Ponente: PERLAS-BERNABE, J.
Decision Date: 2016-04-19
GR Number: G.R. No. 213299
Digest Team
4 months ago
Avg. Rating:
Summary:
This case involves a dispute between PNCC Skyway Corporation (PSC) and its employees union regarding the termination of employees due to the cessation of PSC's operations. PSC failed to comply with the 30-day notice requirement under Article 298 of the Labor Code. The Department of Labor and Employment (DOLE) held PSC liable for not providing proper notice and ordered them to pay indemnity to each terminated employee. The Court of Appeals affirmed the DOLE's ruling. However, the Supreme Court reversed the decision, stating that PSC had complied with the notice requirement and therefore, there was no basis for awarding indemnity to the terminated employees.
Doctrine:
Closure of business is an authorized cause for termination of employment under Article 298 of the Labor Code. To properly effectuate termination on the ground of closure or cessation of business operations, the employer must comply with three requirements: (a) serve a written notice to the employees and the DOLE at least one month before the intended date of termination, (b) the cessation of business must be bona fide, and (c) payment of termination pay to the employees. Failure to comply with the notice requirement may result in the employer being liable to pay nominal damages to the employees.
Facts:
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Issues Ratio:
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Dispositive:
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Donec enim diam vulputate ut pharetra sit amet aliquam id. Gravida rutrum quisque non tellus. Donec ultrices tincidunt arcu non. Ut aliquam purus sit amet. Pulvinar neque laoreet suspendisse interdum consectetur. Non enim praesent elementum facilisis leo vel fringilla est ullamcorper. Interdum varius sit amet mattis vulputate enim. Sagittis vitae et leo duis ut. Commodo quis imperdiet massa tincidunt nunc pulvinar sapien. Erat imperdiet sed euismod nisi porta. Nulla facilisi nullam vehicula ipsum a arcu cursus vitae. Amet aliquam id diam maecenas ultricies mi eget. Sit amet nulla facilisi morbi tempus iaculis urna id volutpat. Volutpat consequat mauris nunc congue nisi vitae. Sagittis eu volutpat odio facilisis mauris. A arcu cursus vitae congue mauris rhoncus. Amet purus gravida quis blandit. Faucibus vitae aliquet nec ullamcorper sit amet. Sed egestas egestas fringilla phasellus faucibus scelerisque eleifend donec pretium.
Other Notes:
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
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