This case has been cited 2 times or more.
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2014-11-12 |
DEL CASTILLO, J. |
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| It is worthy to mention at this point that retirement benefits and separation pay are not mutually exclusive.[38] Retirement benefits are a form of reward for an employee's loyalty and service to an employer[39] and are earned under existing laws, CBAs, employment contracts and company policies.[40] On the other hand, separation pay is that amount which an employee receives at the time of his severance from employment, designed to provide the employee with the wherewithal during the period that he is looking for another employment and is recoverable only in instances enumerated under Articles 283 and 284 of the Labor Code or in illegal dismissal cases when reinstatement is not feasible.[41] In the case at bar, Article 283[42] clearly entitles Angus to separation pay apart from the retirement benefits she received from petitioners. | |||||
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2011-10-04 |
PERALTA, J. |
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| In the case of Santos v. Servier Philippines, Inc., [62] citing Aquino v. National Labor Relations Commission, [63] We declared that the receipt of retirement benefits does not bar the retiree from receiving separation pay. Separation pay is a statutory right designed to provide the employee with the wherewithal during the period that he/she is looking for another employment. On the other hand, retirement benefits are intended to help the employee enjoy the remaining years of his life, lessening the burden of worrying about his financial support, and are a form of reward for his loyalty and service to the employer. A separation pay is given during one's employable years, while retirement benefits are given during one's unemployable years. Hence, they are not mutually exclusive. [64] | |||||