Author Archives: Atty.Fred

About Atty.Fred

Atty. Fred Pamaos is a member of P&L Law (click on photo/name for profile). No legal advice is given in this forum. For other questions, use the "Contact Us" link.

Closure or Cessation of Operation: Authorized Cause in Employment Termination

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The first sentence of Article 298 (formerly 283) of the Labor Code provides that “[t]he employer may also terminate the employment of any employee due to . . . retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking.” At first glance, there may be an erroneous impression that the closure of the business must be predicated on business loses. This is discussed below, together with the requisites for a valid termination due to closure of business or cessation of operation.

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On the One-Month Extension of Probationary Period during Enhanced Community Quarantine (ECQ)

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In Labor Advisory No. 14 dated 30 March 2020, the Department of Labor and Employment (DOLE) declared that “[f]or purposes of determining the six-month probationary period, the one-month ECQ period is not included.” ECQ refers to the Enhanced Community Quarantine, which is distinct and separate from a General Community Quarantine (GCQ).

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Redundancy: Authorized Cause in Employment Termination

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Redundancy refers to the condition when the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise or superfluous. It is akin to retrenchment, which is another form of downsizing. There is, however, a crucial distinction — serious business losses is indispensable in retrenchment. Even if a business is doing well, an employer can still validly dismiss an employee from the service due to redundancy if that employee’s position has already become in excess of what the employer’s enterprise requires.

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Separation Pay in Employment Termination and Resignation in the Philippines

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Separation pay may refer to two distinct labor-related concepts, to wit: (a) separation pay in lieu of reinstatement in illegal dismissal cases; and (b) separation pay in cases of termination based on authorized causes. Before discussing these concepts, we dispose of two issues connected with separation pay. First, the payment of separation pay is not a ground for termination; without a just or authorized cause, the dismissal is illegal notwithstanding the payment of separation pay. Second, an employee who voluntarily resigns is not entitled to separation pay, except when granted by the company or expressly provided in the company policy or Collective Bargaining Agreement (CBA).

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Both Legislative Franchise and NTC Permit (CPC) Required for Television and Radio Stations