Dear Atty. Peachy,
I have been working for a manufacturing company for 18 years. For the past three years, our company have lost some of our biggest clients. About six months ago, our company offered a voluntary separation program to all its employees limited to a period of one month. A separation pay of one and one half month pay for every year of service was offered. About half of the employees of the company availed of the separation program. I did not avail of the program because I knew that I will already have a hard time looking for a new job because of my age and the separation pay that I will receive from the voluntary separation program will be spent very fast.
The situation of the company now does not appear to be getting better. My husband and I are afraid that it will eventually cease operations and I will end up getting nothing. What will I get if I resign from the company now?
Jules
Dear Jules,
The voluntary separation program that your company offered to its employees six months ago is a special separation program. Generally, an employee who resigns from work is not entitled to separation pay. Since the voluntary separation program is already over, you will only receive final pay for work rendered, pro-rated thirteenth month pay and unused service incentive leaves should you resign now.
Should the company eventually cease operations, you will be entitled to a separation pay of one-half month pay for every year of service, unless they claim that the closure is due to serious business losses or financial reverses, in which case they are not required to pay separation pay. It is best to think hard and weigh the pros and cons before making your decision. I wish you the best.
Atty. Peachy Selda-Gregorio
