4/9/2020 E-Library - Information At Your Fingertips: Printer Friendly reduce the number of its personnel, thus: Moreover, from the standard form of employment contract relied upon by the Labor Arbiter, it is clear that unilateral cancellation (sic) may be effected for “legal, just and valid cause or causes.” Clearly, contrary to the Labor Arbiter’s perception, the enumerated causes for employment termination by the employer in the standard form of employment contract is not exclusive in the same manner that the listed grounds for termination by the employer is not exclusive. As pointed out above, under Sec. 10 of RA 8042, it is clear that termination of employment may be for just, valid or authorized cause as defined by law or contract. Retrenchment being indubitably a legal and authorized cause may be availed of by the respondent. From the records, it is clearly shown that there was a drastic reduction in Petrocon’s 1998 work allocation from 250,000 man-hours to only 80,000 man-hours. Under these circumstances over which respondent’s principal, Petrocon had no control, it was clearly a valid exercise of management prerogative to reduce personnel particularly those without projects to work on. To force Petrocon to continue maintaining all its workers even those without projects is tantamount to oppression. “The determination to cease operation is a prerogative of management which the state does not usually interfere with as no business or undertaking must be required to continue at a loss simply because it has to maintain its employees in employment. Such an act would be tantamount to a taking of property without due process of law. (Industrial Timber Corp. vs. NLRC, 273 SCRA 200)[29] As to complying with the fifth requirement, the CA was correct when it ruled that: As to the fifth requirement, the NLRC considered the following criteria fair and reasonable in ascertaining who would be dismissed and who would be retained among the employees; (i) less preferred status; (ii) efficiency rating; (iii) seniority; and (iv) proof of claimed financial losses. The primary reason for respondent’s termination is lack of work project specifically related to his expertise as piping designer. Due to the highly specialized nature of Logarta’s job, we find that the availability of work and number of allocated man-hours for pipeline projects are sufficient and reasonable criteria in determining who would be dismissed and who would be retained among the employees. Consequently, we find the criterion of less preferred status and efficiency rating not applicable. The list of terminated employees submitted by Petrocon, shows that other employees, with the same designation as Logarta’s (Piping Designer II), were also dismissed. Terminated, too, were employees designated as Piping Designer I and Piping Designer. Hence, employees whose job designation involves pipeline works were without bias terminated. elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/54674 7/11