Short answer. At least one month's pay, or one month's pay for every year of service, whichever is higher. The Labor Code treats termination due to installing labor-saving devices as a distinct, more generous category of separation pay than retrenchment or closure, on top of the one-month advance written notice the employer must give you and the labor authorities.

What the law says

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 (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.

Labor Code, Article 283 — Closure And Personnel Reduction. Read the full provision →

Machines replacing your job is a named, lawful ground

Article 283 lists the installation of labor-saving devices as one of the specific grounds an employer may rely on to terminate employment, alongside redundancy, retrenchment to prevent losses, and closure of the business. That means an employer does not need to show you did anything wrong — automating your function is, by itself, a recognized basis for ending the employment relationship, provided the article's other requirements are met.

The separation pay formula for this specific ground

This ground carries the article's higher separation pay tier. You are entitled to at least one month's pay, or at least one month's pay for every year of service, whichever is higher — the same tier that applies to redundancy, and a step up from the reduced formula that applies to retrenchment or closure not caused by serious losses. A fraction of at least six months of service is counted as one whole year when the calculation is made, which can meaningfully raise the amount if your tenure falls just short of a full year.

The notice requirement that has to come with it

Separation pay is not the only thing the article requires. The employer must serve a written notice on both you and the Ministry of Labor and Employment at least one month before the intended date of termination. This notice period exists to give you time to look for other work and to give the labor authorities an opportunity to be aware of the termination — it is a separate obligation from paying the correct separation amount, and both are meant to happen together, not one instead of the other.

What to check before accepting what you are offered

Confirm three things against your own records: your exact length of service, since that drives the one-month-per-year calculation; whether you actually received a written notice at least one month before your termination date, not merely a verbal heads-up; and whether the separation pay offered reflects the higher of the two formulas this ground requires, not the lower retrenchment tier. Keep your employment contract, payslips, and any notice you were given, and have them checked against these figures before you sign anything releasing your claims.

Related provisions

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.