Wednesday, July 1, 2009

No Separation Pay to Resigned Employees

In Alfaro v. Court of Appeals, We held that as a general rule, 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 on the fulfillment of such commitment. ( "J" Marketing v. Taran, G.R. No. 163924, June 18, 2009)

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