Philippines: Court orders Melco to compensate casino staff over flawed layoffs
Dismissed City of Dreams Manila workers awarded PHP 30,000 each despite valid redundancy.
Key points:
– Melco to pay nominal damages totalling PHP 780,000 ($13,700)
– Redundancy valid, but notice period requirement not met
– No reinstatement or backpay granted
The Court of Appeals has ordered Melco Resorts to pay PHP 30,000 each to 26 employees who were laid off from City of Dreams Manila in 2020, citing a failure to follow due process during the implementation of a pandemic-era redundancy programme.
As reported by Inquirer.net, the Third Division of the court upheld the legality of the redundancy itself, which was introduced amid operational challenges during the COVID-19 crisis. However, it ruled that Melco did not serve the required 30-day written notice to the affected employees prior to termination, breaching procedural requirements.
In its 38-page decision dated 12 September, the court emphasised that the employees’ right to statutory due process had been violated. Despite this, it acknowledged that Melco had not acted in bad faith, meaning the employees were not entitled to further monetary remedies or re-employment.
Good to know: The court awarded a total of PHP 780,000 in nominal damages, but rejected claims for reinstatement and backpay
The ruling clarifies the legal boundary between valid corporate downsizing and compliance with labour safeguards, particularly in crisis periods. It also reaffirms that while redundancy may be justified under certain economic conditions, employers remain obligated to observe proper termination procedures.
Melco Resorts operates City of Dreams Manila in Entertainment City, Paranaque, one of the Philippines’ key integrated resort developments.
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