The Supreme Court has emphasized that a person’s employment — the main source of livelihood for most families — is something that no one may be deprived of without due process of law. This basic doctrine has gained special significance after the coronavirus pandemic caused mass layoffs, workforce reductions and business closures.

Laying off workers or downsizing a firm’s workforce to prevent or minimize economic losses or avoid closure are among the authorized causes for the termination of employees recognized by the Labor Code of the Philippines. Such causes are those brought about by the necessity and exigencies of business and changing economic conditions. Other causes include the installation of labor-saving devices, redundancy and an employee’s disease.