Question:

“A”, an employee of Company “B”, was found to have been illegally dismissed and was ordered to be reinstated and paid backwages from the time of dismissal until actual reinstatement. The case was elevated all the way to the Supreme Court. By the time the Supreme Court’s decision became final and executory, S had closed down and was in the process of winding up. Nonetheless, S paid A his backwages and separation pay. A complained that S’s computation was erroneous in that A’s allowances was not included. Is A correct in his claim? For what reason(s)?

(Bar Examination in Labor Law, 2001)

Suggested Answer:

A is correct. An employee who has been unjustly dismissed is entitled to receive is full backwages, inclusive of allowances and the other benefits or their monetary equivalent (Article 279, Labor Code.)

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