This case has been cited 4 times or more.
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2009-12-23 |
CARPIO MORALES, J. |
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| The losses must be supported by sufficient and convincing evidence,[10] the normal method of discharging which is the submission of financial statements duly audited by independent external auditors.[11] | |||||
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2009-02-04 |
QUISUMBING, J. |
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| For retrenchment to be valid, the following requisites under Article 283 [16] of the Labor Code must concur: (1) necessity of retrenchment to prevent losses and proof of such losses; (2) written notice to the employees and to the Department of Labor and Employment (DOLE) at least one month prior to the intended date of retrenchment; and (3) payment of separation pay equivalent to one month pay or at least ½ month pay for every year of service, whichever is higher. [17] | |||||
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2008-04-14 |
CHICO-NAZARIO, J. |
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| To justify retrenchment, the employer must prove serious business losses.[34] Indeed, not all business losses suffered by the employer would justify retrenchment under Article 283 of the Labor Code.[35] The "loss" referred to in Article 283 cannot be just any kind or amount of loss; otherwise, a company could easily feign excuses to suit its whims and prejudices or to rid itself of unwanted employees.[36] | |||||
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2006-02-22 |
CALLEJO, SR., J. |
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| The prerogative of an employer to retrench its employees must be exercised only as a last resort, considering that it will lead to the loss of the employees' livelihood. It is justified only when all other less drastic means have been tried and found insufficient or inadequate.[48] Moreover, the employer must prove the requirements for a valid retrenchment by clear and convincing evidence; otherwise, said ground for termination would be susceptible to abuse by scheming employers who might be merely feigning losses or reverses in their business ventures in order to ease out employees. The requirements are:xxx (1) that the retrenchment is reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis, but substantial, serious, actual and real, or if only expected, are reasonably imminent as perceived objectively and in good faith by the employer; (2) that the employer served written notice both to the employees and to the Department of Labor and Employment at least one month prior to the intended date of retrenchment; (3) that the employer pays the retrenched employees separation pay equivalent to one month pay or at least ½ month pay for every year of service, whichever is higher; (4) that the employer exercises its prerogative to retrench employees in good faith for the advancement of its interest and not to defeat or circumvent the employees' right to security of tenure; and (5) that the employer used fair and reasonable criteria in ascertaining who would be dismissed and who would be retained among the employees, such as status (i.e., whether they are temporary, casual, regular or managerial employees), efficiency, seniority, physical fitness, age, and financial hardship for certain workers.[49] | |||||