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Question

Question A - Termination of Employment by Employer: Just Causes

Alexander has been employed as a sales representative in XYZ Company for the past five years. Recently, the company has been experiencing financial difficulties and needs to downsize its workforce. The management of XYZ Company decides to terminate the employment of some employees to cut costs.

Based on Labor Code, Art. 297 and DOLE D.O. No. 147-15, answer the following:

1. Can XYZ Company terminate Alexander's employment citing the financial difficulties as a just cause? Explain your answer.
2. If Alexander's employment is terminated, what are the rights and entitlements that he may be entitled to receive from XYZ Company?

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Answer