Tag Archives: Philippines

Suspension of Court Hearings and Extension of Deadlines for MECQ and GCQ Provinces/Areas

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The IATF has released the list of areas or provinces under General Community Quarantine (GCQ) and Modified Enhanced Community Quarantine (MECQ) [Update: quarantine classifications from 1 to 15 June 2020]. Given this development, the Supreme Court released the guidelines for provinces/areas under GCQ (Administrative Circular No. 40-2020 for 16-31 May 2020, citing Administrative Circular No. 36-2020 for 1-15 May 2020) and MECQ (Administrative Circular No. 39-2020 for 16-31 May 2020). This post is a consolidation/summary of the two circulars, updated as of 15 May 2020. 

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Authentication of Articles of Incorporation in Registration of Domestic Corporations

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In registering with the Securities and Exchange Commission (SEC), a new domestic corporation must file its Articles of Incorporation, duly signed and “acknowledged or authenticated“,  containing substantially the required matters (see Contents of Articles of Incorporation). Acknowledgement and authentication are done differently, as provided in SEC Memorandum Circular No. 16 dated 29 April 2020 (Re: Guidelines on Authentication of Articles of Incorporation in Applications for Registration of New Domestic Corporations, published on 30 April 2020 in Manila Bulletin and Philippine Star).

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Retrenchment or Downsizing: Authorized Cause in Employment Termination

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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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IATF Omnibus Guidelines for Areas under General Community Quarantine (GCQ)

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A General Community Quarantine (GCQ) refers to the implementation of temporary measures limiting movement and transportation, regulation of operating industries, and presence of uniformed personnel to enforce community quarantine protocols. This definition is provided under Revised Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines dated 29 April 2020, as amended, issued by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF).

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Guidelines for Interzonal Movement during the Community Quarantine

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The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) issued the Revised Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines dated 29 April 2020, as amended, which governs, among others, interzonal movement in, to or from areas under General Community Quarantine (GCQ) and Enhanced Community Quarantine (ECQ). [See Updated Rules on Intrazonal and Interzonal Travel under the Revised Omnibus Guidelines]

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GCQ and MECQ: Community Quarantine Classifications Beginning 16 May 2020

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The classification of provinces, highly urbanized cities (HUCs) and independent component cities (ICCs), beginning 16 May 2020, has been released through Resolution No. 35 dated 11 May 2020 of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF). [Note: See updated list, as of 1-15 June 2020] The classifications are as follows:

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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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