A – Installation of labor-saving devices
▪ To be valid, the authorized cause of installation of labor-saving devices should comply with prescribed standards.
2. 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.
▪ 1987 Philippine Constitution
▪ Presidential Decree No. 442, a.k.a. Labor Code
▪ Department of Labor and Employment, Department Order No. 147, Series of 2015
▪ Jurisprudence or Supreme Court Decisions
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