The university hired Atty. C to teach commercial law subjects in its Commerce Department during the second semester of school year 1979 to 1980. Atty. C was subsequently given teaching loads in the College of Engineering and the College of Arts and Sciences. He later taught subjects as a pioneering professor in its College of Law.
On 21 November 2008, Atty. C wrote a letter applying for early retirement, under the university’s Personnel Policy and Procedure and the Retirement Pay Law. He was informed that his retirement application could not be approved as the university did not grant retirement benefits to its part-time teachers.
On 25 June 2010, Atty. C filed a complaint against the university for retirement benefits before the Arbitration Branch of the National Labor Relations Commission.
The university contended that the provision on retirement benefits under Article 3021Formerly Article 287 of the Labor Code of the Philippines does not apply to part-time teachers, because they cannot acquire regular permanent status. A “regular permanent status” is a precondition for entitlement to retirement benefits.
Is the university’s contention correct?
The Court ruled that the university’s contention was not correct. Atty C. is entitled to retirement benefits.
Article 302 of the Labor Code of the Philippines specifically states that “any employee may be retired upon reaching the retirement age[,]” and that in case of retirement, in the absence of a retirement agreement, an employee who reaches the retirement age “who has served at least five (5) years . . . may retire and shall be entitled to retirement pay[.]” No exception is made for part-time employees.
The only exemptions specifically identified by the law and its Implementing Rules are:
- employees of the National Government and its political subdivisions, including government-owned and/or controlled corporations, if they are covered by the Civil Service Law and its regulations; and
- employees of retail, service and agricultural establishments or operations regularly employing not more than 10 employees.2De La Salle Araneta University v. Bernardo, G.R. No. 190809, February 13, 2017, 805 PHIL 580-607
According to the Court, the law encompasses all private sector employees, save for those specifically exempted. Part-time employees, not being among those exempted from coverage, may qualify for retirement benefits.
In the present case, Atty C was found to have rendered service in favor of the university for 22 years. Thus, he was ruled to be entitled to retirement benefits.
Further reading:
- Father Saturnino Urios University (FSUU), Inc. v. Curaza, G.R. No. 223621, June 10, 2020.
