Metro Manila, Philippines – The Supreme Court (SC) has struck down the practice of some companies to force-retire employees under 65 years old – the mandatory retirement age – without consent free of coercion.
A decision penned by Associate Justice Ramon Paul Hernando released on Tuesday, Oct. 27, noted no mutual retirement agreement between the employee and employer.
It stated that it partly granted the petition of complainant Rodolfo Ondevilla, finding his former employer Colegio de San Juan de Letran-Laguna (CSJL) guilty of illegal dismissal for considering his employment as expired when he reached the age of 60.
Recalling the case, the court said Ondevilla began as a comptroller at CSJL in 2004, then promoted to assistant vice president for finance.
A reorganization in 2018 resulted in his reassignment to controller. Ondevilla said this was a demotion, though he maintained the same salary grade and benefits through 2019, when he turned 60 and by then was terminated.
The labor arbiter and the National Labor Relations Commission ruled in favor of Ondevilla over his complaint for illegal dismissal.
The Court of Appeals agreed with the ruling, but said Ondevilla agreed to retire in a letter previously sent to CSJL.
Ondevilla disputed this and raised it with the Supreme Court.
The court ruled that there was no mutual retirement agreement between Ondevilla and the school since the letter he sent was a response about cash advance repayment, not a consent for dismissal.
The SC added that “there was also no indication that CSJL was willing to discuss his retirement.”
It ordered CSJL to settle Ondevilla’s full backwages and separation pay in exchange for reemployment.
The court also ruled that Ondevilla was entitled to retirement benefits from when he began as a comptroller on June 16, 2004 until August 29, 2024, when he reached the compulsory retirement age of 65, in accordance with the Labor Code.
With reports from the Supreme Court
