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D – Closure or cessation of business



▪ To be valid, the authorized cause of closure or cessation of operation should comply with prescribed standards.

1. Standards for Closure or Cessation of Operation

The standards are:

1) There must be a decision to close or cease operation of the enterprise by the management;

2) The decision was made in good faith; and,

3) There is no other option available to the employer except to close or cease operations.



1987 Philippine Constitution

Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

DOLE Department Order No. 147, Series of 2015

▪ Jurisprudence or Supreme Court Decisions

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