Authorized Causes

Question 1

In essence what is redundancy?

Answer 1

An excess of people, so then there must be a criteria for choosing.

Question 2

What is the criteria for choosing?

Answer 2

We have held that it is important for a company to have fair and reasonable criteria in implementing its redundancy program, such as but not limited to,

(a) preferred status,
(b) efficiency and
(c) seniority.

Question 3

What is retrenchment?

Answer 3

Based on losses or perceived losses. Maybe this year I’m fine but next year lugi na.

The difficulty is in justifying the forecast.

Question 4

Redundancy Elements

Answer 4

1. Written Notice to DOLE and Employees (1 month before)
2. Payment of Separation Pay
3. Good Faith in Abolishing position
4. Criteria

Question 5

Retrenchment Elements

Answer 5

1. Substantial losses
2. Reasonably Imminent and Good Faith
3. Will Prevent
4. Evidence

Question 6

What is the best proof of business losses?

Answer 6

Audited Financial Statements

Question 7

Closure or Cessation NOT serious (Elements)

Answer 7

1. Notice
2. Withdrawal bona fide
3. Termination pay

Question 8

What happens if redundated employees are rehired?

Answer 8

Context matters. If new employees are immediately hired to fill the position it’s sketchy.

You cannot REPLACE after redundancy.

Question 9

Loss of Trust and Confidence Elements

Answer 9

1. Position of Trust
2. Act
3. Loss of property(if rank and file)

Question 10

2 types of positions of trust

Answer 10

1. Managerial

2. Handle significant amounts of money