Some workers given meager separation pay amid COVID-19 pandemic

MANILA - With many companies closing down and businesses struggling to keep financially afloat due to the coronavirus disease pandemic, some Filipino workers are forced to accept meager separation pay sometimes not commensurate to their years of service.

Reynaldo Borromeo worked as a caretaker and helper in a furniture shop for seven years.

He thought he will resume work on June 1 as soon as the National Capital Region was placed under general community quarantine.

However, the company announced it will have to let go of some workers to save the company from financial distress. Reynaldo is one of the employees who will be terminated.

“Papasarado po nila yung sanding area na binabantayan ko po, pinauuwi na nila ako kasi sabi po nila wala na daw po akong babantayan,” Borromeo shared.

Borromeo was disappointed to find out that he will be receiving only P5,000 separation pay, including the 13th month pay.

Borromeo was hesistant to accept the P5,000.

“Wala na po kami makakain nanghihingi na lang po kami ng gulay d'yan para po kami may makakain kasi wala na pong supply. Wala din kaming hanapbuhay ngayon po, paalisin na po kami, saan po kami titira na?"

"Pangpamasahe pauwi lang po sa Bacolod kulang pa iyan po, baka hindi pa yan nakarating sa gitna ng dagat wala na ang limang libo ko,” Borromeo explained.

Noe Plopeño also worked in the same furniture factory for 20 years.

He said he was offered only P6,000 separation pay, including the 13th month pay.

He was forced to accept the meager amount.

“Kasi kung hindi daw namin pinirmahan babawasan yun sabi nila sa opisina kaya tinanggap ko na lang, dahil pamilya ko nagugutom na eh wala hindi naman nakatanggap ng SAP kaya napilitan akong tanggapin na lang po,” Plopeño said.

According to the Department of Labor and Employment (DOLE) Assistant Secretary Dominique Tutay, both workers can contest the offer.

“Bigla na lang sinabing magsasara at binigyan na sila ng separation pay at pagkaliit-liit, malamang hindi po talaga ito nararapat at pwede po itong contest ng ating mga workers,” Tutay said.

DOLE said it is important to remember that employers should give 30 days notice prior to their termination.

“Ipaalam po dun sa worker hindi naman siya pwedeng abruptly bukas wala ka nang trabaho. May mga cases po na ganito na nakakarating na po sa amin and we encourage the workers to file a complaint before the DOLE kasi kami naman ensure namin na yung pong mga separation benefits po ay talagang nabibigay po ng mga employer dun sa kanilang manggagawa,” Tutay said.

According to DOLE, separation pay is computed as follows:

Reynaldo earns P12,000 per month. Get the half which is P6,000 and then multiply by 7 years of service is equivalent to P42,000 separation pay.

For Noe, he earns P6,000 average monthly salary. Get the half which is P3,000 multiplied by 20 years of service is equivalent to P60,000 separation pay.

DOLE said there is no compromise when it comes to separation pay. An employer can opt to pay in staggered basis over six months.

Tutay said that a lot of companies experiencing financial loss and planning to close have gone to their office for consultation.

“They are contemplating on closing the establishments and then tinatanong nila ang DOLE kung ano ba yung nararapat, kung hindi naman nila kakayanin ano yung posibleng alternative. So ang sinasabi po namin meron talagang batas, provision ang Labor Code natin when it comes to separation pay,” Tutay said.

According to the Employers Confederation of the Philippines President Sergio Ortiz-Luis, the correct separation pay should be given to the employees, but some companies have nothing more to give.

“Kung bankrupt talaga ano ang magagawa natin, hindi mo naman pwedeng paduguin ang bato, wala tayong magagawa kung bankrupt talaga."

"Marami sa mga enterprises natin, 90 percent ay mga micro, marami riyan baka hindi na magbukas baka hindi na kaya, yung iba dyan, bukas man ay baka magbawas ng tao,” Ortiz-Luis said.

DOLE data from January to June 15, 2020 showed a total of 79,647 workers were displaced and 2,611 establishments have closed.

As of June 15, 2020, 1,231 establishments will probably close or lay off workers.

If this happens, 25,500 workers will be affected.