30-day Notice Rule in Temporary Layoff

Article 283 of the Labor Code of the Philippines considers the layoff of employees valid if the following requisites are met: (1) necessity of the retrenchment to prevent losses, and proof of such losses; (2) written notice to the employees and to the Department of Labor and Employment (DOLE) at least one (1) month prior to the intended date of retrenchment; and (3) payment of separation pay equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher.

Article 283 however seems to refer only to a permanent retrenchment or layoff. The question is: Is the 30-day notice rule also applicable to temporary layoffs?

This question was answered in the affirmative by the Supreme Court in PT&T vs. NLRC [G.R. No. 147002. April 15, 2005]. The Supreme Court ruled, to wit: "It must be stressed, however, that compliance with the one-month notice rule is mandatory regardless of whether the retrenchment is temporary or permanent. This is so because Article 283 itself does not speak of temporary or permanent retrenchment; hence, there is no need to qualify the term. Ubi lex non distinguit nec nos distinguere debemus (When the law does not distinguish, we must not distinguish)."

Non-compliance with the one month notice requirement prior to retrenchment, however, only renders the termination defective, and not illegal, thus entitling the dismissed employee to payment of indemnity in the form of nominal damages and not reinstatement if it was determined that there was basis for the retrenchment.