Short answer. Yes, at least. Article 283 sets separation pay for redundancy at one month's pay, or one month's pay for every year of service, whichever is higher. A long-serving employee gets a month for each year; someone with under a year still receives the one-month floor.

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 →

The formula has two limbs, and you take the larger

Article 283 states it directly: 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. So there is no election for the employer to make. You compute both figures and the higher one governs. For anyone with more than a year of service the per-year computation wins; for shorter service the flat month is the floor that protects you.

How the years are counted

The article closes with a rule that decides most disputes about the arithmetic: a fraction of at least six months is considered one whole year. Four years and seven months is therefore five years, while four years and four months is four. Count from your actual first day of work rather than from the date of a regularisation letter or a renewed contract, and check the figure against your own records, because service computed from a payroll system that was migrated at some point is a common source of error.

Redundancy pays more than retrenchment

The article groups redundancy with the installation of labour-saving devices at the full month rate, and puts retrenchment to prevent losses and certain closures at the lower half-month rate. That gap is why the label on your termination letter matters as much as the amount offered. If the notice says redundancy but the computation used half a month per year, the two do not agree, and the discrepancy should be raised before anything is signed. Ask for the computation sheet showing the rate and the years used.

What comes with the pay

Separation pay is a floor, not a ceiling. The article says at least, so a collective bargaining agreement, an employment contract or a settled company practice offering more prevails over the statutory figure. Redundancy also carries the article's notice requirement — written notice to you and to the labour department at least a month before the intended date. And the redundancy itself has to be real: a position that is refilled soon after under a different name invites the question whether it was ever superfluous.

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.