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employees benefit to those lay off employee

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1 employees benefit to those lay off employee on Tue Apr 28, 2015 9:14 pm


Arresto Menor
Good day/evening attorney

I am a regular employee of an enterprise company,single, Period Service: Feb. 24,2013 - April 20,2015, with monthly basic gross income of 8,731.00.basic monthly net income: 7650 and monthly allowance of 1000.00

What are the right benefits that will arise/receive/give to those employee who forced of voluntarily out of service because the company itself decided for cost-cutting to augment operational cost/investment payable. The company are aware that they already continuous declining going bankruptcy, so they decided to cut its operation cost and started to lay off an employee to get recover only.

*Is this a legal process?Explain sir.
*Are we entitled for separation and 13th month pay, if yes, how much based on article of Labor code?
*Have I right to demand an additional rate because we still working during holidays(philippine calendar holidays)and province executive order(provincial fiesta-requiring/mandatory to join festivity with executive order from the governor), if yes how much based on Labor code article?
*Is my salary is taxable, they are deducting tax 580 monthly, is it correct based on BIR article?
*Any suggestions/recommendation please?

Thank you and Godbless!

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Reclusion Perpetua
1. Yes, under Art 283 of the Labor Code.

ART. 283. Closure of establishment and reduction of personnel. - The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. 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.

2. Yes, as above. The 13th month pay is pro-rated for the current year.

3. Demand? You should be paid the correct rates and premium payments (overtime, etc).

4. What is your company's location? Minimum wage and income tax depends on it.

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3 employees benefit to those lay off employee on Wed Apr 29, 2015 11:45 am


Arresto Menor

I'll appreciate so much for your immediate response sir!

Company Business Address: Isabela Province.Currently my rate is base on Isabela Province rate, I am receiving a rate 396/day-base on salary grade to my last position.. Is it correct the tax deduction of 580 monthly. My gross inc monthly/8731, net income monthly/7650; allowance monhtly 1000.00. What is the correct tax deduction based on my salary and BIR?

1. Are employee is entitled for double pay if they are going to work on holiday season(calendar holiday) and provincial celebration(provincial fiesta) with approve executive order from the office of the governor requiring to join festivity either private or government organization?
2.Is it possible or may I win regarding my separation pay even though company is always getting monthly losses.If yes, how much could be the right separation pay will be given?

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Reclusion Perpetua deducted is an approximate per month, such that at the end of the year, is almost equal to your annual tax due less deductions.
deductions are then computed as per you status, single, Married/married with children etc,,,
2, regarding OT pay, we also have the computation for each, Legal holiday, Special holiday, and per hour basis..they are all per Dole.
3. as per separation pay, already answered by Council.
4. separation pay should be given, if the termination of service was caused by employer, if not given then pwede dulog sa DOLE.
5. what is the nature of work, how large( company revenue)
basis din to sa computation kung magkano min wage.

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