Content Writer: Janice Chew • Wednesday, 25/09/2025 - 23:25:08 - PM
The Philippines’ Court of Appeals (CA), Third Division, delivered a decision on 12 September 2025 ordering Melco Resorts Leisure Corp., operator of City of Dreams Manila, to pay PHP 30,000 (approximately US$510) each to 26 former employees who were terminated under a COVID-19 redundancy program in 2020. While the redundancy scheme itself was judged valid, Melco was found to have violated procedural due process by failing to provide written notice at least 30 days before termination, as required under Philippine labour law.
Under the judgment, the total compensation is about PHP 780,000 (US$13,700) for all 26 workers combined. The court clarified that despite the procedural breach, the employees are not entitled to reinstatement, backpay, or other monetary claims beyond the nominal damages, since Melco did not act in bad faith and the redundancy itself was lawful.
This ruling comes at a time when Melco is re-evaluating its holdings in Manila. The company has explored “potential strategic alternatives” for its stake in City of Dreams Manila, including looking for buyers, as part of a broader “asset-light” philosophy and efforts to reduce debt. Moreover, the Philippines gaming market has been facing headwinds: the pandemic caused sharp revenue declines, and more recently, there have been drops in visitor numbers from key source markets like South Korea. These factors are likely influencing both the legal outcome and Melco’s commercial strategy.
