Redundancy Concept

Redundancy is one of the authorized causes for termination of employment under Article 283 of the Labor Code of the Philippines.

Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. A position is redundant where it superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased of volume business, or dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise.

In Wiltshire, the Court held that an employer has no legal obligation to keep on the payroll employees more than the number needed for the operation of the business. (See Wiltshire File Co., v. NLRC, 1991; Coats Manila Bay vs. Ortega, 2009)

Adequate Proof of Redundancy

It is the employer’s burden to show that redundancy exists. It is not enough for a company to merely declare that it has become overmanned. It must produce adequate proof of such redundancy to justify the dismissal of the affected employees (Asufrin vs. San Miguel Corporation, 2004).

Evidence must be presented to substantiate redundancy such as but not limited to the new staffing pattern, feasibility studies/proposal, on the viability of the newly created positions, job description and the approval by the management of the restructuring (Panlilio vs. NLRC, 1997).

Requirements of a Valid Redundancy Program

The employer must comply with the following requisites to ensure the validity of the implementation of a redundancy program:

  1. A written notice served on both the employees and the Department of Labor and Employment (DOLE) at least one month prior to the intended date of retrenchment as required by the Labor Code;
  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. (See Caltex vs. NLRC, 2007, )

Separation Pay

In case of termination due to redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.

Proof of Losses Not Required

Redundancy does not require the exhibition of proof of losses or imminent losses. In fact, of all the statutory grounds provided in Article 283 of the Labor Code, it is only retrenchment which requires proof of losses or possible losses as justification for termination of employment. (See Coats Manila Bay case.)

Duplication of Work Not Necessary.

Redundancy does not necessarily refer to duplication of work. That no other person was holding the same position prior to the termination of the employee’s services does not mean that his position had not become redundant. Indeed, in any well-organized business enterprise, it would be surprising to find duplication of work and two or more people doing the work of one person. (See Wiltshire case.)

In redundancy, what is looked into is the position itself, the nature of the services performed by the employee and the necessity of such position. (Tierra International Construction Corp. vs. NLRC, 1992)

Redundancy Arising from Contracting Out of Labor

In several cases, the court upheld the dismissal on ground of redundancy even when the employer contracts out the services of another company to perform the same task as the redundant positions. Contracting out of labor has been held as a valid management prerogative. (See De Ocampo vs. NLRC, 1992; Serrano vs. NLRC, 2000.)

Cases

  1. The employer was engaged in the production of wooden doors and furniture. The complainants who were hired as mechanics were terminated by the employer when their positions were abolished, and contracted out to Gemac Machineries. The dismissal is proper. In contracting the services of Gemac, which the company has the right to do, the services rendered by the mechanics became redundant and superfluous, and therefore properly terminable. (De Ocampo vs. NLRC, G.R. No. 101539 September 4, 1992.)
  2. As a result of the phasing-out of the company’s security section, and contracting out the same with an independent contractor, the services of the complainant as head of the security checker’s section, was terminated. The termination was for an authorized cause, i.e., redundancy. (Serrano vs. NLRC, G.R. No. 117040. January 27, 2000.)

Last Edited: Friday, August 19, 2011

Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.
authorized causes, grounds for dismissal, redundancy, retrenchment, Termination of Employment
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46 comments

  1. Pls furnish me a copy or sample of redundancy program

    [Reply]

  2. please furnish me a copy or sample of redundancy program

    [Reply]

  3. Sonny Agoncillo Comment:
    September 26th, 2010 at 11:46 pm

    Please reply to my question whether allowances should be included in the computation of the separation pay.

    [Reply]

    Ted Ferrolino Reply:

    Normally, only the basic salary of the employee is taken into account in the computation of separation pay. However it has been held in a number of cases that regular allowances and allowances that are deemed included in basic salary should also be included in the computation.

    [Reply]

  4. Antero Realista Comment:
    November 28th, 2010 at 09:10 am

    with all due respect please consider reviewing the ARTICLE 287 – Retirement (linked from Article 283 of the Labor Code of the Philippines). For the second paragraph, the word \employer\ seemed to be unfit to relay the bona fide thought of that particular law. If I may suggest changing the word \employer\ to \employee\. The word \employee\ seemed to be more accurate to reflect the true intention of the said article

    Thank you very much. Have a nice day.

    [Reply]

    Ted Ferrolino Reply:

    Noted. Thanks for the input.

    [Reply]

  5. Sir Ted,

    Am currently working in call center. Currently employed and unfortunately, the current client did not renew the contract. In this industry, agents either CSR, TSP or TSR are distributed among various accounts. However, when at times an account reach \EOL\, end of life, HR takes several actions. One of which is a waiver for Temporary Reserve Status.

    Let me give you some background, before I detailed my questions. We were notified Wed, May 11, 2011 that the account will be on EOL effective June 30. They are aware that their responsibility is to place us on new existing account and will enjoy the same benefits for lateral movement, (same job grade) or promotion (higher job grade). They clarified in the waiver that after June 30, 2011 the company will not pay us, in effect of \no work, no pay policy\. Thus, the duration for reserve status will start from July 1 until December 2011, to complete the 6 month period prescribed by law.

    Note that company has listed openings in other account and can accomodate the number of individuals in the Temporary Reserve Status’ list. Though, placement will pass through hiring that includes evaluation of existing benefits, skills and annual performance evaluation. To add, HR allows to find a job outside the company but notice did not stipulate if its limited to non-competitor of same industry or not.

    Questions:
    1. What is the legal term for Temporary Reserve Status and its closeness to Lay off, Redundancy, Retrenchment (temporary or permanent)? Which specific portion of Labor Code , it is closely tied?

    2. Does signing the waiver that stipulates that we will not receive pay afer June 30 2011, make it legally binding or is this action legal in any labor code or related provisions?

    3. In case it is not legally binding, can one demand a retroactive pay until a placement has been made? The employee is fit to work yet the placement process is taking too long.

    4. If permanent retrenchment will apply, should I get 1/2 month or 1 month pay times the years of service (redundancy pay)? Who determines this? NLRB or Labor Code itself?

    5. Is there a way to retract the waiver if already signed? Until when and on what grounds?

    Any of these questions answered will be highly appreciated. My subsequent questions will depend on your response. Maraming Salamat. Ang inyong maagang pagtugon ay napakalking tulong.

    [Reply]

  6. how can i get in touched with you? i have several questions to make regarding this redundancy Thanks

    [Reply]

    Ted Ferrolino Reply:

    Hi Myra! You may use the Contact page to reach me. Thank you.

    [Reply]

  7. Hi,

    I was given notice that my position is redundant. I signed the document August 3rd and was given ’til September 3 to complete/transition pending projects. September 3rd is supposed to be my last at work. On August 19th though, I was given another notice that they have decided to keep me in the same role, apparently I was still needed on the job. Am I supposed to accept it just like that and continue on with the job after getting really demoralised and tormented mentally and emotionally? Do I have the liberty to refuse to take my job back? What happens to the redundancy document that I signed? What happens to the severance package that they initially offered, A) If I refuse to continue on with my job, and B) If I agreed to keep my employment? Am I entitled to at least any amount for the moral damages that they caused me?

    [Reply]

    Ted Ferrolino Reply:

    (1) I suggest that you consult a lawyer first if you intend not to continue with your employment. I can’t comment on this matter because I have not seen what documents you actually signed.

    (2) If you decide to keep your employment, you are no longer entitled to severance benefit because there will be no more severance of employment to speak of.

    (3) As to moral damages, normally, you will need to prove bad faith to claim it. That is, you need to have clear proof to show that your employer acted with malice or bad faith in giving you the notice of termination.

    [Reply]

  8. Nestor Anson Comment:
    October 4th, 2011 at 08:50 pm

    Hi sir Ted,

    I was terminated due to redundancy effective June 30, 2011 with a letter saying the position is redundant. they did not give me copies of those why redundancy came upon.

    Questions :

    1. Until now I did not receive my last pay and it was more than three months had passed from the date I received the letter and I did not received even a single cents. Can I demand my salary of the three months from July to Sept? Is it the redundancy last pay should be real time or should be given no later than one month?

    2. I just received the letter and signed as Received Only and said to me that I will just receive the letter but not to conform. Is it valid to demand that until now I am still employed?

    3. Can I sign on the Quit Claim and put notation that I have still balance to claim since there are still pending balances? If ever they dont want to pay me more on the balance can I demand for it?

    Regards,

    [Reply]

  9. hi! atty.
    i receive a termination letter from my company, on oct.25,2011 start up to nov.25,2011 the termination letter herewith the following.

    “in excess of the requirements of the service the company provides.your position are declared REDUNDANT as they are:
    1. in excess of what is reasonable demanded by the actual requirements of the company.
    2. superfluous
    3. is an outcome of the dropping of a service activity previously undertaken by the company.

    ang tanong ko po atty. ay ibigay ba sa akin yung separation pay sa araw ng itinakda nilang petsa ng termination ended date nov.25,2011 o kailangan pa ako mag file ng complain sa dole,para makuha itong separation pay.
    A. ang separation computation at backwages magkaiba po ba? ang pag compute o separation pay lang at included na doon yung backwages.

    at kasalukuyan ko po pinapasukan itong remaining days na natitira sa itinakdang petsa ng termination.
    ibibigay po ba ng office yung sasahurin ko sa araw ng payday,o isama na nila sa separation pay kung mayroon man.

    god bless

    [Reply]

  10. Hi. Once notice of redundancy is served, what is the standard procedure? Do we let them go back to their jobs until the effectivity date, and pay them both salary and separation pay on that date? What I am aware of is that usually, payment is given on the same day the notice is released and employee is asked to go out on the spot.Need your input please. Maraming salamat!

    [Reply]

  11. Hi Atty!

    I am working in a QSR business, i was initially in the store operation then promoted in a position in the main office. Unfortunately last July, 2011 the company declared redundancy and my position was declared redundant. We were 4 handling the same position, 2 were retained, the other one was terminated and paid. I was the only one returned back to the operation. There was no explanation regarding the selection process and i have not received any document or notice of my status. When i asked the HR about it they can’t explain what was the criteria in the selection. Am i treated unfair?

    Thanks

    [Reply]

  12. Sir/Madam,

    I am an Indian.
    I really need help here. I have been with my company for over 5 years now. I started to work with the company on July 2006. April 2009, my company sent me to the Philippines to transition a project here. After six months of staying in the Philippines (still as an Indian employee), i was made an offer by the employer to become a Philippine employee but still with the same company (since it is an MNC). Now i am being informed that they are in excess of manpower and would want to terminate my contract on grounds of redundancy. Moreover i was informed that i will be provided the redundancy amount propotional to the number of years i have spent in Philippines as a Philippine Employee only and not for my entire tenure with the company.

    Please help me…

    [Reply]

  13. jbmayson Comment:
    May 2nd, 2012 at 12:04 pm

    hi Atty,

    my case is I am due for separation of my company due to redundancy of our position. now they have given as an offer a separation package 15yrs bellow in-service 175% and 15 yrs above 200% your lent of service be multiplied by your basic salary. my question base on the art.#283 stated that a fraction of 6 month will be considered as 1 yr. my situation is that my lent of service that start from my probationary til present will be 14.9 years already. my question is am I entitled for the 200% package? since im only short of 3 months to be in 15 yrs in service. hoping for your idea regarding my case. ty

    [Reply]

  14. Hi sir,

    Is it a requirement that the company will deduct our current loans to SSS and Pag-ibig from our last pay? Our concern is what if they won’t be able to remit said payments (just like what happened to some of our co-employees before…)? Do we have the right to personally pay our dues to SSS and PAG-IBIG after our redundancy? Ty.

    [Reply]

  15. Hi Sir!

    Is it a requirement that our loans to SSS and Pag-ibig be deducted from our last pay? Our concern is what if they won’t be able to remit said payment (just like what happened to our co-employees before…)? Do we have the right that we personally pay our dues after our redundancy? Ty.

    [Reply]

  16. Good Day! Legally how long should I wait before I can receive my Redundancy Pay? It has been more than 2 months already and as per the HR Personnel it is not signed yet because it is the prerogative of the Company’s COO. Please help.

    [Reply]

  17. Hi,

    Would like to know what is used to compute separation pay; basic salary or gross salary or net salary?

    [Reply]

  18. benjamin a.matira Comment:
    October 17th, 2012 at 03:04 pm

    konstrak intl terminated my services due to redundancy last sept 4 2012.my separation pay was supposedly release on oct.5 2012.but twice,the company asked for an extension due to lack of fund as they claimed.last oct 16.i was instructed to report at dole office at cainta by konstrak hr
    to recieve my separation pay fpr 3 years of service.but hours passed and no konstrak representative shown up and instead i recieved a call from hr dept and informed mr that my claims is hold and will not be released by the management due to ongoing audit at the site and charges will be filed against me soon.
    what shall i do.please help.

    [Reply]

  19. R E Hi atty.

    I’m a regular employee po and now pregnant. Pede po ba nila ako tanggalin dahil redundant yung position ko? May 1 vacant position po for assistant pero hindi nila binigay saken dahil daw po akoy buntis… hope you can advise. I need my job now.

    Thanks

    [Reply]

  20. Hi,

    My employer illegally dismissed me, but I preferred not to sue him since after several discussions, he said that he’s willing to give me my severance pay. But just today, I was told that he’s planning to revoke it. I don’t want to work with him anymore and in this company ’cause our relationship is already strained. Can I refuse if he does revoke it?

    [Reply]

  21. Andrew Gonzales Comment:
    December 20th, 2012 at 01:32 pm

    Good day sir

    after being given notice -30 days and completion of clearance, how many days should it take the company to
    release backpay ?

    our 13th month wasnt also given yet HR said it will be
    included with the payout …Oct 9 to Nov 10 2012 was the date …but till now Dec 20 2012 the payout wasnt yet released.

    [Reply]

  22. I was terminated by my foreigner employer through text only., and his reason is he’s going to close his business.. at first he let me work from 5 days schedule to 2 days schedule. and a week ago he told me that i’m fired without any written notice, after he terminated me, he gave me my separation pay, after a week of terminating me, but he give me some papers to signed, It was QUIT CLAIMS / RELEASE CLAIM,is it right for them to let me signed with that document? after they terminated me.. he told me that his business will be close 20 days upon terminating me, a few days I’ve visited his business he hired 2 new employees and his business is still operating.. I’m 1 year and 3 months working as his crew..

    [Reply]

  23. monina cacanindin Comment:
    April 24th, 2013 at 03:08 pm

    HI Good day,

    ako po ay 22 yrs and 5months na sa isang logistics company. meron po kaming naririnig na lahat daw po ng tenure ay tatanggalin na po pagkatapos nilang mag release ng Bonus & Increase. april 15,2013 ay bigayan po ng Bonus and Increase namin. subalit ang akin lang pong pinirmahan ay sa Bonus. Meron po akong isang kasamahan na nagtanong kung bakit po kaming 5 tenure ay walang na received na increase. sa pagpapaliwanag po sa kanya ay sa kadahilanang malaki na daw po ang salary namin subalit kami po ay isang rank & file lang. wala pa pong formal na pakikipag usap sa amin kung kelan po ang final decision ng company. sa aking pong naririnig kaya po hindi pa kami kinakausap ay sa dahilang hindi pa po nila alam kung ano ang ibibigay na rason para sa plano nilang pagbabawas ng tenure.dahil po kung retrenchment ay hiring pa po kami, kung redundancy naman po ay bagong transfer lang po ako sa team ko. Ano po bang ibig sabihin ng “WHICH EVER IS HIGHER” pano po ang computation nun. ano po ba ang dapat naming gawin kapag kami ay kinausap na. Maraming salamat po.

    [Reply]

  24. Sir Ted,
    I am currently working in call a center. Currently employed and unfortunately, the current client did not renew the contract. In this industry, agents either CSR, TSP or TSR are distributed among various accounts. However, when at times an account reach \EOL\, end of life, HR takes several actions. One of which is a waiver for Temporary Reserve Status.
    Let me give you some background, before I detailed my questions. We were notified on April 15, 2013 that I will be on reserve effective May 15. They are aware that their responsibility is to place us on new existing account and will enjoy the same benefits for lateral movement, (French support) or promotion (higher job grade). They clarified in the waiver that after May 15, 2013 the company will not pay us, in effect of “no work, no pay policy”. Thus, the duration for reserve status will start from May 16 until November 15, to complete the 6 month period prescribed by law.
    Note that company has listed openings in other account but they don’t have a French account that will accomodate my skills and salary (ie. Language premium allowance) Though, placement will pass through hiring that includes evaluation of existing benefits, skills and annual performance evaluation.
    Questions:
    1. What is the legal term for Temporary Reserve Status and its closeness to Lay off, Redundancy, Retrenchment (temporary or permanent)? Which specific portion of Labor Code , it is closely tied?
    2. Does signing the waiver that stipulates that we will not receive pay afer May 15, 2013, make it legally binding or is this action legal in any labor code or related provisions?
    3. In case it is not legally binding, can one demand a retroactive pay until a placement has been made? The employee is fit to work yet the placement process is taking too long.
    4. If permanent retrenchment will apply, should I get 1/2 month or 1 month pay times the years of service (redundancy pay)? Who determines this? NLRB or Labor Code itself?
    5. Is there a way to retract the waiver if already signed? Until when and on what grounds?

    [Reply]

    Atty. J Reply:

    1. Closest would be lay off but there is no provision on temporary lay off in the labor code.
    2. There are no specific rule on this, but if lay-off exceeds 6 months, you may consider yourselves as dismissed employees (illegally).
    3. If you NLRC/court declares that you have been illegally dismissed, you are entitled to backwages.
    4. If cause of dismissal is not due to installation of labor saving device (company is not losing money) then you are entitled to 1 month pay for every year of service.
    5. It would not matter considering the above statements.

    [Reply]

  25. Leny Rivera Comment:
    May 17th, 2013 at 11:13 am

    Good Day. I just want to know if filing notice of redundancy 3 yrs before the actual date of separation is valid ? The law states “at least 1 month” notice but in our case, we wish to inform the employees 3 yrs ahead of time and start paying already in installment their separation package computed up to the date of their future separation. Within the 3 yr period, they will still work normally as employees and receive salaries and at the same time, partially receive in installment their total separation package. Pleas advise if this is feasible and allowable by the law. Thank you.

    [Reply]

    Atty. J Reply:

    Separation pay should be based on the salary you are receiving at the time of separation. So, there will be issues with regard to computation. Additionally, notice should be given to the DOLE at the same time you were given notice, if not, then there is a procedural lapse.

    [Reply]

  26. Nice site sir Ted!

    [Reply]

    admin Reply:

    Thanks!

    [Reply]

  27. Karl Aguila Comment:
    June 11th, 2013 at 07:11 pm

    Hi, good day!
    Does the law indicate how long should an employee terminated due to redundancy wait for their severance pay? Thanks.

    [Reply]

  28. Maida Señado Comment:
    June 19th, 2013 at 03:21 am

    Hi Sir!

    Our department recently underwent a restructuring. We were informed about it last June 14 and effectivity would be a month after.

    My current position was retained and so as my team members except me. A colleague with a different function previously would be replacing me. Her former sub-group was transferred to a different department. She was retained and will be assuming my current function. My current role retained its job title and job description. I was transferred to a different function, a lateral movement, wherein the current employee was redundated. T. I checked her existing job description vs what would be my new role, it is almost the same. Same function with additional work load. Also, they changed the job description.

    I have also found out my team mates were informed verbally 2 weeks prior to the announcement. My direct superior deliberately did not inform me about my movement. The only reason they gave me regarding my transfer after it was announced was due to my high iq which reflected in our assessment.

    I feel that the movement was done not in good faith and very unfair on my part. Also, the redundated colleague was also caught off guard about our sudden restructuring.

    I would appreciate if you can enlighten us on this. Thank you.

    [Reply]

  29. Hello Sir,

    I hope you can help me with my issue. Our company just split up and i was transferred to the new one. However, since our company provides incentives/bonus programs- we were told that our last month bonuses will not be given to us nor will be shouldered by the new owner of our company. Is that even possible?

    In addition,we were not informed that we will be transferred to a new company (same job responsibilities – different owner)or any types of notification that there will be a transition/changes.

    Here’s the exact words he said “We are a new company effective June 1st, and therefore there has not been any period of time to review performance. It is not fair to pay out bonuses for performance or attendance in May, when that time worked was under a different company. ”

    We need your help.

    [Reply]

    admin Reply:

    In my opinion, the performance evaluation and payment of bonuses should have been done by the previous management/company. It is their liability.

    [Reply]

  30. Dear Atty:

    My cousin received a notice of redundancy through email. The notice was dated February 17, the email was sent February 25 and she received the notice March 7 (as she was in the province visiting her sick mother and where she has no access to any form of email. She has also advised her immediate superior of this concern).

    The notice does not indicate any date of effectivity just information that her position is no longer needed due to realignment of functions, etc. and for her to coordinate with their HR.

    Given this, may I inquire the following:

    1. When is the effectivity of the 1 month notice? is it upon knowledge/receipt or the date of the letter?

    2. What are the available remedies that she can do aside from filling a labor case?

    3. It is legal to send notice of redundancy through email?

    Will appreciate your response.

    Jamesh

    [Reply]

  31. Hi,

    Good day.

    Our company will be closing its operation here in Cebu. Is it mandatory for our employer to deduct SSS & Pagibig loan balances from our separation pay?

    Looking forward to your reply.

    Thanks.

    Schae

    [Reply]

  32. Hello Atty.
    Just want to ask if there’s any law regarding rehiring of redundant employees. We were redundiated and the management told us we are all eligible for future employment with them. After a year, my former teammate and I decided to apply to the same company. He was hired at once while I was told i am ineligible for rehire. I did not have any violations or any incompetencies with metrics set forth and I have reported to work until the date stated on my redundancy papers.

    [Reply]

  33. Hello Atty.
    Are there any laws regarding rehiring of redundant employees. We were redundiated and the management told us we are all eligible for future employment with them. After a year, my former teammate and I decided to apply to the same company. He was hired at once while I was told i am ineligible for rehire. I did not have any violations or any incompetencies with metrics set forth and I have reported to work until the date stated on my redundancy papers.

    [Reply]

  34. Good Day Atty.

    I was terminated due to redundancy is it impossible to find a new job because of this reason?

    Thank you

    [Reply]

  35. gud pm po.Ngclose po branch nmin kya ntambak po kmi now s 1showroom. Ang sbi ni boss d nya n kmi kya psahurin lhat kya bnwsan arw ng pasok nmin 4days a week nlng po.my blak p bwasan ulit.at mismo ako cnabhan n hndi n dw po klangan ng company.kya nangigipit po cla sming mga empleyado pra kusa umalis.pyag nman po sna kmi umalis kun aayusin lng dn po.kaso ayw mgbyad ng boss nmin.regular po kmi lhat 6. At 5yrs npo ko s serbisyo.my balak p nga po ata mgsara dto.iddeclare n buncrupt.25yrs npo cla s busi.ess at nsa 2yrs plng mbaba an sales.mlaki po store nla s province. Ask lng po kun tama pb gngwa smen?
    Papasok npo b kmi s redundancy?
    Krapatdpat po b kmi mbigyan ng separation pay?
    Pano po b nla madeclare ng buncruptcy?
    Mtatawag n po bng OBSTRUCTION of DISMISSAL ang gngwa smen?
    Pasensya npo kun mrami ako tanong.pro kelangan po kc nmin maeducate pra alam po nmin kun pano kausapin boss nmin at kun ano dpat nmin gwin. Mraming mraming slamat po.sna po matulungan nyo po kmi. GodBLess

    [Reply]

  36. Hi Atty!
    Good Morning.
    Please enlighten me since I have no knowledge on redundancy.
    My position was being declared redundant last Sept.30,2013 and my last day of duty was last Oct.31,2013. Staring Nov.1 onward, we are not employed by Company A anymore(let’s just name my company as Company A). Actually we were almost 40 employees being redundant. Company A have showed us the details of our computation for our separation package. and that includes, 1 month pay for every year of service, half of our 13th month pay, and unused VL and SL. Now, there comes Company B which is the mother company of Company A. Company A is a subsidiary company of Company B but apparently they are 2 different company since they have different names and different nature of business. Most of our positions was being absorb by Company B and we are given priority to apply to company B since it was just the same job but the name of position had been changed. But for me, i refused the offer and did not apply to Company B for a valid reason. Now, last Oct.31,2013, checks for our separation pay was being paid(but not the total amount). But I was so shocked when I learned that there is no check available for me because those who did not accept the position to company B has different computation. Now, ive been following up to our HR for almost 1 week if my payment has been process but sad to say, still not process. My question is, am i really entitled to separation pay? and if so, what are the basis of computation? Would it be still the same as my colleagues received? I wonder what take them too long to compute my last pay. Please help me and enlighten me Atty.
    Thank you so much.

    [Reply]

  37. Hi,
    if a company declared redundancy for a particular post, let’s say a supervisor in bpo, when can they start promoting people again?
    about 30-40 staff were declared redubdant back in may and we were advised that out last day of work is July 4,2013. A few months after that they had people take roles of supervisors and apparently they promoted them around september.

    [Reply]

  38. Hi,

    My company just declared redundancy for the position which I belong. I am just hoping somebody here can help me with my concern. I started working here Feb 2012 and then got a raise and promoted 6 months after. My last day will be mid January 2014, which is 2 weeks short to achieve 2 years of service.

    Since I got promoted and had been given 5k pesos raise, What should be the basis of my redundancy pay? Does the year of service mean from the time you start working, or from the time you had your current position?

    [Reply]

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  1. [...] product line or service activity previously manufactured or undertaken by the enterprise[2]. (Read Redundancy.) Retrenchment to prevent losses. Retrenchment is an economic ground to reduce the number of [...]

  2. [...] For valid termination based on authorized causes such as installation of labor-saving devices, redundancy, retrenchment to prevent losses, and closure or cessation of operation, the employer must serve [...]