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    Separation Pay Infographic

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    DOLE Region 6
    Employees are entitled to separation pay under Articles 298 and 299 of the Labor Code for certain authorized causes of termination from service. Separation pay is calculated at either half a month's pay or one month's pay per year of service, with a minimum of one month, depending on the reason for separation. An employee who voluntarily resigns is generally not entitled to separation pay unless company policy or a collective bargaining agreement provides for it. The document outlines the specific reasons that qualify for each level of separation pay under Philippine law.

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    Separation Pay Infographic

    Uploaded by

    DOLE Region 6
    20 views2 pages
    Employees are entitled to separation pay under Articles 298 and 299 of the Labor Code for certain authorized causes of termination from service. Separation pay is calculated at either half a month's pay or one month's pay per year of service, with a minimum of one month, depending on the reason for separation. An employee who voluntarily resigns is generally not entitled to separation pay unless company policy or a collective bargaining agreement provides for it. The document outlines the specific reasons that qualify for each level of separation pay under Philippine law.

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    Employees are entitled to separation pay under Articles 298 and 299 of the Labor Code for certain authorized causes of termination from service. Separation pay is calculated at either half a month's pay or one month's pay per year of service, with a minimum of one month, depending on the reason for separation. An employee who voluntarily resigns is generally not entitled to separation pay unless company policy or a collective bargaining agreement provides for it. The document outlines the specific reasons that qualify for each level of separation pay under Philippine law.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views2 pages

    Separation Pay Infographic

    Uploaded by

    DOLE Region 6
    Employees are entitled to separation pay under Articles 298 and 299 of the Labor Code for certain authorized causes of termination from service. Separation pay is calculated at either half a month's pay or one month's pay per year of service, with a minimum of one month, depending on the reason for separation. An employee who voluntarily resigns is generally not entitled to separation pay unless company policy or a collective bargaining agreement provides for it. The document outlines the specific reasons that qualify for each level of separation pay under Philippine law.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    separation

    pay
    Entitlement and Availment

    Separation pay is given to


    employees in instances
    covered by Articles 298 and
    299 of the Labor Code.

    An employee's entitlement to
    separation pay depends on
    the reason or ground for the
    termination of his or her
    services.

    An employee who voluntarily resigned is


    not entitled to separation pay, unless it is a
    company practice or provided in the CBA.
    Source: 2020 Handbook on Worker's Statutory Monetary
    Benefits
    One-Half (1/2) Month Pay per Year of Service
    An employee is entitled to receive a separation pay equivalent to 1/2 month pay for
    every year of service, a fraction of at least 6 months is considered as 1 year, if his or
    her separation from service is due to any of the following authorized causes:

    1. Retrenchment to prevent losses;


    2. Closure or cessation of operation of an
    establishment not due to serious losses or
    financial reverses;
    3. When the employee is suffering from a
    disease not curable within a period of 6
    months and his/her continued employment
    is prejudicial to his/her health or to the
    In no case will an health of his/her co-employees; and
    employee get less than
    1 month separation 4. Lack of service assignment of security
    pay if the separation guards for a continuous period of 6
    is due to the above months*
    stated causes.
    *Department Order No. 150, series of 2016, Revised Guidelines Governing the Employment and
    Working Conditions of Security Guards and Other Private Security Personnel in the Private Security
    Industry.

    One (1) Month Pay per Year of Service


    An employee is entitled to receive a separation pay equivalent to his/her 1 month pay for
    every year of service, a fraction of at least 6 months is considered as 1 year, if his/her
    separation from service is due to any of the following:

    1. Installation by employer of labor-saving devices; B A S I S O F

    2. Redundancy, as when the position of the employee S E P A R A T I O N

    has been found to be excessive or unnecessary in the


    P A Y
    operation of the enterprise; and
    3. Impossible reinstatement of the employee to his/her Latest Salary
    former position or to a substantially equivalent
    position for reasons not attributable to the fault of Rate of the
    the employer, as when the reinstatement order
    cannot be implemented due to closure, cessation of Employee
    operations, the position no longer exists, or there is
    strained relations between the employer and
    employee.
    4. Lack of service assignment of security guards by
    reason of age.*
    *Department Order No. 150, series of 2016, Revised Guidelines Governing the Employment and Working Conditions
    of Security Guards and Other Private Security Personnel in the Private Security Industry.

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