It’s
the employee’s responsibility to follow the company policy including notice
period on severance regardless of the reason. General steps are as follows:
1. Once the severance is finalized, the employee has to go
through clearance procedure such as turning over tasks, returning company properties,
and other accountabilities.
2. The company will prepare/release Final Pay and other
documents such as Certificate of Employment, Income Tax Return within 60 days
since the cleared date even though there is no clear law or rule which governs
final pay release date.
The final pay generally includes the followings:
● Last
salary due to the employee;
●
Monetized unused service incentive leave credit;
●
Income tax return;
●
Prorated 13th month pay;
●
Separation pay if applicable;
● Other
compensations agreed upon in the Collective Bargaining Agreement (CBA) or
employment contract;
3. The company will ask the employee to sign Quit Claim
form.
A
quitclaim, in relation to labor law, is defined as a waiver of a claim by an
employee against his employer. A quitclaim is executed in order to settle once
and for all the disputes arising from such employment relation and to close the
lid on an impending litigation.