What procedural notice must an employer provide before implementing retrenchment or closure of operations?
An employer cannot abruptly close its operations or retrench personnel without giving proper advance warning. The law requires the employer to serve a written notice regarding the intended termination. This written notice must be provided to both the affected workers and the Ministry of Labor and Employment. Furthermore, this notice must be served at least one month before the intended date of the retrenchment or closure. This mandatory procedural requirement is found in Article 298 Labor Code of the Philippines. “The employer may also 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 of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof.” 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/.
