Dismissal dispute

Dear Atty. Kathy,

My employment is being terminated by Company X effective the end of this month, on the ground of redundancy. However, I discovered that someone else was recently hired and is being trained to be my replacement. Also, I noticed that the computation of my final pay including my separation pay is wrong. I questioned this but I was told that it will take another month to review the computation. I cannot wait anymore for another month because I need the money for a medical issue in my family, so I received my final pay after I was made to execute a release, waiver and quitclaim. I have decided to file an illegal dismissal case, with a money claim for the insufficient separation pay. When I told this to the HR officer, she said I cannot file a case anymore because I already signed a release, waiver and quitclaim. Is this true?

Zephyr

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Dear Zephyr,

Even if you received your separation pay or signed a release, waiver and quitclaim, you may still dispute the legality of your dismissal.

The Supreme Court has ruled that neither accepting separation pay nor signing a waiver and quitclaim bars the employee from contesting the legality of the dismissal. Such acts are generally taken with a grain of salt, considering that employees are usually at an economic disadvantage and are often left with no choice, since they are suddenly faced with the pressure to meet financial burdens.

Further, as ruled by the Supreme Court, the law does not consider as valid any agreement to receive less compensation than what a worker is entitled to recover nor prevent him from demanding benefits to which he is entitled; and that quitclaims executed by employees are commonly frowned upon as contrary to public policy and ineffective to bar claims for the full measure of the workers’ legal rights, considering the economic disadvantage of the employee and the inevitable pressure upon an employee by financial necessity.

Thus, contrary to what the HR officer said, your acceptance of the final pay with separation pay and your signing of a release, waiver and quitclaim cannot be deemed as a waiver of your right to file a complaint.

(Team Pacific Corporation et al., versus Layla M. Parente, G.R. No. 206789, 15 July 2020)

Atty. Kathy Larios