When a project-based employee’s assignment ends, the most important question is usually: “How much should I receive?” The answer requires separating final pay, which is generally due to every departing employee, from separation pay, which is payable only in specific situations. A genuine project employee whose employment ends because the identified project or project phase was completed will normally receive final pay but no statutory separation pay. The result changes, however, if the employee was terminated before completion, the “project-based” classification was invalid, an authorized cause was used, or a contract, company policy, collective bargaining agreement, or established practice grants an additional benefit.
Final Pay and Separation Pay Are Not the Same
These terms are often used interchangeably, but they have different legal meanings.
| Term | What it means | Is it normally payable after project completion? |
|---|---|---|
| Final pay | The total of all wages and monetary benefits still owed when employment ends | Yes |
| Separation pay | An additional benefit required by law for certain authorized-cause terminations, or granted by contract, policy, or judgment | Usually no |
| Completion bonus | A contractual or policy-based benefit for completing a project or project phase | Only when promised or established |
| Backwages | Wages and benefits lost because of an illegal dismissal | Only if illegal dismissal is proven |
| Retirement pay | A separate benefit governed by Labor Code Article 302, Republic Act No. 7641, or a retirement plan | Only if retirement requirements are met |
Under DOLE Labor Advisory No. 06-20, final pay includes unpaid salary, applicable leave conversions, prorated 13th-month pay, separation or retirement pay when applicable, tax adjustments, contractual compensation, and returnable cash bonds or deposits. DOLE reiterated in January 2026 that final pay should be released within 30 days from separation unless a more favorable company policy or agreement provides an earlier deadline. (Department of Labor and Employment)
When Is an Employee Legally Project-Based?
Under Article 295 of the Labor Code, project employment exists when an employee is hired for a specific project or undertaking whose completion or termination was determined and made known when the employee was engaged.
The Supreme Court commonly looks for two essential requirements:
- The employee was assigned to a specific, identifiable project or undertaking.
- The project’s duration and scope were specified and communicated to the employee at the time of hiring.
Calling someone a “project employee” in a contract is not enough. The employer must prove that a real and identifiable project existed and that the employee understood the project-based nature, scope, and expected duration of the engagement. A supposed project that is indistinguishable from the employer’s continuous day-to-day operations may be questioned as an attempt to avoid regular employment. (Supreme Court E-Library)
Does repeated rehiring make a project employee regular?
Not automatically. The Supreme Court has ruled that repeated and successive project engagements do not, by themselves, convert an employee into a regular employee. The controlling question is whether each engagement was genuinely tied to a distinct project whose duration and scope were disclosed at hiring.
Repeated rehiring can still become important evidence when:
- The contracts contain only generic descriptions such as “company project”;
- The worker continuously performs the same permanent function without meaningful breaks;
- No identifiable project or project phase can be shown;
- The employer cannot produce project contracts, completion documents, or termination reports; or
- The employee continues working after the supposed project has ended.
The legal status depends on the actual working arrangement, not merely the label printed on payroll records or contracts. (Supreme Court E-Library)
Special rules for construction project employees
DOLE Department Order No. 19, Series of 1993 specifically governs workers in the construction industry. It identifies several indicators of project employment, including:
- A reasonably determinable project duration;
- A written agreement defining the project and the worker’s assigned service;
- Work directly connected with that project;
- Freedom to work elsewhere while awaiting another engagement;
- Reporting the termination to the appropriate DOLE Regional Office within 30 days after separation; and
- A contractual undertaking to pay a completion bonus, when applicable.
The DOLE termination report is important evidence but is not the only test. Courts examine the totality of the employer’s records and the actual circumstances of the engagement. (Supreme Court E-Library)
Are Project-Based Employees Entitled to Separation Pay?
When a genuine project is completed
A genuine project employee is generally not entitled to statutory separation pay when employment ends because the specific project or project phase for which the employee was hired has actually been completed.
This is not considered an ordinary dismissal. The employment ends because the event agreed upon at hiring—the completion of the project—has occurred. The employee must still receive all unpaid wages and benefits forming part of final pay. (Lawphil)
Situations in which separation pay may be due
| Reason employment ended | Statutory separation pay? | Important qualification |
|---|---|---|
| Genuine completion of the identified project or phase | No | Final pay and contractual benefits remain due |
| Employee voluntarily resigned | Generally no | It may be granted by contract, CBA, policy, practice, or settlement |
| Employee was dismissed for a valid just cause | Generally no | More favorable policy or CBA may apply |
| Retrenchment before project completion | Yes | Employer must prove the authorized cause and follow due process |
| Redundancy before project completion | Yes | Position must genuinely be superfluous |
| Closure not caused by serious business losses | Yes | Statutory formula applies |
| Closure caused by proven serious business losses | Generally no | Employer bears the burden of proving serious losses |
| Termination because of qualifying disease | Yes | Medical and procedural requirements must be satisfied |
| Supposed “completion” was fabricated or premature | Potentially | May constitute illegal dismissal |
| Contract promises separation or completion benefits | Yes, according to the contract | Benefit may be better than the statutory minimum |
| Employee was found to be regular rather than project-based | Depends on the cause of termination | Security of tenure and ordinary termination rules apply |
A voluntary resignation does not ordinarily produce a statutory right to separation pay. The Supreme Court recognizes exceptions when separation pay is promised in the employment contract, CBA, company policy, or established employer practice. (Lawphil)
Termination before the project is completed
A project employee cannot be removed prematurely merely because the employer no longer wants the employee or the client has reduced payments. Before the agreed project completion, the employer ordinarily needs a valid just cause, authorized cause, or another lawful ground supported by the contract and labor law.
For construction employment, DOLE Department Order No. 19-93 provides that a project employee terminated before project completion without just or authorized cause may be entitled to reinstatement with backwages. If reinstatement is no longer possible, the employee may recover salary corresponding to the remaining project period. Supreme Court decisions similarly recognize that an illegally dismissed project employee’s backwages may run until the project’s actual completion. (Supreme Court E-Library)
What Should Be Included in the Final Pay?
Prepare the computation one component at a time.
| Final-pay component | Basic computation | When it applies |
|---|---|---|
| Unpaid salary | Unpaid workdays or hours × applicable rate | Always, if salary remains unpaid |
| Overtime, holiday pay, premiums, or night differential | Earned amount not yet paid | When supported by work records |
| Prorated 13th-month pay | Total basic salary earned during the calendar year ÷ 12 | Generally for covered rank-and-file employees |
| Unused service incentive leave | Unused earned SIL days × daily rate | If the employee is legally qualified and the leave remains unused |
| Vacation, sick, or other leave conversion | According to policy, contract, CBA, or established practice | Only if cash conversion is provided |
| Completion bonus | According to the project contract or policy | When expressly or consistently granted |
| Earned commissions or incentives | According to the governing incentive plan | If already earned or vested |
| Separation pay | Applicable statutory or contractual formula | Only when legally or contractually due |
| Tax refund or adjustment | Excess tax withheld after payroll annualization | If applicable |
| Cash bond or employee deposit | Amount due for return | If no valid outstanding liability exists |
| Less lawful deductions | Documented and legally permitted deductions | Subject to wage-deduction rules |
Unpaid salary and wage-related benefits
Start with all work performed through the employee’s last day. Review daily time records, payslips, payroll cutoffs, overtime approvals, holiday work, rest-day work, and night shifts.
The employer should not exclude work merely because it falls after the last regular payroll cutoff. The final payroll must capture the remaining covered period.
Prorated 13th-month pay
For a covered employee:
Prorated 13th-month pay = Total basic salary earned during the calendar year ÷ 12
Suppose a rank-and-file employee earned ₱180,000 in basic salary from January until project completion in September:
₱180,000 ÷ 12 = ₱15,000 prorated 13th-month pay
Use basic salary actually earned during the calendar year. Overtime pay, night-shift differential, holiday premiums, and similar payments are generally not basic salary unless an agreement or established practice treats them as part of the basic wage. DOLE’s final-pay advisory expressly includes prorated 13th-month pay, and the Supreme Court has upheld its payment to validly separated project employees. (Scribd)
Unused service incentive leave
Article 95 of the Labor Code grants qualified employees who have rendered at least one year of service five days of service incentive leave, subject to statutory exemptions. Unused earned SIL is generally convertible to cash.
For example:
Three unused SIL days × ₱1,000 daily rate = ₱3,000
A project employee who has not completed the legal service requirement may still have convertible leave if the employment contract or company policy gives a more favorable benefit.
Completion bonus for construction workers
A completion bonus is not the same as statutory separation pay. Under Department Order No. 19-93, a construction project employee is entitled to a prorated completion bonus when the employer undertook to provide one.
The issuance refers to an industry practice of at least one-half month’s salary for every 12 months of service, but the enforceable amount normally depends on the undertaking in the contract, bid, CBA, policy, or established company practice. This completion-bonus rule should not automatically be applied to every non-construction project employee. (Supreme Court E-Library)
How to Compute Separation Pay When It Applies
Authorized causes are grounds not based on employee wrongdoing. They include installation of labor-saving devices, redundancy, retrenchment, qualifying closure, and qualifying disease under Articles 298 and 299 of the Labor Code.
DOLE Department Order No. 147-15 provides the following minimum formulas:
| Authorized cause | Minimum separation-pay formula |
|---|---|
| Installation of labor-saving devices | One month pay or one month pay for every year of service, whichever is higher |
| Redundancy | One month pay or one month pay for every year of service, whichever is higher |
| Retrenchment to prevent losses | One month pay or one-half month pay for every year of service, whichever is higher |
| Closure not due to serious business losses | One month pay or one-half month pay for every year of service, whichever is higher |
| Qualifying disease | One month salary or one-half month salary for every year of service, whichever is higher |
A fraction of service of at least six months counts as one whole year. A fraction below six months is normally disregarded for this particular computation. (Supreme Court E-Library)
One-month-per-year formula
Monthly salary × credited years of service
If the employee’s monthly salary is ₱30,000 and credited service is four years:
₱30,000 × 4 = ₱120,000
Compare this with the guaranteed minimum of one month pay. The higher amount applies.
One-half-month-per-year formula
Monthly salary × 0.5 × credited years of service
If the monthly salary is ₱30,000 and credited service is four years:
₱30,000 × 0.5 × 4 = ₱60,000
Compare the result with one month pay:
- One month pay: ₱30,000
- One-half month for four years: ₱60,000
- Separation pay due: ₱60,000
Do not confuse separation pay with the 22.5-day retirement formula
A common payroll error is to treat every reference to “one-half month salary” as 22.5 days.
The 22.5-day formula—15 days plus one-twelfth of 13th-month pay plus up to five days of SIL—is expressly used for statutory retirement pay under Article 302 and Republic Act No. 7641. It should not automatically be imported into the separation-pay formulas under Articles 298 and 299. Separation-pay computations commonly treat one-half month as half of the applicable monthly salary or 15 daily rates, subject to a more favorable contract, CBA, or policy. (Supreme Court E-Library)
What years of service should be counted?
The answer depends on the legal relationship existing at the time of termination.
- If the employee had one continuous employment relationship, count the continuous service through termination.
- If the employee was already regular, count the service legally credited to the regular employment.
- If separate project contracts validly ended and the worker was later rehired under genuinely new engagements, the earlier completed contracts may not automatically form one continuous period.
- If the project contracts were artificial, vague, or continuously renewed without genuine project completion, the employee may argue that the entire period should be credited.
This is often one of the main disputed issues in project-employment cases. Employment contracts, termination reports, payroll gaps, project records, and actual work assignments become crucial evidence. (Supreme Court E-Library)
Step-by-Step Final Pay Computation
1. Identify the real reason employment ended
Do not start with the arithmetic. First determine whether the employee:
- Reached genuine project completion;
- Resigned;
- Was dismissed for just cause;
- Was terminated because of redundancy, retrenchment, closure, or disease;
- Was removed before project completion; or
- Was treated as project-based even though the legal requirements were not satisfied.
The reason determines whether separation pay should be included.
2. Fix the official last day and applicable pay rate
Collect:
- The project employment contract;
- Project completion or termination notice;
- Latest payslip;
- Payroll rate;
- Daily time records;
- Salary-increase notices; and
- Any fixed allowances forming part of regular compensation.
Use the latest legally applicable salary rate. An employer should not reduce salary shortly before termination merely to lower separation benefits.
3. Compute all unpaid work
Add salary for work completed but not yet covered by payroll. Then add unpaid overtime, holiday pay, premium pay, night differential, commissions, or wage differentials supported by records.
4. Compute prorated 13th-month pay
Add all basic salary earned from January 1 until the final day of employment, then divide by 12. Deduct any advance 13th-month payment already received for the same calendar year.
5. Add convertible leaves
Separate legally earned SIL from company-granted vacation or sick leave. SIL conversion may arise under the Labor Code; other leave conversions usually depend on the company’s written policy, CBA, contract, or consistent practice.
6. Add separation pay only when there is a legal or contractual basis
Apply the correct formula for the stated cause. Check the one-month minimum and the rule treating at least six months as a full year.
7. Add the completion bonus and other promised benefits
Review the contract for:
- Completion bonus;
- Project incentive;
- Retention bonus;
- Demobilization allowance;
- Transportation benefit;
- Gratuity; or
- Employer-provided separation assistance.
A benefit can be enforceable even when it is not required by the Labor Code if the employer validly promised it or consistently granted it as a company practice.
8. Review deductions and tax treatment
Ask for a written breakdown of every deduction. Legitimate deductions may include documented employee loans, legally required contributions, tax adjustments, or properly established accountabilities. Employers may not impose arbitrary deductions or simply confiscate the entire final pay because an ID, tool, or clearance signature is missing. Article 113 of the Labor Code restricts wage deductions, and the employer should be able to explain the legal or written basis for each amount. (Supreme Court E-Library)
Ordinary wages and many other final-pay components remain taxable. Statutory separation benefits received because of causes beyond the employee’s control may be excluded from gross income under Section 32(B)(6)(b) of the National Internal Revenue Code, subject to the applicable BIR requirements and supporting documents. Other income earned before separation remains subject to the ordinary tax rules. (Supreme Court E-Library)
9. Arrive at the net final pay
Net final pay = Total unpaid wages and benefits + applicable separation pay − lawful deductions and withholding tax
The employee should receive an itemized computation showing each component instead of one unexplained lump-sum figure.
Worked Examples
Example 1: Project completed with no statutory separation pay
A daily-paid construction worker earns ₱1,000 per day. The identified project phase is genuinely completed. At separation, the employee has:
- Eight unpaid workdays;
- ₱180,000 total basic salary earned during the calendar year;
- Two unused earned SIL days; and
- A contractual ₱10,000 completion bonus.
| Component | Computation | Amount |
|---|---|---|
| Unpaid salary | 8 × ₱1,000 | ₱8,000 |
| Prorated 13th-month pay | ₱180,000 ÷ 12 | ₱15,000 |
| SIL conversion | 2 × ₱1,000 | ₱2,000 |
| Completion bonus | Contract amount | ₱10,000 |
| Statutory separation pay | Not applicable | ₱0 |
| Gross final pay | ₱35,000 |
Tax adjustments and any lawful, documented deductions must still be applied.
Example 2: Project employee retrenched before completion
The employee earns ₱30,000 monthly and has credited service of three years and eight months. Because the fraction exceeds six months, service is rounded to four years.
- One month minimum: ₱30,000
- One-half month per year: ₱30,000 × 0.5 × 4 = ₱60,000
The statutory separation pay is ₱60,000, subject to the validity of the retrenchment and compliance with procedural requirements.
This ₱60,000 is added to unpaid salary, prorated 13th-month pay, leave conversion, and other final-pay items.
Example 3: Employee terminated because of redundancy
Using the same ₱30,000 monthly salary and four credited years:
- One month minimum: ₱30,000
- One month per year: ₱30,000 × 4 = ₱120,000
The separation pay is ₱120,000, plus the other components of final pay.
Notice Requirements for Authorized-Cause Termination
When an employer uses redundancy, retrenchment, installation of labor-saving devices, or closure, written notices must generally be served on both:
- The affected employee; and
- The appropriate DOLE Regional Office.
The notices must ordinarily be given at least one month before the intended termination date. The employer must also prove the factual basis of the authorized cause, such as actual redundancy, reasonably imminent losses, or genuine closure. Payment of separation pay alone does not cure a fabricated ground. (Supreme Court E-Library)
For termination due to disease, the employer must meet the medical and procedural standards under Article 299 and its implementing rules. The condition must be one whose continued employment is legally prohibited or prejudicial to the employee’s or co-workers’ health, and the required certification concerning treatment and curability must come from a competent public health authority. (Supreme Court E-Library)
Final Pay Deadline and Required Employment Documents
Final pay
Final pay should be released within 30 days from the date of separation or termination, unless a company policy, employment contract, or CBA gives the employee a more favorable period.
Employers may conduct a reasonable clearance process for tools, cash advances, records, laptops, vehicles, access cards, or other property. However, Labor Advisory No. 06-20 does not identify unfinished internal clearance or delayed client payment as an exception to the 30-day release period. (Department of Labor and Employment)
Certificate of Employment
The employer must issue a Certificate of Employment within three days from the employee’s request. The certificate should state:
- The dates of employment; and
- The type or types of work performed.
The COE is separate from the final-pay computation. A dispute over money should not prevent its timely issuance. (Department of Labor and Employment)
BIR Form No. 2316
When employment ends before the close of the calendar year, the employer should furnish BIR Form No. 2316 on the day the final compensation payment is made. The form records compensation paid and taxes withheld and may be needed by the employee’s next employer for annualized tax computation. (Bir CDN)
Documents Employees Should Collect
| Document | Why it matters |
|---|---|
| Signed employment and project contracts | Shows the identified project, duration, scope, position, and promised benefits |
| Project assignment or deployment orders | Links the employee to a specific project or phase |
| Project completion notice | Shows the employer’s stated reason and effective date |
| Payslips and payroll records | Establish salary rate, deductions, and amounts already paid |
| Daily time records or attendance logs | Proves unpaid work, overtime, holidays, and last day |
| Bank statements or payroll account records | Confirms actual payments |
| Leave ledger | Supports SIL and other leave conversion |
| 13th-month pay records | Prevents double counting and reveals deficiencies |
| Company handbook or CBA | May provide better benefits than the statutory minimum |
| DOLE termination report, if available | Relevant evidence of construction project completion |
| Emails, messages, and site instructions | May show continued work or premature termination |
| Final-pay worksheet and payslip | Allows the employee to audit the computation |
| Quitclaim and release | Shows the amount allegedly accepted and rights supposedly waived |
| COE and BIR Form No. 2316 | Needed for future employment and tax records |
Employees should preserve personal copies before losing access to company email, payroll portals, or project systems.
Common Final Pay and Separation Pay Mistakes
Assuming that “no separation pay” means “no final pay”
Even when valid project completion produces no statutory separation pay, earned salary, prorated 13th-month pay, convertible SIL, promised bonuses, deposits, and other benefits remain payable.
Using a vague project contract
A contract stating only “project employee until further notice” may not sufficiently identify the project, scope, or determinable completion. Courts examine whether the employee genuinely knew the project and its expected duration at hiring.
Ending employment because the client has not paid
The principal’s failure to pay the contractor does not ordinarily erase the employer’s obligation to pay its employees. Wage and final-pay obligations arise from the employment relationship.
Terminating workers while their project work continues
When the project continues, the worker’s functions remain necessary, and replacements are hired for the same work, “project completion” may be difficult to prove.
Combining separate benefits incorrectly
Prorated 13th-month pay, SIL conversion, completion bonus, separation pay, and retirement pay are different benefits. One should not be silently absorbed into another unless the law, contract, or benefit plan permits it.
Automatically using 22.5 days for separation pay
The 22.5-day formula is specifically associated with statutory retirement pay. For authorized-cause separation pay, follow Articles 298 and 299, DOLE Department Order No. 147-15, and any more favorable agreement.
Signing a blank or unexplained quitclaim
A quitclaim is not automatically valid merely because it was notarized. The employer must show that the settlement was voluntary, understood by the employee, supported by credible and reasonable consideration, and not contrary to law or public policy. A quitclaim that pays only a small fraction of legally due benefits may still be challenged. (Supreme Court E-Library)
What to Do If Final Pay Is Unpaid or Incorrect
Request an itemized computation in writing. Identify the last working day and ask for unpaid salary, prorated 13th-month pay, leave conversion, separation pay, bonuses, deductions, and tax adjustments.
Attach your own worksheet. Use payslips, daily time records, leave records, and the project contract.
Ask for the legal and factual basis of the separation. If the employer claims project completion, request the project name, phase, completion date, and termination notice.
Keep proof of delivery. Use company email, registered mail, a receiving copy, or another method showing when the demand was received.
File a Request for Assistance under SEnA if the matter remains unresolved. The Single Entry Approach is a mandatory conciliation-mediation process designed to settle labor disputes quickly and inexpensively. An RFA may be filed with a DOLE Regional, Provincial, or Field Office or an appropriate NLRC Single Entry Assistance Desk. The process generally has a maximum 30-calendar-day conciliation period. (Department of Labor and Employment NCR)
Proceed to the proper labor forum if settlement fails. Illegal-dismissal and related monetary claims are generally referred to the NLRC Labor Arbiter. Pure labor-standards claims may be handled through DOLE’s applicable enforcement mechanisms, depending on jurisdiction and the relief requested.
Money claims arising from employment generally must be filed within three years from accrual under Article 306 of the Labor Code. Waiting can also make payroll records, witnesses, and project documents harder to obtain. (Supreme Court E-Library)
Project-Based Foreign Employees in the Philippines
A foreign national employed by a Philippine-based company under an employer-employee relationship is generally subject to the same basic project-employment and final-pay analysis. Possession or expiration of an Alien Employment Permit does not, by itself, determine whether final pay or separation pay is due. The actual employment relationship, contract, project terms, and reason for separation remain controlling. (Supreme Court E-Library)
A foreign employee or Filipino employee already abroad should preserve electronic copies of the contract, AEP or visa records, payslips, bank statements, project notices, and company correspondence. If a representative will formally file or settle a claim in the Philippines, the NLRC may require a Special Power of Attorney. An SPA executed abroad may need Philippine consular notarization or an apostille from the competent authority of an Apostille Convention country. (National Labor Relations Commission)
Frequently Asked Questions
Do project-based employees receive separation pay after their project ends?
Usually not, provided the employee was validly hired for a genuine, identified project and employment ended because that project or phase was actually completed. Final pay and promised contractual benefits must still be paid.
What is included in the final pay of a project employee?
It may include unpaid salary, wage differentials, prorated 13th-month pay, unused earned SIL, convertible company leaves, completion bonus, earned incentives, tax refund, returnable deposits, and separation or retirement pay when applicable.
How long does an employer have to release final pay?
DOLE’s guideline provides a 30-day period from separation or termination, unless a more favorable company policy, individual agreement, or CBA applies.
Is prorated 13th-month pay due even if the project ended before December?
Yes, for a covered employee. Divide the total basic salary earned during the calendar year by 12, then subtract any 13th-month amount already paid for that year.
Is an employee who worked on several projects automatically regular?
No. Repeated hiring does not automatically create regular status if every engagement was genuinely connected to a distinct project whose scope and duration were disclosed at hiring. Repeated generic contracts and uninterrupted permanent work may nevertheless support a regular-employment claim.
Can the company withhold final pay because clearance is incomplete?
The employer may investigate legitimate accountabilities, but it should identify and document them. Internal clearance should not become an indefinite reason for withholding all earned pay beyond the DOLE period.
Can a project employee receive both completion bonus and final pay?
Yes. A completion bonus is an additional contractual or policy-based benefit. Final pay is the total of all amounts still owed and can include the completion bonus.
Does the six-month rounding rule apply to prorated 13th-month pay?
No. The rule treating at least six months as one whole year applies to the years-of-service portion of statutory separation-pay formulas. Prorated 13th-month pay is based on the employee’s actual basic salary earned during the calendar year.
Should separation pay be computed using 22.5 days?
Not automatically. The 22.5-day formula is expressly associated with minimum retirement pay under Article 302 and Republic Act No. 7641. Authorized-cause separation pay under Articles 298 and 299 is computed using the applicable one-month or one-half-month formula, subject to more favorable benefits.
What if the employee signed a quitclaim but later discovered an underpayment?
The employee may still challenge the quitclaim if it was obtained through fraud, pressure, or misunderstanding, or if the amount was not a credible and reasonable settlement. The exact wording, circumstances of signing, and amounts actually paid will matter.
Key Takeaways
- Final pay is generally due whenever employment ends; separation pay is only one possible component.
- A genuine project employee normally receives no statutory separation pay when the identified project or phase is completed.
- The employer must prove a real, specific project whose scope and duration were disclosed when the employee was hired.
- Final pay may include unpaid salary, prorated 13th-month pay, leave conversion, completion bonus, earned incentives, tax adjustment, and returnable deposits.
- Separation pay applies when an authorized cause is used, a contract or policy grants it, or an illegal dismissal results in separation pay in lieu of reinstatement.
- Use the one-month or one-half-month formulas under Articles 298 and 299 and count a fraction of at least six months as one whole year.
- Do not automatically use the 22.5-day retirement formula when computing authorized-cause separation pay.
- Final pay should be released within 30 days from separation, while a requested COE should be issued within three days.
- Keep the project contract, completion notice, payroll records, time records, leave ledger, company policy, final-pay worksheet, and proof of payment.
- Unresolved disputes may be brought through DOLE or NLRC’s SEnA conciliation process before formal adjudication.