Dear Attorney,

I am seeking advice regarding a situation in my workplace. I’ve been with my company for over 18 years as a regular employee, though I’ve only been in my current department for a little over two years. Recently, the company scheduled a 30-minute meeting to inform me that I am to be declared redundant, citing that our department is overstaffed. The company’s criterion for redundancy is based on the "Last In, First Out" (LIFO) method.

The company has offered me two options: either I accept a transfer to a department that I have no knowledge about, with no promise of training, or I accept redundancy. I am not comfortable with the transfer as I have no idea what the new department does, and it seems like I would be placed in an ill-fitting role without proper preparation.

Is this legal? What steps should I take to protect my rights? Can I request assistance from any government agency regarding my concerns?

Sincerely,
A Concerned Employee

Insights

Based on the Philippine Labor Code, redundancy is one of the valid grounds for termination of employment, provided it follows certain legal procedures and standards. In your situation, here are key legal points to consider:

Redundancy as a Legal Ground: Redundancy is allowed by law as long as the employer can prove that the services of certain employees are superfluous or no longer necessary for the business. However, the redundancy process must follow specific rules, including written notification to the affected employees and to the Department of Labor and Employment (DOLE) at least 30 days prior to the intended date of termination.
Criteria for Selection: The "Last In, First Out" (LIFO) rule can be a valid criterion, but it should not be arbitrary. The employer must prove that this method is reasonable and implemented fairly. Length of service is an important factor, but it should not be the sole determining criterion, especially if the employee has demonstrated significant contributions to the company over a long period, as in your case with 18 years of service.
Separation Pay: Under Philippine law, an employee who is terminated due to redundancy is entitled to a separation pay equivalent to at least one month’s salary or one month for every year of service, whichever is higher. Given your 18 years of service, the company should offer you an appropriate redundancy package, not merely an option to transfer.
Option to Transfer: While offering a transfer is not illegal, the employer must ensure that the new position is suitable for the employee’s skills and qualifications. The lack of training for the new role, in your case, could suggest that the company is not offering a reasonable or fair alternative. You have the right to refuse a transfer if it does not match your experience and qualifications, without forfeiting your entitlement to redundancy benefits.
Where to Seek Help: You can file a complaint with the National Labor Relations Commission (NLRC) if you believe the redundancy process is being mishandled. You may also approach the DOLE for assistance in ensuring that your rights are respected. Both agencies are equipped to handle employment disputes and provide legal remedies.

In summary, while redundancy is allowed, the process must follow specific legal requirements. You should assess whether the company is acting in good faith and whether their selection criteria and alternative transfer offer are reasonable. If not, you can seek legal redress to ensure your rights are protected and that you receive fair compensation.