Practice question
A business genuinely closes for non-loss-related commercial reasons. Its good-faith cessation and the absence of another available option are proved. It gives the required advance notices. An affected employee has four credited years of service and PHP 30,000 monthly pay; no better contractual benefit applies. What is the minimum statutory separation pay?
- Nothing, because every closure eliminates separation pay
- PHP 15,000
- PHP 30,000
- PHP 60,000
- PHP 120,000
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/71535 — DO 147-15, Rule I-A, sections 4(a), 5.3–5.5: authorized causes, proof, notice and separation pay.
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