Separation Pay
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SEPARATION PAY WHAT IS SEPARATION PAY? Separation pay is the amount that an employee receives at the time of his severance and is designed to provide the employee with the wherewithal during the period that he is looking for another employment (Gabuay v. Oversea Paper Supply, G.R. o. !"##$%, !$ &ugust '").
WHEN IS SEPARATION PAY AWARDED? Generally, separation pay is only granted to employees terminated for *authori+ed cause cause and employees employees suffering suffering from any disease whose whose continued employment employment is prohibited by law or is pre-udicial to his health as well as to the health of his coemployees. /he amount of separation pay depends on the ground for which they were terminated (&rticles '#$ and '#", 0abor 1ode)2 (i) 3n case of termination due to the installation of laborsaving devices or redundancy 4 at least one (!) month pay or at least one (!) month pay for every year of service, whichever is higher. (ii) 3n case of (a) retrenchment to prevent losses and (b) closures not due to serious financial reverses 4 one (!) month pay or at least onehalf (!5') month pay for every year of service, whichever is higher. (iii) o separation pay for closure due to serious business losses. (iv) 6or disease 4 separation pay e7uivalent to at least one (!) month pay or to onehalf (!5') month pay for every year of service, whichever is higher. 3n computing the year of service, a fraction of at least si8 (9) months is considered as one (!) whole year.
IN WHAT OTHER INSTANCES MAY SEPARATION PAY BE AWARDED? (!) :hen the employee has been declared illegally dismissed and reinstatement is no longer possible (Gabuay v. Oversea Paper Supply, G.R. o. !"##$%, !$ &ugust '"). (') &t the option of a contractor;s employee upon e8piration of the
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contractor;s Service &greement with its principal (Section !$, <epartment of 0abor and =mployment <epartment Order !#&). ($) 3n e8ceptional cases, where separation pay is awarded as a measure of social or compassionate -ustice even if the employee is found to have been at fault for his dismissal (P0</ vs. 0R1, o. 0#9>, '$ &ugust !>##).
CREDITS and SOURCE: http://mplaw.com.ph/separation-pay/
WHEN IS SEPARATION PAY AWARDED? Generally, separation pay is only granted to employees terminated for *authori+ed cause cause and employees employees suffering suffering from any disease whose whose continued employment employment is prohibited by law or is pre-udicial to his health as well as to the health of his coemployees. /he amount of separation pay depends on the ground for which they were terminated (&rticles '#$ and '#", 0abor 1ode)2 (i) 3n case of termination due to the installation of laborsaving devices or redundancy 4 at least one (!) month pay or at least one (!) month pay for every year of service, whichever is higher. (ii) 3n case of (a) retrenchment to prevent losses and (b) closures not due to serious financial reverses 4 one (!) month pay or at least onehalf (!5') month pay for every year of service, whichever is higher. (iii) o separation pay for closure due to serious business losses. (iv) 6or disease 4 separation pay e7uivalent to at least one (!) month pay or to onehalf (!5') month pay for every year of service, whichever is higher. 3n computing the year of service, a fraction of at least si8 (9) months is considered as one (!) whole year.
IN WHAT OTHER INSTANCES MAY SEPARATION PAY BE AWARDED? (!) :hen the employee has been declared illegally dismissed and reinstatement is no longer possible (Gabuay v. Oversea Paper Supply, G.R. o. !"##$%, !$ &ugust '"). (') &t the option of a contractor;s employee upon e8piration of the
Did you know?
Scribd is more than just documents. Our digital library gives you access to books, audiobooks, and more. Learn more
Did you know?
Scribd is more than just documents. Our digital library gives you access to books, audiobooks, and more. Learn more
contractor;s Service &greement with its principal (Section !$, <epartment of 0abor and =mployment <epartment Order !#&). ($) 3n e8ceptional cases, where separation pay is awarded as a measure of social or compassionate -ustice even if the employee is found to have been at fault for his dismissal (P0</ vs. 0R1, o. 0#9>, '$ &ugust !>##).
CREDITS and SOURCE: http://mplaw.com.ph/separation-pay/
