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
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 computation of Final Pay is the remaining monetary benefits due to the employee and to be released with 30 days from the date of separation. Both computation and release of the Final Pay has been clarified by Department of Labor and Employment (DOLE) through the issuance of Labor Advisory No. 6, series of 2020 … Read more
Termination of Employment is the act of severing the employment relationship between an employee and an employer. Termination of Employment in the Philippines is guided by provisions contained in Articles 278 – 287 stated in Book Six (6) of Presidential Decree No. 442, also known as the Labor Code of the Philippines. The aforementioned Articles … 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
Security of Tenure is a right of an employee and mandated by law that protects them from being unjustly terminated from employment by their employers. Termination of employment isn’t simply just about removing someone who you do not agree with or you hate. If it is used as such, employers may be perceived as highly … 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