ESCAREAL V. NLRC (LABOR)

FACTS: Escareal's position as Pollution Control and Safety Manager was declared redundant.

HELD: Dismissal was illegal. PRC had no valid and acceptable basis to declare the position redundant.

If the aim was to generate savings in terms of the salaries that PRC would not be paying the employee anymore as a result of the streamlining of operations for improved efficiency, such move could hardly be justified in the face of PRC's hiring of fresh graduates for various positions. Besides, there would seem no compelling reason to save money by removing such an important position. As shown by their recent financial statements, PRC's net profits have steadily increased.

While concededly, Article 283 of the Labor Code does not require that the employer should be suffering financial losses before it could terminate the services of an employee on the ground of redundancy, it does not mean wither that a company which is doing well can effect such a dismissal whimsically or capriciously.

The position of Pollution Control and Safety Manager is required by law. Thus, it cannot be said that the services of employee are in excess of what is reasonably required by the enterprise.
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