Category Archives: HR & Labor

Work Schedules: Options for Employers/Companies During or After the Community Quarantine Period

The coronavirus disease 2019 (Covid-19) pandemic poses a very serious threat to lives and businesses alike. The lockdown or community quarantine, particularly the enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ), closed down many establishments. Here are some of the options for employers/establishments:

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Employment Preservation, Alternative Work Schemes, Flexible Work Arrangements, Wage and Benefits on Resumption of Business Operations

The Department of Labor and Employment (DOLE) issued Labor Advisory No. 17, series of 2020, providing for Guidelines on Employment Preservation Upon the Resumption of Business Operation. The Advisory applies to all employers and their employees regardless of employment status in the private sector operating or allowed to resume business operations under enhanced community quarantine (ECQ), general community quarantine (GCQ), or other quarantine arrangements.

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Labor Advisory No. 17: Guidelines on Employment Preservation Upon the Resumption of Business Operation

[The Department of Labor and Employment (DOLE) issued Labor Advisory No. 17, series of 2020, on theĀ Guidelines on Employment Preservation Upon the Resumption of Business Operation. See Summary and Commentary. See also Labor Advisory No. 17-A (Establishment Report Form) and Labor Advisory No. 18. The full text of Labor Advisory No. 17 is reproduced below.]

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Retrenchment or Downsizing: Authorized Cause in Employment Termination

Retrenchment refers to the economic ground for dismissing employees and is resorted to primarily to avoid or minimize business losses. Like redundancy, it is a form of downsizing. Retrenchment and redundancy are valid management prerogatives, provided they are done in good faith and the employer faithfully complies with the substantive and procedural requirements laid down by law and jurisprudence.

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Closure or Cessation of Operation: Authorized Cause in Employment Termination

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)

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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