Professional Documents
Culture Documents
6, 1992
Separation Pay for Authorized Causes under Arts. 283-284 It is the restoration of the employee to the state from which he has
been unjustly removed or separated without loss of seniority rights and
by serving a written notice on the workers and the Ministry of Labor other privileges.
and Employment at least one (1) month before the intended date
thereof. Reinstatement without Backwages
In case of termination due to the installation of labor-saving
devices or redundancy, the worker affected thereby shall be entitled 1.) Reinstatement cannot be effected in view of the long
to a separation pay equivalent to at least his one (1) month pay or to at passage of time or because of the realities of the situation.
least one (1) month pay for every year of service, whichever is higher.
2.) It would be inimical to the employers interest. When
In case of retrenchment to prevent losses and in cases of closures or reinstatement is no longer feasible.
cessation of operations of establishment or undertaking not due to
serious business losses or financial reverses, the separation pay shall 3.) When it will not serve the best interest of the parties
be equivalent to one (1) month pay or at least one-half (1/2) month pay involved.
for every year of service, whichever is higher.
A fraction of at least six (6) months shall be considered one (1) whole 4.) Company will be prejudiced by reinstatement.
year.
5.) When it will not serve a prudent purpose.
ART. 299. [284] Disease as Ground for Termination. An employer may
terminate the services of an employee who has been found to be
suffering from any disease and whose continued employment is 6.) When there is resultant strained relation (applies to both
prohibited by law or is prejudicial to his health as well as to the confidential and managerial employees (Ees) only).
health of his co-employees: Provided, That he is paid separation pay
equivalent to at least one (1) month salary or to one-half (1/2) month
salary for every year of service, whichever is greater, a fraction of at 7.) When the position has been abolished (applies to both
least six (6) months being considered as one (1) whole year. managerial, supervisory and rankandfile Ees).
Separation Pay as Financial Assistance in Legal Dismissal under Reinstatement not feasible; Separation pay in lieu of
Art. 282 reinstatement
How Much?
ART. 282. [267] Assistance by the Department of Labor. The
Department of Labor, at the initiative of the Secretary of Labor, shall
extend special assistance to the organization, for purposes of
collective bargaining, of the most underprivileged workers who, for Strained Relationship Bar to Reinstatement
reasons of occupation, organizational structure or insufficient incomes,
are not normally covered by major labor organizations or federations. When the Employer can no longer trust the Ee and vice versa, or there
were imputations of bad faith to each other, reinstatement could not
Separation Pay in lieu of Reinstatement effectively serve as a remedy. This doctrine applies only to positions
which require trust and confidence.
1. In lieu of reinstatement in illegal dismissal cases, where
Employee is ordered reinstated but reinstatement is not feasible. Damages
2. As Employers statutory obligation in cases of legal termination
due to authorized causes under Art. 283 and 284 of the LC. Moral Damages
3. As financial assistance, as an act of social justice and even in
case of legal dismissal under Art. 282 of the LC. Exemplary Damages
4. As employment benefit granted in CBA or company policy.
Indemnity
Separation Pay as an Employment Benefit See Wenphil, Serrano, Agabon and Jaka above
Attorneys Fees
Distinguish from Separation Pay (b) An employee may put an end to the relationship without serving
any notice on the employer for any of the following just causes:
Full Backwages
Mercury Drug Rule (Prior to R.A. 6715) 1. Serious insult by the employer or his representative on the honor
Mercury Drug vs. CIR 56 SCRA 694 and person
of the employee;
Rule after R.A. 6715 (Date to Reckon March 21, 1989)
Alex Ferrer vs. NLRC July 5, 1993 2. Inhuman and unbearable treatment accorded the employee by the
Pines City vs. NLRC Nov. 10, 1993 employer or his representative;
Pines City Ruling Abandoned 3. Commission of a crime or offense by the employer or his
Bustamante vs. NLRC Nov. 28, 1996 representative against the person of the employee or any of the
immediate members of his family; and
No Retroactivity 4. Other causes analogous to any of the foregoing.
Resignation and Resignation Notice
Resignation Pay
Retirement defined
Kinds of Retirement
1.) The claimant for retirement benefits was still the employee of
the employer at the time the statute took effect; and