TERMINATION OF EMPLOYMENT

[Authorized Causes of Termination of Employment (Art. 283-284]

Employer may also terminate the employment of an employee due to:

Installation of labor-saving devices Redundancy Retrenchment Closure of the establishment Disease

The reduction of the number of workers in a companys factory made necessary by the introduction of machinery in the manufacture of its products.

 Written notice should be given also to the employee to be affected and the DOLE within 1 month before the intended date. Employee shall be entitled to a separation pay equivalent to at least one month (1) pay or at least (1) month pay for every year of service, which ever is higher.

Exists where the services of an employee are in excess of what is reasonably demanded by the actual requirement of the enterprise.

 There is a over hiring of workers Decrease of volume of business Dropping of a particular product line or service previously being undertaken

 Written notice should be given also to the employee to be affected and the DOLE within 1 month before the intended date. The worker affected shall be entitled to a separation pay equivalent to at least one month (1) pay or at least (1) month pay for every year of service, which ever is higher.

A mode of termination which the employer, based on economic grounds, may use to AVOID or MINIMIZE business losses.

 It must be necessary to prevent or minimize losses and such losses are proven; Written notice is given to the employee and the Department of Labor and Employment at least one month before the intended date of retrenchment If not due to serious financial loss separation pay is paid equivalent to (1) month or at lease (1/2) month pay for every year of service, which ever is higher

 Retrenchment must be done in good faith Employer uses fair and reasonable criteria in ascertaining who will be dismissed or retained

 Lack of work Business Recession Other supervening event that justifies the retrenchment of employees.

 To prevent losses Standards which justify retrenchment Effects of unjustified retrenchment

Redundancy results from the fact that the position of the employee has become a superfluous, an excess over what is actually needed, even if the business has not suffered reverses. the separation pay in redundancy is higher

Retrenchment retrenchment is linked with losses; it is a cost cutting measure made immediately necessary by business reduction or reverses.

Separation pay is lower

 Written notice should be given also to the employee to be affected and the DOLE within 1 month before the intended date. retrenchment not due to serious business losses or financial reverses, the worker affected shall be entitled to a separation pay equivalent to at least one month (1) pay or at least (1/2) month pay for every year of service, which ever is higher.

 Employer may terminate the services of his employee in case of the closure of business as a result of a grave financial loss. This contemplates a situation where the enterprise totally shuts down its operations

 Service of a written notice to the employee and to the DOLE at least 1 month before the intended date thereof; The cessation or withdrawal of the business must be for bona fide in character Payment of employee of termination pay amounting to at least month pay for each year of service, or 1 month pay, whichever is higher, unless the closure is for serious financial loss.

 Justification for closure not credible when in fact there was no indeed not substantial enough as to warrant closure. When there has been unfair labor practice when closure was effected to avoid entering into a collective bargaining or to defeat the right of the employees to self organize.

 Is the transfer, conveyance or assignment of the interest of the previous employer to a new entity.

 If the sale is tinged with bad faith, unfair labor practice will may make the doctrine of successor employee doctrine applicable.

 This happens between the absorbing corporation and the employee of the absorbed corporation.

 If the employee suffers from a disease and his continued employment is prohibited by law or prejudicial to his health or to he health of his co employees

 there is a certification by a competent public health officer that the disease is in a nature or at a stage that it cannot be cured within a period of six months even with proper medical treatment. He is paid separation pay equivalent to at least 1 month salary or month salary for every year of service, which ever is greater, a fraction of at least 6 months being considered as one year.

 Giving of notice is indispensable to apprise the employee that he is being lay-off and the reason for it. Also that he can properly prepare to look for a new job to which he may transfer The giving of separation pay is also necessary as to lessen the burden of the employee being lay-off for his and his familys support