The 2009 Philippine Blog Awards

Thursday, January 15, 2009

LABOR LAWS: Redundancy - Twin Notice Requirement


Background:

An employee is stepping out of employment via a clear case of redundancy, a recognized Authorized Cause under the Philippine Labor Code, which the employee whole heartedly accepted when she was verbally informed three months before the effectivity. The Human Resource, however, was belatedly notified,(only a few days before the effectivity of the redundancy)of the company's decision to declare the employee redundant. Redundancy arise where a business continues to operate but there is no longer a need for the skills for which the employee was taken on. Redundancy may also arise if an employer reorganises the business to improve its efficiency, so that fewer people are needed to do the same amount of work.

The Labor Code provides that in cases of Redundancy, a notice to the employee and to the Department of Labor and Employment (DOLE) must be given 30-days prior to the effectivity of the termination.


Issues:

Whether or not the notice to the DOLE can be waived by the redundant employee or can it be subject of an agreement?

Ruling:

No. The 30-day notice to the DOLE cannot be waived. It has to be observed strictly so as not to invite scrutiny from the DOLE on why the employee is being terminated for Redundancy effective immediately.