rises, the demand for human labor diminishes. In a case, the company brought in its plant high- speed machines to be […]

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. It is a reduction in manpower, a measure utilized by an employer to […]