Retrenchment or downsizing

Retrenchment or downsizing

Summary ⦁ Retrenchment is the reduction of work personnel usually due to poor financial returns, aimed to cut down costs for operation particularly on salaries and wages. ⦁ To be valid, the authorized cause of retrenchment or downsizing should comply with prescribed standards. ⦁ The law on retrenchment covers migrant workers. 1. Concept Retrenchment is…

Lay-off and recall of employees

Lay-off and recall of employees

Lay-off and recall of employees are included in the employer’s management prerogative. Lay-off may be temporary or permanent.Recall of employees apply only to temporarily laid-off employees. 2. Concepts “Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including… lay-off…