Philippine Bar review · Question

Practice question: Separation Pay

Multiple Choice Hard

Practice question

A court finds illegal dismissal and, on adequately established circumstances, orders separation pay instead of reinstatement. It expressly finds no earlier event legally severing the relationship or otherwise limiting computation. Management wants the award computed only to the original dismissal date. Which principle from Angono Medics is relevant?
  1. All computation must stop before any adjudication begins.
  2. Original dismissal always ends the employment relationship even when unlawful.
  3. The employee’s service before dismissal is irrelevant.
  4. Where separation replaces reinstatement under the governing finality rule, computation may extend to finality of the decision ordering separation, rather than automatically stopping at dismissal.
  5. No court may fix a lawful computation endpoint.

Legal references

  • Labor Code, DOLE consolidated 2022 edition, Articles 219, 258–260, 262–264, 274 and 278–279: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf; Articles 294 and 298–299.
  • Angono Medics Hospital v Agabin, G.R. No. 202542, December 9, 2020, separation pay and backwages: https://lawphil.net/judjuris/juri2020/dec2020/gr_202542_2020.html
  • Nippon Express Philippines Corporation v Daguiso, G.R. No. 217970, June 17, 2020, proof of strained relations: https://lawphil.net/judjuris/juri2020/jun2020/gr_217970_2020.html
  • Bartolome v Toyota Quezon Avenue, G.R. No. 254465, April 3, 2024, damages, attorney’s fees and separation in lieu of reinstatement: https://lawphil.net/judjuris/juri2024/apr2024/gr_254465_2024.html

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