I voluntarily resigned from my job effective June 30, 2015. Am I entitled to a separation pay?
Separation pay is given only in cases when the termination of employment is caused by (a) installation of labor-saving devices, (b) redundancy, (c) retrenchment, (d) closing or cessation of business operations, (e) disease of an employee and his continued employment is prejudicial to himself or his co-employees or (f) when an employee is illegally dismissed but reinstatement is no longer feasible (Hinatuan Mining Coporation vs. NLRC, GR No. 117394, February 21, 1997).
Another way of termination of employment is through resignation. Voluntary resignation is defined as the act of an employee who finds himself in a situation where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service and he has no other choice but to disassociate himself from his employment (Habana vs. NLRC, 298 SCRA 537).
As a rule, an employee who voluntarily resigned from his job shall not be entitled to a separation pay. There are instances, however, when employees who resigned may be entitled to a separation pay. These are the following: 1) when the employment contract or the collective bargaining agreement provides payment of separation pay to resigned employees; and 2) when the payment of separation pay is sanctioned by established employer practice or policy (CJC Trading, Inc. vs. NLRC, G.R. No. 115884, July 30, 1995). Hence, you may be entitled to a separation pay if any of the aforementioned exceptions are present in your case. If, however, there is none, you will only be entitled to the following: 1) payment of salary for the period you worked and 2) your 13th month pay in proportion to the length of time you worked during the year, which will be reckoned from the time you started working during the calendar year up to the time of your resignation (January 1, 2015 to June 30, 2015).
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts that you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
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