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Installation of labor-saving devices

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Summary

  • To be valid, the authorized cause of installation of labor-saving devices should comply with prescribed standards.

Legal basis

The legal basis is the P.D. 442, otherwise known as the Labor Code, Supreme Court Decisions, and DOLE Regulations.

Standards have been set or prescribed for each authorized cause through Supreme Court Decisions and DOLE regulations, such as Department Order No. 147, series of 2015.

Standards for installation of labor-saving devices

The standards are:

1. There must be introduction of machinery, equipment or other devices;

2. The introduction must be done in good faith;

3. The purpose for such introduction must be valid such as to save on cost, enhance efficiency and other justifiable economic reasons;

4. There is no other option available to the employer than the introduction of machinery, equipment or device and the consequent termination of employment of those affected thereby; and,

5. There must be fair and reasonable criteria in selecting employees to be terminated.

References

  • 1987 Constitution
  • Presidential Decree No. 442, a.k.a. Labor Code
  • DOLE Department Order No. 147, Series of 2015
  • Jurisprudence or Supreme Court Decisions
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