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Are Dismissed Employees Entitled to Separation Pay?

“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.

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