Does a bona fide suspension of business operations by an employer automatically terminate the employment of its workers?
A genuine and bona fide suspension of business operations does not result in the termination of employment. The employer is allowed to suspend operations for a period that must not exceed six months. Once the operations resume, the employer is legally obligated to reinstate the employee to their former position without any loss of seniority rights, provided they indicate their desire to return within one month. This rule is defined in Article 301 Labor Code of the Philippines. “The bona fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty.” 02-Jun-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
