Basallo & Partners Law Offices

22nd Floor, Olympus Tower,

3rd Ave, Bonifacio, Global City
Taguig, Metro Manila
October 16, 2014
Hannie Francisco
PBB Footwear Co., Inc.
ADB Ave., Ortigas Center,
Pasig City, Metro Manila
Dear Ms. Francisco,
I appreciate the opportunity to advise you regarding this matter. You emailed me that you had
been sued by your former employee Ms. Patricia Tobias for illegal dismissal. You stated that
your company sent a letter to Ms. Tobias, dated June 30, 2012, informing her that she was
terminated as Marketing Assistant effective July 1, 2012 due to redundancy, and that she will be
given her last monthly salary of P15,000 for the period of July 1 to July 31, 2012.
According to our law on termination due to redundancy (Article 283 of the Labor Code) it states
that an employer may terminate the employment of any employee due to the installation of laborsaving devices, redundancy, and retrenchment to prevent losses or the closing or cessation of
operation of the establishment. I believe that your action is based on this provision of the law.
Also, this provision of law requires also the employer to serve a written notice to the employee
and to the Department of Labor and Employment at least one (1) month prior to the termination
of the employee; and also entitles the employee for a separation pay equivalent to at least his one
(1) month pay or to at least one (1) month pay for every year of service, whichever is higher.
The termination due to redundancy is for authorized cause as provided by law and a procedural
process is to be followed in order for it to be a valid termination. The termination of Ms. Tobias
is for an authorized cause so the termination is considered valid by law. But, reminding you that
your company served the notice of termination to her on June 30, 2012 and it is effective July 1,
2012 giving Ms. Tobias only a 3-day notice. As I stated in the earlier part of this letter, our law
requires at least 30 days in serving the notice of employment which you unfortunately failed to
do so.

But even you did not followed the 30-day requirement, you may still justify that the termination
is validly rendered. You can justify before the court that the said termination was legally and
validly rendered because of the current state of your company which is one of the reason of the
termination of employees. It is an authorized cause and right of the company to render
termination due to redundancy because if ever it is on its point of insolvency. I believe that the
Court will rule that the termination is valid because the reason of termination is an authorized
cause but because of the failure to comply on the required period of issuing the notice of
termination, your company may be ordered to pay nominal damages to the dismissed employee,
Ms. Tobias.
For your additional information, please see the case mentioned below.1 It is a case decided by the
Supreme Court with the same nature of the case that you are facing right now.
I hope this is helpful, and would be happy to discuss this matter with you further. Please feel free
to call my office at (02) 808-3452 if you have other questions or would you like to set up a time
to meet.

Very truly yours,

Atty. Alyssa Mae Basallo
Managing Partner, Basallo & Partners Law Offices

1 Jaka Food Processing Corporation vs. Pacot, G.R. No. 151378, March 28, 2005

Legal Writing:
Letter of Advice to Client

Submitted by:
Basallo, Alyssa Mae T.
1st Yr- 4YP Set B

Submitted to:
Atty. Turingan