Thank you for your response. I admit my knowledge on the matter is limited but I'm interested to know more. Would you have a ruling I can refer to that touches on the topic?
In my limited understanding of legal matters, I have come to some assumptions about my case, and would appreciate your feedback.
1. "separation pay" is a generic term used when an employee leaves the company or is let go.
2. Depending on circumstances (eg., retirement, retrenchment, or Redundancy), the separation pay may differ in its formula
3. In seeking classification, the NLRC arbiter will use supreme Court decisions for jurisprudence.
As to the third point raised, my research pulled up the following SC rulings (for brevity, I only included the GR number, description, and salient points related to "separation pay"):
G.R. No. 110068
PHILIPPINE DUPLICATORS, INC., petitioner,
NATIONAL LABOR RELATIONS COMMISSION and PHILIPPINE DUPLICATORS EMPLOYEES UNION - TUPAS, respondents.
> 13th Month pay computation
> wages include commissions for employees engaged in selling
> basic salary does not include cola in computing 13th Month pay
G.R. No. 74191 December 21, 1987
THE INSULAR LIFE ASSURANCE COMPANY, LTD., and FGU INSURANCE GROUP, petitioners,
NATIONAL LABOR RELATIONS COMMISSION
> illegal dismissal
> backwages include leaves and other allowances
G.R. No. 75510 October 27, 1987
RUFINA SORIANO, petitioner,
THE NATIONAL LABOR RELATIONS COMMISSION and KINGLY COMMODITIES TRADERS AND MULTI-RESOURCES, INC.,
> illegal dismissal/termination for just cause
> separation pay given with "living allowance"
G.R. No. 76721 September 21, 1987
LYDIA SANTOS, petitioner,
NATIONAL LABOR RELATIONS COMMISSION and SECURITY BANK AND TRUST COMPANY
> illegal dismissal
> allowances included in separation pay
G.R. No. 160233
- versus -
Ynares-Santiago, J.(Chairperson), Austria-Martinez, Chico-Nazario, and NATIONAL LABOR RELATIONS COMMISSION
> commissions for people not involved in selling are not included in final pay
None of these SC rulings cover cases where the termination of employment is due to Redundancy, and in some cases, allowances are awarded as part of the severance package.
Again, thank you for your help.
I apologize for the length of this reply, but I'd like to supply as much information as I can.