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PART I: RIGHTS OF THE WORKERS
Section 3, Art. XIII of the 1987 Constitution mandates the State to afford full protection to labor and guarantee to all workers the right to security of tenure. The right of a person to his labor is deemed a property right within the meaning of the constitutional guarantee that no person shall be deprived of life, liberty and property without due process (Esmalin v NLRC, G.R. No. 6788015, September 15, 1989). An employee becomes a regular employee because: (Art. 280, Labor Code). a. He has been engaged to perform activities which are necessary or desirable in the usual business or trade of his employer. b. He has rendered at least one year of service, whether the service is continuous or broken, with respect to the activity in which he is employed, his employment shall continue while such activity exists. A Regular Employee is entitled to security of Tenure. The Supreme Court in the case of La Saliente of Santiago v NLRC (195 SCRA 80 (1991)) explained that the acquisition of tenure signifies that the employee has the right to remain in employment. Tenure, once acquired, cannot be adversely affected or defeated by requiring the employee to execute contracts stipulating the termination of his employment upon expiration of a fixed term or period. Contracts of that sort are anathema and will be struck down as null and void. But, the right to security of tenure of employees does not mean perpetual employment because our laws, while affording protection to the employees, does not authorize oppression or destruction of an employer. An employer has the right and liberty to choose who will be hired and whom to deny employment. For the right of a laborer to sell his labor to whomsoever

he chooses is, in its essence, the same right of an employer to purchase labor from any person whom it chooses. The employer and the employee have an equality of right guaranteed by the constitution. If the employer can compel his employee to work against the latter’s will, this is servitude. If the employee can compel the employer to give work against the employer’s will, this is oppression (Phil. Village Hotel v NLRC, G.R. No. 105033, February 24, 1994). Hence, while the employee has the right to security of tenure, the employer or management has his own rights too. How to prove the existence of employer-employee relationship. 4-fold test: hiring, wages, firing, control Four elements of employment relationship • • • • The selection and engagement of the employee; The payment of wages; The power of dismissal; and The employer’s power to control the employee’s conduct (“control test”). (AFP Mutual Benefit Association, Inc. vs. NLRC, et al., G.R. No. 102199, Jan. 28, 1997).

“Control test” It is the so-called “control test”, and that is, whether the employer controls or has reserved the right to control the employee not only as to the result of the work to be done but also as to the means and methods by which the same is to be accomplished, which constitutes the most important index of the existence of the employer-employee relationship. (AFP Mutual Benefit Association, Inc. vs. NLRC, et al., G.R. No. 102199, Jan. 28, 1997).

CLASSES OF EMPLOYEES 1) Regular employee Employee who performs work that is usually necessary or desirable to the usual business of the employer. There is a reasonable connection between the activity performed and the business of the employer. 2) Probationary employment must not exceed six (6) months. The period can also be extended when the employer, out of liberality, clearly gave the employee another opportunity after having failed the employer’s standards. 3) Project employee A project employee is one hired to carry out a specific project or undertaking, the completion of which is determined and specified at the time of engagement. 4) Casual employee

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Employee hired for work that is not usually necessary or desirable to the business of the employer, work that does not constitute a project, or a seasonal work. 5) Term employee Fixed term employee is engaged to work for a definite period. 6) Job-contracting Contractor carries on an independent business and undertakes contracted work on his/own account, under his own responsibility, according to own manner and method of work, free from the control and direction of the principal. Contractor must have either substantial capital OR investment in the form of tools, equipment, machineries, work premises. Tools and equipment must be directly related to the contracted job. 7) Labor-only contracting Contractor has no substantial capital or investment and the workers perform activities that are directly related to the business of the employer. 8) Taxi and PUJ Drivers The relationship between owners of jeeps and taxicabs, on one hand, and their drivers, on the other hand, under a boundary system, is an employer-employee relationship. 9) Working Student A student who works for a school in exchange for the privilege to study free is not an employee provided s/he is given a real opportunity to finish his/her chosen course. 10) Caddy - not an employee

LABOR STANDARDS Labor standards refer to the minimum requirements that an employer shall provide to the workers pursuant to provisions of the Labor Code. Benefits under the Labor Code: Normal hours of work Art. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight (8) hours a day. Broken hours The normal eight working hours mandated by law does not always mean continuous and uninterrupted eight hours of work. As may be required by peculiar circumstances of employment, it may mean broken hours of say, four hours in the morning and four hours

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in the evening or a variation thereof, provided the total of 8 hours is accomplished within one “work day”.

Hours worked Art. 84. Hours worked. Hours worked shall include (a) all the time during which an employee is required to be on duty or to be at a prescribed workplace; and (b) all time during which an employee is suffered or permitted to work. Rest periods of short duration during working hours shall be counted as hours worked. Waiting time Waiting time spent by an employee shall be considered as working time if waiting is an integral part of his work or the employee is engaged by the employer to wait. (Sec. 5 (a), Rule I, Book III, Rules to Implement the Labor Code). Meal periods Art. 85. Meal periods. Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty minutes time-off for their regular meals. * Being time-off, it is not compensable hours worked. Night shift differential Art. 86. Night shift differential – Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. Overtime work Art. 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least 25% thereof. Work performed beyond 8 hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first 8 hours on a holiday or rest day plus at least 30% thereof. Undertime not offset by overtime Art. 88. Undertime not offset by overtime. Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter. HOLIDAYS & REST DAY PREMIUMS • An employee is entitled to a weekly rest day.

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• •

Also entitled to additional compensation of 30% + of regular pay for work on rest day and special day (Nov. 1, Dec.31) Work on holiday compensated at 200%.

SERVICE CHARGES • • Collected by most hotels, restaurants and similar establishments. Service charges shall be distributed at the rate of 85% equally among the rankand-file, and 15% for management.

MEAL PERIOD • • Employees should be given at least 60 minutes of non-compensable time-off for their regular meals. Meal periods from 5 to 20 minutes shall be considered compensable working time.

SERVICE INCENTIVE LEAVE • • All employees who have rendered at least one (1) year of service shall be entitled to a yearly service incentive leave of five (5) days with pay. SIL can be either sick leave (SL) or vacation leave (VL).

WEEKLY REST PERIODS All employees are entitled to one (1) day (24 consecutive hours) after working six (6) consecutive days. WAGES “Wage paid to any employee shall mean the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to done, or for services rendered or to be rendered and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee. “Fair and reasonable value” shall not include any profit to the employer, or to any person affiliated with the employer.” (Art. 97 [f]). Forms of payment Art. 102. No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee. Prohibition on payment of wages in bars, massage clinics or night clubs No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall or other similar places or in places where games are played with stakes of money or things representing money except in the case

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of persons employed in said places. (Sec. 4 [b], Rule VII, Book III, Rules to Implement the Labor Code.) 13th Month Pay  The minimum amount shall not be less than 1/12 of the total “basic salary” earned within the calendar year.  The “basic salary” includes all earnings paid by an employer for services rendered and does not include Cost of Living Allowances or other benefits. Managerial employees are not entitled to 13th month pay Sec. 1 of P.D. No. 851 is hereby modified to the extent that all employers are hereby required to pay all their rank-and-file employees a 13th month pay not later than December 24 of every year. (Memorandum Order No. 28 issued by Pres. Corazon C. Aquino on August 13, 1986). RETIREMENT PAY May be retired at 60; compulsorily at 65 The retirement benefits amended under RA 7641 and 8558 are distinct from the benefits provided by the SSS. Retirement would be ½ month salary (15 days) based on latest salary, SIL of 5 days, and 1/12 of the 13th month pay – for every year of service. CBA or company practice may provide for higher benefits

PART II. RIGHTS OF THE EMPLOYER
Management Prerogatives The rule is well-settled that labor laws discourage interference with an employer’s judgment in the conduct of his business. Even as the law is solicitous of the welfare of the employees, it must also protect the right of the employer to exercise what are clearly management prerogative. As long as the company’s exercise of the same is in good faith to advance its interest and not for the purpose of defeating or circumventing the right of the employees under the laws or valid agreements, such exercise will be upheld (Maya Farms Employee Org. v NLRC, G. R. No. 106256, 28 December 1999). What are some of these Management prerogatives? Except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-

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off of workers, and the discipline, dismissal and recall of work (NLU v Insular La Yebarra Co., 2 SCRA 924; Republic Savings Bank v CIR 21 SCRA 265, Perfecto V. Hernandez, Labor Relations Law, 1985 ed. P.44). DUE PROCESS -Definition of Due Process – Basically, according to Daniel Webster, due process is one that hears before it condemns, proceeds upon inquiry and renders judgment after hearing. So that even if the employee committed an act that constitutes a lawful cause for his dismissal, still his employer should first give him the opportunity to explain or present his side. Thus, where the employee denies the charge against him, a hearing is necessary to thresh out any doubt (Caoile v NLRC G.R. No. 115491, November 24, 1998). Aspect of due process in valid termination of employment on grounds of just cause: 1. Procedural aspect 2. Substantive aspect I. Procedural Aspect – The Labor Code laid down the procedural aspects to be observed in terminating the services of an employee based on just causes as defined in Art. 282 of the Labor Code, thus: a. A written notice must be served on the employee specifying the ground or grounds for termination and giving him reasonable opportunity within which to explain his sides; b. A hearing or conference shall be conducted during which the employee concerned, with the assistance of counsel if he so desires, is given an opportunity to respond to the charge, present his evidence or rebut the evidence presented against him; and c. A written notice of termination must be served on the employee, indicating that upon due consideration of all the circumstances, grounds have been establish to justify his termination (Santos v San Miguel Corporation, G.R. No. 149416, 14 March 2003).

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Twin requirements of Notice and Hearing Due process in dismissal entails the twin requirements of notice and hearing. The 2-notice rule is required which means that the first notice apprising him of the acts or omissions for which his dismissal is sought, and the second, informing him of the employer’s decision to dismiss him (Lagatic v NLRC, 285 SCRA 258).

An employee cannot be dismissed if the charges mentioned in the notice for which he was required to explain, were different from the ones cited for his termination. There is a deprivation of due process (BRI Credit Corp. v NLRC, G.R. No. 106027, July 25 1994; Gold City Integrated Port Services, Inc. v NLRC, G.R. No. 86 000, September 21, 1990). • Due process is necessary even in cases of demotions. Demotions being a positive action, the employee should be given a chance to be heard and contest the same (Gaco v NLRC, 230 SCRA 260). • The case of Corral v NLRC (G.R. No. 96795, 24 May 1993). Corral was charged for qualified theft by Pepsi Cola. Upon posting of bond Corral asked to be returned to his job. Later Pepsi Cola sent him a memorandum terminating his employment. He filed a case for illegal dismissal. Supreme Court ruled that he was illegally dismissed. When a hearing is required: 1. When the employee so desires  Concorde Hotel v CA, 362 SCRA 583 (2000) citing Waterous Drug, Corp. v NLRC, 280 SCRA 735 (1997). 2. When the charge is denied (Caoile v NLRC, G.R. No. 115491, 24 November 1998). 3. When the employee demands a change of procedure of the investigation to allow her counsel to participate therein (Gonzales v NLRC and Ateneo de Davao, G.R. No. 125735, 26 August 1999). II. Substantive Aspect

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An employee can only de dismissed for (1) Just causes (Article 282 of the Labor Code) or (2) Authorized causes (Article 283 of the Labor Code). Art. 282 of the Labor Code provides for the just cause for the termination of employment due to just causes: A. Serious Misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; B. Gross and habitual neglect by the employee of his duties; C. Fraud or willful breach of the employee of the trust reposed in him by his employer or duly authorized representative; D. Commission of a crime or offence by the employee or any immediate member of his family or his duly authorized representative; and E. Other causes analogous to the foregoing.

A. Serious Misconduct Among the basic duties of the employee are to conduct himself properly and yield obedience to lawful orders of his employer. It is in this regard that serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work is a just cause for his termination. This is explicitly provided under Art 282, par (a), of the Labor Code. The misconduct must be related to the performance of his duties and such grave character rendering him unfit to continue working for the employer. As regard willful disobedience, are stated in San Miguel Corp. v Uballo (G.R. No. 92859, February 1, 1993, 218 SCRA 293) that, at least two (2) requisites must concur: (1) The employee’s assailed conduct must have been willful or international, the willfulness being characterized by a “wrongful and perverse” and, (2) the order violated must have been reasonable, lawful, made known to the employee and must pertain to the duties which he had been engaged to discharge (Villeno v NLRC, G.R. No. 108153, December 26, 1995). (In a meeting, Austria banged his attaché case on the table, threw the telephone, scattered books. Although improper this was not considered misconduct to warrant dismissal.)

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Utterances by an employee of obscene, insulting or offensive words against a superior justify his dismissal for gross misconduct, but the dismissal will not be uphold where it appears that the employee’s act of disrespect was provoked by the employer (Golden Thread Knilting Industries v NLRC, 304 SCRA 568 (1999)). Deliberate disregard or disobedience of rules, defiance of management authority by the employee cannot be countenanced; until and unless the rules or orders imposed by the employers are declared illegal or improper by competent authority, the employees ignore or disobey them at their own perils (GTB Directones Corp. v Hon. Sanchez, G.R. No. 76219, 27 May 1991, 197 SCRA 452). • Thus, where an employee made OFFENSIVE UTTERANCES AND OBSCENE GESTURES DURING A CASUAL GET-TOGETHER PARTY OF EMPLOYEES where it is expected that tongues, more often than not, get LOOSENED UP BY LIQUOR OR ALCOHOLIC DRINKS, and where the employees tend to freely express their gripes and grievances, the Supreme Court held that while the actuation and utterance of the employee during such get-together was deemed IMPROPER CONDUCT, it did not constitute serious or gross misconduct as these were not intended to malign or cast aspersion against the Company President of General Manager who was not around. Said the High Court, employees should be allowed wider latitude to freely express their sentiments during occasions of casual get-together among employees.



Even if the fight was purely a private quarrel between the employees, the fact that, as a result of what they had done, they disturbed the peace in the company and committed a breach of discipline. The Supreme Court has held in several cases that fighting within the premises of a company is a HUST CAUSE for terminating one’s employment (SEGUNDO ROYO et al. vs. NLRC 1996).



In another case where the fight between two employees was staged in full view of other employees and visitors inside company premises and disturbed the work in the office, the Supreme Court held that it constituted SERIOUS MISCONDUCT, a just cause for dismissal (FLORES vs. NLRC 1996).

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Prerogative of the employer to prescribe reasonable rules and regulations for the conduct of its business. • It is the employer’s prerogative to prescribe reasonable rules and regulations necessary or proper for the conduct of its business or concern, and to provide certain disciplinary measures to implement said rules, and to assure that the same are complied with. At the same time, it is one of the fundamental duties of an employee to YIELD OBEDIENCE to all reasonable rules, orders and instructions of his employer. preemptory any willful or intentional disobedience thereof, as a dismissal of the employee (FAMILY PLANNING general rule, justifies a rescission of the contract of service and ORGANIZATION OF THE PHILS., INC. vs. NLRC 207 SCRA 415). B. Gross of Habitual Neglect of Duty An employee who had been repeated by admonished, warned and suspended for incurring excessive unauthorized absences is constitute of neglect of duty, sufficient to terminate (Phil. Geothermal Inc. v NLRC, 236 SCRA 376 (1994)); Worldwide Paper Mill v NLRC, 244 SCRA 125 (1995)).

Repeated and frequent absences from work without prior company approval as a sufficient and just cause for dismissal. • The Supreme Court in one case held that “REPEATED ABSENCES WITHOUT PERMISSION are something that should not be taken lightly in an enterprise and disregard of warning against repetition of a series of absences amounts to gross indiscipline which no company should be compelled to tolerate (MERALCO WORKERS UNION vs. MANILA ELECTRIC CO., 1959). Gross and Habitual Neglect of Duty • Gross negligence implies want or absence of or failure to exercise slight care or diligence or the entire absence of care; evinces a

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thoughtless disregard of consequences without exerting any effort to avoid them (CITIBANK, N.A. vs. GATCHALIAN 240 SCRA 212). • Employee has been repeatedly admonished, warned and suspended incurring EXCESSIVE UNAUTHORIZED ABSENCES. (PHIL. GEOTHERMAL INC. vs. NLRC 236 SCRA 376). The Supreme

Court held it to be sufficient just cause constituting neglect of duties.

C. Fraud or Willful breach of trust and confidence



When

an

employee

accepts

a

position

requiring

trust

and

confidence, he gives up some of the rigid guarantees available to ordinary workers. Infractions which if committed by the others would be overlooked or condoned or penalties mitigated, may be visited with more severe disciplinary action (METRO DRUG CORPORATION vs. SCRA 136).



In LAMSAN TRADING INC. vs. LEOGARDO JR., 144 SCRA 571, the Supreme Court held that “..if private respondents (employees) are CHASIERS, MANAGERS, SUPERVISORS, SALESMEN or other personnel occupying positions of responsibility the requirement that an employee should enjoy the trust and confidence of his employer may justify their termination.”

Breach of trust as just cause for dismissal • Managerial employees are expected to conduct their duties above reproach and avoid not just impropriety but also the appearance of impropriety (VILLANUEVA vs. NLRC 293 SCRA 258). • Ordinarily, a rank and file employee is NOT reposed with trust and confidence expected of a SUPERVISORY or MANAGERIAL EMPLOYEE. Where, however, the rank and file employee is a WAREHOUSEMAN and was in charge of the custody, safekeeping and release of company materials, the NATURE OF HIS WORK and the scope and special character of his duties involved UTMOST TRUST AND

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CONFIDENCE. Hence, he is deemed a CONFIDENTIAL EMPLOYEE against whom LOSS OF TRUST AND CONFIDENCE is a just cause to terminate his employment (FALGUERA vs. NLRC 1995). • Position of Cashier – The Supreme Court held that bearing in mind the fact the position of CASHIER is a highly sensitive position, requiring as it does the attribute of ABSOLUTE TRUST and HONESTY because of the temptations attendant in the daily handling of money, the employee’s act aforecited could not help but sow mistrust and loss of confidence on the part of her employer. The irregularities revealed a resulting breach of trust constituting a valid cause for her dismissal (GARCIA vs. NLRC HOLY TRINITY ACADEMY 1996).

Rank and File employee – when they may considered as holding a position of trust and confidence. It is not disputed that the petition is a rank and file employee. Ordinarily, a rank and file employee is not reposed with high degree of trust and confidence expected of a supervisory or managerial employee. Salesmen – Salesmen are highly individualistic personnel who have to be trusted and left essentially on their own  a higher degree of confidence is reposed in them when they are entrusted with fund and properties of their employer (Sanchez v NLRC, 312 SCRA 727).

D. Commission of crime or offense by the employee against the person of his employee or any immediate member of his family of his duly authorized representative. • When such criminal offense, although it does not directly affect the interest of the employer is SERIOUS ENOUGH TO SHOW LACK OF FITNESS OR QUALIFICATION OF THE EMPLOYEE.

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Illegal possession of hand grenades intended to be used to blast the dynamite magazine of the cement factory (NATIONAL ORGANIZATION OF LABORERS AND EMPLOYEES vs. ROLDAN 99 PHIL 727).

E. Other analogous causes for valid dismissal, examples:

Competing with the employer-one who asserts an interest, or performs acts adverse or disloyal to one’s employer commits a breach of an implied condition of contract of employment which may warrant discharge, as, for example, where one secretly engages in a business which renders him a competitor of his employer (Elizalde Intl. (Phil) Inc. v CA, 103 SCRA 247, citing Perfection Matters and Spring Co. v Dupree, 113 So. 74, 216, Ala: cited in 56 CJS, 42 (a). Fighting within company premises  we have already held in a number of cases that fighting within company premises is a valid ground for dismissing an employee (Foodwine Inc. v NLRC, 138 SCRA 748 (1996);Wenphil Corp. v NLRC, 170 SCRA 69 (1989); North Camarines Lumber Co., Inc. v Barreda 153 SCRA 244 (1987); Romerton Shipping, Ltd. V NLRC, 135 SCRA 685 (1985)); only recently we sustained the dismissal of relatives employed in a company who mauled an employee for reporting them to management for their wrong doings (Royo v NLRC, G.R. No. 109609). In a case analogous to this one (Pacific Mills, Inc. v Alonzo, 199 SCRA 617), when a female employee was also found guilty of assaulting her male superior and, in addition, in subordination, habitual tardiness, wasting time and not wearing a uniform. ( Drunken Behavior – clearly, the bellicose behavior of Lausa constituted misconduct on his post. The critical question relates to the appreciation of the quantity of such misconduct. In apprising the character of misconduct committed by Lausa, it is important to stress that petitioner corporation is a public carrier, engage in transporting passengers and cargoes across our waters and seas. As public carrier, petitioner corporation is, “for the nature of its business and for reason of public policy,” bound to observe “extraordinary diligence” in the negligence over and for the safety of passengers transported by it (Lausa v NLRC, 187 SCRA 299).

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1) Authorized cause for termination of employment.
In authorize causes for dismissal provide under the provision of Art. 283 of the Labor Code, i. e. termination of employment due to (1) installation of labor savings devices; (2) redundancy; (3) retrenchment tom prevent losses or (4) closing or cessation of operation of establishment (at least 1 month or ½ month salary for every year of service) (for retrenchment to prevent losses and closing of business) (at least, 1 month salary for every year of service, for installation of savings devices and redundancy). Art. 283 a. Installation of labor saving devices b. Redundancy Separation pay at least one month salary or one month salary for every year of services.

Redundancy/Retrenchment Fe Sebuguero, et al v NLRC, G.R. No. 115394, 27 September 1995. Redundancy exists where the services of an employee are in excess of the enterprise. A position is redundant where it is superfluous, and superfluity of a position or position may be the outcome of a number of factors, such as overhiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise (Tierra Int’l. Cons. Corp. v NLRC, 211 SCRA 73 [1992]); Escoreal v NLRC, 213 SCRA 472 [1992]; de Ocampo v NLRC, 213 SCRA 652 [1992]); Almoliel v NLRC, 233 SCRA 341 [1993]). Retrenchment, on the other hand, is used interchangeably with the term “lay-off.” It is the termination of employment initiated by the employer through no fault of the employee and without prejudice to the latter, resorted by management during periods of business recession, industrial depression or seasonal fluctuations, or during lulls occasioned by lack of orders,

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shortage of materials, conversion of plant for a new production program or the introduction of new methods, or more sufficient machinery or of automation (Jose Agaton Sibol, Phil. Legal Encyclopedia, p 502 (1986) or simply put, it is an act of the employer of dismissing an employees because of losses in the operation of a business, lack of work, and considerable reduction on the volume of his business a right consistently recognized and affirmed by this court (LVN Pictures Employees and Workers Asso. V LVN Pictures, Inc, 35 SCRA 147 (1970); Columbia Development Corp. v Minister of Labor and Employment, 146 SCRA 421 [1986]).

Closure or cessation of business – Employer may close or leave his business operations or undertakings even if it is not suffering business losses or financial reverses, as long as he pays his employees termination pay (Catatista v NLRC, 247 SCRA 46).

Choosing whom to retrench – When there is need to reduce the workforce, the management has the right to choose whom to lay off, depending on the work still required to be done and the qualifications of the workers to be retained (Almoite v Pacific Architects, G.R. No. 73680, 10 July 1986

Suspension of operation of business: The temporary lay-off wherein the employees likewise cease to work should also not last longer than six months. After six months, the employees should either be recalled to work or permanently retrenched following the requirement of the law, and that failing to comply with this would tantamount to dismissing the employees and the employer would thus be liable for such dismissal.

Compiled by: Villanueva Zeta Bata and Evangelio Law Offices

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