FACTS: An illegal dismissal case which stemmed from SMC's new marketing system known as pre-selling scheme. As a consequence, all positions of route sales and warehouse personnel were declared redundant.
HELD: Dismissal was invalid. In selecting employees to be dismissed, a fair and reasonable criteria must be used such as but not limited to
- less preferred status (e.g., temporary employee);
- efficiency; and
- seniority.
In the case at bar, no criterion whatsoever was adopted by the employee. Furthermore, SMC has not shown how the cessation of the employees' services would contribute to the ways and means of improving efficiency and cutting distribution overhead and other related costs.
In other words, it is not enough for a company to merely declare that it has become overmanned. It must produce adequate proof that such is the actual situation to justify the dismissal of the affected employees for redundancy.
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