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HOW TO COMPUTE LAYOFF OR SEPARATION PAY / RETRENCHMENT (LABOR CODE OF THE PHILIPPINES TAGALOG)
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ANG EMPLEYADO NA NAGRESIGN AY HINDI ENTITLED SA SEPARATION PAY?
An employee who voluntarily resigns from employment is not entitled to separation pay, except when it is stipulated in the employment contract or Collective Bargaining Agreement or based on established employer practice in the company.
In case of termination due to the installation of labor saving devices or redundancy, the employee affected is entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.
In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses including termination of employment on the ground of disease, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher.
In illegal dismissal cases, where reinstatement is no longer viable as an option, separation pay equivalent to one (1) month salary for every year of service should be awarded as an alternative. It must be emphasized that this payment of separation pay is in addition to payment of backwages.
A fraction of at least six (6) months shall be considered as one (1) whole year.
HOW TO COMPUTE LAYOFF OR SEPARATION PAY (LABOR CODE OF THE PHILIPPINES TAGALOG)
Disclaimer: These videos are intended for purely academic and scholarly purposes and are not meant to serve as a substitute for proper legal advice. The author and any of his heirs, successors, or assigns, assume no liability nor responsibility for misuse or misunderstanding of the information contained in these videos.
An employee who voluntarily resigns from employment is not entitled to separation pay, except when it is stipulated in the employment contract or Collective Bargaining Agreement or based on established employer practice in the company.
In case of termination due to the installation of labor saving devices or redundancy, the employee affected is entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.
In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses including termination of employment on the ground of disease, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher.
In illegal dismissal cases, where reinstatement is no longer viable as an option, separation pay equivalent to one (1) month salary for every year of service should be awarded as an alternative. It must be emphasized that this payment of separation pay is in addition to payment of backwages.
A fraction of at least six (6) months shall be considered as one (1) whole year.
HOW TO COMPUTE LAYOFF OR SEPARATION PAY (LABOR CODE OF THE PHILIPPINES TAGALOG)
Disclaimer: These videos are intended for purely academic and scholarly purposes and are not meant to serve as a substitute for proper legal advice. The author and any of his heirs, successors, or assigns, assume no liability nor responsibility for misuse or misunderstanding of the information contained in these videos.
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