Learning and Improving
Termination of Employment due to Redundancy is an authorized cause of termination of employment wherein manpower is in excess of the actual reasonable demand of the company. The excess of manpower may the due to one or more of the following: 1. Overhiring of Workers; Decreased Volume of business, or 3. Dropping of a particular … Read more
The difference between Redundancy and Retrenchment is that the latter reducing manpower to avoid financial loss while the former only requires proof that manpower is in excess of what is demanded. The terms “Retrenchment” and “Redundancy” are not household terminologies and sometimes occur confusion between the two (2). However, the process and elements termination of … Read more
Separation Pay is a monetary payment given to employees who were involuntary separated from employment due to authorized causes in which the Computation of Separation Pay is based on the type of Authorized Cause. It is a mandatory severance pay as stated in the provisions of Presidential Decree No. 442, also known as the Labor … Read more