Practice question
A judgment validly awards separation pay in lieu of reinstatement and backwages. The employer proposes to pay only separation pay because it believes that payment resolves every consequence of illegal dismissal. Which answer is correct?
- A single payment always extinguishes unrelated adjudged claims.
- Backwages are available only to workers actually reinstated.
- The employer may choose which part of the judgment to follow.
- Separation pay is merely a voluntary gratuity.
- The employer must satisfy the distinct adjudged backwages as well; separation pay does not automatically extinguish them.
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
Answer this question in flashcards to review your response and continue practicing.