Dismissal of an employee on the ground of redundancy

Dismissal of an employee on the ground of redundancy
PERSIDA ACOSTA October 9, 2018 https://www.manilatimes.net/dismissal-of-an-employee-on-the-ground-of-re...

Dear PAO,

My brother was hired by a manning agency engaged in recruitment and deployment of seamen as a cargo checker officer. Prior to his employment, the said manning agency hired two cargo checkers who have the same functions as my brother. After one month, my brother received a notice from the agency that his services will be terminated on the ground of redundancy. He was given one week to finish all his work and to leave the company.

My brother received his separation pay on the same week. We already went to the Department of Labor and Employment (DOLE) and reported to them what happened to my brother. The officer from DOLE told us that they were not aware of the incident since it was not reported to their office. Did the manning agency validly dismiss my brother on the ground of redundancy? I will wait for your answer.
Thank you very much,

Jefferson

Dear Jefferson,
To answer your question, we shall refer to the Labor Code of the Philippines which contains a provision that specifically applies to your question. Article 283 of the said law provides:

“Art. 283. Closure of establishment and reduction of personnel. – The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one month pay or to at least one month pay for every year of service, whichever is higher. xxx” (Emphasis supplied)

It is clear from this provision that there must be a written notice sent to the employee and to the Department of Labor and Employment at least one (1) month prior to the intended date of the dismissal of the employee. In the case of Ocean East vs. Lopez (G.R. No. 194410, October 14, 2015), the Supreme Court through Honorable Associate Justice Diosdado Peralta stated:

“For the implementation of a redundancy program to be valid, the employer must comply with these requisites: (1) written notice served on both the employee and the Department of Labor and Employment at least one month prior to the intended date of retrenchment; (2) payment of separation pay equivalent to at least one month pay or at least one month pay for every year of service, whichever is higher; (3) good faith in abolishing the redundant positions; and (4) fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished.”

Applying the abovementioned decision in your case, the manning agency that recruited and employed your brother violated Article 283 of the Labor Code. Clearly, it failed to comply with the first, third and fourth requisites for a valid implementation of a redundancy program, thereby making it liable for the illegal dismissal of your brother.

This opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or further elaborated. We hope that we were able to enlighten you on the matter.