Professional Documents
Culture Documents
Issues:
1. When is there redundancy?
2. What are the doctrinal requisites for a valid retrenchment?
3. Was there a valid Waiver and Quitclaim so to dismiss the illegal dismissal
complaint filed by respondent?
2. The following are the requisites: (a) a written notice served on both the
employee and the DOLE at least one month prior to the intended date of
retrenchment; (b) payment of separation pay equivalent to at least one
month pay or at least one month pay for every year of services, whichever is
higher; (c) good faith in abolishing the redundant positions; and (d) fair and
reasonable criteria in ascertaining what positions are to be declared
redundant an accordingly abolished (eg. Preferred status, efficiency,
seniority).
3. Yes, there was a valid Waiver and Quitclaim, and consequently, there was
no illegal dismissal.
Not all waivers and quitclaims are invalid as against public policy. If
the agreement was voluntarily entered into and represents a reasonable
settlement, it is binding on the parties and may not later be disowned simply
because of a change of mind.
It is only where there is clear proof that the waiver was wangled from
an unsuspecting or gullible person, or the terms of settlement are
unconscionable on its face, that the law will step in to annul the questionable
transaction.
But where it is shown that the person making the waiver did so
voluntarily, with full understanding with what he was doing, and the
consideration for the quitclaim is credible and reasonable, the transaction
must be recognized as valid and binding undertaking.