Atty. Ensign M. Icamen

Tag: Labor Law

  • Valid Employee Quitclaim

    Valid Employee Quitclaim

    November 15, 2024

    Legal quitclaim document validated by Supreme Court ruling.

    As ruled by the Hon. Supreme Court in the case of Leo A. Abad et. al. vs. San Roque Metals Inc., G.R. No. 255368 – May 29, 2024, the requisites of a valid quitclaim executed by an employee are the following:

    A valid quitclaim must be voluntary, fair, and free from fraud.

    (1) the employees execute the deed of quitclaim voluntarily;

    (2) there is no fraud or deceit on the part of any of the parties;

    (3) the consideration of the quitclaim must be credible and reasonable; and,

    (4) the contract is not contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law. Absent these elements, the quitclaim may be invalidated. Consequently an invalidated quitclaim does not have the effect of res judicata between the parties.”

    Also in the same case, the Hon. Supreme Court ruled that “[W]hen the Court reviews a Decision of the CA in a petition for Certiorari assailing a ruling of the NLRC, its scope of review is limited to the correctness of review of the CA’s finding of grave abuse of discretion. In labor cases, the NLRC abuses its discretion when “its findings and conclusions are not supported by substantial evidence, which refers to that amount of relevant evidence that a reasonable might accept as adequate to justify a conclusion,” or when its ruling finds no basis in the evidence and applicable statutes and case law.”

  • Requisites of Valid Retrenchment

    Requisites of Valid Retrenchment

    Legal conditions for valid retrenchment under Philippine labor law.

    July 26, 2022

    “What is Retrenchment? Retrenchment or downsizing is a mode of terminating employment initiated by the employer through no fault of the employee and without prejudice to the latter, resorted to by management during periods of business recession, industrial depression or seasonal fluctuations or during lulls over shortage of materials. It is a reduction in manpower, a measure utilized by an employer to minimize business losses incurred in the operation of its business.

    x x x . . . .

    “Accordingly, the employer may resort to retrenchment in order to avert serious business losses. To justify such retrenchment, the following conditions must be present, namely:

    1. The retrenchment must be reasonably necessary and likely to prevent business losses;
    2. The losses, if already incurred, are not merely de minimis, but substantial, serious, actual and real, or, if only expected, are reasonably imminent;
    3. The expected or actual losses must be proved by sufficient and convincing evidence;
    4. The retrenchment must be in good faith for the advancement of its interest and not to defeat or circumvent the employees’ right to security of tenure; and
    5. There must be fair and reasonable criteria m ascertaining who would be dismissed and who would be retained among the employees, such as status, efficiency, seniority, physical fitness, age, and financial hardship for certain workers.”

    Please see the case of FASAP VS. PAL G.R. No. 178083, March 13, 2018.