SC rules on employer-employee relationship, work redundancy as reason for termination

The Supreme Court (SC) reminded employers that once their job offers are accepted by the workers, an employer-employee relationship is established and employers cannot just terminate the workers on mere claim of redundancy.

- By REY G. PANALIGAN

The SC said that redundancy is an authorized ground for dismissal of an employee under the labor Code in the exercise of business judgment.

However, the SC - citing its previous decisions - said that in declaring work redundancy, employers must not violate the law or act arbitrarily.

“It is not enough for a company to merely declare redundancy; it must produce adequate proof of such redundancy to justify the dismissal of the affected employees, 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,” it pointed out.