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Termination of contract

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1 Termination of contract on Fri Nov 28, 2014 8:07 pm


Arresto Menor
Hi atty,

Our company is having a cost reduction and its result to retrenchment or manpower reduction and contract termination,In this regards we would like to inquire if we are intittled to a separation fee or any benefits, the contract employment is 1year(april 2014 to march 2015) but due to cost reduction the contract will be terminated earlier this dec 2014.

Thank you.


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2 Re: Termination of contract on Tue Dec 02, 2014 7:56 am


Reclusion Perpetua

If retrenchment is the basis and there is genuine retrenchment, you should be entitled to separation pay equivalent to 1 month pay or 1/2 month pay for every year of service, whichever is higher. A fraction of at least 6 months is considered 1 whole year.

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