You are on page 1of 5


GR NO 80609 Aug 23, 1988

Working for ten years (10)
for Philippine Long Distance
Telephone Company (PLDT)
for ten (10) years as a traffic
operator, Marilyn Abucay
was accused by two
complainants of having
demanded and received from
the total amount of P3,
800.00 in consideration of
her promise to facilitate
approval of their applications
for telephone installation.
Her employer terminated her
employment after finding
valid grounds. And
thereafter; she went to the
Ministry of Labor and
Employment claiming she
had been illegally removed.
The National Labor Relations
Commission (NLRC) found
the dismissal to be valid but
nevertheless, the NLRC
ordered PLDT to pay Abucay
separation pay equivalent to
one month pay for every year
of service as financial
assistance. This decision
was assailed by PLDT. They
averred that separation pay
is only available in cases
where the employee has
been illegally dismissed and
reinstatement is no longer
possible. PLDT further
argued that to award Abucay
separation pay is tantamount
to rewarding her misdeeds.
The Solicitor General,
arguing for the NLRC, cited
numerous previous cases
where separation pay has
awarded by the Supreme
Court even if the employeeʼs
dismissal were due to just
and authorized cases.
WON sep pay is proper

No. In this case, the Supreme
Court finally set the rules as to
when separation pay is proper
in cases where the employee
is dismissed for valid reasons.
As a rule, and under the Labor
Code, a person dismissed for
just and authorized causes is
not entitled to
separation pay. However,
based on equity, an exception
can be made if the employee is
dismissed for causes other
than serious misconduct or
those reflecting on his moral
character. Where the reason
for the valid dismissal is, for
example, habitual intoxication
or an offense involving moral
turpitude, like theft or illicit
sexual relations with a fellow
worker, the employer may not
be required to give the
dismissed employee
separation pay, or financial
assistance, or whatever other
name it is called, on the
ground of social justice.

In the case at bar, the reason

for Abucayʼs dismissal is due
to her acceptance of a “bribe”
which is dishonesty and
is immoral. The fact that she
has worked with the PLDT for
more than a decade, if it is to
be considered at all, should be
taken against her as it reflects
a regrettable lack of loyalty
that she should have
strengthened instead of
betraying during all of her 10
years of service with the
company. The court also made
a pronouncement that if found
due under the circumstances
of each case, should be
computed at the rate of one
month salary for every year of
service, assuming the length
of such service is deemed
material. This is without
prejudice to the application of
special agreements between
the employer and the
employee stipulating a higher
rate of computation and
providing for more benefits to
the discharged employee.