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Saturday, November 29, 2025

Philippine employer ordered to backpay employee's wages after illegal dismissal - HRD America

Supreme Court finds that the employer failed to provide proof of a valid redundancy programme

The Philippine Supreme Court has ordered an employer to pay back wages and separation pay to an employee after finding that it illegally dismissed him in 2016.

Alltech Biotechnology Corporation was found to have illegally dismissed Paolo Aragones because it failed to provide proof of a valid redundancy programme, according to the Supreme Court.

Aragones was made redundant by Alltech in June 2016, just months after he signed an Offer Letter in April for the position of Swine Technical Manager - Pacific (STMP), and right before he was due to start work in July.

The company offered Aragones P140,000, which is equivalent to his one-month salary, as a "gesture of goodwill" following the redundancy.

Was there an employee relationship?

The Labour Arbiter ruled in favour of Aragones when he filed a complaint with them, but the National Labour Relations Commission (NLRC) reversed the ruling.

According to the NLRC, there was no employer-employee relationship at that time because Aragones was not yet working for Alltech.

"The NLRC noted that, although Aragones accepted the Offer Letter, it came with a clear provision that his employment would only commence on July 1, 2016," the Philippine Supreme Court heard.

"Additionally, without a definitive employment contract duly signed by the parties, there could be no employment relationship to speak of."

Aragones filed an appeal to the Court of...



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