A Recap on Labor Code of the Philippines: Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. +++ Adequate Proof of Redundancy It is the employer’s burden to show that redundancy exists. It is not enough for a company to merely declare that it has become overmanned. It must produce adequate proof of such redundancy to justify the dismissal of the affected employees (Asufrin vs. San Miguel Corporation, 2004). Evidence must be presented to substantiate redundancy such as but not limited to the new staffing pattern, feasibility studies/proposal, on the viability of the newly created positions, job description and the approval by the management of the restructuring (Panlilio vs. NLRC, 1997). +++ Requirements of a Valid Redundancy Program: The employer must comply with the following requisites to ensure the validity of the implementation of a redundancy program: (1) A written notice served on both the employees and the Department of Labor and Employment (DOLE) at least one month prior to the intended date of retrenchment as required by the Labor Code; (2) Payment of separation pay equivalent to at least one month pay or at least one month pay for every year of service, whichever is higher; (3) Good faith in abolishing the redundant positions; and Fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished. (See Caltex vs. NLRC, 2007, ) Source: laborlaw.usc-law.org/2010/01/24/redundancy/
Posted on: Tue, 02 Jul 2013 23:17:22 +0000
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