Tag - separation pay in lieu of reinstatement

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 [...]

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 [...]

Separation Pay – Instances when it should be Awarded

Separation pay warranted when the cause for termination is not attributable to the employee’s fault, such as those provided in Articles 298 and 299 of the Labor Code, as well as in cases of illegal dismissal where reinstatement is no longer feasible. Grab a re-numbered copy of the Labor Code with Comments and Notes by Atty. Villanueva On the other hand, an employee dismissed for any of the just causes enumerated under Article 297 of the same Code, being causes attributable [...]


An illegally dismissed employee is entitled to two separate reliefs: full backwages and reinstatement. In such case where reinstatement is no longer an option, payment of separation pay is justified. The Court considers “considerable time,” which includes the lapse of eight years or more (from the filing of the complaint up to the resolution of the case) to support the grant of separation pay in lieu of reinstatement. Considering that about eight years had passed from the time that Sta. [...]

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 [...]

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