BUSINESS SERVICES OF THE FUTURE TODAY V. CA (LABOR)

FACTS: The employee was terminated on the ground of severe business losses. The employers believed however, that since the employee was also a stockholder, there was no need to notify the DOLE of the closure since as stockholder, he was presumed to have taken part in the decision to close the business.

HELD: NOTICE OF CLOSURE to the DOLE is mandatory. It allows the DOLE to ascertain whether the closure and/or dismissals were done in good faith and not a pretext for evading obligations to the employees. This requirement protects the workers' right to security of tenure. Failure to comply with the requirement taints the dismissal.

An exception is when the employee consented to his retrenchment, the required prior notice to the DOLE is not necessary as the employee thereby acknowledges the existence of a valid cause for termination of his employment. However, there is no evidence to show that the employee consented to his dismissal and for this reason, the employee should have submitted a written notice of closure to the DOLE.

The NLRC and the CA were unanimous in finding that the closure was bona fide. As in the case of Agabon, nominal damages were awarded to vindicate employee's right to due process.