Valid separation pay

I have been a manager of a restaurant for 20 years and the past year has been challenging for me since my wife passed away. I sunk into depression and have also been contracting different illnesses due to my advanced age. Due to this, my performance at work is greatly affected and I am not able to go to work on a daily basis. I have been inefficient and did not reach the quality of work expected of my position. Because of this, my employer subjected me to a labor due process proceeding and I got dismissed. I only got my final pay but I was not given any separation pay despite my years of service. If I file a complaint with the DoLE, would I be entitled to this?

Dino

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Dear Dino,

Section 3, Article XIII of the 1987 Philippine Constitution requires the State to accord full protection to labor and promote social justice.

In the landmark case of Philippine Long Distance Telephone Co. (PLDT) v National Labor Relations Commission and Marilyn Abucay, G.R. No. 80609 (23 August 1988), the Supreme Court ruled that as a general rule, an employee validly dismissed for just cause is not entitled to separation pay. However, separation pay (as financial assistance) may be allowed as a measure of social justice and equity if the dismissal was for causes other than serious misconduct or those reflecting on the employee’s moral character.

The Court cited examples like inefficiency, incompetence, or failure to meet work standards/quotas (where there is no intent, dishonesty, or fraud) as situations where giving separation pay is just and compassionate, especially if the employee served the company for a reasonable length of time.

In your case, the labor tribunal would consider equitable circumstances into account. You would need to present evidence to show that you experienced a tragedy and that you suffered from several illnesses to prove that your poor performance was not caused by defiance, malice, or bad faith.

Your 20-year tenure as a restaurant manager will hold a favorable consideration. The long and dedicated service before you faced a personal crisis would strongly support an equitable claim for financial assistance.

Atty. Angela Antonio