Is separation pay subject to income tax?
Separation pay from causes completely beyond an employee’s control is totally tax-exempt under Section 32 of the Tax Code.
Who bears unpaid wages if a contract is pre-terminated?
The defaulting party firmly bears the cost of unpaid benefits during an unauthorized pre-termination under the Labor Code.
Who bears unpaid wages if a contract is pre-terminated? Read More »
What options does a contractor’s employee have when agreements expire?
Employees may patiently wait three months for re-employment or gracefully resign upon agreement expiration under the Labor Code rules.
What options does a contractor’s employee have when agreements expire? Read More »
What is the separation pay for impossible reinstatement?
Impossible reinstatement warrants a full one-month pay per year of service under the Labor Code of the Philippines.
What is the separation pay for impossible reinstatement? Read More »
How is retirement pay defined?
Retirement pay strictly refers to the financial compensation legally given to a retiring employee under Article 302.
What salary rate is used for separation pay computation?
Separation pay computation strictly relies upon the employee’s absolute latest salary rate under the Labor Code of the Philippines.
What salary rate is used for separation pay computation? Read More »
Must regular allowances be included in separation pay?
Regular allowances must be actively integrated into the basic salary base for separation pay calculation under the Labor Code.
Must regular allowances be included in separation pay? Read More »
What is separation pay?
Separation pay financially compensates employees terminated due to authorized causes strictly under Articles 298 and 299 of the Labor Code.
What are the notice requirements for authorized termination?
Employers must formally issue a one-month written termination notice to the employee and DOLE under the Labor Code.
What are the notice requirements for authorized termination? Read More »
Who is covered by separation pay?
Employees facing authorized termination under Articles 298 and 299 of the Labor Code are legally covered to receive separation pay.
