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Saturday, March 18, 2006
Notice of retrenchment
By Dominador A. Almirante
Labor case digest
In a case for illegal dismissal, petitioner EMCO Plywood Corp. interposed the defense of valid retrenchment.
It alleged that it complied with, among others, the requirement on notice by sending a written notice to the Department of Labor and Employment (Dole) and a memo-randum to the foremen, section heads, supervisors and department heads instructing them to retrench some of the workers based on certain guidelines. Did EMCO sufficiently comply with the notice requirement?
Ruling: No.
For a valid termination due to retrenchment, the law requires that written notices of the intended retrenchment be served by the employer to the worker and to the Dole at least one month before the actual date of the retrenchment. The purpose of this requirement is to give employees some time to prepare for the eventual loss of their jobs as well as to give Dole the opportunity to ascertain the verity of the alleged cause of termination.
Clearly, it is not the notice contemplated by law. The written notice should have been served to the employees themselves, not through their supervisors. (EMCO Corp. versus Perferio Abelgas, et. al, G. R. No. 148532, April 14, 2004)
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