Dear PAO,
I have been working with a credit company for 15 years. Last year, I
received a notice from our HR informing me that I will be investigated
on account of the discrepancies they found in my credit reports. I was
also asked to submit my explanation regarding such discrepancies, which I
did. After several months, I received another notice informing me of
the decision of the company to terminate my services. They did not
accept my explanation. The truth is that I did not really intend to have
those discrepancies in my report. It was just that I was so preoccupied
then with so many family problems. Instead of absolving me, they found
gross negligence on my part, which, according to them, resulted in
losses for the company.
I just want to know if I can ask for any form of financial assistance
or separation pay from the company considering that I have worked with
them for many years. I hope you can advise me.
Penny
Dear Penny,
You mentioned in your letter that your employer terminated your services
because of your gross negligence in performing your tasks and such
negligence resulted in company losses. You declared as well that you
were notified by your employer concerning the infraction that you
committed and you were given the opportunity to explain yourself
relative thereto. Your letter further revealed that you were notified by
your employer of their decision to terminate your employment.
Taking these into consideration, we believe that you will not be
entitled to receive separation pay from your company, unless such
benefit is expressly conferred under your contract of employment or the
company policy. We want to emphasize that, under the law, the benefit of
separation pay is only granted to those employees who were terminated
on account of any of the authorized causes set forth under Articles 283
and 284 of the Labor Code, to wit: (1) installation of labor saving
devices; (2) redundancy; (3) retrenchment to prevent losses; (4) closure
or cessation of operations of establishment or undertaking not due to
serious business losses or financial reverses; or (5) disease which is
prejudicial to your health or to the health of your co-workers.
In view of the fact that you were terminated on account of gross
negligence, one of the just causes for termination of employment by the
employer pursuant to Article 282 of the said law, the claim for
separation pay will necessarily fail.
We likewise believe that you will not be entitled to receive any form
of financial assistance. While our courts have allowed the grant of
such benefit on account of equity and social justice, this is not
applicable in all instances. In fact, the Supreme Court (SC) in the case
of Reno Foods Inc. vs. Nagkakaisang Lakas ng Manggagawa
(NLM)—KATIPUNAN, (G.R. No. 164016, March 15, 2010), reiterated its
ruling in Toyota Motors Philippines, Corp. Workers Association (TMPCWA)
v. National Labor Relations Commission, wherein the SC stated: “x x x
labor adjudicatory officials and the CA must demur the award of
separation pay based on social justice when an employee’s dismissal is
based on serious misconduct or willful disobedience; gross and habitual
neglect of duty; fraud or willful breach of trust; or commission of a
crime against the person of the employer or his immediate family—grounds
under Article 282 of the Labor Code that sanction dismissals of
employees. They must be most judicious and circumspect in awarding
separation pay or financial assistance as the constitutional policy to
provide full protection to labor is not meant to be an instrument to
oppress the employers. The commitment of the Court to the cause of labor
should not embarrass us from sustaining the employers when they are
right, as here. In fine, we should be more cautious in awarding
financial assistance to the undeserving and those who are unworthy of
the liberality of the law. x x x”
We hope that we were able to answer your queries. Please be reminded
that this advice is based solely on the facts you have narrated and our
appreciation of the same. Our opinion may vary when other facts are
changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public
Attorney’s Office. Questions for Chief Acosta may be sent to
dearpao@manilatimes.net
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