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Proper notice to the DOLE within 30 days prior to the intended date of retrenchment
is necessary and must be complied with despite the fact that Logarta is an overseas Filipino
worker.
Before his departure, Logarta received his final paycheck from Petrocon
amounting SR7,488.57. Upon his return, Logarta filed a complaint with the
National Labor Relations Commission (NLRC) against IMS on the ground of
illegal dismissal. The NLRC ruled in favor of Logarta. After its motion for
reconsideration was denied, the matter was brought before the Court of Appeals
(CA), which dismissed the petition. The CA agreed that the reason for the
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l a b or l aw 145
termination was valid but the Department of Labor and Employment (DOLE)
was not given a copy of the 30-day notice of termination.
ISSUE:
HELD:
Philippine Law recognizes retrenchment as a valid cause for the dismissal
of a migrant or overseas Filipino worker under Article 283 of the Labor Code,
which provided that the employer may also terminate the employment of any
employee due to the installation of labor-saving devices, redundancy, retrenchmentto
prevent losses or the closing or cessation of operations of the establishment or
undertaking unless the closing is for the purpose of circumventing the provisions
of the said Title, by serving a written notice on the workers and the Department of
Labor and Employment at least one (1) month before the intended date thereof.
Thus,retrenchment is a valid exercise of management prerogative subject
to the strict requirements set by jurisprudence, to wit:
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146 recent jurisprudence
Resignation stems from the employees own intent and volition to resign and relinquish
his post. It absolutely cuts-off the employment relationship in general. Retirement, on the other
hand, takes effect by operation of law and the employment relationship endures for the purpose
of the grant of retirement benefits.
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