THE Department of Labor and Employment (Dole)-Davao reminded business owners who plan to retrench their employees to observe the due process or explore flexible work arrangements.
In a virtual presser on June 5, mediator-arbitrator of Dole's mediation-arbitration and Legal Service Unit Mediator-Arbiter lawyer Connie Beb A. Torralba acknowledged the impact of the coronavirus disease 2019 (Covid-19) pandemic to businesses in the region as some establishments resorted to the retrenchment of employees to cope with their losses.
However, Torralba told the employers to follow due process in the retrenchment of their employees due to authorized cause through the twin-notice rule, which would require them to notify both the employee and their department at least 30 days before the effectivity of the termination.
“We understand the predicament of our industries because of the adverse effect of Covid-19, employers, or establishments or companies opted to retrench their employees. If that is so, we would like to inform the employers before they will retrench their employees, to follow due process,” Torralba said.
She also underscored the correct calculation of the separation payment of the employee if he or she is affected by the retrenchment.
“If the retrenchment is brought about by losses, financial reverses suffered by the companies, our separation pay for that is half month per year of service,” Torralba said.
For instance, an employee is being paid P20,000 per month, since the computation would be half a month per year of service, the P20,000 will be divided by two. The P10,000 will now be multiplied by the employee’s year of service.
“Mao na ang importante mahibaw-an both employer and employees if there is a retrenchment sa company. However, the department has issued several issuances already mga advisories encouraging employers to implement or to have compassion or humanitarian actions and retaining their employees,” she added.
Instead of termination, Torralba said that they could opt for other options to retain their employees while recovering from the losses. Employers may implement flexible work arrangements like a rotation of duty, reduced work hours, or reduce work week, work from home, or telecommunicating schemes.
Earlier, she said that their agency registered a total of 10,133 establishments that have partially or totally closed as the effect of the crisis.