Library of PH Labor Law

B – Redundancy

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1. Summary

▪ To be valid, the authorized cause of redundancy should comply with prescribed standards.

2. Standards for Redundancy

The standards are:

1. There must be superfluous positions or services of employees;

2. The positions or services are in excess of what is reasonably demanded by the actual requirements of the enterprise to operate in an economical and efficient manner;

3. There must be good faith in abolishing redundant positions;

4. There must be fair and reasonable criteria in selecting the employees to be terminated; and,

5. There must be an adequate proof of such redundancy such as but not limited to the new staffing pattern, feasibility studies/proposal, on the viability of the newly created positions, job description and the approval by the management of the restructuring.

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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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