Question:

What conditions must prevail and what requirements, if any, must an employer comply with to justify/effect a valid redundancy program?

(Bar Examination in Labor Law, 2001)

Suggested Answer:

For the implementation of a redundancy program to be valid, the employer must comply with the following requisites:

  1. written notice served on both the employees 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.
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