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retrenchment and separation pay

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1 retrenchment and separation pay on Tue Feb 28, 2012 6:28 pm


Arresto Menor
I started working for our company aug 1, 1999. The owners are planning to retrench all employees by end of april 2012. Our company is planning to give 1 month x yr of service.

I was told by our HR head that my anniversary date is Aug 15th because during my 1st yr i was absent for 2 weeks due to measels. I still had no earned leaves at that time because i was several months away from 1 yr of service. Our HR heads said that leaves were only given after '1yr of continued service'. So i only earn leaves every aug 15th and not aug 1 which is the actual date i started.

My questions are: 1) when computing for separation pay, should it be based on the actual date i started which is aug 1 or should it be aug 15th? Is there any court rulling i can quote on to strengthen my claim that it should be aug 1st? 2)"Fraction of at least 6 months is considered 1 year" would it mean that i should be computed as 13 yrs even though i have actually only worked 12yrs and 9 months by the time they close the company?
3)my collegue who started working for our company last week of april 2011 should also be entitled to separation pay right? Can the company give her less than what will be given to the other employees and does "1 year" mean from the date she started or from the date she was regularized which is 6 months afterwards? Ms. HR head is saying that my colleague is only entitled to her last pay which covers the 15 day period she will be reporting for work. I dont think this is right but i do not know which law or ruling i can quote on to disprove it.

Grateful so much of your legal advice. More power!

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2 Re: retrenchment and separation pay on Wed Feb 29, 2012 10:37 pm


i believe you are right on both, and your remedy is to file a complaint at nlrc

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