Separation pay may be granted to a validly dismissed employee as an act of social justice or on equitable grounds only if the dismissal (1) was not for serious misconduct; and (2) did not reflect on the moral character of the employee.
When a dismissed employee from work intentionally circumvented a strict company policy, manipulated another entity to carry out own instructions without the company’s knowledge and approval, and directed the diversion of funds under the guise of shortening the laborious process of securing funds from the head office for promotional activities. These transgressions were serious offenses that warranted employee's dismissal from employment and denial of the separation pay (Unilever Phil. Inc. vs. Rivera, G.R. 201701, June 5, 2013).
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