The Philippines Court of Appeals (CA) has directed Melco Resorts Leisure Corp. to pay PHP30,000 ($510) each in nominal damages to 26 former employees of City of Dreams Manila who were terminated under a redundancy program in 2020 at the height of the COVID-19 pandemic, Inquirer.net reported.
In a 38-page decision dated September 12th, the CA’s Third Division upheld the validity of the redundancy scheme but ruled that Melco failed to observe due process. The court noted that some affected workers were not given the mandatory written notice at least 30 days before their dismissal.
For this violation, the court ordered Melco to compensate the workers, while clarifying that reinstatement, back wages, or other money claims could not be granted since the redundancy was lawful and no bad faith was found on the company’s part.
Melco Resorts Leisure Corp. operates City of Dreams Manila, one of the country’s largest integrated casino resorts. The company, along with other gaming operators, implemented mass layoffs in 2020 when government lockdowns forced casinos and tourism establishments to shut down. The Philippine gaming industry recorded steep revenue declines during that period, prompting operators to scale down operations and cut staff.
