What are the authorized causes allowed by law to terminate an employment?
The employer may terminate the employment of any employee due to the installation of labor saving devices, redundancy, or retrenchment to prevent losses or the closing of operations upon payment of 1 month’s pay for every year of service or 1 month’s pay, whichever is higher, in cases of the installation of labor saving devices or redundancy, or payment of month’s salary for every year of service or 1 month’s pay, whichever is higher, in cases of retrenchment and, in both cases, upon 30 days service of prior notice to the employee concerned and the DOLE.
