Senate Bill 2563 is a pending bill on AI-related layoffs, not a law. Compare what it would change with what Article 298 requires today: a real cause, proof, 30 days’ notice and separation pay.
What a BPO employer can lawfully do with agents after a campaign or account pull-out: floating status within six months, or redundancy with notice and separation pay.
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.
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.
Retrenchment Philippines 2026 guide: valid grounds, proof of actual or reasonably imminent substantial losses, fair selection criteria, 30-day employee and DOLE notice, separation pay, evidence and remedies.
Redundancy Philippines 2026 guide: legal requirements, fair selection criteria, 30-day employee and DOLE notice, separation pay, evidence, good faith and how to challenge an invalid redundancy.
A signed, accepted Philippine job offer becomes a binding contract on acceptance, per the 2025 Supreme Court ruling in Aragones v. Alltech. Learn when withdrawal is legal and what to do if yours is pulled.
Compare resignation, redundancy, retrenchment and just-cause termination in the Philippines — who initiates each, notice required, and separation pay.
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.