CHRA Statutory Monetary Benefits Practice Test 2026 – Complete Exam Prep

The Labor Code of the Philippines is the law that delineates the guidelines for separation pay specifically applicable to employees terminated under authorized causes. These causes typically include redundancy, retrenchment, closure of the establishment, or an employee's inability to perform their job due to health reasons, among others. The Labor Code ensures that employees are given rights and benefits upon termination, including separation pay, to provide financial support during their transition.

In contrast, the other options do not address separation pay for terminated employees under authorized causes. The Civil Code focuses more broadly on civil obligations and contracts, the Social Security Law pertains primarily to social security benefits and welfare programs rather than employment termination issues, and the Workers' Welfare Act addresses various welfare benefits for workers but does not specifically cover guidelines on separation pay. Thus, the Labor Code is unequivocally the correct reference for this matter.