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clarification for separation pay

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1 clarification for separation pay on Wed Feb 04, 2015 8:29 am

jumer


Arresto Menor
I have been reading the forum about separation pay, some use one month pay times number of year in service, other use 1/2 month pay times number of year in service. If I am an employer , I will go for the 1/2 month pay times year of sevice.
So what really is the basis for choosing between 1 month and 1/2 month pay for the computation of separation pay?
Hoping for a clarfication on this matter, thank you.

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2 Re: clarification for separation pay on Wed Feb 04, 2015 11:12 am

Patok


Reclusion Perpetua
separation pay for what? are you resigning? are you being retrenched?

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3 Re: clarification for separation pay on Wed Feb 04, 2015 11:40 am

council


Reclusion Perpetua
jumer wrote: I have been reading the forum about separation pay, some use one month pay times number of year in service, other use 1/2 month pay times number of year in service. If I am an employer , I will go for the 1/2 month pay times year of sevice.
   So what really is the basis for choosing between 1 month and 1/2 month pay for the computation of separation pay?
  Hoping for a clarfication on this matter, thank you.

redundancy - nagbabawas ng sobrang tao = 1 month for every yr

retrenchment - nagbabawas dahil baka nalulugi = 1/2 month for every yr

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4 Re: clarification for separation pay on Thu Feb 05, 2015 7:22 pm

jumer


Arresto Menor
I just browsed in the dole website:

Art. 283.

----In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be 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, 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. A fraction of at least six (6) months shall be considered one (1) whole year.


---If retirement at 60 years old, also 1/2 month per year of service.

In retirement at 60 yrs old, 1/2 month = 15 days pay + 1/12 of 13th month + 5 day incentive pay for retirement.

a). How about the computation of 1 month in the redundancy case, does it include incentive pay etc?

b). How about the computation of 1/2 month pay in the closure of business?

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