Tag - backwages

Backwages and the Earnings Elsewhere

The monetary award known as Backwages is one of the items usually granted to the illegally dismissed employee. It is provided under Article 294 of the Labor, as amended. This provision of the Labor Code states that an employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his [...]

Computation of Backwages in Labor Case where Reinstatement is not Possible

It is settled that the twin reliefs that should be given to an illegally dismissed employee are full backwages and reinstatement. (Peak Ventures Corp. vs. Heirs of Villareal, 747 Phil. 320-337 (2014) citing St. Luke’s Medical Center, Inc. v. Notario, 648 Phil. 285 (2010).) Backwages restore the lost income of an employee and is computed from the time compensation was withheld up to actual reinstatement. Anent reinstatement, only when it is not viable is separation pay given. The computation of backwages [...]

Backwages Should be Computed Up to Finality of Decision in Case of Separation Pay in Lieu of Reinstatement

Backwages and reinstatement are among those awarded to illegally dismissed employees under Art. 294 of the Labor Code. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (See page 363, Guide to Valid [...]

BACKWAGES CANNOT BE AWARDED IF THE EMPLOYEE WAS NOT ILLEGALLY DISMISSED

Backwages may be granted only when there is a finding that the dismissal is illegal. The Supreme Court (SC) in the case of Stradcom Corporation and Jose A. Chua vs. Joyce Annabelle L. Orpilla (G.R. No. 206800, July 2, 2018) found just cause for Orpilla’s dismissal. The SC held that the dismissal of a dishonest employee is to the best interest not only of the management but also of labor. Stradcom, as an employer in the exercise of self-protection, cannot be [...]

Final Pay, Separation Pay, Back Pay, Backwages, Severance Pay, Separation Package, Retirement Pay, Terminal Pay, and Financial Assistance: What’s the Difference?

Final pay is often confused with separation pay. These two concepts are different. To clarify the pay given to employees at the end of employment, for whatever reason that he was separated, I will discuss the difference among these terms and many others that workers normally use when they end their employment. Final pay is a loose term used by companies, more particularly HR department, to refer to the salary and benefits to which the employee who was separated is entitled [...]

Backwages and Reinstatement are Two Separate Reliefs

Backwages allows the employee to recover from the employer that which he had lost by way of wages as a result of his dismissal. The twin remedies of reinstatement and payment of backwages make the dismissed employee whole who can then look forward to continued employment. Backwages and reinstatement are separate and distinct reliefs given to an illegally dismissed employee in order to alleviate the economic damage brought about by the employee’s dismissal. “Reinstatement is a restoration to a state from [...]

WILLFUL BREACH OF TRUST AS GROUND FOR DISMISSAL OF MANAGERIAL EMPLOYEE REQUIRES ONLY MERE EXISTENCE OF THE BASIS FOR BELIEVING THAT THE EMPLOYEE HAS BREACHED THE TRUST OF EMPLOYER

Willful breach of trust requires only mere existence of a basis for believing that the employee has breached the trust and confidence of the employer” for managerial employees to be dismissed. Yolando T. Bravo vs. Urios College (Now Father Saturnino Urios University) and/or Fr. John Christian U. Young G.R. No. 198066, June 7, 2017 Facts: Yolando Bravo was employed as a part-time teacher in 1988 by Urios College. In addition to his duties as a part-time teacher, Bravo was designated as the school’s [...]

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