Summary

Separation Pay Meaning

Separation pay, as generally understood, refers to the amount due to the employee who has been terminated from service for causes authorized by law (not due to employees fault or wrong-doing) such as installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking.

Separation pay is intended to provide the employee with the wherewithal during the period he is looking for another employment. (See Gabuay v. Oversea Paper Supply, G.R. No. 148837, August 13, 2004.)

Five Instances when Separation Pay is due to Employee

There are at least five instances in which an employee is entitled to payment of separation pay upon severance of employment:

  1. When the termination of employment is due to causes authorized by law, such as installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking. This is provided under Art. 283, Labor Code of the Philippines. The provision states, viz.:

    Article 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 Department 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 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. When the severance of employment is cause by a disease, particularly when the employee is found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as the health of his co-employees. This is found in Art. 284, ibid., the full text states, viz.:

    Article 284. Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as the health of his co-employees: Provided, That he is paid separation pay equivalent to at least one month salary or to one-half month salary for every year of service, whichever is greater, a fraction of at least six months being considered as one whole year.

  3. When the termination from service of the employee has been declared illegal, but his reinstatement to his former position is no longer feasible for some valid reason, e.g., when reinstatement is rendered impossible due to subsequent closure of business, or when the relationship between employer and employee has become strained (doctrine of strained relations). (See Gabuay v. Oversea Paper Supply, G.R. No. 148837, August 13, 2004.)
  4. In case of pre-termination of employment contract in job-contracting arrangement. (See Department Order 18-02, Rules Implementing Article 106 to 109 of the Labor Code.)
  5. In exceptional cases, where separation pay is awarded as a measure of social or compassionate justice. Here, payment of separation pay may be ordered by the court even if the dismissal from service is found to have been for valid or just cause, i.e., even if the employee is found to have been at fault. (See PLDT vs. NLRC, No. L-80609, August 23, 1988.)

Distinguished from Retirement Pay

Separation pay should not be confused with retirement pay. Separation pay is the amount due to the employee where the cessation of employment is due to causes authorized by law (or for any of the other causes stated above). Retirement pay, on the other hand, is the amount to be paid to the employee who has reached the compulsory retirement age or who availed of voluntary retirement.

Last Edited: Friday, August 19, 2011

Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.
illegal dismissal, resignation, retirement pay, separation pay, Termination of Employment
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433 comments

  1. How about a gratuity pay? Is it different from a separation pay? How is it computed?

    [Reply]

    yang Reply:

    hi sir..
    gud day..just want to ask..Does end of contract is entitled of a separation pay? and what is the maximum time of releasing? it has been 2 months since we ended our contracts but still we don’t hear anything from them..they’re not even giving us a specific date..at least we know when to expect it..hoping for your reply..thank you…

    [Reply]

    Boggs Reply:

    Sir,

    Good day. Regarding separation pays, are church workers entitled to it after their contracts have ended?

    Please enlighten us. Thank you.

    [Reply]

    jane Reply:

    kung hindi ba tama ang binigay na separation pay at wala ring 13month pay, pwede ba akong mag punta sa labor?

    [Reply]

    Kean Reply:

    No. There is no separation pay if its end of contract, or probationary period

    [Reply]

    Eigram Auxtero Reply:

    Our company usually ends our contract every year and will be rehired for the next fiscal year. (July, 2012 to June,2013). We are entitled to a severance pay but this is deposited in the bank since we start working. Now the agency is reducing its employees because of reduction of fund due to reduction of beneficiaries. And we are required to undergo process like applying again and pass on an interview. Can we claim the severance pay?

    [Reply]

    mitch Reply:

    Sir,

    What does the Labor Law says when you have an outstanding loan to the company and you agreed that you will settle in PDCs while getting your last. Pay in full. Hence, 2 days prior to check release, it turns out that they changed their decision and wanted to deduct everything in full?

    Thank you and hoping for your kind reply.

    [Reply]

    Cher Reply:

    Hi sir,
    I’ve been working in a spa company which is a concessionaire in a 5star hotel. Just recently we were told that our company will be dissolve soon and they are declaring a false bankruptcy. I’ve been working there for 7years and I’m just receiving a commission basis salary which I think was wrong, I signed a contract before that im a regular employee already but the salary computation wasn’t there. What will be the right amount for my separation pay and how will be the computation? Does my company violating some law? Please, I need an advice, will really be a big help. Thanks

    [Reply]

    ashley Reply:

    Goodpm sir, i need an advice, i started to work in a small office for 8years, last feb of 2013, they transferred their business with their relatives,because their income cannot accommodate the expenses already, can i demand for separation pay, since i know their family is above average, in additional my salary was deduct for my sss pagibig and philhealth and i found out that they did not settle my account for more than 3years
    thanks for your help

    [Reply]

    ashley Reply:

    I just may add, the history of the company i worked, they bought the business from their relatives, lets assume business name is x company, but as years passed by they planned to change their name, like lets say y company under ‘x company’ so my sss was under with y employer, but then they decided to use again the x company name until this feb 2013 they turn it over again to the owner their relatives ( x company )

    [Reply]

  2. Ted Ferrolino Comment:
    February 23rd, 2010 at 09:43 am

    Hi Jennie,
    Gratuity is different from separation pay. Unlike separation pay which is legally demandable, gratuity pay is paid to the employee purely out of the generosity of the employer. It is not legally demandable (unless it has already ripened into company practice).

    That being said, the computation of gratuity pay depends solely on the employer, or on existing CBA.

    [Reply]

  3. What if I’ve worked for a company for six years. For the first three years I was awarded a salary of P10,00.00 a month. I’ve been promoted on my fourth year and have been awarded a salary worth P15,000.00 a month. What will be the legal computation if I were to claim for my separation pay? Thanks!

    [Reply]

    Ted Ferrolino Reply:

    Hi Jonathan,
    As a rule, the basis in the computation of separation pay is the latest salary rate of the employee. In your question, it is P15,000.
    The exception to this rule is when the salary has been reduced by the employer in order to defeat the law, e.g., to avoid payment of higher separation pay, in which case, the salary prior to the reduction shall be made the basis of the computation.

    [Reply]

    vergel Reply:

    Hi Ted,

    I was hired last February 2007 with Php 25000 salary.

    My scenario is this… I was promoted last April 2009 and my salary was adjusted to Php 50000. Afterwards, last June 2009 I was advised by HR that they made an error on my salary and it should have been Php40000. Since I need work and I dont want to resign with that incident, I made a request to extend the supposed to be “wrong salary” up to September 30 2009 and they approved it… Now.. we were just advised that the company will be closed by June 30, 2010.

    What will be the basis of my end of service? the Php 50k or the 40K? How many months? at 1 mos or 1/2 mos?

    Please advise… I will really appreciate it…

    [Reply]

    vergel Reply:

    Hi Ted,

    In addition to the information above, the company will be closing the Office due to transfering of processes to another country and some employees including me will be transferred to a new host country… Am I entitled to separation pay?

    Ted Ferrolino Reply:

    As a general rule, the basis in the computation of separation pay is the last salary rate of the employee. This rule holds, unless you can show that you fall under the exception, i.e., that your salary was reduced in order to circumvent the law. It’s really a matter of evidence (your’s against your employer’s). As claimant, you will have the burden to show it by presenting proof that the reduction was done in bad faith.
    As to the separation pay, the amount depends on the reason for the closure. If the closure is due, plainly, to transferring of process to another country, meaning NOT due to serious business losses, then the affected employees are entitled to separation pay in the amount of 1/2 month pay for every year or service (or 1 month pay only, whichever is higher) in accordance with Article 283.
    But if the closure is DUE to serious business losses, then the employees are not entitled to any separation pay. The Labor Code does not impose obligation to employer to pay separation pay to employees if the closure is due to serious business losses.
    However, this time, it is the employer’s burden to prove that the reason for closure is due to serious business losses or financial reverses. If the employer fails to discharge this burden, the employees must be paid separation pay.

    vergel Reply:

    Hi Ted,

    Tnxs for the info.

    The office will be on dormant status and all the Manila employees will be terminated. Also, the reason for closing as advised was to streamline the operation.

    What evidence is needed to show that the salary was done in bad faith? Where there a case before that we can make a referrence?

    Also, kindly elaborate your reply to Sandy dated april 14, 2010; It states that” On the other hand, if the closure is NOT due to financial losses, separation pay is “1 month pay for every year of service” (this time, it’s really 1 month pay)” Are we entitled to 1 Mos salary for every year of service since the company is not losing money and the reason for the closure is to streamline/centralized the operation?

    Ted Ferrolino Reply:

    Vergel,
    Thank you for calling my attention to the obvious error. I already edited/clarified it for the benefit of other readers.
    I’ll try to answer your question later when I have my free time.
    Thanks again.
    My best regards.

    Ted Ferrolino Reply:

    Bad faith is inherently difficult to prove because it is essentially a state of mind, which is invisible to the naked eye (so to speak). Moreover, the law always presumes good faith, unless the claimant (you) can prove otherwise.
    Thus, on your question: “what evidence is needed to show that the [reduction in your] salary was done in bad faith?”, there is really no easy answer to it.
    But for starter, you need to know that your goal here is to show that the reduction was done precisely to avoid payment of higher separation pay. To reach this goal, you’ll most probably need evidence to show that:
    1. The reduction was in the first place illegal (or without basis);
    2. The closure of business was impending at the time when the reduction was made;
    3. The reduction was done in contemplation of such closure and precisely in order to avoid payment of higher separation pay.
    (I can’t find similar case for now, but I’ll try to some other time. For reference read Section 10, Title I, Book Six, Omnibus Rules Implementing the Labor Code.)
    (N.B. The following discussion is for academic purposes only, and does not create attorney-client relationship. You should consult your lawyer for competent advice.)

    DAINA Reply:

    tanong q lang kung halimbawa nagwork ako sa isang company for about 6 1/2 years..tapos biglaan hindi na kmi pinapasok dahil konti na lang daw ang project at tatawagin na lang daw..ive waited 2 long months but still di na kmi pinabalik…so i decided na maghanap na ng ibang mapapasukan…meron ba akong matatanggap na separation pay?…

    [Reply]

  4. is this applicable even if the employee has worked for less than a year (but more than 6 months) in the company?

    what if one resigns instead? is there also a separation pay for that?

    Thanks!

    [Reply]

    Ted Ferrolino Reply:

    Ada,
    Yes, payment of separation pay applies to all employees regardless of length of service. If the employee worked for less than a year, his/her separation pay shall be equivalent to his one month salary.
    If he resigns, that’s a different case. An employee who voluntarily resigns is generally not entitled to separation pay, unless by CBA, employment contract, etc., he is entitled thereto. (More about voluntary resignation here).

    [Reply]

  5. Hi, where can I get free legal counsel to help me dispute illegal dismissal before the arbiter? Thanks.

    [Reply]

    Ted Ferrolino Reply:

    Bambi,
    If you qualify as an indigent litigant, you may avail the assistance of a PAO lawyer (Public Attorney’s Office). To qualify, you must be indigent (the basis for this is your net income) and your case must have a good chance of success.

    [Reply]

  6. Hi Ted!

    Your reply has been very enlightening. Thanks! May I also ask about when the separation pay must be given? If and when an employee is dismissed due to an ongoing retrenchment, should the separation pay be given on the employee’s last day of employment? What action must be taken if the company fails to do that?

    [Reply]

    Rey Fernandez Reply:

    Hello! I have a similar case to that sir. My employer downsized his operations after having served his company for 3 yrs 7 months. He didn’t specify as to when he would start paying our separation benefits. All he said was that whatever he gets out of the remaining revenues the company will produce in the future will be the basis for paying us off. Can you please comment on this?

    [Reply]

    Ted Ferrolino Reply:

    You should be paid your separation benefits on your last day, or shortly thereafter. It can’t be made to depend on “remaining revenues the company will produce in the future.”

    [Reply]

    Joe Advincula Reply:

    Greetings! I have been laid-off last December and after one month my separation pay hasn’t been given to me. I have been surfing the net regarding the maximum or minimum time frame wherein the separation pay must be settled with the ex-employee but I don’t see any definitive answer. Can you please help me out? Thanks : )

  7. Ted Ferrolino Comment:
    March 16th, 2010 at 02:33 pm

    Jonathan,
    Your separation pay should be paid on your last day, or if not, on a reasonable number of days after your last day. As some companies may require, prior to release of separation pay, the submission of clearances or execution of release and quitclaim, reasonable delay may be expected.

    If the separation pay is not paid, or if there is unreasonable delay in payment, you may institute an action for money claim. You may file the action at the National Labor Relations Commission if your claim exceeds P5000. If P5,000 or less, file it at the Department of Labor and Employment.

    [Reply]

  8. What is the maximum number of days that is considered as reasonable?

    [Reply]

  9. The company that I’m working for is retrenching. They intend to pay us one-half month for every year of service. But Article 283 states that (1) month or at least (1/2) one-half month for every year of service WHICHEVER IS HIGHER must be given to an employee. Is what they’re trying to do in any way legal?

    [Reply]

  10. Ted Ferrolino Comment:
    March 16th, 2010 at 05:59 pm

    Jonathan,

    (1) What is reasonable depends on the circumstances. I am not aware of any rule on this. But IMO, I would say a few days delay is reasonable, and 2 weeks is unreasonable.

    (2) The phrase “whichever is higher” simply means the employee should receive at least one month salary, regardless of length of service. For example, if an employee worked for 1 year, he should be given separation pay equivalent to his one month salary (not 1/2, which is otherwise the case if we follow ’1/2 month pay for every year of service’ rule).

    But if the employee worked for three years or more (note that a fraction of 6 months is considered as one year), the 1/2 month pay rule should be applied because the separation pay is now higher than 1 month.

    [Reply]

    Ida Reply:

    Sir, my friend worked for a BPO, he resigned at least 2 month ago pa, he hasn’t received his last pay until now, he accomplished his clearances right after his resignation. this is considered unreasonable delay, right? Can we consult the NLRC? . . What department or officer po ba pwede hanapin?

    [Reply]

  11. Thank you so much Mr. Ferrolino. Things here are sickening already. Just a thought, Article 285 states:

    ART. 285. Termination by employee. – (a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.

    (b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:

    1. Serious insult by the employer or his representative on the honor and person of the employee;

    2. Inhuman and unbearable treatment accorded the employee by the employer or his representative;

    3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and

    4. Other causes analogous to any of the foregoing.

    Isn’t non-remittance of SSS and Pag-Ibig a criminal case? If I’ve decided to self-terminate, should I receive a separation pay?

    [Reply]

    Ted Ferrolino Reply:

    Jonathan,
    I strongly advise you to consult a lawyer before making any action. I can’t offer you any legal advice for ethical reasons. (N.B. The following discussion is for academic purposes only, and does not create attorney-client relationship.)
    (1) Yes, non-remittance of SSS and Pag-Ibig contribution is a penal offense punishable by fine and/or imprisonment. It may even constitute estafa if deduction has already been made and the employer failed to remit the amount deducted.
    (2) The grounds mentioned in 285(b) may constitute constructive dismissal. A constructively dismissed employee is entitled to separation pay.

    [Reply]

  12. HOW CAN A PRIVATE AVAIL HER SEPARATION PAY?

    [Reply]

  13. Ted Ferrolino Comment:
    March 24th, 2010 at 10:49 am

    Irene,
    Kindly elaborate. What do you mean by “private”?

    [Reply]

  14. I mean private teacher..can you avail even if you voluntarily resign?

    [Reply]

  15. Ted Ferrolino Comment:
    March 25th, 2010 at 04:33 pm

    Irene,
    Generally, if you voluntarily resign, you are not entitled to separation pay. But then again, check the employee code or manuals, or ask other employees (including those already separated). If as a matter of policy or practice, your employer grants separation pay even to voluntarily resigning employee, then you are entitled to receive it.

    [Reply]

  16. Hi Ted,

    Can you still file a complaint before the Labor Arbiter after processing your clearance and getting your back pay for illegal dismissal?

    [Reply]

  17. Ted Ferrolino Comment:
    March 27th, 2010 at 01:03 am

    Bambi,
    The brief answer to your question is yes, you can file a complaint. But, there are several factors you will need to consider to fully assess your chance of success.

    The answer to the following question will have a bearing, directly or otherwise, in your case: What was the for basis for your dismissal? Did you sign a release and quitclaim? Did you sign it voluntarily? Was the amount paid to you sufficient? Were you paid separation pay? Thirteenth month pay? etc..

    To better protect your right, I advise that you consult a lawyer.

    (N.B. The foregoing discussion is for academic purposes only, and does not create attorney-client relationship.)

    [Reply]

  18. Hi Ted,

    For Redundancy cases, the separation pay should consist of what? Are the allowances (i.e. phone allowances, rice subsidy and transportation allowances) should be included in the computation of the separation pay? or it’s just the basic monthly salary?

    Thanks much,

    Bitoy

    [Reply]

    Ted Ferrolino Reply:

    Bitoy,

    Separation pay is computed on the basis of the employee’s monthly pay (the Labor Code uses the term “one month pay” or “1/2 month pay”). In a case, the Supreme Court has ruled that the term “pay” is the same as the term “wages” or “salary”. “Wages”, as defined in Article 97, includes “the fair and reasonable value x x x of board, lodging or other facilities customarily furnished by the employer to the employee.”

    Thus, allowances “customarily” granted to employee form part of his wages, and should be included in the computation of separation pay. On the other hand, allowances given only on temporary basis, rather than on regular or customary basis, are not part of the employees wages. Accordingly, they may be excluded from the computation of separation pay.

    Hope that helps.

    [Reply]

    Bitoy Reply:

    Thanks so much Ted! This is helpful indeed.

    [Reply]

    Ted Ferrolino Reply:

    You’re welcome.

  19. Hi Ted,

    im soo glad you have this site! :)

    I’d like to ask… i’m working for a foreign company – head office in NY, factory here in PH..(this is a garments factory by the way)and they just recently announced that the company will cease its operation – “Due to the global economic climate and the consequent downturn in retail sales” – closure of operation is until the end of June 2010…

    The company declared that they will be paying all employees 1/2 month pay for every year of service. and the provision here states that it should be **equivalent to 1month or at least 1/2month whichever is higher**. However, the company stated in its handbook, that in case there will be closure, they will only pay 1/2 month for every year of service.

    The question now is… 1)Are they allowed to set this rule? can they choose how much to pay their employees? 2) can we ask the company to increase the separation pay from 1/2month to 1month? lastly, 3) can we ask DOLE’s help in case the employer declines?

    we were told that the company will not have its personal factory anymore… instead, they will here subcontractors to do production… what do you think?… really hope you can help me with this!

    Thank you sooo much in advance…

    Sandy

    [Reply]

    Ted Ferrolino Reply:

    Hi sandy,
    (Note: The following comment is edited to correct an obvious error, for the benefit of the other readers. Date: 21 April 2010.)
    The reason for the employer’s “closure of operation” is very important, since it will determine the amount of separation pay.
    If the closure is NOT due to financial losses, the separation pay is “at least 1 month pay” or “1/2 month pay for every year of service”, whichever is higher. (Don’t get confused with this one, as it’s really only “1/2 month pay per year of service.” The “at least 1 month pay” applies only if you have been hired for less than two years.)
    On the other hand, if the closure is due to financial losses, the Labor Code does not require the employer to pay separation pay at all.
    Now, how can you determine the reason for the closure? It’s really a matter of proof. But the good news is, the employee don’t have to prove it. It is the employer’s burden to show, particularly, that the reason for the closure is serious financial reverses.
    Failing to produce such evidence sufficient to justify closure due to financial reverses, the employer must pay the employee 1/2 month pay for every year of service.

    [Reply]

    sandy Reply:

    Hi Ted,

    Thank you so much for the clarification…
    The company now declared bankruptcy with DOLE…submitted the papers, the evidences etc… however, recent events got all of our attention… all of our raw materials are being transferred to one of our subcontractors… sources say, the subcons will continue with production… so in other words, production was stopped with the mother company and was transferred to the subcons… this is quite confusing right? the company declares bankruptcy then all of a sudden hires a subcon to continue the job??? this is like an upfront insult to all of us… is it possible to ask labor if they can help us convince the employer to continue with production in the factory until the factory closes? or does the company have every right to choose on who will continue production so it can start terminating the employees.. apologies for the hard feelings… :)

    Thanks!
    Sandy

    [Reply]

    Ted Ferrolino Reply:

    Hi Sandy,
    I feel for you. Indeed, it’s really hard to see through the real motives of your employer.
    But on the bright side, it may be better that your company is closing down now while they can still afford to give their employees separation pay (which as you said they promise to do). If they continue with the production only to further drain the company finances, it may come to a point where they cannot even afford to give the employees separation pay. It will be infinitely worse situation.
    Cheer up!

  20. The company i’m working for right now is transfering their office from Alabang to Makati. Since i cannot move with them to Makati because that’s already far from my place, i will be resigning. Will i be entitled to separation pay?

    [Reply]

    Ted Ferrolino Reply:

    Since your resignation appears to be voluntary on your part, it follows that you are not legally entitled (as a matter of right) to separation pay.
    Still, I suggest that you personally negotiate with your employer to grant you some form of financial assistance. Some employers do give meritable employees severance pay, even in case of voluntary resignation, to help the employee cope with the financial impact of losing his/her job.

    [Reply]

    Kayla Reply:

    Thanks Ted! God Bless!

    [Reply]

  21. Hi Ted,

    I just want to know is Supervisor really falls under category of managerial? My company pays them before overtime and holiday pays for the past several years, then all of a sudden it was held due to definiton. We are in a retail business and during holidays we expect heavy turnout of clients.

    Please advice

    [Reply]

    Ted Ferrolino Reply:

    There’s really no hard and fast rule to determine whether a supervisor falls under the category of managerial employee.
    While supervisors generally fall under the category of “First-line managers”, it is not necessarily the employee’s designation as “supervisor” that make him one. It is important to look at his actual job description.
    Supervisors’ or first-line managers’ job description usually involves “supervising” the rank-and-file employees whether they are carrying out the company’s operational policies. For the purpose of comparison, supervisors are distinguished from top- and middle- managers whose job are to devise or implement such management polices.
    Now, even if an employee is designated as “supervisor”, but his job description does not involve supervision of rank-and-file employees, he cannot be considered as managerial employee.

    [Reply]

    Rebel Reply:

    Thank you for the reply.

    Following this, are they still entitled to holiday and premium pay? They were paid before but now it is being witheld…

    [Reply]

    Ted Ferrolino Reply:

    Managerial employees, which include supervisors falling under the category of managerial employees, are excluded by law from entitlement to overtime pay, holiday pay, premium pay, etc.
    However, in labor laws, there is such thing as the doctrine of “non-diminution of benefits”. The doctrine states that benefits already enjoyed by the employees cannot be withdrawn unilaterally by the management. This covers all favorable benefits enjoyed by employees, whether arising from contracts, company policies, company traditions, etc., even those benefits erroneously granted if the law involved is fundamental.
    This principle may as well apply in your case.

    [Reply]

  22. terry v.acoba Comment:
    April 16th, 2010 at 12:21 am

    how soon can i receive the separation pay,, is it just 1 month 45 days or 2 mos… pls give me details

    [Reply]

    Ted Ferrolino Reply:

    I can’t give you a specific answer since there is no standard (I am not aware of any) set by law as to when the separation pay must be paid. But you should expect it soon after, a few days maybe, your last day of work, without unreasonable delay.
    If payment is not forthcoming, your remedy is to file money claim before the NLRC (if total amount exceeds P5,000.00) or DOLE (P5,000.00 or less).

    [Reply]

  23. Are those employees entitled for a separation pay even they had been with the company for less than 6 months?

    Thank’s

    Anne

    [Reply]

    Ted Ferrolino Reply:

    Hi Anne,
    Yes, termination of employees under any of the instances stated above entitles said employees to separation pay.
    If the employees have been with the company for less than 6 months, the separation pay is equivalent to one month pay – the minimum separation pay fixed by law.
    Notice that the provision states “at least one month pay” or “at least one-half month pay (this is one-month pay in some cases) for every year of service” followed by “whichever is higher.”
    The “at least one month pay” applies to employees with less than 2 years of service. If the employee has more than 2 years of service, the “at least one-half month pay for every year of service” applies, consistent with the qualification “whichever is higher”.
    - Ted

    [Reply]

  24. terry v.acoba Comment:
    April 19th, 2010 at 01:01 am

    thank you so much for the input,..

    [Reply]

  25. joseph lumactod Comment:
    April 22nd, 2010 at 04:23 pm

    wow ted, im impressed! i have been using this site for my labor cases. this is very useful…

    thanks…

    [Reply]

    Ted Ferrolino Reply:

    Joseph, thanks for dropping by…

    [Reply]

  26. Emeralda Comment:
    May 6th, 2010 at 11:24 am

    Hi Ted,

    Is there a labor law here in the Philippines about delaying of salary like 5 days.

    Thanks,
    Emerald

    [Reply]

  27. Ron Laygo Comment:
    May 8th, 2010 at 05:44 am

    Hi!

    Good Day Ma’am/Sir:

    I am Ronald Bryan Purunganan Laygo, 23 years of age and presently residing at #8 Mangubat Compound, Niog I, Bacoor Cavite. I am as present an employee of Affiliated Computer Services (ACS) of the Phils., A Xerox Company, as a Service Center Specialist. Previously, I worked with Teletech Customer Care Management located at 4th Level, SM City Bacoor, Emilio Aguinaldo Highway, Bacoor, Cavite from October 2008 to May 2009. I was about to file my SSS Salary Loan last April 19 2010 and I wasn’t aware of how many contributions I have made in total on my SSS account, though I know that I should’ve exceeded the minimum contribution which is 36, before one can be eligible for an initial loan, since I was working way back 2006. I then created an account online (https://sss.gov.ph) for me to see my total contributions. I have come to realize that Teletech hasn’t been allocating contributions in my SSS account from the time I was hired up to the time I was separated with them. Moreover, I also found out that they didn’t declare me as an employee of the said company. Next day, Tuesday, April 20,2010, I went to Teletech Bacoor to inquire what happened why am I not showing any contributions that was made on my account. Initially, they didn’t allow me to get inside the office claiming that I should make a formal letter requesting “why am I asking for a contribution audit” before they can release my contribution summary. The only time they talked to me (initially over the phone, but of course I demanded for the HR Personnel to talk to me in person since it was an immediate matter) was when I wrote in a small sheet of paper that it was a “complain” I am about to raise. I talked to an HR Personnel named Saff, she checked her files and there was my SSS number on their records. She also saw an email last April 2009 that my company ID was ready for claim. And with the said company, we cannot have an ID without passing an E1 form from SSS, since Teletech ID is a valid ID that has an SSS number in it. I was so sure by then that I already passed my requirements so I asked her to check my 201 File, and I was surprised because nothing was there. She called the General Manager from Teletech Novaliches named Joey and he talked to me. I explained what happened in details and we come up to an agreement that he will go to SSS Macapagal that following Monday (April 26 2010) and have my contributions posted on my account. I also remembered he specifically said he will have that request be expedited. He got my contact number, which I gave but as of I write this complain, I haven’t heard from them yet.

    I also have an officemate here in ACS of the Phils., A Xerox Company named Caesar Distrito who was a former employee of Teletech Bacoor. He has come to realize just last week, Thursday that Teletech Bacoor hasn’t been contributing on his PAG-IBIG account. He worked for them for about one (1) year and six (6) months. He went to Teletech Bacoor but no one talked to him personally regarding this matter. They just also asked him to write the reason of visit in a small sheet of paper. In addition, he saw his batch mates there when he was about to complain and they said that the HR Representatives are asking for their requirements once again because they lost the employee’s requirements.

    Another co-worker of mine who’s now working here in ACS was a former Team Manager from Teletech Bacoor, Joyce Dayrit. I asked her if Teletech Bacoor was contributing to her SSS account but same thing happened to her. After working for two (2) years, she came to realize that the said company hasn’t been contributing to her SSS account but she passed her E1 Form.

    I just want to know, what are my rights regarding this matter?

    Looking forward to receive a response from your good office so I can take all necessary actions looked-for.

    Thank you and God Bless!

    [Reply]

    Ted Ferrolino Reply:

    Hi Ron,
    My apology for the delayed reply. I was busy the past few weeks so I was not able to readily reply to your comment. I do hope you have resolved your problems by now.
    Now to your question, the law provides you at least two remedies: (1) an action for payment of unremitted contribution against the employer; and (2) criminal actions for non-remittance of contribution under SSS law or Revised Penal Code, whichever is applicable in your case.
    For payment of unremitted contribution, you may inquire with the SSS Legal and Collection Department. They should be able to guide you on the preparation and filing of the necessary petition.
    On the criminal aspect, non-remittance of SSS and Pag-Ibig contribution is a penal offense punishable by fine and/or imprisonment. It may even constitute estafa if deduction has already been made and the employer failed to remit the amount deducted. You may file the necessary criminal action in court yourself. If not, SSS may also initiate the criminal action against the employer.

    [Reply]

    Ron Laygo Reply:

    Thank you for the information Sir. That really helped me a lot.

    [Reply]

  28. question on “years of service”
    does “years of service” include the year/s i was still a contractual employee or only the years i served as a regular employee?
    thanks!

    [Reply]

  29. hello, sir!

    thank you for this site! very informational! i worked in a private college as an instructor for 3 trimesters (October 2007-August 2008).. i did not resign from my job, rather i was informed by the management that there was no available faculty load for me because of low student enrollment.. i have a company clearance on my file before i left the company.. my question is: am i entitled to separation pay/back pay? if yes, can i still claim it even if it was more than 1 year since i left the college? I kept on calling HR some time in 2008 about the issue but i got tired of talking to them..

    thank you!

    [Reply]

  30. i was a former employee of a certain company, and i decided to resign after my service of 7 years. after reading some information regarding “separation pay for voluntary resignation”in this site, it states here that it was in accordance if this was stated to your contract or agreed upon company policies.

    does it mean that i can’t expect any separation pay for my 7 years of service? thats all i need to know. although i have an idea that our company was offering that, im just thingking that my company was doing an illegal procedure, thats why i wrote here to confirm wether the company was not violating any employee’s rights when it comes to separation pay.

    hoping for your response.

    [Reply]

    Ted Ferrolino Reply:

    Yes, you’re right. An employee who voluntarily resigned is not by law entitled to separation pay. However, he may still claim separation pay if entitlement thereto is specified in the employment contract or CBA, or if based on established company practice or policy.

    [Reply]

  31. just want to confirm if a certain company was violating any practices on forcing thier employees to pay for the unexpected losses of the company thru authomatic salary deduction without any consent.

    for example; A certain RTW store who is forcing to deduct losses coming from shop lifted items, lost items from inventory and etc. without any conformation of its reason they were deducting the full amount of losses to the concerned staff by means of forced deduction.

    may i know eather this are fair or legal practices

    kindly send feed back/ response to my e-mail, tnx alot

    [Reply]

    Ted Ferrolino Reply:

    Forcing the employee to pay for the unexpected losses of the company thru automatic salary deduction violates Article 113 of the Labor Code.
    In fact, any deduction by employer from the wages of employee, other than for insurance of employee and union dues and only when the consent of employee concerned is obtained, is illegal. This act constitutes illegal deduction.
    (The only other instance where deduction may be allowed is when the employer is authorized by law or regulations issued by the Secretary of Labor and Employment.)

    [Reply]

  32. Christopher Comment:
    June 24th, 2010 at 09:24 am

    Hi Ted,

    Good Morning. I would like to know the right computation of separation pay for a 1year and 6months of service. The company closed and the closure is not due to financial loses. I know this has been answered somewhere. I just want a direct answer for my problem.

    Thanks.

    Christopher

    [Reply]

    Ted Ferrolino Reply:

    You are entitled to 1 month separation pay.
    Explanation:
    The code provides: “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.”

    In your case, you have rendered 1 year and 6 months service. Since a fraction of at least six (6) months shall be considered one (1) whole year, you are thus considered to have effectively rendered 2 years of service for the purpose of computing your separation pay.

    Therefore:
    Separation pay = Years of service x 1/2 month pay per year of service
    = 1 month pay

    [Reply]

    Christopher Reply:

    Hi Ted,

    Thanks for the quick reply. One more thing, Why did you base it on 1/2 month pay instead of 1 month pay x years of service since the 1 month pay base is higher? Do you mean to say that an employee that only served 6 months will have the same separation pay as me?

    Thanks Again.

    Christopher

    [Reply]

    Ted Ferrolino Reply:

    That’s right. As unfair as it may sound, that’s how the law stands. As a matter of fact, all employees whose year of service is below 2.5 year are entitled only to 1 month pay. This is because the minimum separation pay under the law is one month pay.

  33. Im a regular employee , working 12 years in service in the PEZA Zone Company..and due to my top priority is my family Im planning to resign…this year.. I would like to know if I am entitled in 10 years separation pay, is it mandatory in a company to give those employee who serve more than ten years.

    [Reply]

    Ted Ferrolino Reply:

    The law does not require the employer to give separation pay to voluntarily resigning employee. However, you may still claim it if payment of separation pay is provided in your collective barganing agreement (CBA) or employment contract.
    Please read my post on Voluntary Resignation and Separation Pay.

    [Reply]

  34. we would to know if ten years in service is entitled to have a separation pay

    [Reply]

    Ted Ferrolino Reply:

    It would depend on the manner or mode of your separation from the company. If you voluntarily resign, generally, you are not entitled to separation pay. (There are exceptions though, please read my post on Voluntary Resignation and Separation Pay.)
    If the separation is at the instance of the employer, without fault on the part of the employee, generally, the employee is entitled to separation pay. (Again there are exceptions. Please read my posts on the different grounds for termination.)

    [Reply]

  35. currently im working in PEZA ZOne company for 12 years, and I want to resign this year to be a full time housewives, I would like to know if I am entitled for 10 years Separation Pay since I served in out company for 12 years, am I entitled for this benefits.

    [Reply]

  36. dear sir ted,

    who are entitled to a retirement pay? if an employee is 53years old, but have been working with the company for more than 20years already and have decided to retire from work citing personal reasons are the cause of retirement. the company does not have any retirement plan and its first time to experience a retiring employee. entitled po b sya for a retirement pay? if not, san po sya entitled? is it right po b that all of the money that will be given to him for his retirement is subject to withholding tax?

    thanks so much po. will appreciate ur reply on this matter.

    [Reply]

    Ted Ferrolino Reply:

    Broadly, there are two kinds of voluntary retirement. One is based on the Labor Code, as amended, and the other is based on employment contract, CBA, or individual agreement. Under the Labor Code, voluntary retirement may be availed only upon reaching the age of 60. On the other hand, voluntary retirement based on contract, etc., may be availed upon reaching the age specified in the contract or individual agreement. Your case falls in the latter, except it seems from your comment that there is no such agreement yet in place.
    Now, since there is no existing retirement plan yet in place in your case, the best thing for you to do is to negotiate for your own retirement benefits. Most employers would allow this to reward loyal employees (needless to say, others won’t).
    On withholding tax, retirement benefit is exempted from withholding tax on compensation.

    [Reply]

    grace Reply:

    dear sir ted,

    thanks so much po for the reply. i am really thankful having found your site and for all your reply under this discussion because this is really informative…

    i just want po to clarify further— in this case po, you are correct that there is no CBA nor contract to refer to (since this is the 1st time experience for the company to have a retiring employee)and the employee is less than 60 years old— is it right that strictly speaking, the employee is really not retiring but resigning considering this scenario? therefore, he is entitled to a separation pay and not a retirement pay? and therefore, the amount to be given to him— separation pay— will form part of his compensation income and therefore taxable?

    thanks so much po for the enlightenment…

    [Reply]

    Ted Ferrolino Reply:

    As much as possible, you should go and bargain for retirement pay (noting your more than 20 years of service). Although resignation is an option, there is no assurance you’ll get separation pay. As a general rule, a voluntarily resigning employee is not entitled to separation pay.
    Please read my post on this here.

  37. Good day sir ted,

    i have been working in this call center for 1yr and 4 mons. we have never received an increase on the salary and supposedly it was a 5% increase aftr our 1 yr of service. And just last week of may2010 our office was raided by nbi and there were hearings on the court aftr that incident. we are not sure exactly on the reason why but our office told us that it was not a fault on their end. since last wik of may until now the office temporarily closed since we don’t have any computers to work on because it ws confiscated by nbi and we have not been given any salaries as well. its almost a month now that the office has not opened yet and that they are just telling us we will be back in operations in no time. i’m just wondering what if by next week the office wil tel us that they will be closed permanently cause we’ve been hearing a lot of stories about out office that it will not be going back to operations. do we actualy have the right to demand to get our pay from the time that the office temporarily closed and on top of that the separation pay? what other demands should we get from the office aftr what happened? cause we think we should have been paid this month even if our office is not in operations because they nver really told us that they will be closed permanently instead they told us to just wait on what would happen aftr the hearing. i really need ur advise on this sir ted. thanks!

    [Reply]

    Ted Ferrolino Reply:

    I feel for you. But under the principle of no work no pay, employees are not entitled to wages if no work is performed.
    On separation pay, here are the possible scenarios in your case:
    If your company declares a permanent closure of operation, you may claim for separation pay equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher.
    If your company stays on temporary suspension of operation, you have no other recourse but to wait for it to resume operation. But after the lapse six months (maximum period allowed by law), and your company still fails to resume operation, then you shall be deemed terminated from service. Consequently, you can now claim for separation pay.

    [Reply]

  38. oh ok i understand, but what if our office declares permanent closure? do we just ask for the separation pay? or it should also have some sort of backpay like the 13th month pay, unused leaves, or even the increase the we should have recvd a long time ago? thanks again sir ted

    [Reply]

    Ted Ferrolino Reply:

    Yes, you can file a claim for your separation pay and all other unpaid claims.

    [Reply]

  39. thank you so much for your response sir ted. i also have another concern, we were just informd by our office that they are now permanently closing, and they have already filed for it thru Dole. the problem is, they have declared bankrupcy even if it was not really the cause of the company closure, but instead because it was raided by the nbi. So they are only giving us 1/2 month salary for the separation pay. is that fair? and is it also legal to inform their employees that they are permanently closing AFTER they have already filed for it on Dole. your response will highly be appreciated. thank you

    [Reply]

  40. vilma rama Comment:
    July 2nd, 2010 at 04:47 pm

    hi! just want to know if what is the proper computation on separation pay,is it from the day she start or from the day she become regular employee? please help me because the co. i work they compute started when i become regular is it correct.

    thank you very much.

    [Reply]

    Ted Ferrolino Reply:

    Hi, it should be at the start of employment. Thus, if you started as probationary employee, the probationary period should be counted in the computation of year of service. If you started as casual employee, your year of service as casual employee should also be counted.

    [Reply]

  41. walter berdon of cebu city Comment:
    July 3rd, 2010 at 05:10 pm

    hi sir, i was offered and forced by my employer to resigned for a long time ago before i did. there was no written paper that he told me so. only when he called me on the phone or when he want me to go to his office and had talked with him personally he offered me to resign with no witness that he offered me to do so. i already filed this case as constructive dismissal. we had two mandatory hearing already. he brought two lawyer and no one for me. he denied everything and asked the la clerk to put into writing that he did not asked me to resigned. he just want to have a clever works, maybe he felt glorified. Question. will i be entitled to claim my separation pay? is it legal if i asked one month pay per year of service, plus 13th month pay and my leave credits? i was a finance officer for 18 years and no bad records. he is just a share partner and the real owner does not want me to resigned. i need your legal advice to ease my troubled mind. thanks in advance.

    [Reply]

    Ted Ferrolino Reply:

    Yes. If you are able to successfully prove your claim of constructive dismissal, you will be entitled to separation pay equivalent to one month pay per year of service and to backwages.
    But regardless of the result of your case for constructive dismissal, you can demand payment of all your unpaid claims and benefits (13th month pay and leave credits).

    [Reply]

  42. good day to all of you
    i would like to ask if i am entitled for a separation pay if im going to resign.i was hired last sept. 23, 2005 and im planning to resign on october to be exact 5yrs of service. the problem is my boss is not giving a separation pay to all those employee who had resigned.do i have the right to ask for sepationship if i will reach 5yrs in the company?if so then my boss will not pay me do i have the right to complain?
    pls consider my question
    thank you very much

    reese

    [Reply]

    Ted Ferrolino Reply:

    Hi reese,
    Our law does not oblige the employer to give separation pay to resigning employees. You can still ask your employer to give you separation pay on account of your years of service. However, if your employer refused, you cannot complain.

    [Reply]

  43. Hi Sir Ted,
    Good Day! My company that i’m currently connected with is closing down by Nov. this year. I was given a termination date of Aug 30. My concern is that I’ve been offered a job by another company and need to start by July 20. That’s more than a month from now from my termination date. If ever I’ll tender my resignation or request for earlier termination date, would I still receive a separation pay?
    Hoping to hear from you the soonest…
    Thank you.
    Ellie

    [Reply]

    Ted Ferrolino Reply:

    You can request for earlier termination date, but unfortunately, you cannot demand for it. And if you resign, I am afraid you might forfeit your separation pay.

    [Reply]

    ellie Reply:

    Thanks, Sir Ted.

    A co-employee has asked me to raise these questions: His termination date is Sep. 15. It was verbally relayed to him last June. August 12, he made a ff up to HR regarding his termination letter. Unfortunately, he was informed (at first) verbally that he will stay on til closure and was not given any termination letter. THe company will not release him until further notice. His problem is that he has found another job with a good company and he is to start Sep. 16. He is hesitant to just tender his resignation and not receiving his separation pay. THe company is closing down. Please advise on what would be his best course of action to take.

    Thank you.

    [Reply]

  44. Rodante Natividad Comment:
    July 19th, 2010 at 04:16 pm

    Hi Ted,

    I have a friend working in a restaurant. He was given a probitionary contract of employment from October 5, 2009 up to March 4, 2010. After that he was given a contractual employment contract from March 5, 2010 up to August 4, 2010. Yesterday he was advise verbally by the restaurant manager that his contract will end on August 4, 2010. May questions are:
    1. Is he entitle for a separation pay/
    2. Is he a regular employee considering that he work
    in the said restaurant for more than 6 months.
    3. Is the contractual contract given to him valid?
    Considering the first contract was a probitionary
    contract.

    Your immediate response herewith will be highly appreciated. God Bless.

    [Reply]

    Ted Ferrolino Reply:

    A probationary employee is automatically regularized if he is allowed to continue to work after the lapse of the probationary period. This rule applies to your friend’s case. As regular employee, he is entitled to security of tenure and he may not be terminated except for just or authorized cause.

    Consequently, by reason of his illegal termination, he is entitled to reinstatement, or to separation pay in lieu of reinstatement, and backwages.

    A contract for contractual arrangement can be invalidated if it can be shown that it is merely intended to circumvent the law on tenurial security.

    [Reply]

  45. Sir,

    May tanong lang po ako kung tama po ba yung binibigay na computation ng company namin nag avail po ako ng early retirement but di ko ni received yung last pay ko kc hindi clear sa akin yung computation …
    Ganito po ang sample nung computation nila…. Sa retirement tax base po ako naguguluhan….

    Retirement Date as July 31,2010

    Gross income 7/31/2010 – 259,945.00
    retirement pay 594,192.22 as of July 31,2010
    ================
    TOTAL gross taxable 854,137.28

    yung gross income ko po ba na ytd July2010 e dapat pang kasama sa computation… Di po pa kasama na sya sa retirement pay computation….

    Salamat po

    [Reply]

  46. Vincent Reyes Comment:
    August 10th, 2010 at 03:08 pm

    Sir question lang po, nag file ako ng kaso sa NLRC laban sa dati kong employer for Illegal Dismissal, sa dalawang scheduled hearing, wala pong dumating sa panig nila. Ano na po yung next step ko? Panalo na po ba ako? Would the NLRC arbitter decide in my favor? Maraming salamat po. More power and god bless

    [Reply]

    Ted Ferrolino Reply:

    Kung napadalan ang dating employer mo ng summons, at hindi sila nakadalo sa dalawang scheduled hearings, nangangahulugan lang na default na ang employer. Ibig sabihin, hindi na sila maaaring magsubmit ang position paper at ebidensya.
    Pero, hindi ka pa panalo. Kailangan mo pa ring magsubmit ng position paper at mga ebidensya. Ang position paper at mga ebidensyang isa-submit mo ang pagbabasehan ng Labor Arbiter sa kanyang magiging decision.

    [Reply]

    Vincent Reyes Reply:

    Good morning po Atty Ted. Yung respondent company po ay nag file ng “Entry of Appearance” sa kaso, on the day na naka schedule po ako mag submit ng position paper after hindi sila nagpakita dun sa naunang dalawang scheduled arbitration hearing, Gano po kalaki yung chance na pagbibigyan sila ng chance ng Honorable Arbitter? or will The Arbitter still decide solely on my position paper?

    [Reply]

  47. Vincent Reyes Comment:
    August 10th, 2010 at 03:37 pm

    One More thing Atty. Ted, if in case po mangailangan ako ng lawyer to handle my case can you send me po thru email contact details nyo po. Thank you very much

    [Reply]

  48. Hello Sir!

    First off, I appreciate your effort to address the queries of our fellowmen.

    As a Contractual Worker assigned overseas, many times our contract was pre-terminated due to completion of project or re-assignment to another project. Our company used to give benefits with SF (Severance Fee) after contract termination in other projects but now they raised the issue that SF will not be given to us anymore.

    My question is, (although Severance is synonymous to Separation) is Severance Fee technically the same with Separation Pay? If so, are we entitled to receive Separation Pay if our contract was pre-terminated? How about if the contract duration was fully served? Is it equivalent to “one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher”?

    Thank you very much! Mabuhay po kayo!

    [Reply]

  49. Magdalena Villanueva Comment:
    August 25th, 2010 at 02:00 pm

    Hi Sir!

    In our Company we have Salary Structure starting from Rank and file till Managerial level. And then, starting from the Officer level to Managerial, employees under these categories are no longer entitled to Overtime Pay since it was already incorporated in their salaries.

    Now, how can we compensate these officers and managers because they usually render overtime work?

    Thank you very much.

    Magdalena

    [Reply]

  50. Christopher Pineda Comment:
    August 27th, 2010 at 12:37 am

    Hi Po Sir,

    Ground po ba for termination if hindi ako pumasa sa binigay na training ng company? I’ve worked in the company for 9 yrs na wala naman akong bad records. In case na i-terminate nila ako may makuha po ba akong separation pay?

    Please advise.

    Thank you!
    Chris

    [Reply]

  51. Dear Ted,
    I am now a 60 years old, ordained minister of a Protestant Church in the Philippines. I was hired by our national office as a Property & Projects Development Officer for its “Property & Business Development Office” in February 20, 2002, not as an ordained minister because at that time I don’t have a conference membership as I was delisted from my previous conference in Mindanao for failure to attend three consecutive annual sessions. In July 2002 I was made a regular staff and enjoyed all the benefits of a regular employee. In 2006 when the Executive Director was seriously ill I assumed all his responsibilities until 2007. That same year the CEO of our Church, whom I enjoyed a favor designated me “Acting Executive Director” to make the Church Foundation operational. In March 2008 the Board of Trustees of the Foundation appointed me Executive Director. In July 28, 2010 the newly elected CEO of our Church who is a member of the Board of Trustees of the Foundation decided to removed me through a BOT Executive Committee action. I was asked to vacate the office in July 31, 2010. I was not given the official notification of my termination and until this writing I have not been given my separation and gratuity pays.
    By the way until July 31, 2010, I received my monthly salary from the National Office and not from the Foundation. From whom will I demand my separation and gratuity pays?
    My friends told me that what was done to me is considered “Unlawful Dismissal”
    Please enlightened me.
    Rev. Tony S. Alastra

    [Reply]

  52. Rev. Antonio S. Alastra, Jr. Comment:
    August 31st, 2010 at 09:07 am

    Dear Ted,
    I am now a 60 years old, ordained minister of a Protestant Church in the Philippines. I was hired by our national office as a Property & Projects Development Officer for its “Property & Business Development Office” in February 20, 2002, not as an ordained minister because at that time I don’t have a conference membership as I was delisted from my previous conference in Mindanao for failure to attend three consecutive annual sessions. In July 2002 I was made a regular staff and enjoyed all the benefits of a regular employee. In 2006 when the Executive Director was seriously ill I assumed all his responsibilities until 2007. That same year the CEO of our Church, whom I enjoyed a favor designated me “Acting Executive Director” to make the Church Foundation operational. In March 2008 the Board of Trustees of the Foundation appointed me Executive Director. In July 28, 2010 the newly elected CEO of our Church who is a member of the Board of Trustees of the Foundation decided to removed me through a BOT Executive Committee action. I was asked to vacate the office in July 31, 2010. I was not given the official notification of my termination and until this writing I have not been given my separation and gratuity pays.
    By the way until July 31, 2010, I received my monthly salary from the National Office and not from the Foundation. From whom will I demand my separation and gratuity pays?
    My friends told me that what was done to me is considered “Unlawful Dismissal”
    Please enlightened me.
    Rev. Tony S. Alastra

    [Reply]

    Ted Ferrolino Reply:

    The issue here would revolve on whether you are an ordinary employee of the National Office or a corporate officer of the Foundation. This issue would in turn determine what type of action you can file, against whom you should file it, and what court has jurisdiction over your case.
    If you are an ordinary employee, you may file a case for illegal dismissal against your employer (the National Office). You may file the case before the NLRC, which has jurisdiction over illegal termination cases where employer-employee relationship is present.
    If you are a corporate officer, your case (removal of corporate officer against the Foundation) would fall under the category of intra-corporate dispute. Cases involving intra-corporate controversy is under the jurisdiction of Regional Trial Court.

    [Reply]

    Rev. Antonio S. Alastra, Jr. Reply:

    Dear Ted,
    Now I know what to do, and where to bring it. Thank you very much for the opinion and advice. Long live your advocacy.

    [Reply]

  53. Hi.
    I was employed in a call center from June 2008 and worked until Dec 2009. The account closed on Dec 31, 2009 but I was immediately hired by another company on January 4, 2010. I never really became disconnected with my previous employer because I don’t have much free time. My HMO card is still active and I am still on floating status with them.
    Am I entitled to a separation pay?
    Thanks, :)

    Also, my brother was with PLDT from May 2008 until he was dismissed on August 2010. Actually, he was first for preventive suspension but when we contested it they took it back only to dismiss him the next day. He did not receive any compensation. He was dismissed for allegedly not responding during the phone conversation for seven seconds. However, PLDT Ventus do not have any clear definitions on number of seconds of silence or number of offenses that would lead to a dismissal receiving zero peso for work done.Not even his last pay was given.We asked NLRC but we were told that PLDT has a way of dragging cases to four years or more which was discouraging to people of not much means as compared to PLDT. WHat do you think?
    Thank you.:)

    [Reply]

  54. My friends work in a company as pieceworkers but on regular employment status. Since the nature of their job is seasonal, they were on-call. Meaning if there’s an order, there’s job for them to do. Now, my friends wanted to be separated from the company in the condition that they shall be paid the separation pay. Their argument is, if they stay in the company, their income cannot sustain the needs of their family since it is only a seasonal job. I know they’re not entitled to a separation pay. But do they have a point in their argument? Thank you for helping me on this.God bless.

    [Reply]

    Ted Ferrolino Reply:

    If the job is seasonal in nature, and they know it from the start, there is no point to argue that “their income cannot sustain the needs of their family since it is only a seasonal job”.
    Resignation for personal reasons does not entitle the employee to separation pay.

    [Reply]

  55. Hi Sir,

    I worked for a company from Sept 1, 2008 until September 30, 2009. I was retrenched along with several other employees.

    I have not received my back pay as of now. What should be my first step? Where do I go? What do I do?
    Will I have to shell out money to pay Labor if I file a complaint with them?

    In addition, the separation pay my company tells me I would get (if ever I still get my money) would be 7500. My monthly salary is 15000.

    Based on the following article: 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.

    Based on that, shouldn’t my separation pay be 15000 for a year of service not the half?

    Lastly, one of the board of directors is a foreigner. Can I also file compliants with Immigration or any other agency? He has repeatedly deceived us on when we will get our payments.

    [Reply]

  56. Hi Sir,
    ask lang po ako,13 yrs and 9 months na po ako dito sa work ko,sinabihan na po kami na mag stop na yung job na hawak namin..ask ko po kung anong percent po ng seperation pay yung computation sa akin 1 month ba o 1/2 month X monthly salary..help naman po…maraming salamat

    cahm

    [Reply]

  57. Sir,

    I have been working for a cake company for 4 years. Word has come out that they want to replace the entire crew with new recruits. The owner now gives all of us crew multiple memos accusing us of offenses we did not commit. Some accusation going far back 3 years ago. And unless we don’t give an explanation acceptable to them they would give us a 15 days suspension, which has already happened to 1 of my crew mates.

    They have also given us a memo stating that their franchise contract has ended and that we regular employees would have to re-apply for the position we are in when their franchise contract is renewed.

    My questions are:

    1. Is the suspension lawful?
    2. Are they trying to avoid giving separation pay?

    I appreciate your response. Thanks sir.

    [Reply]

  58. Early Retiree Comment:
    October 11th, 2010 at 01:51 pm

    Hi. I’m 53 years old and took the early retirement option from my company in the middle of this year 2010. It’s nearly 5 months thereafter and I still haven’t received my full retirement benefit. Is there a law/regulation putting a deadline on when a retiree can receive the full retirement benefit sum from the company he retired from ? I’ve been following up with my old company through email but they are not responding back.

    Kindly advise.

    [Reply]

  59. Hi,

    I worked for an NGO from april 2008 but last December 2009, they informed us that they would require us all to resign since they are retrenching. we were only 4 in the office of the NGO.They retained only 1 from us. During our discussion they informed us that they will give us separation pay.However, they excluded me from the separation pay because according to them, I was not listed as one of their employees in the SSS.Is the provision of separation pay related to membership of employee to SSS? I opted to pay my SSS voluntarily during my stay in the NGO since they encountered previous problems with their past employees contributions. Now, they did not give any separation pay to me since they claim I am not entitled to for the reason that I was not enlisted in SSS as their employee.

    [Reply]

  60. callcenter 2004 Comment:
    October 25th, 2010 at 12:41 am

    I am currently employed at a call center for the last 5 years. We are composed of a certain account with different line of businesses. According to our management we are still bound to 1 client though we have different job assignments/line of business.

    My issue is this, our line of business/job assignments will be discontinued this Dec 2010. According to our HR, they have already declared retrenchment and we, composed of 100 people already signed that declaration of retrenchment on that specific day that HRD informed us. According to the HRD, they will do their best to transfer us to a different account. In case 1 week before Dec 15 (the day we will be discontinued) and still the company has no account available that for us that we can be transferred. They will give us an option to participate on a maximum of 6 mos reservation status until they found us an account. If after 6 months and still we don’t have a suitable position to be transferred. They will give us separation pay.

    But the thing is for a max of 6 mos, I have no salary due to my floating status with the company though I will still retain my health benefits. We asked the HRD if we have the option to choose not to join the reservation program and be given our separation pay instead in case we are not lucky enough to be transferred to a different account and they said no since our contract is co-terminus to the client tough we are regular employees.

    I’m really confused right now since we are not even allowed to apply to a competitor while we are in the said 6 mos reservation program. The account/client is still operating within our call center but it seems that we are just being laid-off if we are going to analyze the situation, I need legal advise and I’m actually doing this in behalf of my 100 co workers in the call center that we are working at

    Thanks and more power

    [Reply]

  61. joybelle Manalang Comment:
    October 28th, 2010 at 12:49 am

    Hi Sir ,
    Hope you can help me as well as my former coworkers and give me advice too. Its been almost 137 days now since I was seperated to my company I worked in Sutherland as Technical Support. My account was closed and I was Seperated but till now together with my other co workers did not yet recieve our backpay?In my case my last salary was not yet recieve. HR informed me that they will just add it to my backpay but till now no payment recieve.May you please inform me and enlighten me when should be back pay recieve?and how many waiting days is allowed .And can we do legal actions to the company?What legal actions can we undertake? cause everytime we call they just put us in hang and no definite answer.Best answer to Sutherland HR “call them nxt. month cause still in process.”Hope you can help us tnxs and God Bless.

    [Reply]

  62. Hi. Can part-time employees or daily-paid employees also receive a separation pay? In our company, there are employees you are considered part-timers “forever.” That means they only applied for that employee status and could never be full-timers no matter the length of time of employment. Can they also receive this pay if they were terminated?

    Thanks.

    [Reply]

  63. tanong lang po. im working in a call centre however sa account na npasukan q,ung offshore drector is so harsh and tough mga agent and his also implementing alot of rules wch is not part of d contract dat we hve signed. and since critical ngaun ung account nmin, now his implementing rules were we can be terminated if we dont meet d standard.and waving our privledge impose by d compny dat we can file loi in any point of tme we want..snce were workng for about a year to 5yrs if we got terminated are we still entitled for separation pay even if we got terminated due to bad performance? (we work in sales kia may quota) pls reply sa email ko.tnks.

    [Reply]

  64. Dear Ted:

    I am 60 years old. I have been working for the same company for 34 years. The boss of the company I worked in has asked me to retire verbally. But I did not comply, then suddenly I was informed that I have only until November 30, 2010. I did not receive any formal letter for retirement/retrenchment. I did not receive any memorandum. It was just so sudden. The company was only willing to give me 1/2 month for every year of service. What do I do?

    [Reply]

    Ted Ferrolino Reply:

    Retirement benefits and conditions are primarily governed by company retirement plan or agreement. You need to check first the provision of your employment contract/company policy/CBA on retirement benefits and the conditions for its availment.

    In the absence of retirement plan or agreement, retirement benefits and conditions are governed by the Labor Code, as amended.

    Under the Labor Code, voluntary retirement age is 60. It means that the employee has the option to retire upon reaching 60 (provided he has served at least 5 years in the company). The option here belongs to the employee, the employer cannot force him to retire. Forcing the employee to retire is tantamount to illegal termination.

    The employee may be compelled to retire only upon reaching 65, which is declared as the compulsory retirement age.

    In your case, since you are only 60, you cannot be forced to retire. Hence, I believe you have been illegally terminated. You may file a case with NLRC for illegal termination, reinstatement, and payment of backwages from the time of your illegal termination up to actual reinstatement. If reinstatement is no longer possible, you are entitled to separation pay equivalent to one month pay for every year of service.

    Note: Voluntary retirement age for underground mining employees is 50; Compulsory retirement age is 60.

    [Reply]

  65. hi,
    i just need to know something about the separation pay?
    i was forced to resigned by my employer last sept. 29th of this year. it’s because of process in our company that i didn’t intentionally did. i was promised that it would only take 30 days upon my resignation date before i can have my final pay from my previous company. and until now, they told me that it is still on process to be signed by the manager. i often communicate with them but i still the same answer. it’s been over 60 days and i haven’t got mine yet. can you tell me what to do please.? i need advise on what should be done about it. please respond here or to my email. thanks

    [Reply]

  66. good afternoon,
    just want to ask something about early retirement…
    my dad worked for a company for 17yrs & when he turned 55yrs old the owner told him he will only work for a week & after that he will be retired…
    somebody told me that since it was the employer who initiated the early retirement my dad should also be compensated for 5yrs before reaching 60yrs old…
    is that true?is there a legal basis for that?
    thanks!

    [Reply]

  67. good day! i’ve just wanted to know if the employee died or has been disabled by a disease had to pay by the employer. how is the computation? my officemate was employed by more than 18 years in our company, and he was attacked by stroke and he has a complications then he died. he was given only P10,000 by our company. is this is right? thanks

    [Reply]

  68. good day I just want to ask if im entitle for separation pay? my scenario is this, july 2006 to march 2007 I am ojt at the company working with, from april 2007-october 2010 Im a regular accounting staff then suddenly they transfered me to another company of my boss from october until now december, do I have to claim for separation pay? thanks!

    [Reply]

  69. Sir Ted,

    I am waiting for your advice/reply on callcenter 2004′s post. This applies to my situation too you see.

    Thanks in advance!

    [Reply]

  70. Hi Ted,
    I’m an employee of a call center company. It is an outsourcing company who services different companies for different lines of business. These businesses are called accounts. I’ve been working for them for almost 3 1/2 years. Our account is ramping down and is supposed to close by end of January. This is due to the client’s decision to not outsource this particular line of business anymore. The company is offering us accounts wherein we can transfer but this accounts need different skills from what I usually do for the past 3 years and needs another training which will be provided by the company. I applied for 2 accounts but I failed both validation interviews. There are still other accounts that are being offered though. On the 1st week of January our Operations held a meeting cascading information about a letter that will be sent out to us to sign. The summary discussed was that this letter will tell us that if we still don’t have any account when our account ends we will be forcedly terminated and we will be given a separation pay of 1 month of basic pay times the number of years of tenure. The letter supposedly will be given the following day but never came not even until now.

    Before January there was an agent who asked if she can become a floating agent. What she means is that she won’t choose any account yet and won’t be reporting to work and agreed that it is fine if she won’t get any compensation from end of January until she gets a new account because she has planned business on mid-Feb. I and my friends were thinking the same since we booked a flight to Palawan from Feb 17-21 which has a big probability that will fall on the training period of offered accounts. The training is critical and should never be missed since training is scheduled for batches. So we were afraid that we won’t have a chance to file a paid time off or leave for the said dates if by any chance we choose to have an account. The booking was made prior to the release of the information of the account’s closing down. Our supervisor said that there is no such thing as floating agent on the same meeting mentioned above.

    After the meeting, some of the agents got interested for the separation pay especially the tenured agents. I was asked by my supervisor of what my plan is. I expressed my interest about the separation pay as well since I’m planning to change my nature of work since I’m a graduate of tourism and that separation pay will help a lot since I’m gonna start from scratch again. Now she said that the letter was supposed to console those people that will be forcedly terminated if they don’t have any account yet by end of January and not to make it as an early retirement for the agents. I believed that the expressed interest of the agents was noticed by Operations and was cascaded to HR since they’re still not releasing the said letter and my supervisor said that they might reduce the offer to 1/2 of the basic pay times the number of years of tenure. I said that’s fine it will still help and I said that I’m already decided.

    Day after which is today, those 6-8 people remaining that has no account yet were called for a meeting. Our supervisor said that we really should need to choose our accounts. And if the end of January comes and we still don’t have any accounts we will become floating agents which was contrary to what they said before that there’s no such thing as “floating”. And we’ve got no choice but to render resignation since there’s no sense for us to become floating and accounts are being offered.

    Now, is there any way for me to still get the separation pay given the above situations?

    Your immediate and informative answer will be very much appreciated.

    Thanks!

    [Reply]

  71. @anthony

    I believe Ted had gone into hibernation…he has not answered any of our questions here since December the 4th.

    [Reply]

  72. i worked with a company whose schedule for 6 months was from 6am to 3pm, but suddenly they’ve changed the schedule from 8pm to 5am. i became sickly because i’m not capable of working on night shift that’s why my doctors adviced is to take a rest for atleast 5 months. i’ve asked my manager if there is a vacant position at the other office cause of my reason but she said that she will just called me up if there is already vacant position at the said office. she also told me that i have to resign rather than pushing myself to work with that schedule. now, i just wanted to asked if i’m entitled to have separation pay from them? cause when i asked the brother of my friend, he said that i will get at least a small amount of separation pay. am i entitled for the pay?

    [Reply]

  73. What if the employee has been with the company for 14 years and is already 61 at the present, but his position is deemed redundant (position is that of a driver but there is no more car to drive). Can the employee insist on early retirement once the notice of termination is served?

    [Reply]

  74. Joyce Mae Macatangay Comment:
    February 2nd, 2011 at 03:25 pm

    I am a public school teacher for 6 years now what if i want to resign as a teacher what will happen to my loans? should I pay them before i can resign? like the GSIS and PAg-ibig loans as well as private firm

    [Reply]

  75. What if the employee’ who is resigning submit his resignation letter less a month effectivity, however the reason is he is adviced by a doctor to take a rest because he has a disease is it legal?

    [Reply]

  76. Hi,

    I have been employed to a foreign company investing here in the phil for more than 3 yrs. We have been given a written notice about the termination of our employment only within a week. Their statement said that it is due to the completion of a certain operation that we are currently assigned to. Our separation pay is computed as 1/2 month = 1 yr. and they didn’t include unused vacation leave and sick leave which is supposedly converted to cash right?

    My question is, if the notice was given to us in such a short period of time and we do not yet agree and sign to it, doesn’t it mean that our termination is not yet effective? not unless they will follow the 1 month advance notice rule?

    [Reply]

  77. Hi,

    Im employed to a foreign company investing here in the phil for more than 3 yrs. on Feb 2 I have received a written notice dated Jan 28 that my employment is terminated effective Feb 1 due to the completion of the operation that i am currently assigned.

    My question is, Doesn’t it mean that my termination is not yet technically effective because they didn’t follow the rule in giving a notice 1 month in advance?

    Also they computed my separation pay 1/2 = 1 yr. Doesn’t is supposed to be 1 month = yr? The computation does not include unused sick leave converted to cash.

    Kindly give me advise weather am i still supposed to report for work and aside from how is my separation pay supposed to be computed, what other things that they must include to my separation pay?

    [Reply]

  78. Dear Atty Ted,
    Sa computation ba po ng separation pay ay di included yong 4 months of service? Kasi po nag start ako ng work June 1 2006 at nag close po ang aming office ng Sept. 2010. Lumalabas po na 4 years at 4 months ang years of service ko? Maraming salamat po!

    [Reply]

  79. gud eve po atty. ted:
    masasabi po ba na voluntary resignation ang ginawa ko if sinabihan po ako ng manager namin na mag-resign muna ako while there’s no vaccant position sa kabilang company which has morning shift? nagpapa-transfer po kc ako sa pang-umaga kc po di na po ako pwedeng mag-work sa gabi pero wla po vaccant dun sa kabila. tawagan na lang daw po nila ako pag may vaccant na, mag-resigned na lang daw po muna ako keysa pilitin ko sarili ko magpuyat baka rin daw kc mag-collapse daw ako sa office. i’ve worked to their company for 1 year as data encoder. matatawag po ba na voluntary resignation yung ginawa ko? and am i entitled to have a separation pay? wait ko po reply nyo. thanks po.

    [Reply]

  80. Hi Sir,
    Can the company hold my separation because I have an outstanding Salary Loan with a bank?

    Thanks.

    [Reply]

  81. william Dela Cruz Comment:
    February 22nd, 2011 at 10:33 am

    hi po,
    Ito po ang question ko:

    Kung ang isang empleyado na fit to work po ng pumasok sa isang company, ay nakakuha na ng “unfit to work” remark from his doctor during his stay sa same company, ay mag-reresign na, anu-ano po ba ang mga legal benefits na dapat nyang makuha from his employer? Is he entitled for a separation pay na one month salary for every year of service?

    Thank you so much po for making this site. This is so enlightening.

    WDC

    [Reply]

  82. My boss offered me 2 years separation pay? My monthly salary is 13,000/month as Operations Manager and it was start as employee since march 1, 2007?
    How it will compute the 2 years separation pay?

    [Reply]

  83. Ako po ay nakatangap ng text aking bos na ang sabi “maghali kana 2 taon na separation fee twan ka hamag ka”
    “umalis kana 2 taon na separation fee bigyan ka hamag ka”
    papaano po ba un 2taon na separation pay? ang sahod ko po ay 13,000/monthly.
    Kung ang sahod ko 13,000 x 12 months x 2 years = 312.000.00 ganito po ba?

    [Reply]

  84. marvin tolentino Comment:
    March 15th, 2011 at 08:44 am

    Good day.can you cite the SC ruling about the inclusion of the allowances in computing the separation pay?I’m in a same predicament as he.thanks!

    [Reply]

  85. al cariaso Comment:
    March 16th, 2011 at 10:59 am

    hi!

    The school where i am teaching is up for sale. The outgoing owner said she will not pay us separation pay because the buyer will absorb all the current employees. Kindly enlighten me regarding this matter because i have friends saying that i should receive something from the outgoing employer. Thank you very much.

    [Reply]

  86. Hi Atty,
    the company i am working now is about to close. the company agedt to 9yrs and 6months.. wat will be the computation of our separation pay…
    details:
    Salary: Php10,000.00 Hired: june 2003
    Company age: Jan.11, 2002
    Closing company date : June 2011

    [Reply]

  87. Ako po ay nagtrabaho saisang private company ng almost 10 years at wala ako natangap kahit isang singko sentabos na seperation fee. Ang sabi po nalugi ang compny ang ibebenta nalang po ang company sabi pagnabenta ang companuy iadsorbe daw po kami. meron na nakabili ng company at hindi ko lang alam kung nagkabayaran na sila so ngayon po ang balita ko nasa amerika na daw ang dati kong boss at ala na kami narinig tungkol sa benefit na dapat na naibigay sa amin. Hindi naman ako nagfile ng resignation basta naipasok nalang sa atm namin yung last na sweldo namin at ala na po kami ibang natangap na iba pea. Tumagal ng ialang taon na akoy naghihintay pero wala na sila iba pang nabangit. May habol po ba ako at saan ako dapat magumpisa

    [Reply]

  88. Dear Atty,

    We work for an NGO.We have been experiencing a lot of financial difficulties recently so were now forced to implement a redundancy program so we can avoid bloating our expenses further. But some of the staff who will be affected by the program have already been here for years, which means we have to shell out large amounts of money we dont have at the moment for their separation pay.

    If for instance were able to come to an agreement with them that the granting of the separation pay shall be on a staggered basis, will this be legal because they agree anyway?

    Also, we used to have a policy of monetizing unused leave credits.But this was scrapped.Is crapping it legal even if this was already a practice in the past?

    Thanks a lot.

    [Reply]

  89. I just want to know if an employee under a fixed definite contract is entitled to separation pay? let say 5 months fixed definite contract or 1 year fixed definite contract.

    Please give ideas on this.
    Thank you.

    [Reply]

  90. hi!
    I am working on a corporation for 5years & it’s operating for almost 35years now. As of the moment we are experiencing loss for about 3 consecutive years already. And since I am in the accounting division, i am fully aware of the status of the company. the owner itself said that he is planning to close the company but he is hesitant because of the probability of still surviving.One of the staff ask me if she will be paid off if she will resign..i told here no.so she is waiting for termination due to further losses so she can claim for separation fee because she is working for almost 20 years in the company. What if the company declares bankruptcy or deficit, are they oblige to give us separation pay. Does the company as a corporation still oblige to pay employees even they declare losses?Or generally if it is loss, NO SEPARATION FEE..
    thank you very much..

    [Reply]

  91. is final pay similar to separation pay? terminology question. :) after resignation, is it correct to say i will be getting my separation pay?

    [Reply]

  92. IS SHE ENTITLED FOR A SEPARATION FEE OR NOT?

    Before I begin, I would like to point out the people in this letter.

    1.) Brother In-Law – My husband’s younger brother
    2.) Sister In-Law A – My husband’s younger sister
    3.) Sister In-Law B – My husband’s younger sister
    4.) Employer – Me

    Hello, I need some inputs and advice.
    I have this company. My brother in-law is working as our company driver and a sister in-law (in-law A) working in the office starting January 2010. She convinced her sister ( in-law B ) to work with us. March 2010 in-law B just reported to the office with out any application nor submit resume. In-law B accepted without thinking for one reason because she is a sister of my husband. first week of June 2010, in-law A did not report to office at no reason and texted in-law B that she will resign, but did not submit resignation letter. Middle of June, employer had a meeting with all the staff, in-law B showed serious misconduct that insulted her employer in front of other employees. It was real unacceptable behavior. Employer then talked to in-law B to better leave the company at soonest possible time if she is not happy working with us. But then she cried and cried and ask sorry. Another chance was granted. January 2011, Brother in-law left at the office 12noon and never came back, just like that as if nothing happen. Employer asked for an explanation letter so he could come back to work but still nothing. Weeks, months never showed up. Until employer consider him out of the company without resignation letter again. From then on In-law B character and behavior at work is getting unusual to the point that it is not acceptable. Or shall I say \ Serious misconduct; Willful disobedience of employer’s lawful orders connected with work \. Employer adviced her to resign. At first she acted so bad. Employer wanted to give her 2 months notice so she can find another job but she started deleting files on her working computer. Employer then ask her to tender her resignation right away on the same day, but in-law B said she will not tender resignation. Employer ask to return the mobile phones and others that is owned by the company but she refused to return. 2 days after, she texted that employer should give 2months separation fee to her and went back to the office, submitted her resignation and other company belongings.

    IS SHE ENTITLED FOR A SEPARATION FEE OR NOT?
    Please help.

    Your ideas will be very much appreciated. Thank you.

    [Reply]

  93. To add also, we do not have an employment contract as we are a small company with less than 5 employees. We only have verbal agreement.

    [Reply]

  94. Nelmar formento Comment:
    April 7th, 2011 at 07:29 am

    sir:

    good day!

    my sister is a supervisor of restaurant (its only a branch located in SM Mall). due to decline of sales the owner was decided to stop their operation on the said branch. may question is.. as a regular employee. is she entitled for the separation pay. stated in the article 283 of the the Philippine labor law..

    Further, the main branch of that restaurant is still operating and selling well.

    thank you and god speed.

    nelmar formeto

    [Reply]

  95. Josephine Comment:
    April 7th, 2011 at 10:46 pm

    Hi sir. I am currently a probationary employee in an International NGO. I had my evaluation on my 5th month stating that I am not fit into the position and will not be regularized. The person evaluating me is my boss who is a foreigner based in another country and does not have a license to work in philippines. In our law, does she has the authority to recommend that I will not be regularized? By the way, my employment contract is signed by a Filipino director. Thanks for your reply

    [Reply]

  96. domingulaman Comment:
    April 8th, 2011 at 05:22 am

    may i ask if i’m already engaged in a certain company under probationary status yet i want to transfer to a competing company as contractual employee, would i be held legaly liable? or would the company i am currently engaged have the right to sue me?

    [Reply]

  97. Good Morning!
    The manufacturing company I’m with right now is closing down. Actually it is a buy-out according to the management and they are going to retain some employees. Are those who will be retained entitled to a separation pay? The company name and management will be changed and from what I’ve heard they have no plans of paying the separation pay. Is this legal?

    [Reply]

  98. hi…just want to know if i get a separation pay to my employer even i am going to have a voluntary resign now.i’ve been work in their school business for 15 years. hope to hear from you very soon. thanks and god bless!!

    [Reply]

  99. the situation is like this an employee has already reach his compulsory retirement age of 65 last 2009 and has rcieved his retirement pay from gsis and from that of the agency which he is connected. It so happen that his appointment as head of this academic institution will end up to 20012 .He recieved his retirement benefits last 2009 after 65 yrs old . My question is can this employee still continue to work with the agncy he is heading just so to finish his term? Another issue what if this employee during his adminstration has practiced corruption resulting financial losses of this institution can the government run after this employee because to date he still continues to recieved his salary as a regular employee does.

    [Reply]

  100. montessa Comment:
    May 3rd, 2011 at 01:38 am

    hello! I just need some advice and comments,I am a regular employee and shop supervisor. Our shop is operating for one year only, and all of the sudden our shop owner decided to change the owner’s name as well as the business name but not because of financial incapacity to operate, in fact we are the top grosser among the other shop’s. its only for the sake of “she will be transfer to other place”. And as regular employee they will issue a certification to certify that my years of service well be carried over form previous owner to the new one. And will not pay the corresponding separation pay from the previous registered business name, My question is,
    (1) Is the certification can be use as a legal document for the future purposes in case of business closure or cessation of operation?
    (2) Is “absorption” system is amended by law as legal?
    THANK YOU AND GOD BLESS!

    [Reply]

  101. Ask ko lang po if tama b computation ng employer ng pinsan ko. Mag early retirement po kasi pinsan ko at the age of 60. Ang computation na ginawa po is yun for seperation pay basic salary nya /day multiply kung ilang years na sya nag stay sa company. Then sa 5 days of service incentive leave nya ang sabi po pro-rata lang daw po kasi yearly naman binibigay sa kanila ang SL/VL nila. Then plus the 13th month for this year po kasama din. Tama po ba yon? kasi wala po kami idea kung papano ang computation. Sana matulungan nyo po pinsan ko. Thanks

    [Reply]

  102. Hello PO, i would just like to know or ask some advice for my query. I work for 10years in one of the former leading cash and carry warehouse club in the Philippines known as Makro but i never received a length of service pay which they called gratuity. I resigned last Nov. 10, 2009 due to a opportunity abroad. I filed formally and have it signed with my Branch Manager before i left the company and country. When the branch i have formerly worked converted to Sm Hypermarket i inquire everything at the Head Office at MOA. Sad to her that HR officer told me that i was not able to comply the 15-30 days no late no absent prior on my resignation. May i know what is my proper claim under the labor law that governs such situation. Hoping for your immediate advise on this matter. Thank you. more power.

    [Reply]

  103. Please advice, I am working for almost 4 years in Philipines in a company lets call “Mycompany Philippines Inc” which the main headquarters is in Singapore having the name “Mycompany Singapore Pvt. Ltd”. February this year I was sent here to Singapore for supposedly 2-3 months training but after March they let me sign a 6 months contract for “Mycompany Singapore Pvt. Ltd”. My salary is being paid directly here in SG since then.I did not sign any resignation for “Mycompany Philippines Inc”. Now my question is if I am entitled to have my separation pay in the Philippines? What should I do to claim it? Should the separation pay be stated in the employment contract? Many thanks in advance.

    [Reply]

  104. Hi,

    I have a question about our previous company. We got “transfer” to other company as per them they use the term transfer but if we are transfered then our status and benefits should be the same right? Or Is this another term for retrenchment which they just don’t want to pay the separation pay for their employees? The company is loosing income so they opted to “transfer” us to other company. The Backpay is not yet given after 70+ days of our transfer. how long is the time frame for the backpay/separation pay should be paid to the ex employee?

    [Reply]

  105. Distress Me Comment:
    May 20th, 2011 at 03:25 pm

    Greetings Atty. Ted!
    Yun pong kapatid ko nagkaroon ng pakikipagtalo/sagutan dun sa anak ng may-ari ng kumpanya kung saan siya naglilingkod sa loob ng mahigit na 20 taon na. Sinabi nung anak ng may-ari na minura, at pinagtangkaan siyang saktan at pinagbantaan ng aking kapatid. Ayon sa aking kapatid, ang tanging totoo dun sa sinabi ng anak ng may-ari ay nakapagmura din siya bilang ganti sa mura at masasakit na salita na unang ginawa nung anak. Umuwi na lamang ang aking kapatid upang di na lumala pa ang sitwasyon.
    Dahil dito nakatanggap ang aking kapatid ng memorandum galing sa may-ari (ama nung nakagalit ng aking kapatid) ng kumpanya na nagsasabi na siya ay under preventive suspension. Doon ay sinabihan siyang tumugon sa loob ng 24 na oras upang ipaliwanag kung bakit di siya gawaran ng “disciplinary action”. Nakasagot naman ang aking kapatid sa memo ayon sa panahon na itinakda nila. Sa kasagutan ng aking kapatid, ipinaliwanag niya ang buong nangyari at kanyang pinasinungalingan ang bintang na tinangka niyang saktan at pinagbantaan ang anak ng may-ari. Idinagdag ng aking kapatid na hindi niya magagawa ang mga ibinibintang sa kanya sapagka’t halos anak na niya kung ituring ang taong nag-akusa sa kanya sapagkat nakita niya itong lumaki na siya ring makapagpapatunay kung gaano na katagal ang kanyang paninilbihan sa kanila. Nang makausap ng aking kapatid ang may-ari ng kumpanya, sinabihan siya ng maghanap na siya ng trabaho dahil may iba ng papalit sa kanyang puwesto.
    Nais lang po naming malaman kung may karapatan po ba ang aking kapatid na humingi at umasa ng separation pay galing sa kumpanya? Di po ba’t kailangan may official notification kung siya ay tine-terminate na at ipinapaliwanag kung bakit siya tine-terminate. Ang lahat po ng paraan ay sinubukan ng aking kapatid upang makausap muli ang may-ari ng kumpanya, nguni’t umiiwas na itong kausapin ang aking kapatid.
    Isa pa pong katanungan, mayroon po bang maasahang financial ssistance na manggagaling sa SSS sa mga kasong tulad ng sa aking kapatid?
    It has been more than a month since the exchange of communication, but no official notification regarding the employment status of my brother, except for that verbal communication, asking him if he already found a new job.
    Would appreciate your advice on what steps we can take regarding this case.
    Thank you very much. Looking forward to hearing from you.

    [Reply]

  106. Good day po!

    Ilang months po ba tlga ang waiting period bago dapat ibigay yung last pay nang ngresign nung nagrender ng resignation letter ng March 4,2011 na may effectivity po ng April 4, 2011?… It’s been a month and a half na din po kasi. Thank you. Hope to hear from you soon.

    [Reply]

  107. Good Day Sir,

    Just want to inquire po, and I need your advise as soonest you read this mail. Sir I’ve been working in my company for almost 2years now and the management approached me that they will terminate my job by May 31, 2011 of this year. Now, I came to know that they are able to pay my separation pay as 1month pay of my 1 year of service right?

    Are they intittle to grant me only half (1/2) MONTH of my separation each every year of service ? that in regards they start to cut our salary in 2,000 pesos each paymonth? starting month of October ? just because of business financial loss?

    Please let me know if i have the right to file a complaint in our DOLE ?

    Please send me reply to my email sir badly need your advise. Thank you !

    Sincerely yours,
    Jeanette Ferrer

    [Reply]

  108. Good day, I’ll give a disclaimer for my case. Sorry for this ”will-be-lame” question. I worked as a call center agent for 1.5 years. I resigned February 19, 2010 and have not filed an exit clearance until today due to med reasons. I also have not filed for COE. Question is: will I still get my separation pay from the company even after a year of not having cleared in case I’d file for a clearance this month? I also checked my sss account and found out that there are no contributions since day 1 to my resignation day. Thanks and more power.

    [Reply]

  109. Cat in a Hat Comment:
    June 3rd, 2011 at 11:21 pm

    Hello Atty Ted.

    I am also in the same situation as callcenter 2004′s post and Anthony’s. I really need your advice. I will wait for your reply.

    Thanks in advance

    [Reply]

  110. nagtrabaho papa ko sa isang company for 20 years, nastroke sya on duty, is it legal for us to demand for a separation pay or should we wait for 6 months na makabalik pa sya (which is imposible kasi half ng body nya, sa right side un dominant part nya naapektuhan)…wala daw po kasi kaming laban kung sakali, sabi ng boss nila… pero we found out, me ginawa rin sila sa SSS nya…

    sabi pa sa amen, we’re not terminating your father, pero kinontradict nya rin statement nya by saying “it’s impossible for your father to come back so we’re offering you this amount, as financial assistance only, but not as a seperation pay”? Kasi hindi daw sya pasok sa #2 category, ung about sa disease. is that right

    [Reply]

  111. Hi Ted,

    By law, what is the maximum number of days separation pay is paid out to an employee?

    In my company, we were advised that we have to wait for up to two (2) months. Is this legal?

    Thanks!

    [Reply]

  112. Hi Ted,

    I have a friend who worked in a call center for more than 4 years. He was placed under 30 day suspension w/o pay due to neglect of duty. Investigation took place and found out that he is guilty of the offense. Therefore, he got terminated. Is he still eligible for separation pay. Thanks.

    [Reply]

  113. melo espiritu Comment:
    June 29th, 2011 at 02:24 pm

    HI… our company filled a cost cutting in DOLE for 3 months starting Feb to MaR. 2011 which we are obliged to report on work for a half month work/salary. For the month of May, they announced that they need to extend the cost cutting which will be effective May, June & July. We contest on for the month of May, as it was already ended when such extension announced. As we are on month of June, we are expecting again for a half month salary. And now, they are trying to express that closure will be soon w/ the company. I am receiving 24500 as my monthly salary. What will be my basis for the computation of our separation pay in case they decided to shut down the operation of the company.

    My dearest thanks for your reply. & Gods speed.

    [Reply]

  114. alex valencia Comment:
    July 1st, 2011 at 12:54 am

    hi, just wanna ask if how long is the maximum processing of back-pay to an employee? i resigned for almost 3 months now and until now my back-pay is not yet release. and is there any legal action that i can file to them?

    [Reply]

    Ted Ferrolino Reply:

    You can file a simple money claim with the Dept of Labor and Employment if the amount of your claim is P5000 or less, or, with the National Labor Relations Commission, if more than P5000.

    [Reply]

  115. I have been employed for 14 years now with a private hospital and I am planning to resign this year. Am I entitled to a separation pay? Is it taxable? Thank you very much!

    [Reply]

  116. good day sir..
    sir ask ko lang po if i am entitled to received separation pay sa company ko kung sakaling ma end of contract nako. Almost 7 years na po ako sa company ko as a laborer.Ang contract po namin ay ni renew lang every 5 months then minsan pi nag ga gap kmi ng 5 days bago e re hire.. salamat po and more power..

    [Reply]

  117. good day.. ask ko lng po.. pnu kng hnd nman po bankrupt ang company,gsto lng mag alis ng empleyado para makatipid dw… ano po ang dapat kong gawin.. salamat po..

    [Reply]

  118. goodday po atty,,,ask ko lng po,paano po kung hindi naman bankrupt ang company pero mag aalis ng empleyado para raw makatipid….3 years na po ako sa company na to..maari po ba nila akong alisin sa kadahilanang nagtitipid po sila??? sana po maliwanagan niyo po ako, salamat po…

    [Reply]

  119. ask ko po atty: my brother has been employed for 5 years tapos na motorcycle accident po sya kya na brain surgery sya 3 times ngayun po not fit to work pa sya & still incapacitated nag issue po company ng certificate of separation from work upon our request dahil sa sss requirements. entitle po ba kapatid ko sa separation pay? kung entitle po sya ipapadeduct ko yun sa utang nya sa company dahil nkautang kmi dun because of operation.

    [Reply]

  120. H,

    Good afternoon!
    I was employed in my previous company since 2005 until July 2010. I would like to ask if I am entitled to have a separation pay? I was resign last July 15, 2011. When I asked the company on my separation pay they just told me that I cannot have it because kulang daw ang number of days to make it 5 years. Maraming Salamat po.

    [Reply]

  121. Gud am po atty, i am working in a manpower agency, my question is if one of our clients ceased its business operation and thus its no longer needed the services of our employees are we obliged to pay the employees affected by the closure of business operations of one of our clients? Please help..salamat po.

    [Reply]

    Cathy Reply:

    sorry atty.. i am talking of separation pay..are we obliged to pay the employees affected a separation pay? thanks again.

    [Reply]

  122. good day po, ask ko lang po kung gaano katagal ang pagakakasakit ng isang empleyado para ma-entitle siya sa separation pay? paano po kung hidi naman malubha ang sakit niya pero hindi naman niya na kayang gampanan ang kanyang trabaho? production worker po na hindi na kayang magbuhat ng mabibigat na bagay.

    [Reply]

    Ted Ferrolino Reply:

    Ang disease o karamdaman ay ground for termination of employment kung ito ay malubha, o di kaya ay di kayang gamutin sa loob ng 6 na buwan (Omnibus Rules Implementing the Labor Code.) Maari rin itong ground kung ang patuloy na pagtatrabaho ay maaring makasama sa empleyado. Sa kaso ninyo, maaring kayo ay nandoon sa huling ground na nabanggit. Maari mong ipaalam sa employer ang iyong kundisyon. Magdala ka rin ng certification from a doctor bilang patunay.

    [Reply]

  123. sir tanong ko lang po 13yrs.na ako sa company,1st 5 yrs ko naka contract ako sa branch namin sa cavite then next contract ko po sa branch namin sa laguna then almost 5yrs ako nalipat na naman sa alabang yon po yong time na tinanggal yong tax sa minimum wage earner..yong pong sa cavite nag sara po yong outlet namin….pero from the start hanggang ngayon naka base po ako sa main office/warehouse sa marikina minimum po ng metro manila ang sahod ko yong pong mga contract ko puro diff. company name pero isa lang ang brand..wala po ba akong dapat makuha sa pag lipat sa akin ng mga contract..at ano po ang status ko sa company?..thanks a lot

    [Reply]

    Ted Ferrolino Reply:

    If you are employed by the same company, your transfer from one branch to another will not result to interruption of your service. Hence, you won’t get separation pay as a result of the transfer. However, since your service is continuous, your entire years of service should be credited for the purpose of computing all legal and company mandated benefits.

    [Reply]

  124. Hi,been reading your advice to people and it helped me to understand a lot of things. As of the moment, I’m facing the same problem as others; that is the company closed not because of bankruptcy but for some other reason. Now our boss did say we would get a separation pay and even gave us the amount that we would receive. The problem is, until now we have not received it (two weeks past) and every time we ask our boss, all he answers is, waiting for the money. I’m just worried that we might not get paid, not really sure what steps to take, if we should just wait and listen to our boss.

    And we were actually informed that the company will no longer run here in the Philippines last June 29, so officially our boss said that was our last day so that we could receive our salary tax free but we were told that we should go to work till the end of July. So for the whole of july we did not get any salary and now we are still waiting for our pay which until now he cannot give us a direct order. Should we just wait or I dont really know, hope you could give me some advice . Thanks in advance

    [Reply]

    Ted Ferrolino Reply:

    If you have reasons to believe that your employer might be running away from his obligations, you must file a claim for payment of separation pay with the National Labor Relations Commission (NLRC). This is one way to ensure that you get paid what is due to you.

    [Reply]

  125. good day po, magtatanong lang po ako, nag voluntary resign po ako sa trabaho ko dahilan po nun eh yung hindi po pagbigay nang visayas minimun wage 10under po kami lahat sa kumpanya sumasahod lang po ako/kami nang 195.00 a day, may makukuha po ba ako sa kumpanya na pinagtrabahuhan ko?

    [Reply]

  126. Jim Michel A. Vital Comment:
    August 11th, 2011 at 04:06 pm

    pwede po ba magtanong? na terminate po kasi ako and na hold po yung sweldo ko sabi po nila ibibigay daw po un after 30 – 60 days… is that necessary for me to wait that long para sa pera na pinag trabahuhan kp naman?

    [Reply]

  127. Hi, I would like to ask how long should the last pay or the withholding of salary of the resigned employee take?
    For my situation after resigning from my company last June 10, 2011 until now my last pay was not yet release.
    Thank you and more power!

    [Reply]

  128. ask ko lng po, legal po b n ang isang company ay hindi nagbigay ng contract s mga empleyado? like employees working contact and employees manual? may habol po b kami f ever mag resign kami s private company na ito? Wala po kaming kahit anung kasulatan n pinirmahan nung ma-employ dito. Maaari pa po b kaming magrequest n magkaroon kmi ng Contract with this company? thanks po..

    [Reply]

  129. gd.mrning Sir Ted, ask qlng pu bout s seperation pay nmin,1yr.& 10 months pu aq s company nmin (call center industry) 12,000 pu basic nmin. Nagcompany closure pu ang company nmin, . . Panu pu b ang tamang computation nung seperation pay q? 1yr. & 10 mons.pu . Am i entitled to receive 1 month salary for every yr. Of service? Panu pu ang pg’compute s another 10mons of service q. .? Equevalent dn pu b yun for 1mon salary? 1yr. & 10 mons pu xe aq. hope for your early responce. . . Thank you!

    [Reply]

    Ted Ferrolino Reply:

    A fraction of at least 6-months is considered as one whole year. So, your service is equivalent to 2 years.

    [Reply]

    Ted Ferrolino Reply:

    In case of closure of business not due to serious business losses, the employee is entitled to separation pay equivalent to one month pay or at least 1/2 month pay for every year of service, whichever is higher.

    Since you have worked for two years (equivalent to), you are entitled to one-month salary (1/2 salary x 2 years).

    [Reply]

  130. gd.mrning po Mr.Ted same situation pu ky mhel, bout sa seperation pay. 1yr. & 4 months nmn pu aq w/the same company. (call center industry) 1/2 month of salary lng po nareceive qng seperation pay. Diba po entitled din aq n mkareceived ng atleast 1 month salary for every yr. Of service. Para s seperation pay. . .plz responce. .para po alam nmin ang ggwin nmin. Tnx po.

    [Reply]

    Ted Ferrolino Reply:

    Yes, you are entitled to separation pay equivalent to at least one month salary. That’s what the law says: “at least one month salary or 1/2 month salary for every year of service, whichever is higher.”

    [Reply]

  131. Sir Ted tnx pu s early responced. Yun pu tlga ang pagkaalam q. Na entitled pu aq s atleast 1 month salary pra s seperation pay, .pero pinipilit pu ng employeer q, na entitled lng dw pu aq sa 1/2 month salary even though 1yr.& 4 mons. Dw pu aq s cmpany, . .un dw pu ang nkasaad s Labor Code Art. 283. Un din dw pu ang sbi ng labor lawyer nia, .anu pu dapat qng gwin? Xe pu pinagpi2litan nia ung “atleast 1/2 month salary for every yr. Of service. . Anu pu ang mgandang paliwanag regarding this matter, . Para pu maintidan nla? mrami pu xe nacconfused sa “atleast 1 month salary or atleast 1/2 month salary for every yr. Of service”. Plz responce pu. . Thank you so much.

    [Reply]

    Ted Ferrolino Reply:

    The phrase “one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher” simply means that the employee is entitled whichever is higher of the employee’s:
    (1) one month salary;
    (2) 1/2 month salary for every year of service.
    Example: If the employee’s salary is P8,000, and he has been working for 3 years, he is entitled to separation pay equivalent to whichever is higher of his:
    (1) one month salary = P8,000; or
    (2) 1/2 month salary for every year of service = (1/2) x P8,000 x 3 years = P12,000.
    Obviously here the employee is entitled to P12,000, which is the higher amount.
    Now, following the same rule, if the employee has been working for only one year, his separation would be whichever is higher of the following:
    (1) one month salary = P8,000; or
    (2) 1/2 month salary for every year of service = (1/2) x P8,000 x 1 year = P4,000.
    Here, the employee is entitled to his one month salary (P8,000) instead of “1/2 month salary for every year of service” (P4,000) because it is the higher amount.
    Thus, if you come to think of it, considering the above example, the minimum separation pay that may be given to an employee is one month salary.
    There is no way that you are only entitled to 1/2 month salary.

    [Reply]

    Josh Reply:

    Sir Ted, regarding po dun sa salary Does that include the allowances or just the basic salary? For example po, if your salary is 3000 basic + 2000 for allowances = 5000 (monthly salary), does that mean na makukuha po nya is 5000 for the separation pay or 3000 lang po? Thanks po in advance!

    [Reply]

    rose Reply:

    matagal na po ako computer teacher sa isang private school kaso sa batas nila di dapat tawagin permanent kapag di pumasa ng board exam at hindi BSE graduate pero nagtagal ako ng 12 years tapos sabi nila wala separation pay kung may batas ang private school para dito mayroon din ba ang LABOR. Paki tulungan lang po

    [Reply]

  132. Ask ko lng po kung mkakakuha ako nang separation pay kapag tinanggal ka sa trbaho. 6years na po ako. or kung AWOL ka entitled kaba sa separation pay? please reply asap. Thank you.

    [Reply]

    Ted Ferrolino Reply:

    Kung ang ground for termination ay just cause, halimbawa ay naka commit ka ng offense which is a ground for termination tulad ang abandonment (o AWOL ng mahabang panahon), misconduct, etc., hindi entitled ang empleyado sa separation pay.

    [Reply]

  133. sir, please help naman po, need ko lng po sna ng advice, kung anu po b ang dapat namin gawin, kasi po wala kaming contract mula ng ma-in ako s trabaho, kahit mga kasamahan ko wala rin po silang pinirmahan, legal po b i2? kc po kahit double pay every legal holiday wala rin pong binibigay s amin. please sir, i need your urgent responce, tnx

    [Reply]

    Ted Ferrolino Reply:

    Betchay, hindi kailangan ng contract para maituring na empleyado ang isang trabahante ng kompanya. Sa batas kasi, kahit walang kontrata, ang empleyado ay itinuturing na regular employee from the time that he or she “has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer” (Article 280).
    Marami namang paraan para mapatunayan na ikaw nga ay empleyado ng isang kompanya. Halimbawa nito ay ang inyong payslip, o SSS contribution kung kayo ay inereport ng inyong employer, etc.
    Sa mga benefits naman, may contract man o wala, lahat ng empleyado ay entitled sa minimum benefits na itinatalaga ng batas tulad ng minimum wages, 5 days service incentive leave, overtime pay, holiday pay, etc.

    [Reply]

    betchay Reply:

    sir dapat din po b nilang bayaran kung sakaling d ko magamit ung 5 days service incentive leave at holiday pay ko? kasi po mula ng m,agstart ako s company wlang ibinibigay n bayad s mga ito ang company namin eh? 8am-to 5pm din po ang working hours namin, wla pong lunch break kasi pawnshop po kmi, hndi pwedeng lumabas, kung ibibilang ko po pati oras dapat ng lunch break ko, pumapasok ako ng 9 hrs a day, 6 days a week.. panu po ang dapat n gawin ukol dito

    [Reply]

    Donald Monroe Reply:

    That’s absurd mister! Anyone engaged on a labor to whatever company an employee is engaged to should require to sign a contract regardless if he/she is a contractual or regular employee. It is just so to say that an employer may not provide a contract to an employee as a proof of employment so that, it will be easy for them to disregard his/her employment and in any case possible an employee does not have any form of evidence to show that he/she is a legitimate employee of a company, notwithstanding with any benefits such as PAG-IBIG, SSS, or whatsoever! You decide.

    [Reply]

    admin Reply:

    I agree.. Unfortunately, some employers/companies do not give employment contract to their employees. But the point is, whether there is written employment contract or not, the employee is entitled to all labor standards and other social benefits.

  134. Hi!

    Good day sir! I want to ask if an employee went on a leave, like vacation or sick leave but was not able to return back to work because he died, is he entitled to separation pay? Or what if he died while at work, can the heirs claim for separation pay? Pls. response.

    Thank you!

    [Reply]

  135. Hi Sir,

    We badly need help po.

    We’ve been in floating status since June 2011, We’re working on a BPO indusrty (call center) and they have this called BTO (build operate transfer) so meaning we’ve been working for another call center.So, prang agncey po yung callcenter na may hawak samin. Since this call center that we are working with wants to operate seperately na po. They’ve decided legally to transfer us. Some of us signed the cotract to be transfered and some us didn’t. Those who didn’t sign the contract will be on floating status sa company na may hawak tlga samin. In addition, those who signed to be transfered pinagawa pa nila forcely ng resignation letter pra makita na resign na kami sa nag hire samin na company.

    Since, it’s not our fault na ma float kami dhil sa lipatan portion na ginawa po nila. and until now wla pa rin po kaming trabaho kasi wla pa daw po open na account. and since na float po kami ndi na po kami sumusweldo tigil din po ang contribution nmin sa SSS and PAG ibig nmin.wlang allowances or whatsoever pa na benefits ng active na employee.

    Question po nmin is, if ever po na mabigyan uli kami ng work and are we entitled to get to claim our previous salary hbang nka float po kami? Dpat po ba may bayad pa rin kami since it’s not our fault naman kaya po kami naka float.

    second question po is, legal po ba ang floating status sa BPO (Callcenter industry)?

    We are hoping for your help.

    [Reply]

  136. sir thank you po s inyong reply, paano po sir kung gnito po ang situation:
    12 years npo xang empleyado, recently nagresign na po xa, ang sbi po wala daw xang makukuhang back pay or kahit ung mga unused leave nya sa loob ng mga taon n nagtrabaho xa s company. pero ung ibang nagresign lng ng mas maaga e binigyan po ng boss nya.. maaari pa po ba xang magdemand ng sweldo nya para doon sa mga unused leave nya?or 5 days incentive leave or sick leave nya? please sir help us, para naman po makatulong kmi s kanya, as well as sa amin n presently employed sa company na i2..what other benefits can we get after serving this company for a long year? iniinsist rn po kc ng management n wala daw kming double pay kapag legal holidays, thank you po..

    [Reply]

  137. Maria Rosario Luna Comment:
    September 12th, 2011 at 12:29 pm

    Good morning!
    What is the legal payment period for a redundant employee?
    My position was declared as redundant effective date was Aug 15. . .part of the turnover was updating of my job description which I complied though i’m curious what’s the need of updating??? More or less 30 days passed but I haven’t receive my compensation to date. Is my company violating some policies here? I am jobless to date.

    Thanks to revert on this

    [Reply]

  138. Hi,our company’s BOD came up a board resolution stating that “only resigning employees are entitled to TRF (Termination Reserve Fund) benefits, e.g. diability, illness, reduction of personnel (based on performance appraisal and retirement -20 yrs of service).” and ” Resigning employees without cause maybe given a gratuity fee regardless of the number of years in service.” The board resolution dated August 1, 2011 and notarized Sept. 12, 2012. When in fact, it is stated in our company policy and guidelines that ” All regular employees are entitled to the TRF benefits upon separation, resignation or retirement.” This had been the company’s practice for years and now they came up with this resolution that contradicts with our present policy. Does the BOD can just implement such without consultation to the employees? Can we (employees) question this?

    [Reply]

  139. very informative. can u give me a site where i can learn about contractual employees’ rights? a specific law will do cause i’ve been researching about it. thanks. godbless

    [Reply]

  140. Q; what are the instance to be exempted with separation pay of your employee? or exemption for employee separation pay?

    [Reply]

  141. sir, ask ko lang po nag txt po ang boss ko natatangalin nya na ako.sa company with-out any letter nabasa ko po na kapag illegal ang pag tangal sa akin per month po ba ang makukuha kong separation pay? tama po ba?

    [Reply]

  142. michelle asilo Comment:
    September 27th, 2011 at 12:10 am

    good day sir!!
    i would just like to ask if in a retrenchment process, do the employer has the right to give it in installment basis.? if yes, how long does the law provides? because our employer is planning to give our retrenchment for 6 months period. tnx in advance…..

    [Reply]

  143. Good day to you Mr. Ferrolino. I’ve been working in one of the English online schools here in Makati as a Senior Head teacher for 5 years. Last June 2010, I changed status from Full time to part time teacher due to my daughter’s need. I sent the company a formal letter to notify the change of my status which the company accepted. I ended my term as a Full time on May 30th 2010 and started my part time status on June 1st of the same year. Just a change of schedule so to speak. Last July, our company was bought by a bigger company in Japan and all of us will be absorved but they have to close the Phils office and renamed it with the new company’s name. The Phils office said they’ll give separation as well as the 13th month pay since the new operation will begin this coming November 2011. My question is this: Will I be entitled for a separation pay in my total years of stay in the company which is 7 years? Or my change of status would affect the years of my stay? I would gladly appreciate if you could enlighten me on this. And I look forward to hearing from you as soon as possible. Thank you and God bless!

    [Reply]

  144. Hello po. I would just like to clarify something, there were 3 of us whose contract were ended last week because of the fact that we have opened social network and we were caught video streaming with the company’s firewall or shall I say there were screenshots as per our boss without any due process like suspension. Now, we were already cleared from the company last week. We have our Superiors signature on our clearance and was even advised by HR accounting that our separation pay will be release if not this coming Friday (Sept. 30,2011) it will be next week.
    Now, our HR Director promised us a CEO (Certificate of employment) to be released Friday (Sept. 23, 2011)and he will just left it to the guards as the company is not operating on day shifts. Now, there was NO CEO left and even the guards do that know if there will be any document that will be given to us. So we thought that probably the printer is not working and that. We let 5 days before we decided that one of us need to call the HR Director. I call our HR Director and he told me that our CEO was currently on HOLD even our last pay because our Department Supervisor reported an instance that we have deleted all of the company’s recordings that was sent to us. I told our HR Director that it is not true and that my folder is still up on shared drive. Our HR Director told me to call him up tomorrow as he needs to check on the I.T department who could have some evidence or screenshots that we have deleted our files that contains the company’s security. We thought it is not right, since even if they have a screenshot still they DO NOT have any proof that it was us to deleted our files. Even if we have our own PC log-ins still it is not right to hold an employees separation pay and CEO. That is why I’m asking for any help. What should we do? Do we have to sue the company to NLRC? Please.. your feedback will be greatly appreciated.

    [Reply]

  145. Hi im paul,
    We have a driver for 4 years he went to the labor dept. to sue us for a separation pay. we fire him out because he was not able to meet his duty on sundays and he ask more salary which we cant already afford. it has been verbally contracted since the beginning of work that he would work for 2 hours on sundays so he would drive us on mas for sundays provided that he would have 1,500 per week salary with PHIC benefits.works mon. to sat. 7am to 5pm. we usually give him extra for letting him drive for the night or outside 8am to 5 pm. and extra tip when we have the money. we also allow him to go to his family on duty days mon. to sat. anytime if he is required to his family. the question is is he qualitfied for a separation pay?

    [Reply]

  146. he has even bigger salary than me im a nurse with salary of 4000 php. my father is the employer who is the one giving money/having the income to pay for our driver he is outside the country.

    [Reply]

  147. rhed borela Comment:
    October 11th, 2011 at 07:47 am

    im a contractual employee,for 5months, i ended my contract last march 2011 but untill now we dont have our backpay…is it legal.. how many months it takes to get a backpay?? tnx

    [Reply]

  148. IM A SEASONAL EMPLOYEE, I SIGNED SEASONAL CONTRACT WITH 3 MONTHS AND IT WILL END THIS 17TH OF THIS MONTH, BUT THE COMPANY WILL CONTINUE THE PROJECT ON NOT SPECIFIC DATE..DO I HAVE TO ASK THEM TO RENEW MY SEASONAL CONTRACT TO CASUAL CONTRACT OR SIGN OTHER SEASONAL CONTRACT, BECAUSE I HEARD THAT IF WILL CONTINUE UP TO MARCH NEXT YEAR.IF THEY GIVE ME OTHER CONTRACT AND I REFUSE TO SIGN, DO I RECEIVE A SEPARATION PAY? THANKS A LOT..FLESTM

    [Reply]

  149. im a seasonal employee. the company i am working for is not paying the holidays, is this legal? and the wages they giving to me is only 404 php but i know that the minimum wage now with ecola 426 php, is this right for me? thanks a lot

    [Reply]

  150. Hi Sir Ted,

    Our company is closing on the 31st and they told us they will be filing bankruptcy and will be paying us 1/2 month severance pay as a courtesy. We requested verification from DOLE and found that they actually filed Permanent Closure due to financial losses. How will they be able to justify that it was due to serious financial reverses? Should we file a complaint with DOLE instead, as we feel that we should be receiving 1/2 mo per year of service? One of the owners will be putting up a new call center and that for us is enough proof that they are not bankrupt. Can you advise us on what should be our next step Sir Ted? Should we go ahead and file a complaint now with NLRC?

    Looking forward to your helpful response on this matter.

    Thank you and God speed!

    Jerri

    [Reply]

  151. hi sir ted: just wanna ask if backpay depends on how long you’ve been in the company?because i was employed on my company for 3 years and i resigned already.Do i expect high backpay?it is call center industry.thankyou

    [Reply]

    arnold Reply:

    my basic salary is 10k..i received 9k for my netpay including allowances and bonus.

    [Reply]

  152. hello po hope masagot nyo ang kasagutan kng ito my father was a dumptrack driver of Zamboanga Motor supply more than 30 years and he already filed retirement to sss office then gusto na nyang mag stop sa work because until now he still working there.the company said that this coming december he can be able totally stop his work may matatanggap po ba cya?at mga magkano din kc 250/day lang cya eh ok please i need your answer asap.

    [Reply]

  153. Are all the companies (private/government agencies) required to give separation pay? Please post a link if there is any with regards to the Labor Code.. Thanks! more power to the author.

    [Reply]

  154. raul radaza Comment:
    November 1st, 2011 at 12:27 pm

    Sir, ako po ay nanalo sa kaso ko pero ang decision ay babayaran ako ng 1/2 of my salary for every year of service. Kumbaga i was illegaly terminated. I lieu of reinstatement, separation pay at backwages ang decision ng NLRC.
    Already 18 years in the company at nakasaad sa policy na 100% na ang retirement benefits ko, and i know magkaiba ang retirement at separation pay.
    Pero di ba dapat 100% kasi illegal dismissal ang decision?

    [Reply]

  155. johnpatric delacruz Comment:
    November 2nd, 2011 at 03:30 pm

    sir mam tnung kulang po kung saka sakali bang mag voluntary risign ako may makukuha po ba ako s employment ko

    [Reply]

  156. hi, i resigned to my first employer last nov 12 2010, i have a backpay of almost 10k, they given me half of the amount last march, but until now i haven’t receive the other half. i’m trying to contact my employer but the hr is saying that my check is not yet approve by the managing director, was it legal? what should i do? thanks

    [Reply]

  157. Under Philippine labor law, are project employees entitled to separation pay? Project employees referred here are those engaged to carry out activities of a specific project for its entire duration. The completion of the project has been determined at the time of the project employees’ engagement. By reason of project completion, project employees’contracts ends as well. Project duration is 5 years.

    Thank you.

    [Reply]

  158. gudday, I filled my resignation last Aug. 5, 2011. but as of today I haven’t receive any back pay from the company I have been working for almost 6 years. I am also entitle for a gratuity pay but as of this moment I haven’t receive any of this as per HR Manager and her supervisor my papers is still on process. How many months thus it take for me finally get my back pay and gratuity pay. Is there any law regarding how long a separated or resigned employee will get the back pay and gratuity. Anyway also they don’t even give me my COE ( certificate of employement) yet. As per the company HR, COE will be given after they gave me my cheque payment (Backpay & Gratuity).

    Hope you can help me.. tnx

    [Reply]

  159. angenit sayas Comment:
    November 18th, 2011 at 12:02 am

    11 years npo ako sa work ko as qa inspector ngaun po bgla silang nag tanggalan ritrichment daw ang memo nila last in 1st out or below 5years napasama po ako s ntangal ok lng po sna sa akin un pero pinag tataka ko ang wla png 2years nkakuha ng 70thousand pesos samntalang ako 145 thousand gross po yun.. gusto ko kausapin ang taga hrd pero ayaw na nila kami ppasukin ng hrd ng psi

    [Reply]

  160. angenit sayas Comment:
    November 18th, 2011 at 12:09 am

    Your comment is awaiting moderation.

    ako po si angenit a. sayas
    11 years npo ako sa work ko as qa inspector ngaun po bgla silang nag tanggalan ritrichment daw ang memo nila last in 1st out or below 5years napasama po ako s ntangal ok lng po sna sa akin un pero pinag tataka ko ang wla png 2years nkakuha ng 70thousand pesos samntalang ako 145 thousand gross po yun.. gusto ko kausapin ang taga hrd pero ayaw na nila kami ppasukin ng hrd ng psi

    [Reply]

  161. in addition to that sir..ive rendered service to that agency for almost 2 and half years,.thank you..

    [Reply]

  162. hi sir..
    gud day..just want to ask..Does end of contract is entitled of a separation pay? and what is the maximum time of releasing? it has been 2 months since we ended our contracts but still we don’t hear anything from them..they’re not even giving us a specific date..at least we know when to expect it..hoping for your reply..thank you…

    [Reply]

  163. hi sir,
    is it true that an employee is entitled to receive separation pay when he/she has been working for a company for more than 5 yrs, even the said employee voluntarily resigns?
    also, can an employee (voluntarily resigned) demand for a separation pay when his employer gives it to all his resigning (voluntary or terminated) employees?
    thank you…..

    [Reply]

  164. Hi sir,

    I have a sister whose working for a company for 6 and a half years already. Later this afternoon, her employer talked to her and have her terminated as a cook. Although the company has given her a warning 3months ago regarding her performance at work, we feel that the termination is illegal. We have a copy of their signed contract, which their employer have them signed every year and it is stated their that even if your a regular employee if they have you dismissed due to employee’s fault (being slow at work is their grounds for the termination of my sister), it is stated in the contract that she is not receiving any separation pay. She’ll only be getting her 13th month pay and last salary. Just wanna know if this is legal.

    Thank you and hope you’ll enlighten us soon!

    CHynn

    [Reply]

  165. barbara pagaddu Comment:
    December 2nd, 2011 at 02:55 pm

    Hi Sir,

    Is there any prohibition in deducting outstanding loans (personal or company loans)from the separation pay of an employee? what is the specific provision of law on this? Thanks

    [Reply]

  166. hi,

    ask lang if may right po ang employer na mag hold ng sss
    loan, pag ang employee declare a verbal resignation…

    [Reply]

  167. The project of our NGO, funded by a foreign donor, is ending. Our contract was on a yearly basis and renewed annually. The project was for a 5 year duration. that 5 years is now ending and as per our contract we are entitled to separation pay. my question is, is our separation pay taxable?

    [Reply]

  168. confused lady Comment:
    December 7th, 2011 at 07:47 pm

    Dear Sir,

    I’d like to ask po if an employee was terminated due to fraud (pagnanakaw, misconduct, dishonesty, pangungupit ng pera or other cases), entitled pa rin po ba na ibigay ang 13th month at monetized unused leaves? I have read that, terminated employees with these kind of causes are not entitled for a “separation pay”. But how bout their 13th month and unused leaves? Also the last salary due?dapat pa po ba iyong ibigay? Hope to hear answers. I have read all the above cases and none were stated regarding this matter..thank you very much for your time Sir Ted.

    [Reply]

  169. confused lady Comment:
    December 8th, 2011 at 06:28 am

    Dear Sir,

    I’d like to ask po if an employee was terminated due to fraud (pagnanakaw, misconduct, dishonesty, pangungupit ng pera or other cases), entitled pa rin po ba na ibigay ang 13th month at monetized unused leaves? I have read that, terminated employees with these kind of causes are not entitled for a “separation pay”. But how bout their 13th month and unused leaves? Also the last salary due?dapat pa po ba iyong ibigay? Hope to hear answers. I have read all the above cases and none were stated regarding this matter..thank you very much for your time Sir Ted

    [Reply]

  170. Hello Sir!

    Gusto ko lang sanang humingi ng payo kung anu ba ang dapat kong gawin kasi ganito po yun… Dec. 2009 pa nagresign ang officemate ko(Acctg. Clerk/Encoder) at halos lahat ng work nya ay napunta sa akin kasi dati kong ginagawa ang mga work nya kaya alam ko yun(pero ako ngayon ay nasa Purchasing na. Sobra na pong dami ng work ko at ang apektado po talaga ay mata ko. Ngayon po ay nakasalamin na ako at medyo nababahala na ako kasi po (sorry for the word) nagmumuta po ang mata ko. Nakiusap po ako na kung pwedeng maghanap na sila ng replacement nung nagresign at naghire naman po sila nung Oct 2011 pero after one month po e nagresign din kaya halos ala din po siyang nagawa sa mga iniwang trabaho ng dati kong officemate. Iniisip ko po na magresign na lang pero ala naman akong makukuhang separation pay dahil ala din po sa policy ng company, So paano naman po ang kalusugan ko? Minsan nga po e naiinggit na ako sa mga nateterminate dahil sa pagiging inefficient nila or whatever… e at least sila may makukuha pa pero ako na naging maayos at ginawa ang lahat ng makakaya e eto unti unting nasisira ang kalusugan e pag nagresign alang makukuha. Hindi po ba unfair naman yun? Sana mapayuhan nyo ko kung anung dapat kong gawin at san ako lalapit para malaman ko ang mga karapatan ko bilang empleyado- Nagsimula nga po pala akong magwork d2 mula nuong Dec 2002 pa po. Maraming salamat po…

    [Reply]

  171. Dear Sir,

    Binasa ko po yung comment ko at medyo po nagworry ako dun sa sinabi kong “naiinggit ako dun sa mga nateterminate dahil inefficient sila or whatever..” ala po akong ibig sabihin dun ang tinutukoy ko po e di po ba isa yung ground 4 dismissal sa trabaho? kaya yun po ang naisulat ko. Kaya po sumulat po uli ako para linawin ang naisulat ko kasi baka po ako may masagasaan o may mga magreact e ala naman po akong masamang intensiyon ng mailagay ko yun…So Pasensya na po at God Bless po sa ating lahat.!

    [Reply]

  172. Hilario C Pine Comment:
    December 18th, 2011 at 05:21 pm

    Dear Sir

    I was an air force officer before and got dismissed from the service last 2006. I was found guilty of having gone on AWOL and was sentenced to be dismissed from the military service by a general court martial. Along with it was the accessory penalty of forfeiture of pay and allowances and confinement of 60 days. My orders for dismissal doesn’t state whether it is with or without prejudice to benefits. Am I legally entitled to claim my separation pay?

    Thank you and God Bless!

    [Reply]

  173. I have read all the comments and I can relate because it happened to me..my boss terminated me and I only worked for four and half months.I ask for separation and 13 month pay but they refuse to give me because of the reason that I only work less than 6 months..I was happy when I read here that I have right to claim.. I’m so blessed that there is a site like this..

    [Reply]

  174. Marilou Chan Comment:
    December 22nd, 2011 at 10:26 am

    is it legal to transfer an employee from one company to another which are not sister’s company?

    thanks po!

    [Reply]

  175. Marilou Chan Comment:
    December 22nd, 2011 at 10:34 am

    kasi diba dapat po i terminate muna yung employment from the previous employer due to just caused, release their separation pay then start as new employee kung saan po sila gustong i absorb? when we ask po kasi na i release ang separation po, ayaw ng management and when i insisted, totally tinerminate na po yung employment ko. so yung iba kong officemate walang choice kasi need nila yung job but they were promised for continuous senority kahit yung 2 companies are not related to each other then pinagawa din sila ng resignation letter. tapos yung appointment po nila with the new company, start date po yung date from the previous employer. hope for a responce, thank you po

    [Reply]

  176. Che Dela Cruz Comment:
    December 28th, 2011 at 01:05 pm

    Sir,

    Greetings!

    Our agency have already received a notice of termination effective Dec. 31, 2011 from the principal company. All employees already received individual notices plus the attachments of the computation for the separation pay and a file copy to DOLE that our employment will be terminated this 31st December 2011 due to permanent layoff. Recently, same agency and same principal entered a new contract which will take effect on January 1, 2012 and all employees will still be working on 1st of January. WILL OUR SEPARATION PAY STILL DUE AND PAYABLE TO US?

    Your reply will be a great help before we decide. Thank you so much in advance.

    [Reply]

  177. ang namatay po ba na security guard sa bangungut ay makakatangap na separation pay mula sa security agency na 3 taon na nyang pinagtatrabahuhan?

    [Reply]

  178. Hi! My employer sold our company. Our HR issued a memo that all employees will be absorb. Are we entitled for a separation pay from our previous employer? What will be the computation?

    [Reply]

  179. Happy New Year!
    May I inquire about an issue in our cooperative regarding the computation of daily rate of the employees as basis of computing the retirement pay. The former CEO retired and management computed her retirement pay based on 22 days, not the 365 days. So there was a precedent. Now, the Board of Directors, through the observation of the Credit Committee, upholds that the computation of daily rate should be based on 365 days as the employees are being paid on a monthly basis, that they are paid even during holidays. Management alleged however, that it had been their practice that they compute monetization and overtime pay based on 22 days, and not 30 days and that the DOLE director from our province and region affirmed that if the coop has an existing policy for the computation of retirement pay (which teh coop does not) or an existing practice that is beneficial to the employees, the DOLE formulae (basis is 365 days) may not be followed in ‘toto’. Further, DOLE said that management did not violate any law when they opt to use 22 days. There will be a big difference if the BOD agrees that management should rectify their computation to follow the 365 days (e.g. the retirement pay of the next candidate to retire will decrease by P100,000 plus). Please enlighten us on this issue, it had been a hot discussion for 3 board meetings and up to now, the issue is not yet solved.
    thank you very much and more power!

    [Reply]

    Jeda Reply:

    In addition, management is being forced to choose whether they are paid on a daily rate or monthly rate basis. And the Credit Commitee alleged that if they opt the daily rate, they could not receive other benefits that a regular/permanent employee receives. Does it mean that if an employee is paid on a daily rate, he is not regular/permanent when in fact his appointment is regular/permanent? and if paid on a daily rate, he will no longer receive such benefits as a permanent/regular employee? please enlighten.

    [Reply]

  180. Hi Sir,

    Nagwork po ako sa isang company more than 3 yrs..pero contractual lang po,nagrenew lang kami every year pero last year wala kming pinirmahan basta tuloy-tuloy lang trabaho…We are assignesd in different areas,pero sa contract po namin once na deload na yung area mo..tapos na rin trabaho mo sa kanila..Bale nadeload po yung area ko so kinailangan nila kong alisin..Hindi ko po nakuha ung last salary ko na pinasukan ko,ang sabi po pag ok na ung clearance ko saka ko makuha…2-3 months daw…Bukod po ba dun sa last salary ko my makuha pa po ba kong separation pay?!!!..thanks

    [Reply]

  181. hi,

    ask ko alng po bale 3 years na po ako sa company.this kan 31 mg eend na po ung contract nmin dhil hndi…my makukuha po ba akong separation fee?

    godbless!!!

    [Reply]

  182. isabel lopez Comment:
    January 27th, 2012 at 11:17 am

    hi sir

    2 years ago ng work ako sa maong shop corp. this 2012 ko lng po nakuha ung backpay ko tapos po ung cash bond ko lng po ung binigay nila tama po b un? wala po kasi ung mismong back pay ko n 13 month pay po kahit n 6 months lng po ako xa kanila. hindi po b dapat ibigay nila ung tamang separation pay ko? tnz po sa sasagot

    [Reply]

  183. i have resign from my company. but i didn’t received my last pay. what should i do?

    [Reply]

    hana Reply:

    gud pm sir ,pa advice naman po ung husband ko po is 13 years n sa work nya ,after 13years tinanggal po sya ng employer nya bagkus ang company daw po ay humihina na.paano po kaya ang computation ng separation pay nya?one-half ( 1/2) month po ba o one year month salary?tnx asap

    [Reply]

  184. gudday po!
    project based employee po kc ako.
    sept 2009 ako na hire as a teller.
    yearly po ang contract ko.
    nung sept 2011 nka2yrs n po ako, di na po ako ngrenew ng contract ko sa knila.
    bulacan rate and minimum rate lng po ako.
    bale ang binigay lng po sa last pay ko e ung last salary ko and 13th month ko.
    ***tanong ko lng po kung anu-ano po makukuha ko at entitle po b ako sa separation or back pay.
    thanks po!

    [Reply]

  185. joelgonzales Comment:
    February 9th, 2012 at 01:25 pm

    is it probationary employment entitled to service pay/ separation pay?

    i was a regular employee for 12years on my 1st employer
    then hired on my 2nd employer and serve 4mos before i was terminated due to financial losses.

    i would like to ask if there is special cases that since i was a regular employee for 12 years and accept the probationary for reasons of receiving benefits sames as regular employee.

    please help me if i can get service pay for 4mos.
    thank you.
    joel gonzales, 09102993930

    [Reply]

  186. Hi Atty Ted. I am reposting my query in the hope to get an answer. Many thanks in advance for your response.

    Under Philippine labor law, are project staff/employees entitled to separation pay? Project staff/employees referred here are those engaged to carry out activities of a specific project for its entire duration. The completion of the project has been determined at the time of the project employees’ engagement. By reason of project completion, project employees’contracts end as well. Project duration is 5 years.

    On a separate topic, are project staff/employees also entitled to longevity pay?

    [Reply]

  187. gu day sir, i worked in a company for about 8 months with a probationary status, i was retrenched due to redundancy and i found that there was no legal notice given in your office regarding this, i only received my 13th month pay amounting to my two months of service (after the cut off) and nothing more. i was expecting that i will received a separation pay as they promised in the redundancy notice. unfortunately, i have signed a waiver from them that the amount amount i received was the full satisfaction of my salary and that there is no separation pay to receive from them. do i have the right to demand for a separation pay despite of that waiver since i have their promised written in the redundancy notice? i will wait for your kind reply. thank you very much for reading this.

    [Reply]

  188. HI, I have work for almost 10 month in one of the company in Eastwood. My employment ended in may 2008. I had tried to follow up my final pay just until February 2009 because I went back home to Bacolod. I then have not called or email the HR regarding my final pay.
    Am i still eligible to get my final pay this 2012?
    Is there an expiry date when an ex employee can get this?Anyway their reason why I did not get the final pay in 2008 was they have no budget yet as they are still processing the pays of the 2007 agents who resigned.

    [Reply]

  189. Roger Gualberto Comment:
    February 20th, 2012 at 12:43 am

    Dear Sir,
    I would like to know if a “No-work-No-pay” laborer entitled to a separation pay..if his/her labor is no longer needed.?
    Thank you Sir…
    Roger

    [Reply]

  190. My husband died after 12 years of service in a private company, is he entitles to some kind of a separation or settlement for his years of service with the company?

    [Reply]

  191. I am embarrassed to ask my husband’s boss.
    I already claimed his savings/loan fund from their head company and a government retirement annuity.
    He joined both membership funds and invested a monthly amount that the company matches.

    Since he died, will I still get anything from his company?
    If not classified as “Retirement or Separation” pay, will that be an optional gratuity from employer for his 12 years of service?

    [Reply]

  192. mark wendell cruz Comment:
    February 27th, 2012 at 09:28 am

    just want to ask in the case inside our company. Company A, B and C are sisters company, same ownership and one office. I am employed in company A since May 2012, and as usual these Company A reflects as my current Employer in my SSS Account. But recently last week, I found out that in my SSS Account, Company C is my new employer with a Reporting Date February 2012. Same issues happened with my other office mates. Company A never notify us that we will be transferred to Company C. Yes, we know that same ownership with Company A, B and C, but in the case of mine, I am employed at Company A from May 2011 to Jan. 2012 and now this Feb 2012, Company C reflecting as my new employer. Now, in this case, may I ask what proper and necessary action we should laid? Are we entitled for ‘Separation Fee’? Hope to your advised response on this matter. Thank you and more power!

    [Reply]

    mark wendell cruz Reply:

    For correction, I am employed in Company A since May 2011.

    [Reply]

  193. koffeegelo Comment:
    March 2nd, 2012 at 06:44 am

    Hi! Sir / Madam,

    Good day!

    I am an employee who was retrenched from my previous employer seeking your assistance and clarification regarding the retrenchment process particularly the retrenchment pay. We we’re retrenched(mass retrenchment) from our previous company(BPO-Business Process Outsourcing Company) and served our last day on October 31, 2011. As regular employees of the company, we are entitled for retrenchment pay. But according to our company due to its financial status (company also had a mass retrenchment last May 2011 prior to our batch) and with permission from DOLE/NLRC(according to our HR directress, which i doubt), they(company) will release our retrenchment pay on an installment basis for 6 pay-outs within 6 months.

    [Below are the agreed schedule for payments:]
    1st pay-out Nov 30, 2011
    1st half of our 2011 13th month pay

    2nd pay-out Dec 20, 2011
    2nd half of our 2011 13th month pay

    3rd payout Jan 30, 2011
    Last pay from the remaining days we rendered that was not included
    on our last salary due to cut-off(Oct21-31).

    4th pay-out Feb 28,2011
    1st part of retrenchment pay

    5th pay-out Mar 2011
    2nd part of retrenchment pay

    6th pay-out April 2011
    3rd part of retrenchment pay

    Last day, February 28, 2011 our 4th pay-out which is the 1st part of our retrenchment pay, it didn’t reflect on our ATM(company provided).We received a call from our company informing them that there would be a delay on our retrenchment pay due to insufficient funds because one of their client failed to pay the company. And release of our retrenchment pay will be extended until JUNE 2012 and as again allowed/permitted by DOLE/NLRC according to our company.

    My clarifications would be:

    Is it really legal for a company to have its previous employees’ retrenchment pay to be in an installment basis? And on a 6 months long installment basis?

    My previous company and I had a written agreement signed by both parties regarding the dates / amount of our pay-outs as stated above, but last day(Feb 28,2011-4th pay-out 1st part of retrenchment pay) our company informed us that the releasing of the remaining pays will be extended up until June 2012. They notified us day after the day should they should release the 1st part of retrenchment pay which is Feb 28, 2011.
    How about for another delay / extension of release of remaining payouts of our retrenchment pay without any prior notice? Is it also legal?

    Do you think that again this is allowed/permitted by DOLE/NLRC(according to our company)?

    To which specific office should I coordinate this? Is it DOLE or NLRC or BUREAU OF LABOR RELATIONS?

    I hope your good office can help me with my inquiries above.

    Hoping for your favorable and immediate response.

    Thank you very much and God Bless you!

    [Reply]

  194. Hi Sir/Ma’am;

    I was employed by a certain company last Janaury 2011, my employment has ended just last february 29, 2012..since i begun my worked i havent signed any contract coming from my employer..just last january 20, 2012 they have email me a copy of my contract dating the previous year which i did not signed because for me it is questionable. On January 16, 2012 they have informed us that our contract on our clients has been pre-terminated..my question is am i entitled to receive a “separation pay”.. because according to my previous employer they will not give a separation pay because they havent deduct any amount to my payslip and its not in the contract that they sent us..

    now they are asking us to signed the employee clearance which i did not signed also because i want to clarify first if i am entitled to receive a “separation pay” because according to a friend if i signed the clearance i will not be able to receive anymore the separation pay..my employer right now has declared that no sign employee clearance they will hold the last salary…

    Im hoping for your reply as soon as possible..thank you very much.

    [Reply]

  195. Good day po!
    Question: Ito po ba ay applicable din sa nonprofit organizations, particularly sa church? May agreement of service po sa pastor about sa monthly remuneration and benefits – sss, free use of church house, etc. instead of contract of employment sa regular public/private companies.
    Thank you for your help!

    [Reply]

  196. Hi!

    would like to ask regarding SSS and Pag-Ibig matters. our company is currently downsizing its employees manpower and closing the manufacturing side of the plant. the situation is only the sales & technical team will remain while the rest will lose their jobs. although we were given a package of 1.5* no. of years w/c is quite ok with us. but the issue now is that HR is telling us that from that severance package our outstanding loans from SSS and pag-ibig should be deducted from our severance pay.

    questions:

    1. is this right? should this employee loans be deducted outright to our severance pay? since we will
    be losing our jobs?

    2. can you give us law articles / info. that can support HR claim that they are right?

    the scenario here is that we will be losing our job and yet this loans will be a burden to us if it will be deducted outright rather than declare this loans to our next employers once we got hired again.

    also this loans can be deducted on our principal contributions correct?

    3. do the employer really need to deduct this loans? because their claim is that the employee cannot get any clearance from SSS/PAG-IBIG if they did not deduct this loans from us.

    Thank you. Hoping for your soonest reply.

    [Reply]

  197. Good day!

    Just want to ask if we will be receiving a separation pay because our company has been sold to a U.S. company and will take place on July 2013. With this, our process will be moved to another country and we will be working with our present employer until January of next year. Hopefully, we would get accepted on the U.S. company who have bought us… Are we entitled to a separation pay? Because we felt like we’re hanging now. If yes, how much would it be (estimate)? If not, why?

    Hoping for your reply.

    Thanks and regards,

    [Reply]

    rumi Reply:

    hi. We have similar issue. atty ted is probably hibernating. We appreciate all the response that u posted here sir. They’ve been really helpful. We hope u can help us with this question. God bless

    [Reply]

  198. Dood day,

    Im learned a lot of things upon reading the comments and suggestion. Can i ask something about my experience of the company that I’ve working now. My boss gave me incentives 2 years ago, he gave me a computation of my commission on the Gross monthly Sales, but it is only a computation written in a piece of paper without any valid and formal signatures both of us.But i kept it until now as my guide at the end of the month. However, After receiving of commission for at least 8 months, my employer stop my commission without any valid reason. Is there any law in Philippines labor code that i can complain about this matter? or Can i still demand it again? It really affect my way of living.. thank you and more power…

    [Reply]

  199. gud day! i’m teaching for almost 4 years in a private school, may makukuha po ba akong seperation pay s aming employer.tnx hoping for your reply.

    [Reply]

  200. Good Day Sir;
    Im an employer, just want to ask if, how can I terminate my employee in legal way, she’s working for almost 4 months now, but she cannot comply on her work i have not yet prepare and let her sign her contractual agreement until. how can I terminate her legally.

    Hoping for asap reply, so i can prepare the needed docs.
    Thanks and Regards,

    [Reply]

  201. gud day sir…ang branch ng company nmin where i was assigned ay magco-close na po. they promise to give us a separation pay, pero wla pa po til now. we were asking for the computation par atleast may panghahawakan po kmi sa kanila but they are hesitant to give us. pwd po ba kmi sa inyo humingi ng tamang computation pra f ever i present nla sa amin ang computation nla may basis po kmi na gling s labor. tnx po

    [Reply]

  202. Bank employee Comment:
    April 18th, 2012 at 10:10 pm

    Good day, our company sold all of its assets and liabilities to another company and facing cessation of operations, now according to our management, employees will be entitled for cash equivalent of sl and vl and our existing retirement program in my case 1/2 salary for every year of service OR separation pay for employees not eligible for retirement program no more no less. however, no SEPARATION pay will be given to employees. my question is, thus separation pay is compulsory by law? and should be given to employees aside from existing retirement program.

    thanks and regards,

    [Reply]

  203. Good Day.

    Our company is closing and will be transferring operations to other country.

    The company is giving us 1 Month per Year of Service as our Separation Pay and an additional 2 Months Pay as a Gratuity Pay.

    The problem is, the top management of our company is adamant that our allowances should not be included in the computation of our Separation Pay since the company is already giving us “more than” what is required by Law (which is 0.5 Months per Year of Service). Is our Top Management correct?

    In our separation papers it was also stated that we will be receiving 1 Month Salary per year of Service. I understood that my “Salary” should include my “Basic Salary” and my “Allowances”. Am I correct on this understanding?

    Hoping you can help me on my problem.

    Thank You and More Power.

    [Reply]

    Ted Ferrolino Reply:

    Not all allowances are included in the computation of separation pay of retrenched employee. Only regular allowances or allowances that are considered part of the employees’ salary are included in the computation of separation pay. Allowances that are temporary and contingent are not.

    For example, a transportation allowance that is given only during temporary assignment out of town, but withdrawn once he return to his normal post, is considered temporary allowance. It is excluded in the computation.

    In the above example it is quite easy to tell that the allowance is only temporary. There are cases where it is a lot harder to tell whether the allowance should be included.

    The key is that the allowance must be regular such that it may be deemed to form part of employee’s wages. In really fuzzy situations, other factors, like facility-supplement distinction, etc., are often a factor taken into consideration.

    [Reply]

  204. I am working for almost ten years now in our company, and i’ll be resigning soon. The employer who hired me was giving separation pay to those resigning employees before, though we did not have any contract. But then, she died for over a year now. The business is now owned by her daughters. As stated in the law,they stop giving separation pay to resigning employees. Are we really not entitled to a separation pay, since it was given by our late employer before?

    [Reply]

  205. hi po. question lang po and i hope you can help us..
    nag file po ng closure ang company and they ask some of us to transfer to another affiliated company are we qualified to get a separation pay since they also told us that we will be getting it.

    thanks..and what action we can do coz as of today it was brought out at mukhang ayaw n po nila kaming bigyan ng separation pay.

    [Reply]

  206. hi. I just want to ask about the change of name of company.Our company has changed its name from one to another name and again to another name, meaning 2 times from its original name. Someone told me that we must ask for payment for the changes of name of the company but I want to make sure of it. Is there any law that tells you that the company must pay all its employee for change of name? thanks and more power to you!

    [Reply]

  207. hi po, ask ko lang i resigned to the company last march 30 and as what the labor says if its a company’s practice and it is in our company we get our gratuity, i’ve been working in the company for almost 14 years can i ask how long should the payment be made or is it possible to payment me in staggard basis. Previous resigned employees is paid paid in full. How can i use my final compensation is they pay me in 5 months.

    [Reply]

  208. gud day!

    i just want to ask what are some legal bases of separation of teachers from service,?

    [Reply]

  209. Hello! I have been working for a dental plant thru a manpower agency for 5 yrs now. Last month, our agency announced that they will be closing due to financial losses. The dental plant will absorb and transfer us to their other active manpower agency, with no interruption of our work and a guarantee that our length of service will be carried over to the next agency. We signed a consent to be transferred and a release and quitclaim with our old agency. In case I change my mind and decide not to sign an employment contract with the new agency, can I demand for a separation pay and still continue with my old work? From who will I demand the separation pay, from my old agency (where I already signed a quitclaim) or from the dental plant? If I don’t sign with the new agency, who will be paying my salary next week? I continued to work for 3 weeks at the dental plant after I signed a quitclaim with the old agency. Please help me, I can’t afford a lawyer. Thank you and God Bless you.

    [Reply]

  210. Hi Sir,
    My current company is planning to changes its name with the same ownership. I would like to ask if we are also entitled of separation pay or any payment if ever. Or is it also legal if we were just given appointment letter to the new company (without paying us).
    Thank you very much Sir and more power.

    [Reply]

  211. Jaspher B. Ng Sy Comment:
    May 7th, 2012 at 11:35 am

    Sir/Mam
    Hi. I have question wat would be the suit term if a employee rendered thier service to the company within 15 yrs of service then the company would like to give the partial yrs that the employee rendered?
    What would be the proper term use? Is it separation pay in advance? because as i review art 283 284 does not fall within the proviso.

    Hope you can help me.

    Thank you.

    [Reply]

  212. Question lang po,
    Pwede pa rin po bang magclaim ng back pay even if the perosn is no longer connetced with the company for 5 years now is she still qualified pa din po ba… call center po ito

    [Reply]

  213. Hi Sir
    im working to a corp. company for more than 6 years now and we are just less than 10 employee. and they say the company is closing due to a bankruptcy. sabi nila hindi daw ako entitled for separation pay, dahil sabi daw sa labor code yung company na may 25 employee above lang ang entitled na mag bigay ng separation pay? is that true? and kung bankruptcy ang reason nila maeron parin po ba ako matatangap na separation pay?

    [Reply]

  214. how about, if the company is close” how to compute the separation fee???

    [Reply]

  215. ang company po namin ay onnuri international”’mag cloes na po kasia company namin; gusto ko lang po malamn kung buo po ba ang separation fee na matatangap namin???

    [Reply]

  216. hi!i wanna ask regarding a separation pay..i was working as domestic help to a foreighner since 2006 and they were living soon forgood am i entitled of a separation pay? which i am receiving a 13th month pay in each year..if so..how to compute?

    [Reply]

  217. hi, would just like to ask if regular and project-based employees will be entitled to a separation pay. our account in this certain company got dissolved, where I had been working as a Team Leader. We were then transferred to another account. however, the number of jobs had depleted and we’re now in an on-call arrangement since the “jobs” are not available. we still have to wait for the client to send the “jobs”. i was given the option to transfer to another account, which I did, but was having a hard time coping up with it. Now, if I opt to tender my resignation, would i be entitled for a separation pay?

    [Reply]

  218. Hi,

    Is separation pay different from redundancy pay?

    [Reply]

  219. good day!!itatanong ko lng po kung may makukuha ba ako separation pay after 10years of service?nag work ako kasamabahay for the past 10years di rin ako hinulugan ng sss.nag worry lang ako kc baka pag nasumbong ako sa labor maapektuhan nman kapatid nag nag work sa company nya..wat should i do?thank u

    [Reply]

  220. April Paclar Comment:
    July 4th, 2012 at 12:23 pm

    Hi!

    I would like to ask about the separation pay for the case of the cessation of operations of establishment. Is the 1 month pay a free pay? I mean, the employees should not work for that month anymore, right? If the written notice says that the last day would be on August 30, the employees should still be paid for the whole month of August as a normal pay, am I right? The 1 month separation pay is for the month of September, isn’t it?

    And also, if the written notice is officially declared to all employees on the the month of July and the end of the employment is declared to be on the month of August and my 6th month of employment is on the same month of the cessation of the employment, is my employment considered a 6-months employment?

    I would really appreciate if you could respond ASAP. Thank you so much.

    April

    [Reply]

  221. .sir i,ve been working for almost 3 years..if mag resign ako meron ba ako matatanggap na separation fee?..thanks po…

    [Reply]

  222. Aisa Buan Comment:
    July 12th, 2012 at 05:52 pm

    sir ask lang po kung may makukuha ba ako sa company na pinasukan ko kahit na nagresign ako 5 years po ako dun at nagresign,pangalawa po yung huling sahod ko hindi po nila bibigay.tama po ba yun,anu ba dapt ko gawin?

    [Reply]

  223. julius canlas Comment:
    August 6th, 2012 at 12:07 pm

    good day sir 4yrs and 5 months na po ako sa work ko pero bigla po ako tatangalin sa kadahilanang di na daw ako nila kaya pasahurin pero tuloy pa rin po ang company nila sa operation. audio video technician po work ko itanung ko lang po pano po ba ang computation sa separation pay 350 a day po ako.kc po ang compute nla 350*15days*4yrs=21,000+ po dw ung klahati 13 month ko ibbgay tama po b ang computation nla. sana po ay masagot niyo agad ito kc po hangang august 18 nlng po ako sa knila at di na po nla ako papasukin sa work.mrami po salamat…

    [Reply]

  224. Hi, how long should i wait for my back pay?

    It is almost one year and i have not yet receiving my backpay.

    Should i file case? what would be the punishment.

    Thank you.

    [Reply]

  225. Ricky Rufino Comment:
    August 16th, 2012 at 02:43 pm

    Hello Sir, I just want to ask if a probationary employee can file complaints to DOLE for being lay off upon end of contract for the only reason that the management doesnt want at all? and can she claim separation pay and 13th month pay? and when should it be given?

    [Reply]

  226. Ricky Rufino Comment:
    August 16th, 2012 at 02:47 pm

    And another thing sir, if the management make her sign a contract indicating that upon termination of probationary employment, she’s not entitled to receive any separation pay or 13th month pay, is this legal?

    [Reply]

  227. hi sir/madam,

    magtatanong lang po ako kung may separation ang mga katulong. walang agency ho ang naganap. basta ho katulong lang cya. ply email me kung may separation ang mga katulong o wala. tanx

    [Reply]

  228. Sir good day,

    Our company was replaced by the principal, we are a distribution business operating for almost 15 years, since the principal needs to replace the distributor, all of the personnel were affected, and not all of the employee will be absorb, my question is, what will be the equivalent amount in the computation of our separation pay, since the transfer was not due to financial loss, but the transfer was done by the principal itself, then we are told that we will be receiving 1/2 month/years, is there any possibility that we can have the 1 month/per year, thanks and god bless.

    [Reply]

  229. gud am po atty,
    ask ko lang po kng entitiled po father ko sa 1 month salary na separation pay sa 8 years and 4 mos nya po ang monthly slary nya ay 11,500/mo pero ang offer lng po ng company nila na separation is 43k lng which is computed as 1/2 salary lang,at ung computation po ay based sa rate nya nung umpisa na 6500 tapos nging 7500 til nging 11500 db po dpat based sa last rate nya which is 11500? at illigal dismissal po ang gnwa nla sa father ko dhil tinanggal nila ng bsta lng wla po cya gnwang msama pra ikatnggal nya pero sobrang baba po ng bgay ng company, anu pong ggwin namen..pls reply po, sobrang need lng po namen ng advice nyo po..tnx..

    [Reply]

  230. Hi Sir,

    I just resigned from work and I rendered a 1 month prior noticed before resigning. I have been working for 3years in this company. My fear is that, I have a colleagues whom also resigned and same thing rendered 30days and have been working for almost 3years and yet he only received P7,000 as his final pay. Our monthly pay is ranging P14,000 per month. Do we deserved more than this? or are we entitled for separation pay?

    Thanks.Looking forward for your response.

    [Reply]

  231. Kaycee Dulay Comment:
    September 2nd, 2012 at 04:51 am

    Hello po,

    Ive been with the company for 2 years and 9 mos and I was promoted 9 mos. ago, they are putting me back from a Level 3 post to agent post again because of reorganization and my post is just a redundancy, they gave me 2 choices whether to separate from the company or go back to being an agent. I decided i don’t wanna go back to the entry post since i already worked hard to be promoted. They are not giving me answers about the separation pay they are talking about. If i declined to be put back to the agent post and I cant go back to my current post, will I be entitled for a separation pay if I decided to just leave the company? Will it be just 1/2 month per year or a whole month? Really need your help. Thank you..

    [Reply]

  232. sir..possible po ba na walang matatanggap na separation pay ang isang management trainee kapag nagback to zero ang isang company?kasi our company are planning to pay only regular employees…kung ilang years ang kanilang service sa aming company dahil po daw mgback to zero lahat ng benefits nila next year….tnx po

    [Reply]

  233. hi good morning po:

    Ask ko lang po, pwede po ba ung sa probationary contract hndi nakasaad ang salary?

    Thank you.

    [Reply]

  234. How long can a person claim for his/her separation pay?

    My salary from my previous company is 13500+3500/month. I stayed for 6 months there, 9 days after my regularization, i resigned. It was way back Apr 2009-Oct 2009. How much can I get?

    [Reply]

  235. Melvin Lamban Comment:
    September 18th, 2012 at 10:36 pm

    Atty.,

    Question lang please… can the company impose a ‘condition’ before we receive a redundancy pay? We will be redundiated due to offshoring and there is a separation pay as prescribed by the labor code. However, there is a condition that we should stay until the end of the offshoring project (Oct 31st) and ensure the success of the project until we can be released and receive our redundancy pay. Is this legal? Or can we choose not to finish the project and still receive a separation pay? The redundancy was mentioned to us last June. Thanks in advance for the advise.

    [Reply]

  236. Anonymous call center agent Comment:
    October 2nd, 2012 at 07:16 pm

    Hi all

    We were serve a redundancy letter on sept 4 2012 that our position will be redundiated due to closure of business in a call center. In that letter was included that my last day of employment will be at october 4 2012 it also included our severance pay calculation it also stated in the letter that the will still find other oppurtunities for us during this course i have agreed to sign the redundancy notice and decided for my self to look for my new employer as my last day is about to come now one day after our last day hr called us for a meeting that there will be no more redundancy and we will be placed on floating status with no pay a maximum of six months. This has left me in a delimma to question the legality of what are they doing as they made us sign an agreement tha we have accepted an now the are letting us sign a new document that would put us in a floating status in an indefinite period of time. All i want is to move on from this company and get my severance pay which i originally agreed. I think they are just putting us in a position where in we will be force to resign so we can look for a new job since being on floating will have no pay please help and advice us if we can contest what our hr is doing to us

    Thank you
    Anonymous call center

    [Reply]

  237. Hi.may I ask for your advice. My father runs a marketing business for almost 18yrs now. He died earlier this year, and I continued the business but with a new business name.my question is, do i have to give my father’s employee (which are now employed under me) separation pay for their services to my father?

    [Reply]

  238. Marichi Ojeda Comment:
    October 5th, 2012 at 06:30 pm

    I just sold my laundry business on Sept 30 2012. Effectively, the new owner opened the business under a new name on Oct 1, 2012. My two staff were absorbed by the new owner thus giving them continuous employment. Am I obliged to pay the staff separation pay for the four years with my old laundry business? By the way, I sold my business due to serious financial losses for the past two years. Your advise is truly appreciated.
    Thank you.

    [Reply]

  239. ARE WE ENTITLED TO SEPARATION PAY WHEN OUR COMPANY MERGE TO ITS SUBSIDIARY. THE SUBSIDIARY RETAIN THE COMPANY NAME AND OURS IS CLOSED.

    [Reply]

  240. Hi!

    I’ve been working for this company since 2003 and started with a 150/day wage as an office staff & computer tech. Now I’ve reached a 250/day wage and i’m now a graphic artist/comp. tech. But unfortunately, by April next year, the company will be closing down because the owner is going to leave the Philippines for good and migrate to San Francisco with the rest of his family. How should our separation pay be computed? Should we also ask for the salary differential on our wages? Thanks and your response will be very much appreciated.

    Thanks!
    JR

    [Reply]

  241. Hi!I’d like to ask if is it possible of not getting your separation pay dahil ang reason na overpay dw sila sa last salary..4 months na akong resign sa last job ko sa bank…

    [Reply]

  242. Hello Atty.
    I am sorry to bother you Atty but I need some enlightenmennt. Your answer is highly appreciated as it could save a number of people here and somewhere else like us and voices out justice in our country.

    I got some questions about the company I am working for some years.
    1. The validity or legality of the salary scheme
    THe company apllies two salary schemes. I will only mention one scheme
    a. (for employees has rendered 2 or more years)4000 pesos basic monthly salary plus 40 or 45 pesos per class for a maximum of eight classes a day. So an employee who has eight classes could get 11,040 pesos if 40 pesos per class or 11,920 pesos if 45pesos is the per class monthly. However, an employee could get 7520 pesos or 7960 pesos if 45 pesos per class if there are only 4 classes each day in a month. This is computed based on 22 days of work in a month.

    2. The computation of our 13th month pay is total net income divided by 12 regardless of the length of service an employee rendered to the company. Is this correct and lawful? or how should it be computed?

    3.The company deducts employee/s two to three days salary deduction if the employee/s fail/s to appear on the day following the holiday/s. Is this legally possible?

    4.Employees have worked for more than two years but still not regularized.

    5. How to compute the monthly income of an employee considering the scheme given on number one?

    Lastly, what should I do?

    I am looking forward to your response Atty.

    [Reply]

  243. ive been working in this company from may 2011 up to present as casual employee and im planning to resign this december. may makukuha po ba kong separation or anything sa company since nag work ako for 1 year and half. thanks.

    [Reply]

  244. Hi Ted,
    I am glad i found this helpful site. I have been working in a spa company for more than 5 yrs. I am a front liner and sometimes do paper works for the company. Basically, i somehow know how the company is doing… sometimes we went negative and there are times we do well… Sometime in Oct. the management decided to stop the operation end of next month and the employees ask if the company is in losses but the company said no. The company promised that everyone will have the separation pay since we are all due of it and ask everyone’s cooperation to continue working until closing. Everyone’s knowledge was, they(owners) have to cease the operation of the spa because it was business wise for them to have the space rented than running the spa business. All employees agreed to work for more than a month and agreed that we will have our receivables(13th month pay and separation pay) paid in a staggered way; Nov 15, Nov 30 and Dec 15. All of the sudden, when employees reported to get the last salary and the promised 13th month or separation pay we were given a notice that we cant receive a separation anymore because the company is in serious losses.. and that they are just be giving us a thank you token in amount of 1500 instead of separation pay..and we have to sign a quit claim. Nobody accepted and signed the quit claim form…and we did not receive any even our last salary. My question is, what chance do we have if we decided to fight? Thank you in advance!

    [Reply]

  245. hi., good day., i just want to ask. our establishment is changing ownership. is it necessary to the old management to give a separation pay for the length of service rendered by the employees even if they all absorb in the new management.??
    Please i need a good answer., thanks!!!!

    [Reply]

  246. Good Day, looking for legal assistance..
    I’m currently working in a BPO company and the contract that we signed says our employment with the company is CO-TERMINUS with the account that we’re in. Now the account will cease operation effective today. (So sudden huh) and the management decided to transfer us to another account in another location, which a lot of agents find very inconvenient, training will start on Monday. What I’m going to ask is that, Do we have the right to accept or decline the option of us being transferred since the contract says Co-terminus? And if we declined, do we get retrenchment or anything?
    I badly need help.

    [Reply]

  247. cloyd anthony oliveros Comment:
    November 30th, 2012 at 09:15 pm

    tanong lng po ako kung may pinag iba po ba ung 13month pay at back pay po…at ano po ung tamang computation po sa kanila? salamat po.

    [Reply]

  248. Greetings

    can i recieve my seperation pay in my previous company even though its alraedy four years,i have the right to recieve that?.

    [Reply]

  249. Hi Ted,

    I n a case that we were never provided an employment contract to sign since hired as an employee for 10 months though we always request and remind our HR about this and then the company also gave the our 13th month pay in 6 gives terms(every payday) and now the company has closed down its operation and we were not even advised that they have a plan to close down. How are we going to get our remaining 13th month pay if the company has closed down and also how could we demand for a severance pay if the company has closed down without warning and until now the company closed we never signed any employment contract with them cause they avoided it. And the company did not really even suffered serious business losses. Thank you!

    [Reply]

  250. Gud pm.. we own medium printing business, we have a small branch for 3 years now. Unfortunately the branch did not grow as expected. For 2 months now, the main branch is shouldering almost half of their expenses. Todate, they have no means to pay their salary. I want to shoulder only half of their salary and they will get the remaining half if they can collect from their clients. Is this punishable? We don’t want to have a problem with DOLE.
    Pls advise… Thanks

    Tonie

    [Reply]

  251. san separation pay and retirement pay of terminated employee can be paid on installment basis and is it still taxable?

    [Reply]

  252. THE AISONTAN Comment:
    January 30th, 2013 at 11:51 am

    What if the company does not issue PAYSLIP and the also do not pay overtime even the workers arrive at office 12:00mn(electronic company at broadway, Q.C.). Also, they do not report to sss and philhealth what is the exact salary of each employee.Now, the worker is going to resign due this reasons, are they entitled also for separation pay

    [Reply]

    Stephan Reply:

    Please dont tell me you’re from an IT brand with RED and black colors on its logo?

    [Reply]

  253. Good day!

    Ask ko lang kung meron bang makukuhang separation pay if end of contract and ung duration ng nagwork sa company is seven (7) years..? Bali ang nakuha ko lang kasi is 13th month, uniform allowance yun lang… and pinagawan kami ng resignation kahit na end of contract kami..

    [Reply]

  254. Angelie Galang Comment:
    February 7th, 2013 at 03:17 pm

    ang I Excel agencies consultancy hangang ngayon di pa po binibigay yung last salary ko at back pay. tanung ko lang po gaano po katagal bago ibigay ang last paymeny at salary ko end po ako ng aug 16’2012 untill now dipa po binibigay ang salary ko.sana matulungan nyo po ako

    [Reply]

  255. goodpm sir.mam,
    magkano po b makukuha ng asawa ko (separation pay). 11 yrs n po asawa ko sa service and sabi po ng company 50 percent lng po makukuha nya sa yr na pinagtrabahuhan nya.. monthly po nya 11076php a month, marami po salamat.

    [Reply]

  256. Hi Sir:
    Early retirement was offered to a 59yo private company employee vs Art 284. the employee choice early retirement. She served 9.25 years of service to the company. Is she still entitled to a separation pay sir?
    hoping you could enlighten us..thank you..

    [Reply]

  257. Hi Sir:
    Early retirement was offered to a 59yo private company employee vs Art 284. the employee chose early retirement. She served 9.25 years of service to the company. Is she still entitled to a separation pay sir?
    hoping you could enlighten us..thank you..

    [Reply]

  258. john ervin Comment:
    March 6th, 2013 at 07:25 am

    Ted,

    does separation pay applies to BPO companies? Example is one of the company’s “accounts/programs” pulled out and those in that account were out on a TLO/floating status. Once their TLO is up, will they be entitled to a separation pay? Many thanks in advance.

    [Reply]

  259. Hi Ted!

    I hope that you could answer my question.

    I belong to a subsidiary company. Our president informed us recently that our company will no longer push through and advised us that we should try to seek a better opportunity. I’ve been staying at this company for almost 4 months now and I’m still waiting for our last day of production. Our Office Mngr talked to me and told me that our last day will be on the 15th but since our last payroll cut-off is on the 10th I asked him if going to work on the 11th will be unnecessary and he said YES, but what I’m curious about is that he’s asking me to pass my resignation and start doing the clearances, so I asked him why am I going to resign if the company is closing? will I get my separation pay? He said that since im still on the probationary period I am not entitled to it but he said that he’s going to clarify it as well to our accountant.

    I dont really know what to do, should I hand them my resignation? Are probationary employees entitled for separation pay? If worse comes to worst, can I go to DOLE to complain about this?

    I am really hoping that you can answer my questions. Thanks in advance and more powers!

    [Reply]

  260. Hi sir.. Pumirma po ako ng cotrata a isang resort dito sa palawan.. nasa contrack po na tuwing 15 days makaka tanggap kami ng service charges piro simula po december lahat po kami na employee sa resort di po nkakatanggap. at wala rin pong 13monht pay lahat kami at nasa contrata po na tuwing kataposan kami mag sasahod piro ang sahod laging delay ng isang linggo bago po pinapahintay pa po kaming maga sahod sa opisina ng buong araw,, pude ko po ba iriklamo sa labor un? i wait your reply…

    [Reply]

  261. Michael Sarmiento Comment:
    March 30th, 2013 at 02:34 pm

    Hello Sir. I just want to ask for an advice regarding my situation. I worked with a BPO company for 5 years. Last January 2011 i got promoted as a Trainer, then as a Team Leader last October 2012. Last February 2013, the account where i was assigned need to decrease the number of employees. I was one of those who should be transferred. As per our process, i have 2 months to be transferred with a different account but for some reason i was included on the list of employees for severance. I just want to know if the process is right. The company,despite of the scenario, are still recruiting new people.

    [Reply]

  262. Good day sir/madame!

    I’ve been working for 9 months in a Construction Company owned by Filipino Chinese in Leyte. Just this month I decided to submit a resignation letter and I just heard 2weeks before the effectivity, the company imposed a salary adjustments covering employees working in the company atleast 6 months and entitle for deferential counting from six month to last payroll before the salary adjustments. The sad news is; the VP Admin aviced the HR to exclude me to claim the deferential for the reason that I already filled my resignation. For your information, I am receiving 230 basic pay plus 8 allowance in daily basis and the proposed salary increased is 230plus 8 additional 40 for meal allowance in a daily basis also. My concerned is, Do I have a right to claim my 4 months deferential before my resignation take effect?

    [Reply]

  263. good day sir ted,
    might i inquire if probationary status is entitled for a separation pay..have already served 3 years in a particular school on a probationary contract, but after three years being with the institution, the school will cease it’s operation..am i entitled for a separation pay even if my status did’nt mature yet to be permanent?

    [Reply]

  264. Good day po. Ask ko lang po, pano kung si employee nag AWOL. Kalagitnaan ng 30day render nag AWOL. Kelangan kasi daw, tpos the company does not allow immediate resignation not unless it’s medical reason.Will he still get his back pay and/or separation pay?

    [Reply]

  265. if ang isang employee po ba ay naka violate ng policies ng company at sya ay nag resign, subject parin po ba sya sa separation pay?

    [Reply]

  266. ano po ba yung tinatawag na back pay? applicable po ba iyon for contractual employees? thnx

    [Reply]

  267. Kiesha Tan Comment:
    April 18th, 2013 at 01:00 pm

    Hello,
    Hope you can answer my query..Gusto nang company namin ililipat kami sa sister company nila kasi ng declare nang bankruptcy. They want us to sign a letter na papayag kami. Dapat ba my separation pay kami matatangap sa first company even though sister company kami lilipat? Sabi kasi nila back to zero daw but same salary and benefits. 5 years na kasi ako sa company.

    [Reply]

  268. jose aguilar Comment:
    May 16th, 2013 at 09:37 am

    Good day Sir,
    Just want to ask sir if it is possible to have a back pay/separation pay if i am going to resign sa school kung saan nagturo po ako ng apat na taon?
    Hope that you will answer this, for me to make a right decision.

    [Reply]

  269. hi,
    i just want to ask if i am entitled to have a separation pay. i dont have a contract with them just word of mouth. im waging just 4k a month, and im working here for 30months. i think i belong to as househelpers. they planning to reduce employees
    thank you..

    [Reply]

  270. good day!
    gusto ko lng po sna itanung kung how much separation pay na makukuha ng father ko. kamamatay nia lng po last december, so ung may ari binayaran po kmi ng separation pay, as he computed: 5,500 po ung shod nia although tumatanggap xa ng bonus na 9,500. monthly ndi na po xa tumatanngap ng sahod due to sa byad na nmin ung sa tinitirhan at sa upa sa tindahan nmin, and pag decmber dun lng xa tumatanggap ng 9500 as his 13th month pay. bli po ang natanngap nmin na separation pay is (1/2 * 5500 * 30 years) = 87,500. tama po ba na sundin ung sa 5,500 or to stick sa 9500? at my nbasa rin po ako na dapat po na kung mababa sa minimum wage at the time of the separation dapat sundin ung how much the minimun wage of the current year. slamat po hope u will response on this. u can email me so that i will receive ur further anwer on this. Maraming salamat po

    [Reply]

  271. gudafternun, sana po matulungan nyo kme sa aming katanungan, ang aking ama po ay 64 yrs. old na po, ngtatarabaho po sa isang pribadong hacienda ng tubuhan o sugarcane farm 38 years na po sa serbisyo gusto na po nyang magretiro sa kadahilanang medyo may edad na,ang kaso po d po xa pinapayagang magretiro ng kanyang amo, at hanggang ngayon hindi pa rin binibigay ang kanyang hiling na mgretiro, ngaung taon ay mg65 na po ang edad nya sa November, sana po matulungan nyo po kme?

    [Reply]

  272. good day!

    sir ask ko lang po if mababayaran po ba ako ng separation. i’ve been working in the company since december 2012 and i had resigned effective this june 3 2013. entitled na po ba ako sa separation fee? then ilang months po ba bago ko ma receive ang last salary and other benefits ko?

    [Reply]

  273. Hi!

    I would like to ask for some advice/info regarding my situation. I have been with the company for 13 years and I resigned last May 17, 2013 with a 2 month turnover (last day – July 16, 2013). If the company closes on June 1, 2013, am I entitled for a separation pay?

    Thank you in advance.
    Carlos

    [Reply]

  274. Ask ko po pag po ba ang isang empleyado at regular po sa company at namatay at 9years po sa nagtrabaho may makukuha po ba siya.

    [Reply]

  275. gud day po pag regular po ba ang isa tao sa company at 9years po syng nagwowork at siya po ay namatay may makukuha po ba siya sabi po kc ng company wala daw po kc wala pa daw pong ten years.

    [Reply]

  276. Hi,

    Good morning,

    ako po ay isang empleyado sa isang Insurance Agency. Magsasara na po ang companya naming ngayong katapusan ng june 2013. nais ko lang malaman kung makakatanggap po ba ako nang separation pay? nagstart po ako ng December 4, 2013 lagpas 6months na ako. hanggang ilan buwan po ba sa trabaho ang mabibigyan ng separation pay?. nagtrabaho narin po ako ditto noong July 4, 2011 nagresign lang po ako nung August 30, 2012. tapos bumalik nga po ako noong December 4, 2012 din..

    Sana po Masagot nyo agad ang aking katanungan.

    Maraming Salamat po.

    [Reply]

    admin Reply:

    In case of retrenchment and closures not due to serious financial reverses, the employee shall be entitled to separation pay equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher.

    If the closure is due to business losses, there is no obligation on the part of the employer to pay separation benefits to employees.

    In your case, you may be entitled to separation pay equivalent to at least 1 month salary.

    [Reply]

  277. Hello po..
    I became a regular employee in my current company (private company) in December 2004.
    Then, the management transfer the whole work force to another company name(different company name, same nature of business, same management). Our employment date was reset to January 2008 as reported to BIR, resetting also our sick leave benefits. Should we receive also a separation pay given this condition?

    [Reply]

  278. nag-close po yung store namin last 2005 ng biglaan nawalan po kami ng trabaho. Tanung ko lang po may makukuha po ba akong backpay? 3 months pa lang po ako nuong bigla pong nagsara yung store na iyon ng greenwich.

    [Reply]

  279. Good day… Ask ko lng po.. Ung asawa ko po nagbabalak n magresign.. 10 years n po s company nila..pero etong company nila ndi po nagbibiga ng separation pay kahit knino noon p man.. Sa palagay nyo po b may karapatan xang mag demand ng separation pay after ten years of service? Tnx po

    [Reply]

  280. Jennylin Badiola Comment:
    July 2nd, 2013 at 05:29 pm

    I am working for a big call center company since 2001 as a company physician. Last dec. 2012 this company was bought by a bigger company. We are aware that they are paying severance to some employees that are not needed by the new administration. I am also aware that they will also terminate my position soon and will not pay me severance because they say that I work only part time, that is 12 hours a week. Am I considered part time employee when I worked in that company for 12 years? And I received 13th month pay yearly? Legally can I receive severance pay?

    [Reply]

  281. nag work po ako sa isang company for almost 1yr. nagstart po ako ng april 2012, then april 1st 2013 nag-submit ako ng resignation sa ofc. which is ang last day na nilagay ko is until may 31. tinanggap yung resignation namin tatlo. then after that day nakasagutan ng head namin ang isa sa mga co worker ko, then yung head namin ask na palitan na namin ang resignation ng earlier instead of may pa dapat naging april 5 2013 na.
    itatanong ko lang po sana if pwede ba yung ginawa nila sa amin? parang ang nangyari po kasi ay termination at hindi resignation. walang din po kasing 1month notice and walang proper turn over of project. ano po ang dapat din naming gawin actions? kasi 3 months na din po wala padin yung back pay namin. sapat na po ba ito para mag sumbong sa labor? even OT pay wala din po silang binibigay sa employee nila kahit abutin kana ng 12pm sa work.

    sana po ay matulungan nyo kami.
    Thanks po

    [Reply]

  282. hi good day!

    i would like to ask if mabibigyan ba ang employee ng separation fee if you fired him from office dahil may ginawang hindi maganda sa company. his in the company for 11 yrs.thank you your reply is highly appreciated.

    [Reply]

  283. hi good pm.

    nag work po aku sa company for 1.57yrs.(base on there computation)(regular po aku) marami po kaming pinatawag noong april 15,2013 dun sa malayu na branch for a meeting yun pala ini isa-isa kami binigyan ng notice of redundancy at dun nakasulat ang separation pay ku, tapus pinagperma aku ng separation pay na matatanggap q pagkatapos ng 1month(may 15 2013) peru wala pa, nag inquire aku sa kanila, then sinabi nila by the end of month may. ngunit wala parin, ulit inquire na naman, sabi nila as the month of june ends peru wala parin, tapos ngayun sabi nila hopefully with in this month makapagbigay daw sila ng feedback.
    yung iba kung kasamahan sumuko nlng.

    Ano po ba mabuting gawin.

    sana po tulungan mu kami.
    Salamat.

    [Reply]

    Marcie Reply:

    Ask ko lang po…kung guaranteed benefit yung sick leave credits kada taon, hindi po ito convertible to cash at puede lang ipunin hanggang ng ilang taon, paano na po ung na-earn na credits kung mare-redundate yung empleyado? Dapat po bang kasali un sa computation ng separation pay? Thank you.

    [Reply]

  284. thelma nguyen Comment:
    July 12th, 2013 at 06:11 am

    Am i still entitiled for severance pay if got a final written warning from human resources?

    [Reply]

  285. Christian Comment:
    July 16th, 2013 at 03:37 pm

    Dear Sir,

    Tanong ko lang po kung may batas ba na nag sasaad sa Backpay kung ilan days dapat ay maibigay sa empleyado ang nararapat na kabayaran sa kanya?

    Kasi po almost 5months ko ng pina follow up ang back pay ko pero lagi daw under process. Pera ko po yun na pinaghirapan tpos pati sa pag rereceive ng cheque ay hirap din.

    Sana ay matugunan ang aking katanungan..salamat po.

    [Reply]

  286. I am being told to leave the company. I am not volunteering. If I quit, will I be entitled to a severance pay on top of my retirement pay since I am now qualified for it?

    [Reply]

  287. sheila b. pablo Comment:
    July 27th, 2013 at 03:38 pm

    wala po kamig seperation pay na tatangggapin kung magresign kami.legal po ba to?may maternity payment ba kaming matatanggap sa employer namin bukod pa sa sss?tnx po.sana masagot nyo.mag 10 years na ko sa company pero according po sa mga naunang umails wala sila ni kusing natanggap as seperation pay

    [Reply]

  288. Sir, gusto ko lang po malaman kung meron po ba talaga sa batas na kapag wla kapa 5yrs na nagtratrabaho sa kumpanya eh wala ka din separation pay? ilang taon po ba dapat mag stay sa kumpanya para mabigyan ka ng separation pay? ang sabi po kasi sa amin ng kumpanya yung mga wla pang 5years sa kumpanya ay wla daw po separation pay base sa batas daw po. meron po ba talaga nito? at pano po kwentahin nag separation pay kung 4years lang po sa kumpanya. maraming salamat po.

    [Reply]

  289. Mary jean c. Marcelo Comment:
    July 28th, 2013 at 10:49 am

    Dear Sir,

    Nagresign po ako last jan 1 2013. 9yrs po ako sa service alam ko po n wala akong makukuha dahil ang sabi po ng Kumpanya 10yrs in service tska lang daw po may makukuhang separation pay, pero verbal lang po iyon wala po silang pinapirmahan sa aming mga regular n agreement. Ang masakit pa po nito magbabayad pa po ako ng mahigit 4k para mabuhay ko po ung certificate of employment ko. Dp po ako bumalik sa dating Kumpanya ko hanggang ngaun,dahil naka kaasar po, ang pagkakaalam ko ang dahilan ng deduction po n iyon ay dahil sa inventory variances na sa aming mga empleyado kinakaltas…. Ano po ang dapat kong gawin,meron po ba akong dapat na ikaso sa kanila o sadyang ganun po talaga iyon… Salamat po at hangad po ang inyong kasagutan para po maliwanagan ako…

    [Reply]

  290. I filed a case for illegal dismissal against my previous employer. Since the case is now currently under NLRC they say that they will put my severance pay on hold until such a time that the case has been settled. Is there a legal basis for this? Thank you very much.

    [Reply]

  291. If the employer decides for cessation or bancruptcy, when will the employees paid of their separation and salaries.

    If the employer has a lot of payment to pay like SSS/Philhealth/Pag-ibig and other loans to creditors, who will be prioritized in payment.

    In case a sheriff gets in, are the employees are prioritized to be paid first?

    [Reply]

  292. Pano po kung nagkasakit at namatay at isang bwan na lang mag 60 na siya magkano po matatanggap nya sa 30 years service nya sa compang? Tnx po

    [Reply]

  293. Atty, kulang po yung magkasunod na sweldong natangap nmin, kaya po nka absent kmi sa trabaho, pwede po ba kmi ma awol? Dahilan pra hindi kmi mabayaran ng seperation pay? Almost 8 years na po ako sa work from previous employer to present..marami pong salamat sa magiging kasagutan..

    [Reply]

  294. hi!
    our earned commissions are withhold by the company.
    now i was terminated.
    my case is in the nlrc on appeal status.
    the law says, for the earned commission/wages – there is no room for interpretation or construction; there is only room for application.
    provisio in the employment contract – that should you commit violation/s related to your work, any commission earned will be forfeited in favor of employer. Normally, this is a textbook example of a contract of adhesion, wherein employee is left with no choice, its a take it or leave it scenario. This is not in accordance with the labor spirit of law.

    how can i get my commissions already due to me?

    thanks

    [Reply]

  295. sir, goodmorning po, income received by heirs of an employee who was separated from works due to redundancy of position. is it a separation pay?

    [Reply]

    jezza Reply:

    at ano po ang basis?

    [Reply]

  296. Hi Ted,

    The scenario is that:

    Our company is payed due to the services avail from our company by other company. Meaning, we are part of the revenue machinery of the other company. And the issue now is that, our company is going to be closed because the company that avail our service will handle the operation we provided to them, but they’d like us to be hire through several options they provided to us.

    Options:
    A. Retire and Rehire – with termination fee, but the new company offers lower salary from old company

    B. Retire – payed termination fee.

    C. Absorption – no termination fee, new company will offer the same salary rate from old company and the tenure of my service from old company will be continued.

    Question:

    A: Do we have the right to demand for higher salary if we select option A?

    B. If i choose option B, do I have any obligation for the operation of New Company?

    C. If I choose option C, Am I automatically eligible to get the same benefits they offer to the employees of the New Company? What if I resign after 2 months of absorption, what benefits will be covered on my back pay.

    D. Since the company is going to be closed. When is the right time to claim our Back pays, Certificate of Employment and Income Tax Return.

    [Reply]

  297. RANDY ROBUS E. VERZOLA Comment:
    October 1st, 2013 at 11:03 am

    SIR, WHAT IS THE PUNISHMENT OF A PROBATIONARY GOVERNMENT EMPLOYEE WHO IN HIS EMPLOYMENT RECORDS DECLARED THAT SHE HAS NO CHILDREN BUT IN FACT SHE HAS A CHILD?

    [Reply]

  298. hi atty.

    Question lang po…my mom is working sa isang pawnshop co.Her branch assignment is only 15-20 mins away sa house namin dito lang sa Bulacan. She is 57 y/o now and stilll employed for more than 30 yrs sa company.

    Then,nagsara un branch niya na malapit..at instead na offeran siya ng separation pay considering her age,inassign siya sa branch where she needs to travel 2hours from home everyday.

    Question is, can we sue the company since it seems na they are just forcing my mom to resign so they can offer lesss compensation instead of a separation pay? And what prohibitions ng law po ang pinaka applicable in this case? Kasi samin sa company ko,it is illegal to disadvantage an ployee about the travel distance to work.Please help.Thanks!

    [Reply]

  299. Kailangan pa po ba bayaran yung empleyado sa seven days na ipinasok nya bago siya materminate due to unauthorized possesion of company property? Salamat po

    [Reply]

  300. nagwork po ako ng 3 1/2 yrs n po..san po ba ako maentitled n rules if magresign n po ako?? sa 1 month pay po b o 1/2 month pay?medyo nguluhan po kc ako sa mga rules..salamat po..

    [Reply]

  301. Good day Atty.,

    I am writing in behalf of a Japanese expat who hired a personal driver without any contract (verbal agreement only). Now the Japanese expat will be leaving the country but a new replacement will take his place who will become the new boss of the driver. The driver is demanding for a separation pay. Is the driver entitled to such benefit? He is saying that what if he has worked for ten years and his boss changes every year at the end of say, ten years, when he resigns who will be responsible to pay for his separation pay. Will appreciate any advice on this. Thank you in advance.

    [Reply]

  302. Hello Sir!

    Just wanna get some info how the final pay/backpay. I am working in an in-house contact centre. I was hired April 2012 with the basic pay of 17,500.00 php. The effective date of my resignation is on 4th of November 2013. And I know the 13th month will be prorated…How much do you think I am going to get for my final pay including tax refund, final pay and 13th month. Please help me so I could have some idea. My YTD tax is 26,000.00. Thank you

    [Reply]

  303. ello Sir!

    Just wanna get some info how the final pay/backpay is computed. I am working in an in-house contact centre. I was hired April 2012 with the basic pay of 17,500.00 php. The effective date of my resignation is on 4th of November 2013. And I know the 13th month will be prorated…How much do you think I am going to get for my final pay including tax refund, final pay and 13th month. Please help me so I could have some idea. My YTD tax is 26,000.00. Thank you

    [Reply]

  304. dan ventura Comment:
    October 16th, 2013 at 04:37 am

    My brother, who is a medical doctor, is now retiring at the age of 66, and therefore closing his medical clinic where he was practicing his profession. Is his employee/secretary entitled to a separation pay after years of service?

    Please respond to my email.

    Salamat po.

    [Reply]

  305. I am forced to resign due to violation on liquidation.I wasn’t able to liquidate cash with me with in 24 hours. During the investigation my boss hold my salary for the month, then after the investigation I was forced to resign. She (my boss) had told me I will be getting my back pay. Consistent following regarding m back pay was happening for the past months. December is coming and its merely one year after my resignation. Is there a chance of getting my last pay? please response through my email.

    Thank you,
    Mika

    [Reply]

  306. Hello,

    My current employer is permanently stopping operations and I’m being laid off. Would my separation pay be forfeited if I decide to accept a job offer from another company prior to my current employment being ceased. Let’s say my employment would cease on Feb 16, 2012 (I still have at least a month to render) but I found another job and I’m about to start training on Jan 21, 2012.
    1. Is this illegal?
    2. Is there any way for me to negotiate or reason with my employer without going through all the legalities? I mean, I think it would be unfair to forfeit my separation pay because whether I completely render 30 days or not, I would still be out of a job.

    I hope you could enlighten me in this. Thank you!

    [Reply]

    admin Reply:

    It is not illegal, but you could risk forfeiting your separation pay. If you quit before the actual date of termination, it will be be a voluntary termination at your instance. Under the Labor Code, an employee is entitled to separation pay if the termination is at the instance of the employer.
    It is best to discuss with your employer your future plans before deciding on anything.

    [Reply]

    dub Reply:

    I understand. Actually, to avoid any problems, I’ve been very open and discussed my plans with them. Unfortunately, the discussion did not go my way so I’ll will have to resign then.

    Thank you very much for your immediate response.

    [Reply]

  307. Sir, Ako po si ding nag work ko s private company dito sa pampanga last week lang po nalaman ko na magshutdown na ang company sa ka work ko lang po nalaman at hindi man lang po sila nagbigay ng written notice samin before sila magshutdown ngayong November 5 at declare po nila na bankcruptcy kya magshutdown na ang company at ang alam ko din po hindi sila ngbigay ng written notice din as dole 30days before magclose ang company. Tanong ko lang po sir ano po ba pwede ko makuha sa mahigit 4 na taon kung pagtrabaho sa company at Hindi rin po kami naniniwala na bankcrupt na ang company kasi may bago po silang company ngayon? Sana po sir matulungan nyo po ko sa tanong ko. Thanks and God Bless

    [Reply]

    admin Reply:

    If the closure of business is not due to financial losses or bankruptcy, the separated employees are entitled to separation pay equivalent to ‘at least 1 month pay’ or ’1/2 month pay per year of service’, whichever is higher. A fraction of at least 6 months is considered 1 whole year.
    If the closure is due to serious business losses or bankruptcy, the employer is not obliged to give separation pay. However, there must be proper compliance with the notice and other requirements under the Labor Code.

    [Reply]

  308. Good day!

    Have some questions:

    If an employee went AWOL and/or did not turnover responsibilities and company properties, thus, haven’t processed clearance for the issuance of his last pay:

    1. how long should the employer wait for him to come back and process his clearance in order to get last paycheck?

    2. can the employer forfeit his last paycheck after a period of time?

    3. can the employer offset his last paycheck to his financial accountabilities with the company?

    Thank you.

    [Reply]

  309. Hi I would just like to ask, I finished my contract in teaching for just 1 semester and I decided not to renew it anymore. The HR told me I would be getting the first 15 days that I worked on and my salary for the month of October. The company policy is that the cut off period for payroll on the 15th of the month will be the period 16-30 of the last month so I did not get any salary on June 15. My contract ended on oct 31 so, for that month I should be getting the whole month because the cutoff of my last salary on Oct. 15 was the period Sept 16-30 then they hold my salary on oct. 31 saying that it will be paid along my backpay. So they owe me one and a half month of salary. Is that the same as the the law describes as a backpay? Or should there be a separate 1 month pay that I should be receiving in addition to the 1 and half month? Because they will also include a 13th month pay. Also how long should I wait to get it? Because they are not giving me a specific date.

    Thank You

    [Reply]

  310. Good day,
    My father is terminated from the company without receiving salary or length of service is he entitled to this for the reason that he is 67 year old now?He is terminated last August this year.Please do reply to my questions.Thanks .

    Mayen

    [Reply]

  311. ask ko lng po kung ang private company po ba ay may seperation pay kc po ung tito ko namatay wala po nakukuha kahit anong benifits ng tita ko sa company na pinagtatrabahuhan nia dati ii.. pls reply

    [Reply]

  312. barbie avilo Comment:
    November 26th, 2013 at 07:21 am

    hi po, ask ko lang po. naging employee po ako sa isang call center company, for training days po nag sign ako ng contract for 15 days, tpos po nun ntpos po yung 15days, inextend po ako ng another 5 days, so totaly po 20 days of training per day po bayad lang po kme ng mas mababa pa sa provincial rate, matagal din po namin bago nkuha ung training fee naun. after po ng training days naging probi po ako ,tpos nag tagal lang po yun ng 6 days ksi terminated po ako, ksi daw po hndi namin nakukuha yung target namin per head. so na discontinue po yung contract ko. tapos ang nkuha ko pong sahod nun is yung training fee ko na 20days, tapos po sabi samin yung 6days bilang probi namin makukuha daw po namin sa susunod na pasahod. tpos nung nag cut off na po ang sabi po smen hndi daw po namin makukuha yung 6days na naipasok namin kc daw po bad quality of Work namin. ganun po ba tlaga? tska po yung ibang trainee po dati na ksabayan ko binigyan lang po sila ng 10days training. natapos po nila yun, kayalang po tinanggal sila nun isang beses sila na absent eh nsa training contract po na pdeng ma discontinue ang contract kpag 3 lates 2 absences. eh tinanggal po sila sa isang salita lang na, “those absents, i dont want them to comeback here anymore!” tpos wla po silang nkuha though natapos nila yung 10days, pero nkalagay namn din po sa contract na sa 10 days pde cla maextend dpende sa perfomance nila. tama lang po ba yung mga ganon na ginawa nila? salamat po. khit sinabi po ni verbal na, pag ang comp. ang nagtanggal babayaran nilA kme, pero pag kme daw po ang nag quit or gumawa ng dahilan para matanggal wla po kme mkukuha.

    [Reply]

  313. sir /mam
    good afternoon po. tanong ko lng po kung entitled po ba ako kung mag resign po ako due to illness?lalagpas na po kasi ako sa six month na floating dahil sa sakit ko.. salamat po..

    [Reply]

  314. Jenneviv jabat Comment:
    December 14th, 2013 at 11:27 pm

    Hi to all…please help me..i resigned from an agency and ive been work to them for four years and one month..i filed emmediate resignation am i intitled to have my separation and thirteen month pay? Pls help me.

    [Reply]

  315. Hello, ask ko lang po. may agreement po kasi kami ng company na ibibigay nila sakin yung sahod ko ng last cut-off bago ako nagresign and the commission dahil nasa sales ako. sabi po nila 6 months after ko makukuha, 6 months na po halos pero wala pa, can i demand from them? Thank you

    [Reply]

  316. Hi! In case of acquisition from one company to another is separation mandated? Thank you!

    [Reply]

  317. Good Day!May question lang po ako.. ang kapatid ko po ay namatay dahil sa karamdaman last December 2009 at nasabay din na naibenta ang kanilang pinapasukan sa ibang tao. Cxa po ba ay may karapatang mabayaran ng separation pay? thank you po at God Bless ..

    [Reply]

  318. I have a question regarding on my present situation, I am working in a company who gave their employees a separation pay if an employee will resign with at least 3 years length of service. I started working last Oct. 6, 2010 & I had my 3 years last Oct. 6,2013. I had my maternity leave for 75 days. Does my maternity leave period includes on that 3 years? Hoping for your soonest reply. Thanks.

    [Reply]

  319. I made a loan (MPL) with pag-ibig. the amortization is supposedly will start by dec. I resigned from my old company by November. December of the same year I found a new employer. so I made them aware that I have foregoing loans with pag-ibig and make necessary deductions to which they complied. however, my old employer refuses to give me my final pay and my retroactive 13th month pay for the reason that they say Pag-ibig requires that they withhold my last pay and pay it directly to Pag-ibig as stated in Pag-ibig application form to which I signed. I read the note it says retirement and separation pay. my question is – is Final pay the same with separation pay? thank you.

    [Reply]

  320. Pag-ayaw pa po I-release ung backpay for almost 2 years n, they keep on saying n waiting for schedule p daw ng release ng check. What shall I do with this company??? Pls. Help

    [Reply]

    admin Reply:

    You can file a monetary claim with the NLRC.

    [Reply]

  321. Hi, I am working for a Korean company, we are not based on a shifting schedule altho our company has 2 shifts, morning and afternoon shift. I have been working for the company for 7 years now with the morning shift. I am a single parent and am working partime in the evening. Last week, I was told that I was to be moved to the afternoon shift since they said they wanted to maximize my salary for the afternoon shift gets more work than the morning. Giving me 2 weeks notice and no options, whether to move to the afternoon shift or to resign…Is this legal? If they fire me, can I ask for separation pay? Thank you

    [Reply]

    admin Reply:

    Hi Gian, the management has the prerogative to control the operation of the business. That includes the shifting of employee to maximize work or production. If the employee refused to be shifted, he/she may be fired without separation pay.

    [Reply]

  322. Good evening. Anu po prescribe na period para ibigay separation pay? My agency kasi said na sa December pa pde ibigay sakin 13th month backpay ko, which yun lang nman ang component ng back pay ko,kc every December lang sila ngrerelase ng 13t month. I tried to explain na ndi na rin considered as 13th month yun kc di ba it will fall na as back pay? Thank you.

    [Reply]

  323. luisito alvarez Comment:
    March 7th, 2014 at 06:57 am

    is a hired truck driver without appointment is entitled to separation pay?

    [Reply]

  324. Good day,

    Sana matulungan nyo po ako. Itatanong ko lang po sana kung ano-ano ang payments na nakapaloob sa last pay? mahigit 2 years na po ako sa isang BPO company sa makati at nito lamang isang linggo ay nagpasa na ko ng resignation letter ko na ang effective date ay sa April 20, 2014. sa tinagal tagal ko sa company na yon eh nitong february 2014 lang sila nag umpisa mag kaltas ng tax, fix sila magkaltas ng tax (870php) every cut off. hindi nila ito dinedepende sa gross every 15 day pay out. nung araw na nagpasa po ako nung resignation letter ko eh tinanong ko po ang HR namin na ano-ano ang makukuha ko sa last pay ko, mejo disappointed ako sa sagot nya dahil ang makukuha ko lang daw po ay pro-rated 13th month pay at yung mga huling araw na ipinasok ko, hindi na daw nila maisasaoli yung tax na na-deduct sakin at yung ma-dededuct pa dahil mag rerender pa ko ng 30 days dahil naibayad na daw po nila sa BIR (na ang pag kaka alam ko po ay june ang bayaran ng tax). sana po matulungan nyo ako, Please enlighten on what should the last pay consist of? and wala na din po ba halagang kabayaran yung mahigit 2 years na itinagal ko sa company? Maraming salamat po.

    [Reply]

  325. Hi. I am an online tutor teaching Korean kids.
    will I have a separation pay if they force me to resign or the company stopped my work even if it’s not yet the end of my contract? and their reason is that they have great loss of students due to very tight competency of Korean online companies.

    I hope to hear from you. Thank you

    [Reply]

    admin Reply:

    Force resignation is tantamount to illegal dismissal. Retrenchment due to company losses, on the other hand, may be a ground for termination, provided the loss is substantial and imminent.

    Either way, the employee is entitled to separation pay (whether the terminatinon is by force resignation or retrenchment to prevent losses.)

    [Reply]

  326. hi sir,

    i need to ask. one of our househelp who acts as watchman recently went to NCMB to claim for separation pay. i actually fired him because we found out that he stole from us and sold it to a neighbor. i validated this and the neighbor actually returned the item while our watchman admitted to his wrongdoing.

    i told him i will not report this to the barangay but just the same i cannot let him continue his work bec of grave loss of trust. i believe he is guilty of qualified theft but the more pressing question to me now is, is he even qualified to receive separatioin pay?

    [Reply]

  327. When should be the back pay or last pay be released?

    [Reply]

  328. Cheryl Angeles Comment:
    April 22nd, 2014 at 09:24 pm

    Sir, I was terminated from a private company under probitionary status. I was terminated due to habitual tardiness on the very day I came to work last March 2014 without notice, only verbal instruction that I will not the following day, without signing anything. I keep on calling the company for more than a month now to ask when I can get my unpaid salary from March 1-15 but they always said that only one signature is lacking from the clearance.
    My question Sir is how long should I wait and how long does it take before I can get my last pay for the half month salary.
    Thank you and hoping to hear from you soon Sir on my email address.

    [Reply]

  329. Hi sir.I need your advice regarding my last pay. I was terminated under probationary status together with my friends because we did not meet the standard metrics for that specific account. We are technically under training and not yet endorsed to production.We were terminated 5 days before the pay day. Our trainer informed us that HR did not approve to expedite our pay.However according to our trainer,our final pay was approved and instead of 45 days, we will get our final pay after 3 weeks once we process our clearance. But while we are processing our clearance, we were informed by our payroll that it will take 45 days. And when we get back to our trainer she is now telling us that she did not mentioned that it was approved. we still have the text message from her. Can we go to HR and make a complaint against our trainer for the misinformation?or is there any legal basis for this?
    I really do appreciate your reply.

    [Reply]

  330. Hello sir i am currently working for 3 months in a probationary period and my company plans to terminate us via retrenchment. My contract with the company is for 6 months, am i entitled to separation pay or not? please do reply. thanks

    [Reply]

    admin Reply:

    Yes, if the termination is due to an authorized cause, e.g., retrenchment, the employee is entitled to separation pay. There is no distinction here between probationary and regular employee.

    [Reply]

  331. sir,
    Our company practice to give separation pay to every employee regardless of how many years of service, even its voluntary. But recently, our company decides that not to give the separation pay for those who resign voluntarily. I am working here for 4 years now. I am planning to file my resignation. Do i have the rights to complain regarding separation pay? It’s the company’s practice to give although they change it recently.

    [Reply]

  332. Hi,
    our company has no written rule about tenure pay. It’s not mentioned in our company book also. I am in my 11th year in my company, if I decide to resign, would I get anything? Or demand tenure pay? is this mandatory? please give me idea on how to deal with this.

    thanks!

    [Reply]

  333. Magtanong lng po ako..sa mga under agency po ba na continous ang service sa company nya may pwedeng mkuhang separation?ang contract natatapos every 5 months..na hindi nman nababakante atvtuloy tuloy pa din ang serbisyo. Sa agency po b o sa company na pinapasukan nya ung separation.4 years na po nagwowork sa company pero hindi p din po nireregular, natigil n po ang pagreregular ng empleyado.
    Ano po ang pwede ko makuha sa gnitong sitwasyon.

    [Reply]

  334. Good day! Ask ko lang po if legal po ba sa bansa natin na ibawas ng employeer sa back pay once na nagresign ang isang employee kung meron mang inventory losses ang isang company? Ano po yong basis? At ano po yong rights ng employee regarding sa inventory losses? Thanks.

    [Reply]

  335. hi good day i have a question for my separation pay i work for more than 8year may roon po ba ako matatangap mula s akin employer because regarding to my head accounting wla daw po ako makukuha at pti iyng 13 months k halahati lng daw ang ibibgay nla ano d ang tama proseso ng pag bigay ng separation pay thank you for give a time to read my concer
    and have a nice day.

    [Reply]

  336. Hi po i am working in a private company for nine years can i avail po any separation if i will voluntary resign?

    [Reply]

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  1. [...] source: http://www.laborlaw.usc-law.org/2009/10/01/separation-pay/ LikeBe the first to like this post. [...]

  2. [...] for every year of service, whichever is higher”, can be quite confusing. See these comments: Comment 1, Comment 2. The phrase though is not really complicated. It simply means that the employee is [...]