Unjust Dismissal Over a Funeral Cash-Advance Request under Philippine Labor Law

1. Why this topic matters

Funeral expenses commonly arise without warning. In the Philippines, many employers allow workers to take a short-term cash advance or receive funeral assistance to bridge the gap until government benefits (e.g., SSS funeral benefit) are released. When an employee is dismissed simply for asking for that help, the dismissal almost always violates the worker’s constitutional right to security of tenure and runs afoul of multiple provisions of the Labor Code. The discussion below gathers everything a practitioner, HR officer, or employee needs to know—statutes, regulations, Supreme Court doctrine, administrative issuances, company-policy pitfalls, remedies, and best practices.

2. Statutory & constitutional anchors

Source	Key rule
1987 Constitution, Art. XIII §3	Security of tenure; workers may be dismissed only for just or authorized cause and with due process.
Labor Code (PD 442, as amended)	• Art. 297 (just causes) • Art. 298–299 (authorized causes) • Art. 118 (retaliatory measures—prohibits dismissing or prejudicing an employee for exercising any right granted by law) • Art. 100 (non-diminution of benefits).
DOLE Labor Advisory 06-20	30-day deadline for releasing final pay; relevant where funeral cash advance is offset on separation.
Civil Code, Art. 1700–1702	Contracts of labor are impressed with public interest; doubts resolved in favor of labor.

Take-away: Termination for merely requesting a benefit—especially one the company has routinely granted—fails both substantive (no legal ground) and procedural (no twin notices) due-process tests.

3. Funeral-related monetary benefits in PH practice

SSS funeral benefit – ₱20 000–₱60 000 depending on the member’s contribution history (effective 20 Oct 2023) (Social Security System)
ECC funeral benefit – ₱30 000 when the employee’s death is work-related (Art. 194, Labor Code).
GSIS funeral benefit – ₱30 000 (government sector).
Company funeral assistance / cash advance – purely contractual but often found in CBAs or handbooks; may range from a few thousand pesos to one month’s pay.
Bereavement or funeral leave – not statutory; it exists only if promised by CBA or company policy (Filipino Business Hub)

Non-diminution rule: If a funeral cash advance or paid funeral leave has been given consistently and deliberately over time, it ripens into a company practice that cannot be withdrawn unilaterally (Art. 100, Labor Code; see Galderma v. Gan, G.R. 177167) .

4. Cash advances: legitimate use vs. dismissible abuse

Scenario	Legal treatment	Leading cases
Properly documented request (e.g., burial of parent)	Lawful; employer may approve or deny, but cannot dismiss the worker for requesting.	–
Failure to liquidate / misappropriation	May justify dismissal for serious misconduct or loss of trust, provided substantial evidence and due process.	Celiz v. Cord Chemicals, G.R. 200352 (2016) (Jur.ph); Wesleyan U. vs Reyes, G.R. 208321 (2014)
Unliquidated cash advance offset on final pay	Allowed if amount is undisputed or proven; withholding entire pay is illegal.	Respicio article on wage withholding (RESPICIO & CO.)

Key distinction: It is the misuse—not the mere request—that may be punished. Jumping straight to dismissal because an employee asked for funeral help is retaliatory and unlawful.

5. Why dismissing an employee for requesting a funeral cash advance is unjust dismissal

No just cause: Requesting an employment benefit is not among the exclusive grounds in Art. 297.
No authorized cause: A funeral request has nothing to do with redundancy, retrenchment, closure, or incurable disease (Art. 298–299).
Retaliatory measure: Art. 118 expressly forbids any employer action that prejudices a worker for exercising a right or seeking lawful relief.
Possible discrimination: If the benefit is available to others, denying it to—and dismissing—one employee may amount to discriminatory dismissal under equal-protection principles and the Anti-Age/Anti-Women/other specific statutes.
Procedural flaws: Even assuming (arguendo) a ground existed, dismissal without the twin-notice and hearing requirement violates due process (King of Kings Transport v. Mamac, G.R. 166208).

6. Employee remedies

Remedy	Venue	Components
Complaint for illegal dismissal and money claims	NLRC (Labor Arbiter) within 4 years	• Reinstatement with full back wages or separation pay • Differential benefits (unpaid funeral aid, SIL, 13th month) • Moral & exemplary damages if dismissal was in bad faith • 10 % attorney’s fees.
Retaliation or ULP (if unionized)	NLRC / DOLE BLR	May seek damages, reinstatement of status quo, and possible criminal penalties for unfair labor practice.
Criminal / administrative complaint (rare)	DOLE for wage withholding; civil/criminal courts for estafa if employer withholds SSS contributions.	Penalties under Arts. 303–305, Labor Code.

7. Employer exposure & best-practice checklist

Policy hygiene: Draft a clear, neutral cash-advance policy defining purpose (e.g., medical, funeral, calamity), ceiling, liquidation deadline, and repayment terms. Publish it in the handbook and circulate acknowledgments.
Consistent application: Treat all similarly situated employees alike. Selective approval can be evidence of discrimination.
Grievance channel: Provide an appeal or grievance procedure before disciplinary action.
Documentation: If denial is necessary (e.g., fund limit reached), issue a written explanation.
Training for supervisors: Emphasize prohibitions on retaliation for benefit requests or complaints.
Alternative assistance: Consider bridging loans from SSS Salary Loan or Pag-IBIG MP2 rather than outright denial.

8. Step-by-step guide for employees

File the request in writing and keep a copy / email trail.
Check company policy / CBA for entitlement and procedure.
If denied or threatened, calmly ask HR for the reason in writing.
Gather evidence: handbook pages, past cash-advance approvals to others, SMS/e-mails showing threat.
SEnA mediation: Within 30 days of dismissal or threat, file a Request for Assistance at the nearest DOLE regional office.
NLRC complaint: If mediation fails, proceed to a formal case. File within four (4) years from the date of dismissal.
Claim SSS funeral benefit separately if you are the one defraying the funeral expenses. Online filing steps are on the SSS portal (Social Security System).

9. Frequently asked questions

Question	Short answer
Is a funeral cash advance mandatory?	No statute requires it, but if the employer voluntarily granted the benefit over time or wrote it into a CBA/policy, it becomes demandable under Art. 100.
Can the employer deduct the advance from future salaries?	Yes—with the employee’s written consent and provided deductions do not bring wages below minimum, per Art. 113–115 and BIR rules on withholding tax.
What if the employee was still on probation?	Probationary employees still enjoy security of tenure: dismissal must be based on failure to meet reasonable standards previously communicated to them. Asking for a funeral advance is unrelated to performance standards, so the dismissal is illegal.
Is it constructive dismissal if the employee is harassed into “voluntary” resignation after the request?	Yes. Coercing a resignation is treated as illegal dismissal, with the same consequences (back wages & separation pay).

10. Conclusion

In Philippine labor jurisprudence, the line is bright: requesting help for a funeral is not a fireable offense. Dismissal on that ground offends the Constitution, the Labor Code’s exhaustive list of causes, and the doctrine against retaliatory measures. Employers must instead manage cash-advance programs transparently and humanely, while employees who are dismissed can vindicate their rights before the NLRC and DOLE.

Key sources consulted

SSS Funeral Benefit guidelines (updated 20 Oct 2023) (Social Security System)
“What Is Bereavement Leave in the Philippines?” (Filipino Business Hub, 17 Jun 2023) (Filipino Business Hub)
Celiz v. Cord Chemicals, G.R. 200352, 20 Jul 2016 (cash-advance misappropriation case) (Jur.ph)
Wesleyan University Phils. v. Reyes, G.R. 208321, 30 Jul 2014 (loss of trust over cash advances)
Respicio & Co., “Wage Withholding and Illegal Dismissal” (Commentary, 9 Feb 2025) (RESPICIO & CO.)
Q&A: Labour & Employment Law in the Philippines (Lexology, 12 Jun 2019) (Lexology)

(This article provides general information only and is not a substitute for personalized legal advice.)