Separation Pay is Computed up to Finality of Decision, Even if the Employee‘s Appeal Extended the date of Finality
Veronica Perez filed an illegal dismissal case against her employer, a theology school. She won the case before the Labor Arbiter (LA) all the way up to the Supreme Court.
The decision became final and executory on October 4, 2012. The employer argued that the computation of the separation should be up to June 16, 2008 only and not October 4, 2012 resulting in a lower award since the delay in the decision becoming final was due to appeals made by the employee.
The Supreme Court disagreed with the employer stating that it does not matter if the delay caused by an appeal was brought about by the employer or by the employee.
The rule is, if the LA’s decision, which granted separation pay in lieu of reinstatement, is appealed by any party, the employer-employee relationship subsists and until such time when decision becomes final and executory, the employee is entitled to all the monetary awards awarded by the LA. In this case, Perez remained an employee of the of the school pending her partial appeal.
(C.I.C.M. Mission Seminaries School of Theology, Inc., vs. Perez, G.R. No. 220506. January 18, 2017)
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