Category Archives: HR & Labor

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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Private Workplace COVID-19 Prevention and Control: DTI and DOLE Joint Interim Guidelines

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The interim guidelines on workplace prevention and control of the Coronavirus Disease 2019 (COVID-19) for the private sector has been jointly issued by the Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) on 30 April 2020. This is in accordance with the recommendation of the Inter-Agency Task Force on Emerging Infectious Diseases (IATF) for various government agencies to issue guidelines for the public and other stakeholders (see also 5-step guide for employers). The provisions of the interim guidelines are reproduced below.

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Computation/Deferment of Holiday Pay on 1 May 2020 (Labor Day), a Regular Holiday

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[The Department of Labor and Employment (DOLE) issued Labor Advisory No. 15, series of 2020, as guide for the computation of holiday pay for 1 May 2020, Labor Day. Establishments that have totally closed or ceased operations during the enhanced community quarantine are exempted from paying holiday pay. For operating establishments, the payment of holiday pay for Labor Day is deferred. The full text of Labor Advisory No. 15 is reproduced below.]

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Health Care Workers: Temporary Suspension of Deployment Abroad

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Declaring Filipino health care workers as mission critical skills (MCS), the the Philippine Overseas Employment Administration (POEA) temporarily suspended their deployment abroad until the lifting of the national state of emergency and the COVID-19-related travel restrictions. Only recently, a public figure in the United Kingdom acknowledged the contribution of Filipino medical workers in their national health system, and some foreign recruitment agencies ramped up efforts to replenish the depleted number of medical workers in the fight against the Coronavirus Disease 2019 (COVID-19). But Filipino health workers cannot yet leave the country (see also financial aid for displaced OFWs).

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P10,000 for Overseas Filipino Workers under DOLE-AKAP for OFWs

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A one-time financial assistance of Two Hundred US Dollars (US$200) or Ten Thousand Pesos (P10,000), or its equivalent in the local currency of the host country, for displaced Overseas Filipino Workers (OFWs) has been approved. On 8 April 2020, the Department of Labor and Employment (DOLE) issued Department Order No. 212, series of 2020, providing for guidelines on the provisional financial assistance for displaced landbased and seabased Filipino workers due to the Corona Virus Disease (COVID-19). This social amelioration program is called “DOLE-AKAP for OFWs” (separate from the CAMP and TUPAD#BKK for Philippine-based workers). The coverage and application procedure for displaced OFWs, based on D.O. 212, are discussed below.

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Probationary Employment: Non-Inclusion of ECQ Period in Computing the Six-Month Period (Labor Advisory Nos. 14 & 14-A)

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[A probationary employee becomes a regular employee if allowed to work after the standard probationary period of six (6) months. The Department of Labor and Employment (DOLE) clarified that the one-month Enhanced Community Quarantine (ECQ) is not to be included in computing the 6-month period (but note the ECQ extension until 15 May 2020). This is contained in Labor Advisory No. 14, which appears to cover all probationary employees, but it has to be reconciled with the fact that some probationary employees actually worked during the ECQ, either through telecommuting or when their employers perform essential services (see separate discussion). The full text of Labor Advisory No. 14 and Labor Advisory No. 14-A is reproduced below.]

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Deferment and Exemptions of Holiday Pay Due to National Emergency: Labor Advisory No. 13-A

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[The Department of Labor and Employment (DOLE) earlier issued Labor Advisory No. 13 (full text), providing for guidelines on the payment of the double holiday pay on 9 April 2020 (Araw ng Kagitingan and Holy Thursday), regular holiday on 10 April 2020 (Good Friday) and special nonworking day on 11 April 2020. In a subsequent advisory, however, the Labor Secretary ordered the deferment of the payment of holiday pay and exempted certain companies by reason of the lockdown (added: ECQ effectively extended to 30 April 2020, per Memorandum dated 7 April 2020; further extended to May 15 for high-risk areas). The complete text of Labor Advisory No. 13-A is reproduced below.]

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Double Holiday (April 9), Regular Holiday (April 10) and Special Nonworking Day (April 11): Labor Advisory No. 13

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[How do you compute holiday pay on a double holiday? The Department of Labor and Employment (DOLE) issued Labor Advisory No. 13 as guide for the computation of holiday pay for a rare double holiday (Araw ng Kagitingan and Holy Thursday) on 9 April 2020), regular holiday (Good Friday) on 10 April 2020), as well as the special non-working day on 11 April 2020 (see also, list of 2020 holidays). However, take note of the deferment of payment and exemption of coverage per Labor Advisory No. 13-A (full text) by reason of the enhanced community quarantine. The complete text of Labor Advisory No. 13 is reproduced below.]

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