Reference no: EM133092409

Question - TWICE COMPANY regarding their termination benefit. At the beginning of the current year, an entity announced the decision to close the factory located in Mindanao and terminate all 200 employees as a result of the economic downturn. The entity shall pay P20,000 per employee upon termination. However, to ensure that the windup of the factory occurs smoothly and all remaining customer orders are completed, the entity needs to retain at least 20% of employees until closure of the factory in eight months. As a result, the entity announced that employees who agree to stay until the closing of the factory shall receive P60,000 payment at the end of eight months in addition to receiving their current wage throughout the period of closure instead of the P20,000. Based on this offer, the entity expected to retain 50 employees until the factory is closed. What is the amount of termination benefit?