▪ Reinstatement is due to an illegally dismissed employee.

▪ Separation pay in lieu of reinstatement is an alternative remedy when reinstatement is no longer feasible.

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)

Reinstatement restores the employee who was unjustly dismissed to the position from which he was removed, that is, to his status quo ante dismissal.  (Rodriguez v. Sintron Systems, Inc., G.R. No. 240254, 24 July 2019)

a. Separation pay in lieu of reinstatement

Separation pay is warranted when the cause for termination is not attributable to the employee’s fault, such as those in authorized causes, as well as in cases of illegal dismissal where reinstatement is no longer feasible. (Claudia’s Kitchen, Inc. v. Tanguin, G.R. No. 221096, 28 June 2017)

The payment of separation pay replaces the legal consequences of reinstatement to an employee who was illegally dismissed. (Ibid.)

2. Strained relations

The doctrine of strained relations only arises when there is an order for reinstatement that is no longer feasible. It cannot be invoked by the employer to prevent the employee’s return to work nor by the employee to justify payment of separation pay. (Ibid.)

Under the doctrine of strained relations, such payment of separation pay is considered an acceptable alternative to reinstatement when the latter option is no longer desirable or viable. On the one hand it liberates the employee from what could be a highly oppressive work environment. On the other hand, it releases the employer from the grossly unpalatable obligation of maintaining in its employ a worker it could no longer trust. (Ibid.)

a. Trust and confidence

Strained relationship may be invoked only against employees whose positions demand trust and confidence, or whose differences with their employer are of such nature or degree as to preclude reinstatement. (Dimabayao v. National Labor Relations Commission, G.R. No. 122178, 25 February 1999)

Every labor dispute almost always results in “strained relations,” and the phrase cannot be given an overarching interpretation, otherwise, an unjustly dismissed employee can never be reinstated. (Advan Motor, Inc. v. Veneracion, G.R. No. 190944, 13 December 2017)

Besides, the doctrine of strained relations cannot be applied indiscriminately since every labor dispute almost invariably results in “strained relations;” otherwise, reinstatement can never be possible simply because some hostility is engendered between the parties as a result of their disagreement. That is human nature. Strained relations must be demonstrated as a fact. The doctrine should not be used recklessly or loosely applied, nor be based on impression alone. (Rodriguez v. Sintron Systems, Inc., supra.)



Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

DOLE Department Order No. 147, Series of 2015

▪ Jurisprudence or Supreme Court Decisions

Related content

Holiday Pay

Summary ▪ Holiday pay is a 100% additional pay during a regular holiday. ▪ If no work is done on

Moral damages

Summary ▪ Moral damages may be awarded in certain cases. ▪ Bad faith must be clearly proven. 1. Concept Moral

Table of Contents


Management Prerogative, Labor Relations

Bargaining unit

Summary ▪ A bargaining unit is a group of employees sought to be represented by a petitioning union. ▪ There

Right to self-organization

1. Summary ▪ The right to self-organization includes the right to form, join or assist labor organizations for the purpose

Due Process, Post-Employment

Just Causes

Summary ▪ Just causes are grounds for termination of employment due to employee violations. ▪ The employer is justified dismissing

woman in gray tank top


Disease – refers to medical conditions that comply with the standards below. DOLE D.O. 147-15 provides for the standards to

DOLE Secretary

Summary ▪ The Secretary of the Department of Labor and Employment (DOLE Secretary) has jurisdiction over certain cases. ▪ The

man people woman desk

Substantial evidence rule

Whether for just or authorized cause – including DOLE’s other cause, the employer should note and comply with the substantial

General Labor Standards, Working Conditions


Summary ▪ Flexi-holidays schedule refers to one where the employees agree to avail the holidays at some other days provided

Overtime Pay

Summary ▪ Overtime pay is an additional pay of 25% of the hourly rate for work done in excess of

Primer: Anti-Sexual Harassment Act

Summary ▪ Sexual harassment may be committed in a work-related/employment environment or in an education/training environment. ▪ The offender may

Government Employees

1. Summary ▪ Government employees refer to those employed by the National Government or any of its political subdivisions, including

error: Content is protected.