Forfeiture of benefits in case of employee’s termination

Forfeiture of benefits in case of employees termination
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Dear Pao,

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I previously worked as a merchandiser for a company near our home from 2021 to 2022. I was dismissed from work because of gross and habitual neglect of duty. Upon my dismissal, I asked for the payment of my holiday bonus for the two years that I worked in the store, as provided in our collective bargaining agreement (CBA). However, the human resource manager stated that since I was dismissed from service, all of my benefits, such as my holiday bonus, will be forfeited in favor of the company. As far as I am concerned, nowhere in the company policy does it provide that in case of termination, the benefits of the terminated employee will be forfeited. Can I still recover my holiday bonus from the company? Please advise.

Angeline

Dear Angeline,

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Yes, you can still recover your holiday bonus for the years that you have worked in the company. In the case of Apolinar A. Argentera v Manila Electric Company/Manny V. Pangilinan (GR 224729, Feb. 8, 2021, Ponente: Associate Justice Marvic Mario Victor Leonen), the Supreme Court held that:

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“An employer cannot unilaterally declare the forfeiture of wages, benefits and privileges that have accrued in favor of a dismissed employee. The employer must prove the basis for the forfeiture through its policies, employee contracts or its collective bargaining agreement. Without such proof, there is no basis to forfeit accrued monetary benefits as of the date of termination. To do so would violate Article 100[139] of the Labor Code, since the benefits have already accrued to the employee.

“Without an express provision on the forfeiture of benefits in a company policy or contractual stipulation under an individual or collective contract, the employee’s rights, benefits and privileges are not automatically forfeited upon dismissal. The employee’s termination from employment is without prejudice to the ‘rights, benefits and privileges [they] may have under the applicable individual or collective agreement with the employer or voluntary employer policy or practice.'”

In your case, your entitlement to the holiday bonus for the years that you have worked for the company is based on the collective bargaining agreement. Such benefits already accrued in your favor when you have rendered services to the company for the periods 2021 and 2022. Having established your entitlement to the same, it cannot be automatically forfeited upon your dismissal. Unless otherwise provided in the company policy or in the CBA that disqualifies any person subject of disciplinary action, such as in your case from receiving the said benefits, then the same must be paid to you by the company. In cases of a claim for monetary benefits from an employee, it is the employer who has the burden of proof to establish that the benefits or monetary claims were already paid. If your company would not be able to prove that your holiday bonus was paid, then you may still recover the same despite your separation or dismissal from the office.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.


Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].



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