Scribd Logo
Upload

Welcome to Scribd!

  • 178 views

    GSWU-NAFLU-KMU vs. NLRC

    Uploaded by

    Maddie
    1. Galaxie Steel Corp terminated employees due to serious business losses of P127M and closure of operations. It notified DOLE and posted notice on the bulletin board but did not individually notify each employee in writing. 2. While closure for business losses is a valid cause, lack of individual written notice violates statutory due process. However, it does not nullify the dismissal. 3. Galaxie is ordered to pay P20,000 nominal damages to each employee for failing to comply with notice requirements. The termination was upheld as valid due to authorized cause of serious business losses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    GSWU-NAFLU-KMU vs. NLRC

    Uploaded by

    Maddie
    178 views1 page
    1. Galaxie Steel Corp terminated employees due to serious business losses of P127M and closure of operations. It notified DOLE and posted notice on the bulletin board but did not individually notify each employee in writing. 2. While closure for business losses is a valid cause, lack of individual written notice violates statutory due process. However, it does not nullify the dismissal. 3. Galaxie is ordered to pay P20,000 nominal damages to each employee for failing to comply with notice requirements. The termination was upheld as valid due to authorized cause of serious business losses.

    Original Description:

    Labor digest - Authorized cause

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Galaxie Steel Corp terminated employees due to serious business losses of P127M and closure of operations. It notified DOLE and posted notice on the bulletin board but did not individually notify each employee in writing. 2. While closure for business losses is a valid cause, lack of individual written notice violates statutory due process. However, it does not nullify the dismissal. 3. Galaxie is ordered to pay P20,000 nominal damages to each employee for failing to comply with notice requirements. The termination was upheld as valid due to authorized cause of serious business losses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    178 views1 page

    GSWU-NAFLU-KMU vs. NLRC

    Uploaded by

    Maddie
    1. Galaxie Steel Corp terminated employees due to serious business losses of P127M and closure of operations. It notified DOLE and posted notice on the bulletin board but did not individually notify each employee in writing. 2. While closure for business losses is a valid cause, lack of individual written notice violates statutory due process. However, it does not nullify the dismissal. 3. Galaxie is ordered to pay P20,000 nominal damages to each employee for failing to comply with notice requirements. The termination was upheld as valid due to authorized cause of serious business losses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    05. GSWU-NAFLU-KMU vs. NLRC W/N there was a proper notice given to employee. – No.

    GR No. 165757
    17 October 2006 RULING:
    Topic: Authorized Causes 1. Since the corp validly evidenced that it was experiencing
    serious business losses, while the Union failed to present
    Doctrine: concrete evid contrary to such, the latter’s claim of ULP could
    Art. 283. Closure of establishment and reduction of not prosper. ULP refers to acts that violate the worker’s right
    personnel. The employer may also terminate the to be organized and non-obervance of the CBA. If not, the act
    employment of any employee due to the installation of labor isn’t deemed as an ULP.
    saving devices, redundancy, retrenchment to prevent losses
    or the closing or cessation of operation of the establishment Under Art. 283 of the LC, valid causes of the termination
    or undertaking unless the closing is for the purpose of pertain to: (a) installation of labor saving devices; (b)
    circumventing the provisions of this Title, by serving a written redundancy; (c) retrenchment to prevent losses; and (d) the
    notice on the workers and the Ministry of Labor and closing /cessation of operations of the
    Employment at least one (1) month before the intended date establishment/undertaking due to business losses. Hence,
    thereof. In case of termination due to the installation of labor the termination of the EEs herein was for cause.
    saving devices or redundancy, the worker affected thereby
    shall be entitled to a separation pay equivalent to at least his 2. With regard to the notice requirement, the Labor Arbiter
    one (1) month pay or to at least one (1) month pay for every found, and it was upheld by the NLRC and the Court of
    year of service , whichever is higher. In case of retrenchment Appeals, that the written notice of closure or cessation of
    to prevent losses and in cases of closures or cessation of Galaxies business operations was posted on the company
    operations of establishment or under taking not due to bulletin board one month prior to its effectivity. The mere
    serious business losses or financial reverses, the separation posting on the company bulletin board does not, however,
    pay shall be equivalent to one (1) month pay or at least one- meet the requirement under Article 283 of serving a written
    half (1/2) month pay for every year of service, whichever is notice on the workers. The purpose of the written notice is to
    higher. A fraction of at least six (6) months shall be inform the employees of the specific date of termination or
    considered one (1) whole year. closure of business operations, and must be served upon
    them at least one month before the date of effectivity to give
    FACTS: them sufficient time to make the necessary arrangements.In
    • Galaxie Steel Corp was engaged in the business of order to meet the foregoing purpose, service of the written
    manufacturing & sale of re-bars and steel billets. notice must be made individually upon each and every
    • However, due to serious business losses equal to employee of the company.
    about P127M, Galaxie decided to close down its business
    operations. In Business Services of the Future Today, Inc. v. Court of
    • Thru a written notice filed on 30 July 1999, it Appeals, which reiterated the ruling in Agabon v. National
    informed the DOLE of its intended closure and the Labor Relations Commission this Court held that where the
    termination of its EEs effective on 31 Aug. 1999. dismissal is for an authorized cause, the lack of statutory
    • It also posted notice of its closure on its corporate due process should not nullify the dismissal, or render it
    bulletin board. illegal, or ineffectual. However, the employer should
    • In response, the Union filed a suit for illegal indemnify the employee, in the form of nominal damages,
    dismissal, ULP and money claims against Galaxie. for the violation of his right to statutory due process.
    • The LA held that the closure of Galaxie’s business
    was valid, but granted the EEs their money claims. The NLRC WHEREFORE, the assailed Decision dated March 26,
    affirmed but removed the monetary awards. 2004 and Resolution dated October 19, 2004 issued by the
    • The Union argued that the real reason for the corp’s Court of Appeals in CA-G.R. SP No. 68669 are AFFIRMED with
    closure of business was because of its anti-union stance, and the MODIFICATION that respondent Galaxie Steel
    not because of serious business losses. Corporation is ORDERED to PAY each of the individual
    petitioners the amount of P20,000.00 as nominal damages for
    ISSUE/S: non-compliance with statutory due process.
    W/N Galaxie was guilty of ULP. – No. Authorized cause was
    present in this case. SO ORDERED.

    You might also like