What makes a Makati labor case different
Makati concentrates head offices, banks, and multinationals, so the disputes that come out of it skew toward the senior end of the payroll. Three patterns recur here far more than in other cities:
- Managerial and confidential employees. The loss of trust and confidence ground is applied more loosely to them than to rank-and-file — but it still requires an act that is real, work-related, and founded on established facts, not the employer's suspicion. Position alone does not make dismissal automatic.
- Negotiated exits and release agreements. The 'mutual separation package' is standard practice in the CBD. A quitclaim is not automatically binding — it fails where the consideration is unreasonably low against what is legally due, or where it was signed under an ultimatum.
- Retrenchment and redundancy during restructuring. Both are authorised causes, but the employer must prove the business ground with evidence, serve written notice on the employee and DOLE at least 30 days ahead, use fair and reasonable criteria, and pay the correct separation pay. Redundancy pay and retrenchment pay are computed at different rates.
Where the case goes
The forum does not depend on the employer's prestige. A claim against a Makati employer starts with a Request for Assistance under SEnA at the DOLE field office covering the workplace, and if unresolved goes to the Labor Arbiter of the NLRC National Capital Region branch serving Makati. Where the dispute is genuinely intra-corporate — a director or corporate officer removed from a position created by the by-laws, rather than an employee dismissed — it is not a labor case at all and belongs to the designated Special Commercial Court. Getting that characterisation wrong costs a year.
Before you sign the package
The pattern we are asked to unwind most often in Makati is a signed release followed by the realisation that the package undercounted. Compute what you are owed before signing, not after: unpaid salary, pro-rated 13th month, leave conversion, and the correct separation pay rate for the specific authorised cause. Our separation pay calculator and final pay calculator give you a defensible figure to negotiate against.
Frequently asked
Can a manager be dismissed for loss of trust and confidence?
The ground applies more liberally to managerial and confidential employees, but it still requires an act that is real, work-related, and founded on established facts. Holding a position of trust does not by itself justify dismissal.
Is the release agreement I signed binding?
Not necessarily. A quitclaim is invalid where the consideration is unreasonably low compared with what is legally due, or where it was signed under duress or an ultimatum. Where it is upheld but the amount fell short, the sum received is generally deducted from the award.
What is the difference between redundancy and retrenchment?
Both are authorised causes but they rest on different grounds and are paid at different separation pay rates. Each requires proof of the business ground, thirty days written notice to the employee and DOLE, and fair criteria.
My case is against a corporate officer position. Is it still a labor case?
Possibly not. The removal of a director or a corporate officer holding a position created by the by-laws is an intra-corporate controversy for the Special Commercial Court, not an illegal dismissal case for the Labor Arbiter.