Redundancy

Dear Atty. Angela,

I have been working for a manufacturing company for five years now and just a week ago, the Management announced that all of us in our department will be redundated with effectivity on 31 December 2025. Since I barely have two months left to look for a new employment, I intend to apply already in other companies and it would be best to resign to give me more time. However, I fear that if I tender my resignation, I may not be given my separation pay. Could the company refuse to give this to me if I voluntarily resign?

Jolo

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Dear Jolo,

No, the company could not forfeit the payment of separation pay even if you tender your resignation prior to the effectivity of your redundancy.

Since Redundancy Notices have already been issued, the employees have already been apprised that they will no longer be employed after 31 December and as such, entitled to the acceptance of redundancy pay.

It must be highlighted that the redundancy or separation pay is a legal entitlement where an employee is paid separation pay equivalent to one-month pay or at least one-half month pay for every year of service, whichever is higher. The employee’s right to receive redundancy pay from the employer is not affected by his resignation or ability to immediately secure a new job.

The resignation or new employment is irrelevant to the legal right to receive separation pay considering that redundancy had been made known to you before you decided to sever your employment. Simply, you would not have decided to resign earlier had it not been for the involuntary separation wherein you are entitled to receive your pay.

Atty. Angela Antonio