EMPLEYADO NA 21 YEARS SA KUMPANYA AT NAG-RESIGN, MAKAKUHA KAYA NG SEPARATION PAY?

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It is well to note that there is no provision in the Labor Code which grants separation pay to employees who voluntarily resign. Under the Code, separation pay may be awarded only in cases when the termination of employment is due to:
(a) installation of labor saving devices,
(b) redundancy,
(c) retrenchment,
(d) closing or cessation of business operations,
(e) disease of an employee and his continued employment is prejudicial to himself or his co-employees, or
(f) when an employee is illegally dismissed but reinstatement is no longer feasible.
While it is true that under the Labor Code, an employee who voluntarily resigns may not be granted separation pay, as in fact, the general rule is that an employee who voluntarily resigns is not entitled to separation pay, however, there is an exception, that is, when it is stipulated in the employment contract or CBA or such payment is authorized by the employer’s practice or policy, as in this case.

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