SC differentiates redundancy, retrenchment

At this point, it is necessary to distinguish "redundancy" from "retrenchment." Both are mentioned in Art. 283 of the Labor Code as just causes for the closing of establishments or reduction of personnel. "Redundancy" exists when the services of an employee are in excess of what is required by an enterprise. "Retrenchment," on the other hand, is one of the economic grounds for dismissing employees and is resorted to primarily to avoid or minimize business losses. Private respondent's "redundancy program," while denominated as such, is more precisely termed "retrenchment" because it is primarily intended to prevent serious business losses. [G.R. No. 108259. November 29, 1996]