Practice question
An employer invokes retrenchment based solely on an unsupported statement that next year might be less profitable. It offers no sufficient and convincing evidence of substantial actual losses or reasonably imminent losses. Has it established the asserted substantive cause?
- Yes, any prediction is conclusive
- Yes, retrenchment is valid whenever profits might decline
- No, the required necessity and serious loss basis must be supported by sufficient and convincing evidence
- Yes, if employees are willing to receive notices
- No, retrenchment is never allowed before losses occur
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/71535 — DO 147-15, Rule I-A, sections 4(a), 5.3–5.5: authorized causes, proof, notice and separation pay.
Answer this question in flashcards to review your response and continue practicing.