Legal Counselling and Social Responsibility

Legal Aid Duty

Thursday Group:
CALARA, MA. LORAINE
VALENCIA, EMELITA
DIAMANTE, KRISTINE

Inquiry:
“Good morning po, Ate, ask ko lang po, yung company kasi naming
ililipat kami sa sister company nila, papagawin daw kami ng resignation sa
company namin (exixsting ngayon) para malipat kami sa sister company nila
(magiging bagong company ko na), ask ko lang pano po yun, kasi 9 years na po
ako sa company, ano po ba dapat kong makuha, kasi saying yung 9 years ko
kung magsisimula ulit ako..”

Answer/s:
1. To simply answer the query regarding benefits when you “resign” and
just follow them as instructed, you will be entitled to the following:
a. Withheld backwagesi;
b. Proportionate 13th month pay;
c. Other benefits (check your contract if there are other benefits
entitlement or if there are any other company practice ii which grant
employees benefits upon resignation)

2. Considering other circumstances that you presented to us, though

additional facts could help more in order to give a fair and decent advice,
there seems to be other option which is more beneficial for you and the
other employees who are also being required to resign.
With the facts available, you may request them if they can just use
dismissal for authorized cause provided under the law, it is either
installation of labor-saving devices, redundancy, retrenchment to prevent
losses or the closing or cessation of operation of the establishment.
Under this option, aside from the benefits enumerated on number 1, you
are also entitled to separation pay with the company you worked for nine
(9) years. Under the lawiii, you may also be entitled to one (1) month pay
or to at least one (1) month pay for every year of service, whichever is
higher in case of termination due to the installation of labor-saving
devices or redundancy. In case of retrenchment to prevent losses and in
cases of closures or cessation of operations of establishment or
undertaking not due to serious business losses or financial reverses, the
separation pay shall be equivalent to one (1) month pay or at least one-
half (1/2) month pay for every year of service, whichever is higher. A
fraction of at least six (6) months shall be considered one (1) whole year.
i
Milan vs NLRC, G.R. No. 202961, February 4, 2015
“Requiring clearance before the release of last payments to the employee is a standard
procedure among employers, whether public or private. Clearance procedures are instituted to
ensure that the properties, real or personal, belonging to the employer but are in the possession of
the separated employee, are returned to the employer before the employee’s departure.”

“However, our law supports the employers’ institution of clearance procedures before the
release of wages. . .”

“The Civil Code provides that the employer is authorized to withhold wages for debts due:

Article 1706. Withholding of the wages, except for a debt due, shall not be made by the employer.

"Debt" in this case refers to any obligation due from the employee to the employer. It includes any
accountability that the employee may have to the employer.”

ii
Alfaro vs. Court of Appeals G.R. No. 140812, August 28, 2001
““ . . . separation pay need not be paid to an employee who voluntarily resigns. However,
an employer who agrees to expend such benefit as an incident of the resignation should not be
allowed to renege in the performance of such commitment”

iii
Article 283, Labor Code, as amended