Retrenchment is valid under Article 298 of the Labor Code only when the employer proves genuine losses, gives 30-day notice to the employee and DOLE, pays the correct separation pay, and uses fair selection criteria. Learn the five-part legal test and leading Supreme Court cases.
Installation of labor-saving devices is an authorized cause under Article 298. Learn the requirements, proof, notice, separation pay and differences from redundancy and retrenchment.
Separation pay formulas differ by cause: redundancy and labor-saving devices use one month pay per year of service, while retrenchment, closure and disease use one-half month, with a six-month fraction rounded up. This guide walks through the Article 298 and 299 formulas, worked hypothetical examples, and the Supreme Court cases that expand and limit who can claim it.
Book 6 of the Labor Code of the Philippines covers Articles 293 to 302: just and authorized causes for dismissal, the twin-notice rule, the one-month DOLE notice, separation pay formulas and statutory retirement pay. This guide explains what each article requires and links to the deeper guide for every provision.
Closure is an authorized cause under Article 298. When separation pay is owed, when serious business losses excuse it, and what notice the employer must serve.
Compare retrenchment and redundancy under Philippine labor law, including required proof, DOLE notice, separation pay, evidence, and employee remedies.
Authorized cause termination procedure Philippines 2026: Article 298/299 grounds, 30-day employee and DOLE notice where applicable, evidence, separation-pay rates, credited service, and final documentation.
Find out who is entitled to separation pay in the Philippines, the correct Article 298 and 299 formulas, worked computations, tax rules, evidence to keep, and what to do if payment is withheld.