Category Archives: Termination

Three basic requisites for a valid retrenchment

Under Article 283 of the Labor Code, there are three (3) basic requisites for a valid retrenchment, namely: (a) proof that the retrenchment is necessary to prevent losses or impending losses; (b) service of written notices to the employees and … Continue reading

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Two requisites to justify loss of trust and confidence as a ground for termination

Article 282 of the Labor Code states: ART. 282. TERMINATION BY EMPLOYER. – An employer may terminate an employment for any of the following causes: (a) Serious misconduct or willful disobedience by the employee of the lawful orders of his … Continue reading

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The offense of willful disobedience requires the concurrence of two (2) requisites

LREI and Sumulong argue that Pacia’s refusal to obey the directives of Sumulong was a “manifest intent not to perform the function she was engaged to discharge.”[15] They are of the position that Pacia’s claim of “good intentions” in refusing … Continue reading

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In cases where there is no evidence of dismissal, the remedy is reinstatement but without backwages.

In   cases where there   is  no   evidence   of   dismissal, the   remedy is reinstatement but without backwages. In this case, both the Labor Arbiter and the NLRC made a finding that there was no dismissal … Continue reading

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Validity of Retrenchment

The Court of Appeals ruled that there was no valid cause for retrenchment. The Court of Appeals noted that while Plastimer claimed financial losses from 2001 to 2004, records showed an improvement of its finances in 2003. http://sc.judiciary.gov.ph/jurisprudence/2011/february2011/183390.html We do … Continue reading

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One-Month Notice of Termination of Employment

Article 283 of the Labor Code provides: ART. 283. 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 or … Continue reading

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If the dismissal is based on an authorized cause under Article 283 but the employer failed to comply with the notice requirement, the sanction should be stiffer because the dismissal process was initiated by the employer’s exercise of his management prerogative. The dismissed employee is entitled to nominal damages and separation pay.

Although the Court finds Culili’s dismissal was for a lawful cause and not an act of unfair labor practice, ETPI, however, was remiss in its duty to observe procedural due process in effecting the termination of Culili. We have previously … Continue reading

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