Are there instances wherein separation pay needs to be paid by the employer even if the employee was validly dismissed?
The only cases when separation pay shall be paid, although the employee was lawfully dismissed, are when the cause of termination was not attributable to the employee’s fault but due to: (1) the installation of labor-saving devices, (2) redundancy (3) retrenchment, (4) cessation of the employer’s business, or (5) when the employee is suffering from a disease and his continued employment is prohibited by law or is prejudicial to his health and to the health of his co- employees. (Articles 283 and 284, Labor Code.) Other than these cases, an employee who is dismissed for a just and lawful cause is not entitled to separation pay even if the award were to be called by another name.
Related Questions
- When a separation with pay continuation happens who pays the employee? Also when employee is being paid with STD is that payment from the agency or the retirement system?
- Are there instances wherein separation pay needs to be paid by the employer even if the employee was validly dismissed?
- When is a dismissed employee entitled to separation pay?
