Attack of the Pasaway Employee

Thank you for your very insightful website!

I have a question regarding on a possible labor case that might in sue. We have closed a foodcart in a major mall due to very low sales turnout. we couldn't afford the mall's lease and sadly we had to close our foodcart. We have two employees. While we said they are still part of our team and we will just need time to strategies on a better location. We did want to release our employees although we said that should you find an alternative source of employment that they are free to apply. Here's the problem, one employee as we have discovered has been planning on staging her own foodcart in the same area with the same type of food that we are selling. Upon hearing this, to safeguard our little business interest, we asked them to sign a non disclosure agreement. The pasaway employee signed it but I think she wants to press charges. In our non disclosure agreement, we stipulated that we feel that our employee should not partake in business that is the same as with ours. Although they are free to look for other employment just as long as it doesnt involve the same product. My question is, can she press charges? And if so, can a signed non disclosure agreement that is also signed by other witnesses hold up in court should she fight us about it? Also by the way, there are evidences that she also stole from our sales, thinking incase she does sue us, can we take her to court with sabotaging our own business? Thank you for your adv.

did you file your report with the DOLE that you are suspending operations? do you have written notice given to the employees regarding the suspension of operations?

it was a verbal announcement given 6 months in advance. and we told them we would transfer them to the other branch anyway. But if they feel that they would rather look for employment elsewhere they are free to do so. We never cut back o n their salary, if they needed help we did help them out. Now she's filing for loss of employement. Can she? even if we told her we will transfer her to a nearby location?

if your employee is filing an illegal dismissal case due to closure of the business, then to defend yourselves you have to show:
1) written notice given 30 days before the date of closure duly received by the employee
2) written notice to the DOLE 30 days before the date of closure
3) separation pay if possible

else, the dismissal will be deemed illegal and the employer liable for backwages and damages.

if you have evidence, then you may file a case of qualified theft against your employee, but this will not affect your possible liability for any improper dismissal.

if she violates the non-disclosure agreement, then you can seek issuance of a court order to stop her and damages.

you can try to trade dropping of criminal charges in exchange for dismissing the labor case if she is amenable.

as an employer, even if it is just 2 man food cart, you are expected to comply with labor laws.

According to a recent case decided by the Suprme Court, for a non-disclosure agreement to be valid it must be restricted as to time and place. For example, the employee may be prohibited from engaging in the same business only within a radius of 5 kilometers from where the employer operates and only within a period of one year.

The restriction cannot cover the entire country and it should be for a limited period only otherwise, it will unreasonably curtail the employee of his right to earn a living.