Practice question
An employee demands an automatic separation-pay component merely because she resigned, while the employer says resignation eliminates every unpaid wage and prorated benefit. No separate separation-pay entitlement is established. Which is best?
- Both absolute claims are correct
- Resignation always creates statutory separation pay
- Final pay includes amounts actually due; resignation does not erase earned amounts, but each claimed component, including separation pay, needs its own legal basis
- No final pay can ever include earned benefits
- The amount is set by the employee’s unilateral demand
Legal references
- Labor Advisory06-2020, final-pay definition and applicable components: https://palscon.org/public/assets/img/labor-laws-advisory/Labor-Advisory-No_-06-20-Guidelines-on-the-Payment-of-Final-Pay-and-Issuance-of-Certificate-of-Emplo.pdf
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