Professional Documents
Culture Documents
RETRENCHMENT/DOWNSIZING
The ff must be present:
CLOSURE/CESSATION OF OPERATIONS o retrenchment
The ff must be present: (DGN) o closure/cessation of business, if not
1) decision to close or cease operation due to serious business losses
by the management otherwise, SP not required
2) decision made in good faith o disease
3) no other option available
Where closure is due to serious business JUST CAUSES
losses causes directly attributable
o or financial reverses to the fault or negligence
o NO SEPARATION PAY is required of the EE
Where closure is NOT due to serious
business losses TERMINATION BASED ON JUST CAUSES
o Separation pay is equivalent to: requires 2 written notices served on EE
1 month pay 1) First written notice, should contain
or at least month pay for a) specific causes or grounds for
every yr of service termination,
whichever is higher and company policies,
if any
DISEASE b) detailed narration of facts
The ff must be present: and circumstances
1) EE must be suffering from any that will serve as
disease basis for the charge
2) Continued employment is prohibited against EE
by law c) a directive that the EE is
or prejudicial to given opportunity to submit
his/her health, and a written explanation with a
to health of his/her reasonable period
co-EEs ample opportunity to
3) Certification by a competent public be heard
health authority that o any opportunity,
the disease is incurable verbal or written
within a period of 6 to answer the
mos charges
even with proper medical and submit
treatment evidence
Separation pay, equivalent to: in support of
o 1 month pay defenses.
o or at least month pay for every yr o a formal hearing or
of service conference is
o whichever is higher mandatory only
o a fraction of 6 mos. service is when
considered 1 whole yr. requested by EE
in writing
NOTE: Authorized causes- separation pay required substantial
higher 1 mo. or 1 mo./yr of service: evidentiary
o installation of labor-saving devices disputes exist
o redundancy
higher 1 mo. or mo./yr of service:
company 3) order violated must be (RLK)
rule/practice a. reasonable
requires it b. lawful
when similar c. and made known to EE
circumstances 4) order must pertain to the duties which he
justify it. has been engaged to discharge
reasonable period
o @ least 5 calendar GROSS AND HABITUAL NEGLECT OF DUTIES (NG)
days 1) there must be neglect of duties
o from receipt of 2) negligence must be gross and habitual in
notice character.
2) Notice of termination, must indicate
that: FRAUD OR WILLFUL BREACH OF TRUST: (ABAW)
a) all circumstances involving 1) there must be an: (AOC)
the charge a. act
have been considered b. omission, or
b) the grounds have been c. concealment
established 2) AOC involves breach of: (LTC)
to justify the a. legal duty
severance of their b. trust or
employment c. confidence justly reposed
Notices shall be served: 3) committed against ER or his/her
1) personally to the EE or representative
2) to the EEs last known address 4) in connection with EEs work
SETTLEMENT AGREEMENT
shall be final and binding.
in case of failure to reach an agreement
during the conciliation-mediation period