The Department of Labor and Employment (DOLE) is looking to extend the period of temporary displacement for employees beyond six months to avert a possible mass permanent retrenchment.
“Employers appealed if we can extend the period because they said their business is not yet good and they are still not in a position to rehire them,” Labor secretary Silvestre Bello III said during a Senate budget hearing last week. Labor Undersecretary Benjo Benavidez explained the six-month temporary displacement scheme is based on existing jurisprudence.
Bello said he is “inclined” to accept the request since COVID-affected companies may just opt to retrench their workers if they will not be allowed to extend the temporary displacement. The labor chief said they might come out with the new policy on the matter this week.