Monthly Archives: October 2014

5th MCLE Compliance

We are pleased to announce that the IBP Makati Chapter shall be holding a 36-unit MCLE seminar on January 23 & 30 and February 6 & 13, 2015 (Fridays) at the A. Venue Suites in Makati City.

For details on the topics, lecturers and schedules, please refer to the poster below.


You may download the registration form by clicking on the following link:

ibp makati mcle registration form

BERGONIO v. SOUTH EAST ASIAN AIRLINES, G.R. No. 195227, April 21, 2014

Labor law; Payment of accrued wages despite reversal of decision. An employer, who, despite the Labor Arbiter’s order of reinstatement, did not reinstate the employee during the pendency of the appeal up to the reversal by a higher tribunal may still be held liable for the accrued wages of the employee, i.e., the unpaid salary accruing up to the time the higher tribunal reverses the decision. The rule, therefore, is that an employee may still recover the accrued wages up to and despite the reversal by the higher tribunal. This entitlement of the employee to the accrued wages proceeds from the immediate and self-executory nature of the reinstatement aspect of the LA’s decision.

Exception. By way of exception to the above rule, an employee may be barred from collecting the accrued wages if shown that the delay in enforcing the reinstatement pending appeal was without fault on the part of the employer. To determine whether an employee is thus barred, two tests must be satisfied: (1) actual delay or the fact that the order of reinstatement pending appeal was not executed prior to its reversal; and (2) the delay must not be due to the employer’s unjustified act or omission. Note that under the second test, the delay must be without the employer’s fault. If the delay is due to the employer’s unjustified refusal, the employer may still be required to pay the salaries notwithstanding the reversal of the LA’s decision.

Full text here.

ARABIT, et al., v. JARDINE PACIFIC FINANCE, INC., G.R. No. 181719, April 21, 2014

Labor law; Retrenchment differentiated from redundancy. Retrenchment and redundancy are two different concepts; they are not synonymous; thus, they should not be used interchangeably.

Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. A position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise.

Retrenchment, on the other hand, is used interchangeably with the term “lay-off.” It is the termination of employment initiated by the employer through no fault of the employee’s and without prejudice to the latter, resorted to by management during periods of business recession, industrial depression, or seasonal fluctuations, or during lulls occasioned by lack of orders, shortage of materials, conversion of the plant for a new production program or the introduction of new methods or more efficient machinery, or of automation. Simply put, it is an act of the employer of dismissing employees because of losses in the operation of a business, lack of work, and considerable reduction on the volume of his business, a right consistently recognized and affirmed by this Court.

These rulings appropriately clarify that redundancy does not need to be always triggered by a decline in the business. Primarily, employers resort to redundancy when the functions of an employee have already become superfluous or in excess of what the business requires. Thus, even if a business is doing well, an employer can still validly dismiss an employee from the service due to redundancy if that employee’s position has already become in excess of what the employer’s enterprise requires.

Full text here.

SEC Memorandum Circular No. 16 Series of 2014 (August 13, 2014): Principal Office Address of Corporations and Partnerships

A corporation whose principal office address in the Articles of Incorporation is specific, complete or fully compliant with relevant Circulars need not file an amended AOI if moving to another location within the same city or municipality. However, it must declare its new address in the General Information Sheet within 15 days from transfer to the new location.

Full text here.