Learning and Improving
Termination of Employment due to Retrenchment is classified as an authorized cause of termination which means that the termination of employment is due to necessity and exigency of the business or economic condition. Retrenchment is also known as a “lay-off” or “Downsizing”. Retrenchment may be used as a last resort to cut further losses on … 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
Floating Status is the suspension of employment due to a temporary suspension or cessation of business which shall not exceed six (6) months unless an agreement has been made between the employee and an employer that would last up to an additional six (6) months. The term is synonymous with temporary lay-off, temporary laid-off, temporary … Read more