Separation pay
Dear Atty. Kathy,
I had been working in a financial institution for 16 years, but was dismissed because of negligence and performance issues during the last two years of my tenure.
I admit the poor performance because I was going through personal problems, but before that, my performance ratings always exceeded expectations.
I tried to appeal to management since the company did not suffer losses nor did I gain any benefit due to my offenses. I wrote management to say how sorry I was. I also requested to be allowed to resign instead, so I can claim my separation pay.
The HR officer who received my appeal, however, said that I am not entitled to separation pay because there is no such benefit in our company and I was dismissed for cause.
Am I really not entitled to separation pay based on my years of service? Elise
Dear Elise,
Based solely on your narration, you were employed for 16 years and have been performing well; you were eventually dismissed due to negligence and performance issues, not for serious misconduct; the company did not suffer any losses as a result of your violations; you did not gain any material benefit from your violations; and there was no pecuniary loss or damage to the company in connection with your offenses.
The Supreme Court has ruled that taking together the existence of just cause for termination of employment, an apologetic admission of fault, length of service, and previous exemplary performance, such situation justifies a minor shifting of the scales of justice in favor of labor, in the form of separation pay as financial assistance. It is important to note, however, that the valid dismissal should be for causes other than serious misconduct or those reflecting on the moral character of the employee, to be entitled to separation pay as financial assistance.
Thus, based on jurisprudence, you may be entitled to separation pay as financial assistance, in the amount of onehalf (1/2) month’s salary for every year of service.
(Citibank Savings Inc., et al. versus Brenda L. Rogan, G.R. 220903, 29 March 2023) Atty. Kathy Larios