Separation pay eligible

Dear Atty. Angela,

I have been working for a company for eight years now as a sales agent. Unfortunately, I was in a hurry when I was validating the information of a buyer and committed several negligent acts which caused the company a loss of a huge amount. For this, I was dismissed. I accept the dismissal but it hurts me that I will not receive my separation pay having worked in the company for many years now. Is there still a way I am able to claim my separation pay?

Siso

Dear Siso,

As a general rule, employees who are terminated from their employment due to just causes are not entitled to separation pay, as these employees are found to be at fault. However, there are exceptions to this where the Supreme Court coined separation pay as financial assistance and allowed as a measure of social justice and based on exceptional circumstances.

In the case case of Magdamit v. Wyeth Philippines Inc., G.R. 202048 (Notice) (17 November 2014), the Supreme Court cited Unilever Philippines v. Rivera where an employee terminated for just cause was granted separation pay. In the Unilever case, it was held that separation pay shall be paid in the interest of social justice only when “an employee is validly dismissed for causes other than serious misconduct or those reflecting on his moral character.”

Hence, labor courts in their discretion, may grant separation pay based on compassionate justice taking into consideration the length of service of the employee, the amount involved, whether the act is the first offense, the performance of the employee, and other important factors.

It is important to note that this is only an exception to the general rule and will have to be weighed and determined based on relevant elements of the case. In your situation, if you are to prove that the offense you committed was of mere negligence and is not a moral turpitude offense, you may be granted separation pay.

Atty. Angela Antonio