1) Cheniver operated a printing business in Makati but informed employees it would transfer operations to Batangas due to the expiration of its Makati lease and orders to vacate from local authorities.
2) Employees filed a complaint for unfair labor practice and illegal dismissal, demanding separation pay. The labor arbitrator ruled the transfer was valid but ordered separation pay.
3) The Supreme Court upheld the ruling, finding that while the transfer reasons were beyond Cheniver's control, the closure of the Makati plant constituted an operation cessation requiring separation pay under the Labor Code.
1) Cheniver operated a printing business in Makati but informed employees it would transfer operations to Batangas due to the expiration of its Makati lease and orders to vacate from local authorities.
2) Employees filed a complaint for unfair labor practice and illegal dismissal, demanding separation pay. The labor arbitrator ruled the transfer was valid but ordered separation pay.
3) The Supreme Court upheld the ruling, finding that while the transfer reasons were beyond Cheniver's control, the closure of the Makati plant constituted an operation cessation requiring separation pay under the Labor Code.
1) Cheniver operated a printing business in Makati but informed employees it would transfer operations to Batangas due to the expiration of its Makati lease and orders to vacate from local authorities.
2) Employees filed a complaint for unfair labor practice and illegal dismissal, demanding separation pay. The labor arbitrator ruled the transfer was valid but ordered separation pay.
3) The Supreme Court upheld the ruling, finding that while the transfer reasons were beyond Cheniver's control, the closure of the Makati plant constituted an operation cessation requiring separation pay under the Labor Code.
The phrase closure or cessation of operation of an establishment or undertaking not due to serious business losses or reverses under Article 283 of the Labor Code includes both the complete cessation of all business operations and the cessation of only part of a companys business. Even though the transfer of a company plant is due to a reason beyond the control of the employer, it still has to accord its employee some relief in the form of severance pay.
Facts: - Cheniver is a corporation operating its printing business in Makati. The respondents are members of the labor union and former employees of Cheniver. - June 5, 1992 Cheniver informed its employees that it will transfer its operations to Batangas. Reasons for the transfer are expiration of lease contract on the premises of Makati plant and local authorities action to force out Chenivers operations from Makati because of alleged hazards to residents nearby. - Cheniver have its employees until the end of June to inform management if they wanted with Cheniver in its transfer, otherwise it would hire replacements. August first was the scheduled start of operations in the new plant in Batangas. - August 04, 1992 Cheniver wrote its employees to report to the new location within 7 days, otherwise they will be deemed to have lost interest in the job and would be replaced. However, no one reported for work in Batangas, even after extension of period of time to report to work. - Respondents filed a complaint for unfair labor practice and illegal dismissal, and demanded separation pay (among others). - LA ruled that the transfer of operations was valid and absolved Cheniver of charges for unfair labor practice and illegal dismissal. It however ordered payment of separation pay. NLRC affirmed. - Cheniver contends that the transfer of its business is neither closure nor retrenchment, thus separation pay should not be awarded. Also, employees were not terminated but they resigned because they find the new site to far from their residences.
Issue: Whether or not employees are entitled to separation pay considering that the transfer of the plant was valid.
Held: YES. - Art. 283. Closure of the establishment and reduction of personnel. The employer may terminate the employment of any employee due to the installation of labor saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions. - In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to 1 month pay or at least month pay for every year of service, whichever is higher. - There appears no complete dissolution of Chenivers business undertaking but the relocation of its plant to Batangas, in SCs view, amounts to cessation of petitioners nusiness operations in Makati. It must be stressed that the phrase closure or cessation of operation of an establishment or undertaking not due to serious business losses or reverses under Art 283 includes both complete cessation of all business operations and the cessation of only part of a companys business. - There is no doubt that petitioner has legitimate reason to relocate its plant because of the expiration of the lease contract on the premises it occupied. That is its prerogative. But even though the transfer was due to a reason beyond its control, Cheniver has to accord its employees some relief in the form of severance pay. - Since closure of the plant is not on account of serious business losses, Cheniver shall give respondents separation pay equivalent to at least 1 month or month pay for every yer of service. - That the employees resigned is not convincing. The transfer of Cheniver to another place hardly accessible to its workers resulted in the latters untimely separation from the service not to their own liking, hence, not construable as resignation. - PETITION DENIED. NLRC resolutions AFFIRMED.
G.R. No. 167345 November 23, 2007 E Pacific Global Contact Center, Inc. And/Or Jose Victor Sison, Petitioners - Versus - MA. LOURDES CABANSAY, Respondent
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