Saturday, April 23, 2016

Separation pay in lieu of reinstatement; when allowed.



UNIVERSAL ROBINA SUGAR MILLING CORP. VS. ABLAY, ET. AL., G.R. NO. 218172, MARCH 16, 2016.

“x x x.

Finally, the CA correctly observed that Ablay's conviction as an accomplice to the murder of petitioner's former assistant manager had strained the relationship between Ablay and petitioner. Hence, Ablay should not be reinstated in the company and, instead, be paid separation pay, as reinstatement would only create an atmosphere of antipathy and antagonism would be generated as to adversely affect his efficiency and productivity.49 In this relation, it should be clarified that said strained relation should not affect the grant of benefits in his favor prior to his conviction, as the latter pertains to an offense entirely separate and distinct from the acts constituting petitioner's charges against him in the case at bar, i.e., taking of the company equipment without authority. Petitioner's payment of separation pay to Ablay in lieu of his reinstatement is therefore warranted.

X x x.”