Dear Atty. Kathy,
I just filed my resignation from my current employer, Company M, to join my other colleagues who transferred to another company. When I asked for an initial computation of my final pay, I was surprised to see that there was no amount for separation pay. The payroll officer explained to me that there is no requirement in the Labor Code to pay separation pay for resignations, and also, there is no Company policy granting separation pay for resignations. However, my other colleagues who resigned ahead of me received separation pay for their resignations. How do I prove that I should also be paid separation pay as a result of my resignation?
Wren
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Dear Wren,
As a general rule, an employer is not required by law to give separation pay to employees who resign, unless this is provided for in a contract or has become a company practice. Thus, to be entitled to separation pay, you must be able to show that you have an agreement or a contract with Company M, providing for separation pay in case of resignations.
Aside from agreements/contracts as proof of entitlement to separation pay in case of resignations, you should be able to show that there is indeed a company practice of paying separation pay to resignees, by presenting affidavits of former employees in the same department or job position as yours, together with payslips or other proof of payment of such separation pay to such former employees.
Without the foregoing proof of your entitlement to such separation pay by way of contract or company practice, there will be no basis for your claim of separation pay due to your resignation.
(Italkarat 18 Inc. vs Juraldine N. Gerasmio, G.R. No. 221411, 28 September 2020)
Atty. Kathy Larios