You are on page 1of 1

Republic of the Philippines

NATIONAL LABOR RELATIONS COMMISSION


Regional Arbritration Branch No.___

COMPUTATION OF SEPARATION PAY

Mr. X was employed sometime in October 2002 up to February 23, 2017 or a total
of SIXTEEN (16) YEARS OF SERVICE. It was sometime in February 2017 that X was
threatened with the representative of YYY Trucking by means of a threat. He was
harassed and later on prohibited from entering the premises of the company. Such acts
contemplate termination of his employment as said acts make him unable to perform his
duty as an employee without giving him notices on such termination. These acts
constitute illegal dismissal.

Under the Labor Code, in cases of illegal dismissial, an illegally dismissed employee
is entitled to two reliefs: backwages and reinstatement. However, where reinstatement
is no longer feasible because of strained relations between the employee and the
employer, separation pay is granted. Separation pay equivalent to one (1) month
salary for every year of service should be awarded as an alternative. It must be
emphasized that this payment of separation pay is in addition to payment of
backwages.

The computation of the SEPARATION PAY shall be based on the latest salary
rate. Mr. X latest salary as of December 29, 2016 was Php 8,452.55.

In consideration of the foregoing, one (1) month salary for every year of
service would be:
Php 8,452.55
X 16 years
__________________________
Php 135,240.8

Mr. X also claims backwages for the months of January and February 2017.
The said wages are not yet received by Mr. X. Hence, he is praying that the
said wages be computed and added to the separation pay as mandated by law.

You might also like