Full backwages


▪ Full backwages are due to illegally dismissed employees except those who participated in an illegal strike.

▪ It shall be based on wage rate at the time of dismissal.

▪ It consists of all benefits and allowances.

1. Concept

An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (Article 294, P.D. 442, Labor Code)

a. Wage rate at time of dismissal

Full backwages shall be pegged at the wage rate at the time of the employee’s dismissal, unqualified by any deductions and increases. (Evangelista v. National Labor Relations Commission, G.R. No. 93915, 11 October 1995)

The base figure to be used in reckoning full backwages is the salary rate of the employee at the time of his dismissal. The amount does not include the increases or benefits granted during the period of his dismissal because time stood still for him at the precise moment of his termination, and move forward only upon his reinstatement. (United Coconut Chemicals v. Almores, G.R. No. 201018, 12 July 2017)

NO SALARY DIFFERENTIAL: An unqualified award of backwages means that the employee is paid at the wage rate at the time of his dismissal. Furthermore, the award of salary differentials is ...


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