Q: Distinguish Retrenchment from Redundancy
Retrenchment
Retrenchment has been defined as termination of
employment initiated by the employer through
no fault of the employee and without prejudice
to the latter, resorted by management during
period of business recession, industrial
depression or seasonal fluctuations or during lulls
over shortage of materials (Philippine Carpet
Employees Association vs. Sec of Labor, G.R. No.
168719, February 22, 2006)
The losses expected should be substantial and
not merely de minimis in extent. (Emco Plywood
Corp vs. Abelgas, G.R. No. 148539, April 14, 2004)
Redundancy
Redundancy exists where the services of an
employee are in excess of what is reasonably
demanded by the actual requirement of the
enterprise. (Edge Apparel, Inc. vs NLRC, 286 SCRA
302, 311)
Does not need to be triggered by a decline in the
business. Thus, even if the business is doing well,
an employer can still validly dismiss an employee
from the service due to redundancy if that ees
position has already become in excess of what
the employer’s (ers) enterprise requires.