Tag Archives: philippine labor laws
“ARE DISMISSED EMPLOYEES ENTITLED TO SEPARATION PAY?”
By: Atty. Elvin Villanueva
The common impression is that an employee who has been dismissed from service for cause is not entitled to any separation pay.
This public notion is correct since it is the general rule when it comes to this issue. However, previous decisions allowed certain exceptions making the rule a little bit muddy.
In a recent decision by the Supreme Court, the rules on the payment of separation pay to validly dismissed employees were made clearer.
“CONTROL IN THE CONTEXT OF AGENCY VS. CONTROL AS ELEMENT OF EMPLOYER-EMPLOYEEE RELATIONSHIP UNDER THE LABOR CODE” by Atty. Elvin Villanueva
We know for a fact that an agent is primarily governed by the rules on Agency under the Civil Code while an employee by the Labor Code.
The confusing part lies in the element of control exercised by the principal in an agency agreement and the control that establishes employer-employee relationship. In the light of this dilemma, is an insurance agent an employee of the insurance company or an independent contractor who has no employment relationship with the latter?