Closure of Establishment and Reduction of Personnel | 27 September 2024

Businesses are allowed to suspend operations and to dismiss their employees. Aside from having just and authorized causes for termination of employment, however, suspensions of operations and dismissals of employees must be done in accordance with law. Otherwise, employers must bear the consequences for their non-compliance. (Keng Hua Paper Products Co., Inc. vs. Carlos Ainza, G.R. No. 224097, February 22, 2023)

Businesses are allowed to suspend operations and to dismiss their employees. Aside from having just and authorized causes for termination of employment, however, suspensions of operations and dismissals of employees must be done in accordance with law. Otherwise, employers must bear the consequences for their non-compliance. (Keng Hua Paper Products Co., Inc. vs. Carlos Ainza, G.R. No. 224097, February 22, 2023)

The conviction required proof of: (1) Recruitment, transportation, transfer, harboring, or receipt of persons, with or without consent; (2) use of coercion, deception, or exploitation methods; (3) exploitation for purposes such as sexual exploitation, forced labor, or organ removal; and (4) the victim being under 18 years old. The court confirmed that all these elements were met in this case, establishing the guilt of the accused.

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Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

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