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3m Philippines, Inc. v. Lauro D. Yuseco

This document summarizes the key requirements for a valid redundancy program under Philippine law based on the case 3M Philippines, Inc. v. Lauro D. Yuseco. It notes that a valid redundancy program must: (1) provide one month written notice to employees and the Department of Labor, (2) pay separation pay of at least one month per year of service, (3) abolish positions in good faith, and (4) use fair and reasonable criteria like preferred status, efficiency, and seniority. It also outlines that Article 298 of the Labor Code allows termination due to redundancy if the above conditions are met. Redundancy exists when a workforce exceeds business demands and a position becomes superfluous

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Mark Anthony Reyes
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230 views1 page

3m Philippines, Inc. v. Lauro D. Yuseco

This document summarizes the key requirements for a valid redundancy program under Philippine law based on the case 3M Philippines, Inc. v. Lauro D. Yuseco. It notes that a valid redundancy program must: (1) provide one month written notice to employees and the Department of Labor, (2) pay separation pay of at least one month per year of service, (3) abolish positions in good faith, and (4) use fair and reasonable criteria like preferred status, efficiency, and seniority. It also outlines that Article 298 of the Labor Code allows termination due to redundancy if the above conditions are met. Redundancy exists when a workforce exceeds business demands and a position becomes superfluous

Uploaded by

Mark Anthony Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Title: 3M PHILIPPINES, INC. v. LAURO D. YUSECO, G.R. No.

248941, November 09, 2020


(LAZARO-JAVIER, J.)

Instruction learned:

1. What are the requisites of valid redundancy program?

A valid redundancy program must comply with the following requisites: (a) written
notice served on both the employees and the DOLE at least one (1) month prior to the
intended date of termination of employment; (b) payment of separation pay equivalent
to at least one (1) month pay for every year of service; (c) good faith in abolishing the
redundant positions; and (d) fair and reasonable criteria in ascertaining what positions
are to be declared redundant and accordingly abolished, taking into consideration such
factors as (i) preferred status; (ii) efficiency; and (iii) seniority, among others.

2. What is the pertinent provision of law concerning Redundancy?

Redundancy is one of the authorized causes for the termination of employment


provided for in Article 298[33] of the Labor Code, as amended:

Article 298. Closure of Establishment and Reduction of Personnel. - The employer may
also terminate the employment of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the closing or cessation of
operation of the establishment or undertaking unless the closing is for the purpose of
circumventing the provisions of this Title, by serving a written notice on the workers
and the Ministry of Labor and Employment at least one (1) month before the intended
date thereof. In case of termination due to the installation of labor-saving devices or
redundancy, the worker affected thereby shall be entitled to a separation pay equivalent
to at least his one (1) month pay or to at least one (1) month pay for every year of service,
whichever is higher. In case of retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due to serious business
losses or financial reverses, the separation pay shall be equivalent to one (1) month pay
or at least one-half (1/2) month pay for every year of service, whichever is higher. A
fraction of at least six (6) months shall be considered one (1) whole year.

Redundancy exists when the service capability of the workforce is in excess of what is
reasonably needed to meet the demands of the business enterprise. A position is
redundant where it had become superfluous. Superfluity of a position or positions may
be the outcome of a number of factors such as over-hiring of workers, decrease in
volume of business, or dropping a particular product line or service activity previously
manufactured or undertaken by the enterprise.

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