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However, only the employee’s last continuous years of service should be considered in the computation (See Carandang vs. (See Article 283, Labor Code) For termination based on retrenchment to prevent losses and closure of business, the employee affected is entitled to at least one month salary or 1/2 month salary for every year of service, whichever is higher.
(.) An employee terminated for health reasons (disease) under Article 284 should be paid separation pay equivalent to at least one-month salary or to at least one-month salary for every year of service, whichever is higher.
Now, what if the employee has served for less than 6 months, how much separation pay will he get?
10-MAY-78 -PDT,1491;000000000001 Mail-from: SRI-KA rcvd at 5-MAY-78 1203-PDT Mail-from: SRI-KL rcvd at 5-May-78 0732-PDT Date: 1635-PDT From: Feinler at SRI-KL (Jake Feinler) Subject: MSGGROUP# 694 DEC Message To: DEC-MAIL-RECIPIENTS: Redistributed-To: [ISI]JAKE, YOU MAY HAVE RECEIVED THE MSG SENT OUT BY DEC ON MAY 1 ABOUT WHICH I HAVE ALREADY RECEIVED SEVERAL COMPLAINTS AS YOU CAN READILY IMAGINE.
It is computed beginning from the time of his engagement up to the date of his termination. The amount of separation pay may vary depending on the specific ground relied upon for the termination.
A fraction of at least 6 months shall be considered as one whole year. An employee terminated based on installation of labor-saving devices or redundancy is entitled to at least one-month salary or to at least one-month salary for every year of service, whichever is higher.
Separation pay may be computed based on the terms provided in the employment contract, company policy, or collective bargaining agreement.
Company practice may likewise be used as basis for computation, if such practice has been established for years and has already ripened into a demandable right.
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CAN YOU FORWARD THE FOLLOWING MESSAGE TO ALL ADDRESSES OF THE SUSPECT MESSAGE PLUS ALL HOST AND TIP LIAISONS?
THANKS: NOTE: Please direct your comments, if any, directly to [email protected] ON 2 MAY 78 DIGITAL EQUIPMENT CORPORATION (DEC) SENT OUT AN ARPANET MESSAGE ADVERTISING THEIR NEW COMPUTER SYSTEMS. APPROPRIATE ACTION IS BEING TAKEN TO PRECLUDE ITS OCCURRENCE AGAIN.