TIERRA INTERNATIONAL V. NLRC (LABOR)

FACTS: Olivar, a shift supervisor for shipping company was dismissed from service and repatriated to the Philippines 6 months before his contract expired. Ground for dismissal: promotion of economy, efficiency, and profitability in operations and reduction of personnel whose positions are redundant or surplusage and/or reassignment of personnel to other available useful positions.

ISSUE: Was the termination of Olivar for just and valid cause:

HELD: YES. Olivar's position was deleted due to a decrease in scope of work assigned to the company. Unfortunately, there were no other available positions for which he could qualify. Other positions were also abolished, showing that he was not singled out and his termination was not arbitrary or malicious.

Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. A position is redundant where it is superfluous and superfluity of a position may be the outcome of a number of factors such as overhiring or workers, decreased volume of business, or dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise.

The law does not make any distinction between a technical and non-technical position for purposes of determining the validity of termination due to redundancy. Neither does the law nor the employment contract here involved require that junior employees should first be terminated. In redundancy, what is looked into is the position itself, the nature of the services performed by the employee, and the necessity of such position.