This case has been cited 2 times or more.
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2014-11-12 |
DEL CASTILLO, J. |
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| In Aquino v. National Labor Relations Commission,[33] citing Batangas Laguna Tayabas Bus Company v. Court of Appeals[34] and University of the East v. Hon. Minister of Labor[35] the Court held that an employee is entitled to recover both separation pay and retirement benefits in the absence of a specific prohibition in the Retirement Plan or CBA. Concomitantly, the Court ruled that an employee's right to receive separation pay in addition to retirement benefits depends upon the provisions of the company's Retirement Plan and/or CBA.[36] | |||||
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2013-07-15 |
DEL CASTILLO, J. |
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| In Suarez, Jr. v. National Steel Corporation,[21] the same issue cropped up whether the retrenched employees are entitled to retirement gratuity even after they have received their separation pay in accordance with the retrenchment program of the company. In ruling in the negative, this Court observed that Sections 1 and 3 of Article XIV on Retirement Benefits of the CBA separately provide for retirement benefits and severance pay for retrenched employees. Section 1 thereof states, among others, that those retiring with at least 10 years of service credits are entitled to a retirement pay equivalent to one and one-half months of basic pay for every year of service, while Section 3 extends two months base pay for every year of service for laid-off employees pursuant to retrenchment program. This Court elaborated thus: A perusal of Article XIV of the parties' 1994-1996 CBA readily shows that retirement benefits shall be granted only to those employees who, after rendering at least ten (10) years of continuous services, would retire upon reaching the mandatory retirement age, or would avail of optional voluntary retirement. Nowhere can it be deduced from the CBA that those employees whose employment was terminated through one of the authorized causes are entitled to retirement benefits. In fact, Section 3 of the afore-quoted Article XIV specifically provides that retrenched employees shall be given two (2) months pay for every year of service. Section 3 shows the intention of the parties to exclude retrenched employees, like herein petitioners, from receiving retirement benefits under the existing retirement plan as set forth in Section 1.[22] (Italics supplied) | |||||