My husband was dismissed from his work. He wants to know whether he is entitled to separation pay.
Under our existing laws, separation pay that is equivalent to at least one month pay or to at least one month pay for every year of service, whichever is higher, is granted to an employee who has been terminated from his or her employment on account of installation of labor-saving devices by the employer or by reason of redundancy. Separation pay may also be granted to an employee who has been separated from his work by reason of retrenchment to prevent losses on the part of the employer or in view of closure or cessation of operations of the company not due to serious business losses or financial reverses, and such benefit shall be equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher. A fraction of at least six months shall be considered one whole year (Article 283, Labor Code of the Philippines).
If an employee is found to be suffering from any disease and his or her continued employment is prohibited by law or is prejudicial to his or her health as well as to the health of his or her co-employees, he or she may also be separated from employment and will be entitled to receive separation pay that is equivalent to at least one month salary or to one-half month salary for every year of service, whichever is greater, and a fraction of at least six months being considered as one whole year (Article 284, Labor Code of the Philippines).
Accordingly, if your husband’s dismissal from his work is on account of any of the afore-stated causes, he is entitled to receive the appropriate separation pay. If, however, he is dismissed for any of the just causes enumerated under Article 282 of the Labor Code, he will not be entitled to receive any separation pay, unless such benefit is expressly provided for under his contract of employment or under existing collective bargaining agreement in his company.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
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