paano po ba mag compute ng seperation pay?

4 yrs na po ako sa trabaho at magsasarado na po kasi yung company namin. yung ibang kasama ko tinanggal na kaya lang parang kulang po kasi yung seperation pay na natanggap nila. paano po ba ang computation ng seperation pay pag magsasara na ang isang kumpanya?

typically per year of service one month of salary. so in your case it would be equal to as much as four times of your monthly salary.

a fraction may mean pro rata not rounding off.

in case of closure.. 1/2 month salary x years of service lang.. unless may CBA or company policy stating otherwise..

a fraction of at least 6 months shall be considered 1 year..

see article 283 of the Labor Code

Patok wrote:in case of closure.. 1/2 month salary x years of service lang.. unless may CBA or company policy stating otherwise..

a fraction of at least 6 months shall be considered 1 year..

see article 283 of the Labor Code

I personally knew many companies adopted this kind of separation pay. They always apply 1 month for every year of service.

283 says 1 month or 1/2 month whichever is higher. The law is silent with regards to the fraction of less than a year but it said that the fraction of at least 6 months shall be considered one year is because it is the spirit of labor. A fraction would mean pro rata if this is favorable to the party who is losing his property or job.

article 283 states that:

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.

separation pay is equivalent to 1 month pay OR at least half month salary for every year of service, whichever is higher..

that means.. if you serve your company for only 1 year.. you will get 1 month pay, because that is higher than 1/2 month salary x year of service (which is 1 year only in the example). So the minimum that an employee will get will be 1 month salary. If the number of service is more than 1 year.. then it will be 1/2 month salary x years of service.. because that's higher than 1 month salary.

the explanation is true at the instance of actual closure, but when there is no closure yet and there is no verification from SEC about the dissolution, the purpose shall partake as reduction of employees only.
i think that is the reason of one month notice for DOLE.

redundancy or retrenchement.. talagang may 1 month notice sa DOLE..