Worker who resigned asks for separation pay

Dear PAO,

I have been employed for almost ten years. However, due to my desire to look for a greener pasture abroad, I decided to resign from my current job. Am I entitled to a separation pay?
Manny

Dear Manny,
Separation pay is defined as the amount that an employee receives at the time of his severance and is designed to provide the employee with the wherewithal during the period that he is looking for another employment (Rodolfo Gabuay v Oversea Paper Supply, Inc., G.R. 148837, 348 SCRA 724, August 13, 2004).

The award of separation pay is allowed only when termination of employment was due to an authorize cause as provided by law such as installation of labor saving device, redundancy, retrenchment to prevent losses, closure or cessation of business operations not due to serious business losses or financial reverses and disease prejudicial to the health of the employee and his fellow (Article 283 and 284, Labor Code of the Philippines).

Separation pay is, also, awarded in lieu of reinstatement if it can be shown that the reinstatement of the employee is no longer feasible, as when the relationship between employer and employee has become strained. In some cases, it is awarded as a measure of social justice (Rodolfo Gabuay v. Oversea Paper Supply, Inc.).

It appears based on the foregoing that resignation is not one of the bases for an award of separation pay. The Supreme Court made this clear when it ruled in the case of CJC Trading, Inc. v National Labor Relations Commission (G.R. 115884, 436 SCRA 514, July 20, 1995) the following:

“An employee who voluntarily resigns is not entitled to separation pay unless otherwise stipulated in an employment contract or collective bargaining agreement, or sanctioned by established employer practice or policy. The Labor Code is devoid of any provision, which grants separation pay to employees who voluntarily resign. Neither was there anything in the record that shows that, in the instant case, there is a collective bargaining agreement or any other agreement or established company policy concerning the payment of separation pay to employees who resign.”

Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.

We hope that we were able to enlighten you on the matter. –PERSIDA ACOSTA, Manila Times