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TERMINATION OF

EMPLOYMENT

[Authorized Causes of

Termination of Employment (Art.283-284]

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Employer may also terminate the employment of

an employee due to:

Installation of labor-saving devices Redundancy

Retrenchment

Closure of the establishment

Disease

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The reduction of the

number of workers in a

companys factory madenecessary by the

introduction of

machinery in the

manufacture of its

products.

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Exists where the

services of an

employee are inexcess of what is

reasonably

demanded by the

actual requirement

of the enterprise.

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There is a over hiring of

workers

Decrease of volume ofbusiness

Dropping of a particular

product line or servicepreviously being

undertaken

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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 forevery year of service, which ever is higher.

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A mode of termination

which the employer,

based on economicgrounds, may use to

AVOID or MINIMIZE

business losses.

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It must be necessary to prevent or minimizelosses and such losses are proven;

Written notice is given to the employee and

the Department of Labor and Employment atleast one month before the intended date ofretrenchment

If not due to serious financial loss separationpay is paid equivalent to (1) month or at lease(1/2) month pay for every year of service,which ever is higher

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Retrenchment must be

done in good faith

Employer uses fair andreasonable criteria in

ascertaining who will be

dismissed or retained

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Lack of work

Business Recession

Other superveningevent that justifiesthe retrenchment of

employees.

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To prevent losses

Standards which justify

retrenchment Effects of unjustified

retrenchment

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Redundancy Retrenchment

results from the fact that the positionof 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 ishigher

retrenchment is linked with losses; it isa cost cutting measure made

immediately necessary by business

reduction or reverses.

Separation pay is lower

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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 atleast (1/2) month pay for every year of

service, which ever is higher.

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Employer may terminate the

services of his employee in

case of the closure ofbusiness as a result of a

grave financial loss.

This contemplates a situationwhere the enterprise totally

shuts down its operations

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Service of a written notice to the employeeand to the DOLE at least 1 month before theintended date thereof;

The cessation or withdrawal of the businessmust be for bona fide in character

Payment of employee of termination pay

amounting to at least month pay for eachyear of service, or 1 month pay, whichever ishigher, unless the closure is for seriousfinancial loss.

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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 todefeat the right of the employees to self

organize.

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Is the transfer,

conveyance or

assignment of theinterest of the

previous employer to

a new entity.

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If the sale is tinged with

bad faith, unfair labor

practice will may make

the doctrine of

successor employee

doctrine applicable.

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This happens between

the absorbing corporation

and the employee of the

absorbed corporation.

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If the employee suffers

from a disease and his

continued employmentis prohibited by law or

prejudicial to his health

or to he health of his co

employees

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there is a certification by a competent publichealth officer that the disease is in a nature orat a stage that it cannot be cured within a

period of six months even with propermedical treatment.

He is paid separation pay equivalent to atleast 1 month salary or month salary for

every year of service, which ever is greater, afraction of at least 6 months being consideredas one year.

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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 hemay transfer

The giving of separation pay is also

necessary as to lessen the burden of theemployee being lay-off for his and his

familys support