An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as the health of his co-employees. (Art. 284, LC) Requisites for termination on the ground of disease. The employee suffers […]

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Separation pay may be computed based on the terms provided in the employment contract, company policy, or collective bargaining agreement. Company practice may likewise be used as basis for computation, if such practice has been established for years and has already ripened into a demandable right. In the absence of contract or agreement, or when […]

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Constructive Dismissal concept Constructive dismissal is an employer’s act amounting to dismissal but made to appear as if it were not – a dismissal in disguise. In most cases of constructive dismissal, the employee is allowed to continue to work, but is simply reassigned, or demoted, or his pay diminished without a valid reason to […]

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Installation of Labor-Saving Devices Concept The law authorizes an employer to terminate the employment of any employee due to the installation of labor saving devices. The installation of these devices is a management prerogative, and the courts will not interfere with its exercise in the absence of abuse of discretion, arbitrariness, or maliciousness on the […]

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Closure of Business Concept Closure or cessation of operation of the establishment or undertaking is another authorized cause for termination of employment under Article 283 of the Labor Code. (See Authorized Causes for Dismissal of Employee.) Closure of business is the reversal of fortune of the employer whereby there is a complete cessation of business […]

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Retrenchment Concept Retrenchment is an economic ground to reduce the number of employees. It is the reduction of personnel for the purpose of cutting down on costs of operations in terms of salaries and wages resorted to by an employer because of losses in operation of a business occasioned by lack of work and considerable […]

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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 […]

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