Labor 10

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It should be noted that employees who voluntarily resign from work are not entitled to separation pay.

Philippine laws only grant separation pay to those who were dismissed from service not due to their
own fault or negligence but for reasons that are beyond their control, i.e. business closure, cessation of
operation, retrenchment (reduction of costs) to prevent losses, etc. However, there are at least two cases
where employees who resign voluntarily may be entitled to separation pay, and they are as follows:

when payment of separation pay is provided in the employment contract or Collective Bargaining
Agreement (CBA, for companies with existing bargaining agent or labor union); and
when it is authorized by established company practice or policy.
Due Process in Termination of Employment
Due process in the context of employment termination is the right of an employee to be notified of the
reason for his or her dismissal and, in case of just causes, to be provided the opportunity to defend
himself or herself.

The due process is different for both authorized and just causes. Just cause involves a two-notice rule
while authorized cause requires a 30-day notice. If due process is not accorded to the employee before
termination of the employment or the termination itself is declared illegal, the employee is entitled to
receive reinstatement and full backwages (Art. 279, Labor Code). If reinstatement is no longer possible
where the dismissal was unjust, separation pay may be granted.

Dismissals based on just causes involve the two-notice rule:

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