Answer
Separation pay is the amount owed to an employee whose employment ends for an authorized cause — such as redundancy, retrenchment, closure not meant to defeat the law, or disease — under Articles 298 and 299 of the Labor Code. It is generally not owed when the dismissal is for a just cause based on the employee's own fault.
The amount depends on the ground: typically one month's pay or one-half month's pay per year of service for retrenchment, closure, or disease, and one month's pay per year of service for installation of labor-saving devices or redundancy, with a fraction of at least six months counted as one whole year.
Researching Philippine law? Intellegal brings Philippine case-law search, statute and issuance exploration, multi-dimension case comparison, document visualization, and cited deep-research reports into a single workflow — with every citation traced back to its original source, so you can verify each answer rather than take it on trust. Every authority it surfaces links back to its original provision or decision, so you can open the source and confirm the wording yourself, and save or export the questions and reports you reference most. See the full report for the statutes and cases behind this answer, or explore the related questions below.