The primary reliefs for illegal dismissal are reinstatement (or separation pay in lieu of reinstatement) and full backwages. Beyond these, an illegally dismissed employee may in some cases also recover moral and exemplary damages, but these are not automatic; they require an additional showing. Moral damages are awarded when the dismissal was attended by bad faith or fraud, or constituted an act oppressive to labor, or was done in a manner contrary to morals, good customs, or public policy, causing the employee mental anguish, serious anxiety, and similar suffering. Mere illegality of the dismissal, without such bad faith or oppressive manner, does not by itself justify moral damages. Exemplary damages may be awarded, by way of example or correction for the public good, when the dismissal was effected in a wanton, oppressive, or malevolent manner; they generally presuppose an award of moral (or other) damages. When an employee is compelled to litigate to protect their rights, attorney's fees may also be awarded, commonly equivalent to ten percent of the monetary award. So while every illegal dismissal entitles the employee to backwages and reinstatement or separation pay, the additional damages hinge on proof that the employer acted in bad faith or in an oppressive, malevolent manner. Understanding this matters because it sets realistic expectations: not every illegal dismissal yields moral and exemplary damages.
The Primary Reliefs
Illegal dismissal's core reliefs are reinstatement (or separation pay) and full backwages. Moral and exemplary damages are additional and not automatic.
When Moral Damages Are Awarded
Moral damages require bad faith or fraud, an act oppressive to labor, or dismissal contrary to morals or public policy causing suffering. Mere illegality without bad faith does not justify them.
Exemplary Damages and Fees
Exemplary damages require a wanton, oppressive, or malevolent manner and generally presuppose moral damages. Attorney's fees (often 10% of the award) may be granted when the employee is forced to litigate.
Practical Takeaways
- Every illegal dismissal = backwages + reinstatement/separation pay;
- Moral/exemplary damages need proof of bad faith or oppression;
- Attorney's fees may be added, often 10%.
Frequently Asked Questions
Can I get moral damages for being illegally dismissed? Only if the dismissal was attended by bad faith or fraud, was oppressive to labor, or was done contrary to morals, good customs, or public policy, causing you suffering. Mere illegality is not enough.
What are the primary reliefs for illegal dismissal? Reinstatement, or separation pay in lieu of reinstatement, and full backwages from the time of dismissal until finality. Damages are separate and additional.
When are exemplary damages awarded? When the dismissal was effected in a wanton, oppressive, or malevolent manner, by way of example or correction for the public good. They generally presuppose an award of moral or other damages.
Can I recover attorney's fees? Yes, when you were compelled to litigate to protect your rights. Attorney's fees are commonly awarded equivalent to ten percent of the monetary award.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.