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retrenchment dispute

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1 retrenchment dispute on Thu Dec 14, 2017 10:38 am


Arresto Menor
Hello! i was recently retrenched after 15+ of years of service. When I was informed of it, they gave the details of the severance package and the retirement pay. However, after a while, the company said that the retirement package is different from what I was informed because of the retirement pay policy. When I was notified, i specifically clarified of that policy and they said it does not apply because it's retrenchment and not regular resignation. The difference in the amount is very high. Do I have a case here?

Any pro bono labor lawyer who can help me please? Thank you!

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2 Re: retrenchment dispute on Thu Dec 14, 2017 10:42 am


Reclusion Perpetua
may CBA ba kayo or was your retirement part of your contract? technically retrenchment will not include retirement pay kasi you were removed from the company before you retired. If you can provide more details baka we might be able to help you more. If you are qualified you might want to reach out to PAO

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3 Re: retrenchment dispute on Thu Dec 14, 2017 2:23 pm


Reclusion Perpetua
retrenchment is 1/2 month salary for every year of service.. there is no mention of retirement pay in the labor code.

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4 Re: retrenchment dispute on Wed Jan 03, 2018 9:33 pm


Reclusion Perpetua
In retrenchment, the law specified the amount of separation pay, which is 1 month salary, or 1/2 month for every year of service, whichever is higher. A fraction of 6 months is considered as 1 year. You cannot fault your employer if it just followed the law in computing your separation pay. Try reading this, I hope this helps you.

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