In the Philippine jurisdiction, the dissolution of the employer-employee relationship is strictly governed by the Labor Code of the Philippines, supplementary laws, and prevailing jurisprudence from the Supreme Court. Whether a separation is voluntary or involuntary, specific legal entitlements accrue to the employee.

1. The Right to Due Process

Under Philippine law, no employee may be terminated except for a just or authorized cause and after the observance of due process.

For Just Causes (Fault-based): Requires the "Two-Notice Rule"—a notice of intent to dismiss (specifying grounds and providing an opportunity to explain) and a formal notice of dismissal.
For Authorized Causes (Business-based): Requires a written notice to the employee and the Department of Labor and Employment (DOLE) at least thirty (30) days before the effective date of termination.

2. Mandatory Final Pay (Last Pay)

Regardless of the reason for termination (even if the employee was dismissed for cause or resigned), the employer is legally obligated to release the "Final Pay." According to Labor Advisory No. 06, Series of 2020, this must be released within thirty (30) days from the date of separation. Final pay typically includes:

Unpaid Salary: Wages earned for the actual days worked prior to separation.
Pro-rated 13th Month Pay: Calculated as the total basic salary earned during the calendar year divided by 12.
Service Incentive Leave (SIL) Pay: The cash conversion of unused SIL (5 days per year of service for those who have worked at least one year), unless the company policy or CBA provides for more generous leave conversions.
Tax Refunds: Any excess income tax withheld from the employee.
Other Benefits: Any bonuses, commissions, or incentives stipulated in the employment contract.

3. Separation Pay

Separation pay is not mandatory for all types of termination. It is generally required only when the dismissal is due to Authorized Causes.

A. One-Half (1/2) Month Pay per Year of Service

A fraction of at least six months is considered one whole year. This applies to:

Retrenchment to prevent losses.
Closure or cessation of operations not due to serious business losses.
Disease (where continued employment is prohibited by law or prejudicial to the employee’s or co-workers' health).

B. One (1) Month Pay per Year of Service

A fraction of at least six months is considered one whole year. This applies to:

Installation of labor-saving devices.
Redundancy.
Impossible reinstatement (in cases of illegal dismissal where the relationship is strained).

Note: Separation pay is generally not required in cases of voluntary resignation or dismissal for "Just Causes" (e.g., serious misconduct, willful disobedience, or gross neglect of duties), unless provided for by company policy or a Collective Bargaining Agreement (CBA).

4. Retirement Benefits

Under Republic Act No. 7641, employees who reach the age of 60 (optional) or 65 (compulsory) and have served at least five years in the company are entitled to retirement pay.

The Minimum Amount: At least one-half (1/2) month salary for every year of service.
The "1/2 Month" Definition: For retirement purposes, this specifically includes 15 days of salary + 5 days of SIL + 1/12 of the 13th month pay (totaling approximately 22.5 days of salary per year of service).

5. Certificate of Employment (COE)

Per Labor Advisory No. 06-20, an employer must issue a Certificate of Employment within three (3) days from the time of the request by the separated employee. The certificate must state the period of employment, the type of work performed, and the date of termination.

6. Unemployment Insurance (SSS)

Under the Social Security Act of 2018 (R.A. 11199), SSS members who are involuntarily separated (e.g., due to redundancy, retrenchment, or installation of labor-saving devices) may claim unemployment benefits.

Benefit: A monthly cash allowance equivalent to 50% of the member’s average monthly salary credit for a maximum of two months.

7. Portability of Social Benefits

Upon separation, the employee retains their records and the right to continue contributions to:

SSS (Social Security System)
PhilHealth (Philippine Health Insurance Corporation)
Pag-IBIG Fund (Home Development Mutual Fund)

The employer is required to provide proof of the last remittances made on behalf of the employee to ensure a seamless transition to the next employer or to voluntary membership.

8. Illegal Dismissal and Reinstatement

If an employee is terminated without just or authorized cause, or without due process, they may file a complaint for Illegal Dismissal with the National Labor Relations Commission (NLRC). Remedies include:

Reinstatement: Returning to their former position without loss of seniority rights.
Full Backwages: Payment of the salary the employee would have earned from the time of dismissal until actual reinstatement.
Damages and Attorney’s Fees: Applicable if the dismissal was attended by bad faith or malice.