No separation pay for employee dismissed for just cause

Persida Acosta

Persida Acosta

Dear PAO,
My husband was dismissed from his work. He wants to know whether he is entitled to separation pay.

Dear Ariela,
Under our existing laws, separation pay that is equivalent to at least one month pay or to at least one month pay for every year of service, whichever is higher, is granted to an employee who has been terminated from his or her employment on account of installation of labor-saving devices by the employer or by reason of redundancy. Separation pay may also be granted to an employee who has been separated from his work by reason of retrenchment to prevent losses on the part of the employer or in view of closure or cessation of operations of the company not due to serious business losses or financial reverses, and such benefit shall be equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher. A fraction of at least six months shall be considered one whole year (Article 283, Labor Code of the Philippines).

If an employee is found to be suffering from any disease and his or her continued employment is prohibited by law or is prejudicial to his or her health as well as to the health of his or her co-employees, he or she may also be separated from employment and will be entitled to receive separation pay that is equivalent to at least one month salary or to one-half month salary for every year of service, whichever is greater, and a fraction of at least six months being considered as one whole year (Article 284, Labor Code of the Philippines).

Accordingly, if your husband’s dismissal from his work is on account of any of the afore-stated causes, he is entitled to receive the appropriate separation pay. If, however, he is dismissed for any of the just causes enumerated under Article 282 of the Labor Code, he will not be entitled to receive any separation pay, unless such benefit is expressly provided for under his contract of employment or under existing collective bargaining agreement in his company.

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


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1 Comment

  1. trixie gabriel on

    Dear PAO,
    Ako po inawol sa kumpanyang pinagtrabahuhan ko ng 7 taon,kahit pa po ako ng txt sa boss ko na nd makakapasok dhil may emergency.Ngyon po mg ffile dw po cla small claims sa naiwan ko utang sa kumpanya.Ask ko po sna kung maari po bang pagbayarin nlng ako ng hindi po nila pinapakita mga katibayan ng aking pagkakautang?ng bgay lang po cla ng amount na 70k na dpt ko dw po bayaran in one month.Pede po ba ako mg request ng kopya ng mga deduction ko kc po every month may kaltas po cla sa akin sweldo ng 2k.Need ko po bang mg demand ng kopya ng aking payslip na may sign ko at may deduction kc po nd po ngbbgay payslip ang boss nmin…marami din po cla nilalabag sa labor un nd po tamang pagpapasweldo sa mga tao.ang wla pong benefits.Sana po matulungan nio ako sa aking mga katanungan.