Question:

An employee was ordered reinstated with backwages. Is he entitled to the benefits and increases granted during the period of his lay-off? Explain briefly.

(Bar Examination in Labor Law, 2002)

Suggested Answer:

Yes. An employee who is ordered reinstated with backwages is entitled to the benefits and increases granted during the period of his lay-off. The Supreme Court has ruled: “Backwages are granted for earnings a worker lost due to his illegal dismissal and an employer is obliged to pay an illegally dismissed employee the whole amount of salaries plus all other benefits and bonuses and general increases to which the latter should have been normally entitled had he not been dismissed.” (Sigma Personnel Services v. NLRC, G.R. No. 108284, June 30, 1993.)

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