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Angus
12 November 2014 | Del Castillo, J. |
Retirement > Collection of both retirement benefits and separation pay (Two are mutually exclusive)
Digested by: Precious Gan
SUMMARY: When Goodyear experienced economic reversals, it resorted to the retrenchment of certain employees in order to
continue its operations. One such employee is Marina, and she was granted an early retirement benefit, as per company practice.
However, she claimed entitled to separation pay in addition to the retirement benefits already received.
DOCTRINE: Retirement benefits and separation pay are not mutually exclusive. Retirement benefits are a form of reward for an
employees loyalty and service to an employer, whereas 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
FACTS: instances enumerated under Articles 283 and 284 of the Labor
1. 19 November 1966: Marina was employed by Goodyear on Code or in illegal dismissal cases when reinstatement is not
November 19, 1966 as the secretary to the Manager of feasible. In the case at bar, Article 283 clearly entitles Angus to
Quality and Technology. separation pay apart from the retirement benefits she received
from petitioners.
2. Goodyear experienced economic reversals. To continue its
operations, it resorted to retrenchment.
RATIO:
Labor Law; Retirement Benefits; Separation Pay; Retirement
benefits and separation pay are not mutually exclusive.It is
worthy to mention at this point that retirement benefits and
separation pay are not mutually exclusive. Retirement benefits
are a form of reward for an employees loyalty and service to
an employer and are earned under existing laws, CBAs,
employment contracts and company policies. 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