Installation of Labor-Saving Devices

Installation of labor-saving devices – refers to “the reduction of the number of workers in any workplace made necessary by the introduction of laborsaving machinery or devices.” (Section 4 [m], Rule I-A, DOLE D.O. 147-15)

DOLE D.O. 147-15 provides for the standards to be complied with for a valid separation of employment by the employee:

1) There must be introduction of machinery, equipment or other devices;

2) The introduction must be done in good faith;

3) The purpose for such introduction must be valid such as to save on cost, enhance efficiency and other justifiable economic reasons;

4) There is no other option available to the employer than the introduction of machinery, equipment or device and the consequent termination of employment of those affected thereby; and

5) There must be fair and reasonable criteria in selecting employees to be terminated. (Section 5.4[a], Rule I-A Ibid.)

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