COVID-19 SEVERELY AFFECTS 10-K BIZ IN R11

SINCE the coronavirus disease (Covid-19) pandemic hit Davao Region, operations of more than 10,000 establishments in the region were severely affected, the Department of Labor and Employment (Dole) revealed.

Lawyer Connie Torralba, mediator-arbitrator of Dole’s Mediation-Arbitration and Legal Service Unit, said in a radio interview on Thursday afternoon, June 4, that the agency already recorded a total of 10,133 establishments reported to have partially and totally closed.

Torralba, however, said they would still have to segregate the data. But she already warned that the data would still rise with the ongoing Covid-19 pandemic, causing a series of revisions in work arrangement and financial constraints.

“Ang department (Dole), nakita namo nga tungod aning Covid pandemic, there may be mass retrenchment that will happen in the companies and industries (We anticipated that a mass retrenchment would happen with the Covid-19 pandemic),” the lawyer said in an interview via 87.5 FM Davao City Disaster Radio.

Based on the agency’s definition, partial closure means that the operation of the company still continues, but with the result of some mass layoff. While total closure defines the total shutdown of the company.

While Torralba said that employees are entitled to their right to security of tenure, however, she also said gravely affected employees are also given the right to exercise their management prerogative in terminating employees provided through authorized or just cause.

“With the Covid-19 pandemic, pwede siya mahimutang sa authorized cause of separation. Pwede i-rason ang separation retrenchment to prevent losses, closure of operation or lack of service assignment (they can consider it as an authorized cause of separation to prevent losses, closure of the operation, or lack of service assignment),” she said.

However, she said terminated employees are entitled to a half month per year service separation pay or one-month separation pay, depending on which is higher.

But if the reason for the termination is due to redundancy, impossible reinstatement, and lack of service assignment due to age, they are entitled to one month pay per year of service.

She added that companies should give 30-day notice before the effectivity of the separation.

Ang department (Dole), nakita namo nga tungod aning Covid pandemic, there may be mass retrenchment that will happen in the companies and industries. ATTY. CONNIE TORRALBA mediator arbitrator of Dole’s Mediation Arbitration and Legal Service Unit