X, after serving ten (10) years of service as Data Encoder in a company based in NCR receiving the minimum wage was declared redundant due to computerization program of the company. Article 298 [formerly 283] of the Labor Code (get a copy of the re-numbered Labor Code 2018 Edition by Atty. MAY AGENCY CONTINUE EVEN AFTER THE DEATH OF THE PRINCIPAL? and Reahs Corporation vs. NLRC (G.R. The fact that the employee was separated from employment due to the inevitable effect of COVID-19 pandemic is certainly beyond his control. An employee’s entitlement to separation pay depends on the reason or ground for the termination of his or her services. 8282, NOTARIAL WILL vs. HOLOGRAPHIC WILL (Part I), NOTARIAL WILL VS. HOLOGRAPHIC WILL (Part II), ON COVERED INSTITUTIONS UNDER ANTI-MONEY LAUNDERING ACT, ON COVERED TRANSACTIONS UNDER ANTI-MONEY LAUNDERING ACT, ON FREEZING MONETARY INSTRUMENT OR PROPERTY, ON MANDATORY REPORTING OF NOTIFIABLE DISEASES, ON REQUIRING EMPLOYEES TO POST CASH BONDS OR DEPOSITS, ON RETENTION AND REACQUISITION OF PHILIPPINE CITIZENSHIP, ON SERVICE CHARGES COLLECTED BY HOTELS AND RESTAURANTS AND OTHER SIMILAR ESTABLISHMENTS, Online Registration System for One Person Corporation and Corporations with 2-4 Incorporators, Operations of Malls and Shopping Centers in Areas Declared Under General Community Quarantine (GCQ), ORGANIZATIONAL SECURITY MEASURES FOR THE PROTECTION OF PERSONAL DATA, Outlawing monopolies and promoting market competition, OWNER’S RIGHT TO THE FRUITS PRODUCED BY HIS PROPERTY, PAYMENT OF BILLS AND GOVERNMENT MANDATED CONTRIBUTIONS DURING COVID-19 PANDEMIC, Payment of salary, and prohibitions regarding wages, PAYMENT OF SSS AND GSIS CONTRIBUTIONS BY THE SAME PERSON AT THE SAME TIME, Permissible Deductions from Wages under the Labor Code and Other Laws, Philippine Economic Zone Authority Issuances, Philippine Guarantee Corporation Issuances, Philippine Overseas Employment Administration, PHYSICAL SECURITY MEASURES UNDER DATA PRIVACY ACT, PONDO SA PAGBABAGO AT PAG-ASENSO (COVID19 P3-ERF), Practical Labor Relations Workshop – Inquirer Academy 14 August 2019, PREQUALIFICATION OF FOREIGN RETAILERS UNDER REPUBLIC ACT NO. as these employees are not at fault since their employment was ended due to legitimate business reasons. There is an exception as held in the cases of North Davao Mining […] How to dismiss an erring employee the right way, How to ensure legitimacy of job contracting arrangements, How to Handle DOLE Assessment Visits 27 June 2019, HOW TO PROPERLY COMPUTE OF WAGES, OVERTIME AND HOLIDAY PAY AND OTHER BENEFITS, How to protect yourself in franchising your business, How to register your corporation with the SEC, How to register your sole proprietorship with the DTI, ILLEGAL DISMISSAL Cases: How to avoid them, ILLEGAL DISMISSAL Cases: How to avoid them: FINAL RUN for 2019, IMPACT OF COVID-19 ON THE AVAILMENT OF TAX AMNESTY ON DELINQUENCIES UNDER RA NO. Neri’s separation pay computation is: PHP 15,000 divided by 2 X 4= PHP 30,000; He will receive a separation pay of PHP 30,000. Villanueva. 174, Data Privacy Involving Employee’s Health Information with Sample Waiver and SPA, Holiday Pay Sample Computation for January 1, 2021 or New Year’s Day, Holiday Pay Computation for Special Days in December 2020, Holiday Pay Sample Computation for December 2020 Regular Holidays, Real Estate Exam Reviewer: Legal Aspects of Real Estate Sales, Human Resource Forms, Notices and Contracts Vol. Art. 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 including termination of employment on the ground of disease, 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. Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. Issuance of payslips and maintenance of payroll, Issuances from the Department of Trade and Industry, JOB CONTRACTING VS. LABOR-ONLY CONTRACTING, KABUHAYAN FORMATION, KABUHAYAN ENHANCEMENT, and KABUHAYAN RESTORATION PROGRAM, Key benefits of written contracts in business, Key Notes on The Revised Corporation Code of The Philippines or Republic Act No. Aside from learning about the separation pay, you may also read: DOWNSIZING OF EMPLOYEES DUE TO COVID19 The COVID-19 pandemic continues to have a significant impact on the economy.