When is a dismissed employee entitled to separation pay?
The Labor Code requires a valid cause to terminate an employee. If there is no valid cause, there is no valid termination and the employer will be held liable for illegal dismissal. If the cause of dismissal falls under any of the five circumstances of Article 282, no separation pay shall be given to the dismissed employee. In dismissal cases falling under Article 283, separation pay shall only be required if the dismissal is due to the installation of labor-saving devices or redundancy. In these two cases, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. If the dismissal is due to retrenchment to prevent losses or closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every ye
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