Closure of business as a basis for employee termination

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Closure of business as a basis for employee termination

Dear PAO,My cousin worked for a private company that manufactures and supplies school materials. Unfortunately, their office and warehouse were gutted by fire. As a result, he and his co-workers were left without work because all the company equipment and materials were destroyed. For several months, my cousin had to take odd jobs to support his family while waiting for the company to resume operations.

In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one month pay or to at least one month pay for every year of service, whichever is higher.

 

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