Library of PH Labor Law

A – Installation of labor-saving devices

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1. Summary

▪ 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.

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References

▪ 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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