This case has been cited 3 times or more.
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2006-02-28 |
SANDOVAL-GUTIERREZ, J. |
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| In Trendline Employees Association-Southern Philippines Federation of Labor v. NLRC,[5] we enumerated the requisites of retrenchment, thus:To be valid, three requisites must concur, as provided in Article 283 of the Labor Code, as amended, namely: (1) The retrenchment is necessary to prevent losses and the same is proven; (2) Written notice to the employees and to the DOLE at least one month prior to the intended date thereof; and (3) Payment of separation pay equivalent to one month pay or at least 1/2 month pay for every year of service, whichever is higher. | |||||
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2006-02-22 |
CALLEJO, SR., J. |
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| Retrenchment is defined as the termination of employment initiated by the employer through no fault of the employee and without prejudice to the latter, resorted by management during periods of business recession, industrial depression or seasonal fluctuations or during lulls over shortage of materials. It is a reduction in manpower, a measure utilized by an employer to minimize business losses incurred in the operation of its business.[45] Explaining the import of the phrase "to prevent losses," this Court held in Lopez Sugar Corporation v. Federation of Free Workers,[46] thus:In its ordinary connotation, the phrase "to prevent losses" means that retrenchment or termination of the services of some employees is authorized to be undertaken by the employer sometime before the losses anticipated are actually sustained or realized. It is not, in other words, the intention of the lawmaker to compel the employer to stay his hand and keep all his employees until sometime after losses shall have, in fact, materialized; if such an intent were expressly written into the law, that law may well be vulnerable to constitutional attack as taking property from one man to give to another. This is simple enough.[47] | |||||
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2005-02-11 |
SANDOVAL-GUTIERREZ, J. |
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| In Trendline Employees Association-Southern Philippines Federation of Labor vs. NLRC,[11] we enumerated the requisites of retrenchment, thus:"To be valid, three requisites must concur, as provided in Article 283 of the Labor Code, as amended, namely: (1) The retrenchment is necessary to prevent losses and the same is proven; (2) Written notice to the employees and to the DOLE at least one month prior to the intended date thereof; 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." | |||||