Retrenchment or Redundancy?

Most often they were interchangeably used so I decided to differentiate them visually, easier for me to discern the difference.  This is for my own personal guidance as enunciated in a Supreme Court Ruling cited below.

R&R1

 

To complete the comparison, it’s better to include the rules recently provided by the Department of Labor and Employment.  It’s important to know the requirements of law before one can execute the decision to terminate based on Redundancy and Retrenchment. As stated under Department Order 147-15, to be a valid termination, the following must be present and complied with:

Redundancy

  1. There must be superfluous positions or services of employees;
  2. The positions or services are in excess of what is reasonably demanded by the actual requirements of the enterprise to operate in an economical and efficient manner;
  3. There must be good faith in abolishing redundant positions;
  4. There must be fair and reasonable criteria in selecting the employees to be terminated; and
  5. There must be an adequate proof of redundancy such as but not limited to the new staffing pattern, feasibility studies/proposal, on the viability of the newly created positions, job description and the approval by the management of the restructuring.

Retrenchment or Downsizing

  1. The retrenchment must be reasonably necessary and likely to prevent business losses;
  1. The losses, if already incurred, are not merely de minimis, but substantial, serious, actual and real, or if only expected, are reasonably imminent;
  2. The expected or actual losses must be proved by sufficient and convincing evidence;
  3. The retrenchment must be in good faith for the advancement of its interest and not to defeat or circumvent the employees’ right to security of tenure; and
  4. There must be fair and reasonable criteria in ascertaining who would be dismissed and who would be retained among the employees, such as status, efficiency, seniority, physical fitness, age, and financial hardship for certain workers.

 

In addition, the following must also be complied with:

A. Payment of Separation Pay

 Redundancy –   at least one (1) month pay or at least one (1) month pay for every year of service, whichever is higher, a fraction of six (6) months service is considered as one (1) whole year.

Retrenchment  –  one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher, a fraction of six (6) months service is considered as one (1) whole year.

OTHER AUTHORIZED CAUSES which requires payment of separation pay:

Closure or Cessation of Business Operation not due to serious business losses – one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher, a fraction of six (6) months service is considered as one (1) whole year. Where closure is due to serious business losses or financial reverses, no separation pay is required.

Disease  -at least one (1) month salary or one-half (1/2) month salary for every year of service, whichever is higher, a fraction of six (6) months service is considered as one (1) whole year.

B. LAST IN FIRST OUT

In cases of installation of labor-saving devices, redundancy and retrenchment, the “Last-In, First-Out Rule” shall apply except when an employee volunteers to be separated from employment.

 [When there are two employees occupying the same position in the company affected by the retrenchment program, the last one employed will necessarily be the first to go (Maya Farms Employees Organization v. NLRC, G.R. No. 106256, December 28, 1994).]

C. DUE PROCESS (NOTICE)

The requirements of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department of Labor and Employment (DOLE) at least thirty days (30) before the effectivity of the termination, specifying the ground or grounds for termination.

Reference: SC Decision, DO 147-15

 

 

 

 

 

Withered?

roses_flower_love_214264

I keep on insisting.

You’re still my friend.

Situation says it’s not.

But i keep on insisting.

You’re my friend.

Friends for what?

Friends in words?

You lied a lot of times

You say things behind my back.

But i forget.

I forgive.

Because i know you’re a friend.

Friends in good times, not otherwise?

Why do i keep on insisting that you’re still my friend?

Because i got used to it?

Not because i feel,

Not because i know,

Maybe i just got used to it

Calling you friend

But i don’t know if you really consider me as your friend

I don’t feel it.

The friendship should be deeper by now.

Friends for years.

But i don’t feel the it.

Do i need space?

Do i need to stop calling you friend?

Should i consider this friendship withered?

Hopeful still but…

Confused

Where will this lead me?

More Hurt?

More Thinking?

More wasted Time?

Useless ?

Ditching Annual Performance Review

Last week, while browsing on Facebook, i encountered a story about a certain company ditching out its employee’s annual performance review. I was shocked and at the same time interested to know the reason why this company fearlessly decided to remove their yearly evaluation. It was indeed a bold move for that company.

One of the main reasons why this company opt to remove performance review is:

 Rather than having managers rank and review workers once per year, the new initiative — called Performance Achievement — calls for informal reviews that can be given at the manager’s discretion, for example, after a worker has completed a specific project.

“……. The new system is intended to give workers more opportunities to get feedback from managers and coaching to improve their performance. The new system will still be used to inform decisions made about compensation and promotions, Jones added.

Companies have been doing performance appraisal every year to identify and achieve the team member’s individual KPIs.  Performance appraisal is also being used to identify strengths of the employee or identify those areas that needs improvement.  In short, this process is for evaluation and developmental purposes.

As an HR practitioner, i know the purpose and importance of performance evaluation. Some may perceive it differently  or positively, as follows:

    • It encourages employees to perform better in the future
    • It presents an opportunity for employees to leverage positive performance for an increase in salary or promotion
    • During the appraisal, employees can discuss strengths and weaknesses with a supervisor, in effect, allowing employees to discuss personal concerns
    • It provides communication between a supervisor and employee on a regular basis to discuss job duties and issues with work performance
    • It allows employees to identify what skills may be lacking and need to be acquired or improved upon. There are instances when education provided by the company is a necessity to advance success overall
    • It holds employees accountable for their job performance, and since the employee knows that an appraisal is coming, the employee has the opportunity to prepare in advance
    • It provides the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals( http://www.atessabenefits.com/atessa-blog/understanding-the-importance-of-performance-appraisals/)

The most challenging aspect of a performance appraisal is measuring the actual performance of the employee since performance will be based on actual vs target. The process itself is time consuming especially if you have several employees to be evaluated, sometimes twice, in a given year. In several instances due to the number of employees to be evaluated and lack of time management there were employees whose evaluations have been compromised and completed for the sake of compliance. You’ll only get to know the scenario once employees started to make noise or manifest dissatisfaction.This leads to the pain points of performance appraisal.

Dissatisfied Employees
Dissatisfied Employees

Some pain points of performance evaluation as quoted in Yahoo’s article:

Criticism of performance reviews is ubiquitous among academics who study workplace management. Their main pain points: the system wastes time and money, alienates employees, and is all-in-all redundant, since any good manager is already keeping an eye on employee performance without a system in place. A whopping 95% of managers said they are dissatisfied with their performance review process, according to a 2014 survey of 10,000 workers, also conducted by CEB. Nearly 60% of employees said they felt reviews weren’t worth their time. CEB also estimates that for a big company with more than 10,000 workers, annual reviews can easily cost upwards of $35 million with less than stellar results. Ninety percent of HR professionals surveyed by the firm said they did not feel performance review results painted an accurate picture of workplace productivity. (http://finance.yahoo.com/news/accenture-is-the-latest-major-company-to-ditch-dreaded-annual-reviews-192428343.html)

Do we really need yearly performance evaluation?Is performance evaluation helpful to the business? Is it time to look for a more creative and practical ways of evaluating employees?

Ariva has an upcoming event which includes performance management and other HR Topics. Please check out these interesting subjects and inspiring speakers at Philippine HR Congress to get creative innovations about HR global transformation.

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If you need to know more about performance management, gain knowledge in other facets of HR, plus network with Resource Speakers and Event Delegates including: CHROs, SVPs and VPs for HR, COOs, CFOs, Directors, Executives, Deputy Directors, Managers, and Team Leaders with responsibilities in:

  • Strategic Human Resources Management
  • Talent Management and Retention
  • Change and Transformation Management
  • Performance Management
  • Succession Planning
  • Talent Acquisition, Development and Retention
  • Employee Engagement
  • Strategic Leadership
  • Training and Learning Development
  • Corporate Culture and Diversity
  • Human Capital Strategy
  • Organizational Development

Join the Philippine HR Congress

Phil congress

To learn more about the HR and Training Congress 2015, visit the event page: http://www.ariva.com.ph/philippine-hr-congress-2015-2/
Ariva! Events Management Facebook Page:https://www.facebook.com/HRandTrainingCongress
HR and Training Congress Facebook Page:https://www.facebook.com/HRandTrainingCongress
Ariva! Events Management Website: http://ariva.com.ph/

For a limited time, Ariva! is currently offering a promo:

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50% discount at Super Saver Rate
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To register, call Ariva! at 370-9961 to 63 or email successseminars@ariva.com.ph or register online at http://www.ariva.com.ph/registration/

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King Chef (50% off Dimsum)

I was at Lucky Chinatown when i discovered this yummy Chinese restaurant that offerss 50% on dimsum everyday from 3-5pm and 9pm-12mn. Its  interior is quite intimidating but don’t be misled, that’s just a glimpse of how good their foods are.Image

So we tried their hakaw,

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fried dumpling,
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steamed fish with beancurd,
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and two more, spareribs toppings and steamed seafoods.

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We ate all of these for:

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Not bad if you’re looking for quality dimsum!

Total Savings P260

Three weeks after we visited King Chef ,  but on a different location, we discovered that they they also have a branch in Banawe, Quezon City(near Starbucks) so we tried it once more, together with friends, and all i can say is i will definitely  come back. 🙂

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Supreme Court’s Paperless Filing( E-Filing)

In order to cut the judicial system’s use of excessive quantities of costly paper, save the forests,  avoid landslides, and mitigate the worsening effects of climate change, the Supreme Court issued, through AM No. 11-9-4-SC,  November 13, 2012, the Efficient Use of Paper  Rule which  takes effect on January 1, 2013 after its publication in two newspapers of  general circulation.

E-filing requires  parties  before the Supreme Court to submit,  simultaneously with their court-bound papers, soft copies of the same and their  annexes (the latter in PDF format) either by email to the Court’s e-mail  address or by compact disc (CD).

E-filing will,  initially, be on a voluntary  basis for the first six months following the effectivity of the Rule. Thereafter,  it shall be compulsory,  unless six-month  voluntary  period is extended, For efficient use of paper.

The Rule also requires that  all pleadings, motions, and similar papers intended for the consideration of  all courts and quasi-judicial bodies under the supervision of the Supreme Court   must be

  • written in single space with a one-and-a-half space between paragraphs,
  • using  an easily readable font style of the party’s choice, of 14-size font, and on a  13-inch by 8.5-inch white bond paper.

The same requirements  apply to  all decisions, resolutions, and orders issued  by courts and quasi-judicial bodies under the administrative supervision of the  Supreme Court, as well as reports submitted to the courts and transcripts of  stenographic notes.following the effectivity of the Rule. Thereafter,  it shall be compulsory,  unless six-month  voluntary  period is extende.

For efficient use of paper, the Rule also requires that  all pleadings, motions, and similar papers intended for the consideration of  all courts and quasi-judicial bodies under the supervision of the Supreme Court   must be :

  • written in single space with a one-and-a-half space between paragraphs,
  • using  an easily readable font style of the party’s choice, of 14-size font, and on a  13-inch by 8.5-inch white bond paper. The same requirements  apply to  all decisions, resolutions, and orders issued  by courts and quasi-judicial bodies under the administrative supervision of the  Supreme Court, as well as reports submitted to the courts and transcripts of  stenographic notes.

All court-bound papers to be submitted by every party shall  likewise maintain a:

  • left hand margin of 1.5 inches from the edge;
  • an upper  margin of 1.2 inches from the edge;
  • a right hand margin of one inch from the  edge;
  • and a lower margin of one inch from the edge.
  • Every page must be  consecutively numbered.

The Rule specifies the number of copies  of court-bound papers in a particular court that a party is required or desires  to file unless otherwise directed by the court. In the Supreme Court for  instance, parties are required to file one original (properly marked) and four  copies, unless the case is referred to the Court En  Banc, in which event, the parties shall file 10 additional copies.  For the En Banc, the parties need to submit  only two sets of annexes, one attached to the original and one extra copy. For  the Division, the parties need to submit also two sets of annexes, one attached  to the original, as well as an extra copy. All members of the Court shall share  the extra copies of annexes in the interest of economy of paper.

In preparation for the  eventual establishment of an e-filing paperless system in the Judiciary, the  Supreme Court, through its Management Information System Office, has set up the  e-mail address efile@sc.judiciary.gov.ph.

Source: Supreme Court of the Philippines Website

FREE Movie Treat from SM on December 8, 2012

SM Cinema gives back to its loyal patrons with another FIRST in Philippine cinema history—the FREE MOVIE DAY event, a grand movie blow-out slated to happen this December 8, 2012.

This SM Cinema event will offer free movies in all of SM Cinema’s 246 Digital Theatres in all 45 branches nationwide! The line-up of movies will include the horror-thriller House at the End of the Street, Stolen, the latest Nicolas Cage action flick, the biopic Supremo: The Andres Bonifacio Story, crime drama film Deadfall, the popular Step Up Revolution and the restored version of Ishmael Bernal’s Himala. Apart from these six movies, two independent films courtesy of the Film Development Council of the Philippines will also be a part of the line-up.

Registration for SM Cinema’s Free Movie Day is from November 22 to December 6.

Just follow these five easy steps:

1. Like and Register at our e-PLUS Facebook Fan Page (www.facebook.com/eplus.sm)
2. Click on the Free Movie App.
3. Choose your Cinema, Time and Movie
4. Print the confirmation email.
5. Surrender the printed confirmation email at your preferred SM Cinema branch for your free two tickets.

50% OFF @ VIKINGS (SM MARIKINA)

Enjoy half the price on lunch or dinner buffet when you use your
Citibank Credit Card at Vikings SM Marikina.
 
Valid from November 23 – 25 and November 30 – December 2, 2012.
Located at SM Marikina – 2nd Floor, Marcos Highway, Calumpang, Marikina
Operating hours are from 11:00am – 2:30pm and 5:30pm – 10:00pm.
 
For reservations, call: 0917-8766888 or 0919-9993888
 
Valid at the SM Marikina branch only.
Discount is applicable to a maximum bill of P5,000 only.
Not valid in conjunction with other discounts and promos.For more info, go to http://www.citibank.com.ph/gcb/promos/cards/1207_vikings.htm

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