Separation Pay

In the subsequent case of Toyota Motor Philippines Corporation Workers Association (TMPCWA) v. National Labor Relations Commission, it was further elucidated that “in addition to serious misconduct, in dismissals based on other grounds under Art. 282 like willful disobedience, gross and habitual neglect of duty, fraud or willful breach of trust, and commission of a crime against the employer or his family, separation pay should not be conceded to the dismissed employee.” In Reno Foods, Inc, v. Nagkakaisang Lakas ng Manggagawa (NLM)-Katipunan,  the Court wrote that “separation pay is only warranted when the cause for termination is not attributable to the employee’s fault, such as those provided in Articles 283 and 284 of the Labor Code, as well as in cases of illegal dismissal in which reinstatement is no longer feasible. It is not allowed when an employee is dismissed for just cause.” (Unilever Philippines, Inc. Vs. Maria Ruby M. Rivera, G.R. No. 201701. June 3, 2013).