manuel l. quezon university vs. national labor relations commission, 367 scra 488(2001)

7/25/2019 Manuel L. Quezon University vs. National Labor Relations Commission, 367 SCRA 488(2001)

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488

SUPREME COURT REPORTS ANNOTATED

Manuel L. Quezon University vs. National Laor Relations Co!!ission

".R. No. #4#$%&. O'toer #%( )**#.+

MANUEL L. QUE,ON UN-ERS-T/0AU"USTO 1. SUN-CO( Presi2ent( 3etitioners( vs.NAT-ONAL LA1OR RELAT-ONS COMM-SS-ON T5ir2 Division6( NOEM- 1. 7UAT an2ED-L1ERTO A,UR-N( res3on2ents.

Laor La9 Retire!ent9 Re3uli' A't No. %$4# inten2s to :ive t5e !ini!u!retire!ent ene;ts to e!3loyees not entitle2 t5ereto un2er 'olle'tive ar:ainin:an2 ot5er a:ree!ent.r! t5e 2e'ision o? t5e Court o? A33eals. T5e la(Re3uli' A't No. %$4#( inten2s to :ive t5e !ini!u! retire!ent ene;ts toe!3loyees not entitle2 t5ereto un2er 'olle'tive ar:ainin: an2 ot5er a:ree!ents.-ts 'overa:e a33lies to estalis5!ents it5 e@istin: 'olle'tive ar:ainin: or ot5era:ree!ents or voluntary retire!ent 3lans 5ose ene;ts are less t5an t5ose3res'rie2 un2er t5e 3roviso in uestion.

Sa!e9 Sa!e9 Statutory Constru'tion9 Re3uli' A't No. %$4# is a 'urative so'ialle:islation( an2 y t5eir nature( 'urative statutes !ay e :iven retroa'tive eBe't(unless it ill i!3air veste2 ri:5ts.


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3loyeesG servi'es to an e!3loyer ren2ere2 3rior to its eBe'tivity. -t a33lies toe!3loyees in t5e e!3loy o? e!3loyers at t5e ti!e t5e la tooH eBe't an2 5o areeli:ile to ene;ts un2er t5at statute.

PET-T-ON ?or revie on 'ertiorari o? a 2e'ision o? t5e Court o? A33eals.

T5e ?a'ts are state2 in t5e o3inion o? t5e Court.

T5e La ir! o? C5an( Roles an2 Asso'iates ?or 3etitioners.

O>'e o? t5e Le:al Ai2 ?or 3rivate res3on2ent N.1. 7uat.

Ri'o 1. Azurin ?or 3rivate res3on2ent E.D. Azurin.

PARDO( 7.I

T5e Case

T5e 'ase is an a33eal via 'ertiorari ?ro! t5e 2e'ision# o? t5e Court o? A33ealsa>r!in: t5e resolutions o? t5e National Laor Relations Co!!ission rulin: t5atres3on2ents retirin: ?a'ulty !e!ers o? 3etitioner Manuel L. Quezon Universityere entitle2 to retire!ent ene;ts un2er Re3uli' A't No. %$4#( even i? 3etitioner

5a2 an e@istin: vali2 retire!ent 3lan.

T5e a'ts

T5e ?a'ts( as ?oun2 y t5e Court o? A33eals( are as ?ollosI


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JPetitioner Manuel L. Quezon University MLQU6 is a 3rivate e2u'ational institution5i'5 estalis5e2 a retire!ent 3lan ?or its e!3loyees as early as 7une )$( #F$%. T5eRetire!ent Plan 5i'5 as 2uly a33rove2 y t5e 1ureau o? -nternal Revenue ?or ta@3ur3oses 3rovi2es as ?ollosI

J@ @ @

ART-CLE -


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JART-CLE ---

JPERSONS ENT-TLED TO

RET-REMENT PR--LE"ES

Ja6 All ?a'ulty !e!ers an2 e!3loyees 5o attain t5e a:e o? $K years 5ilee!3loye2 it5 t5e Manuel L. Quezon E2u'ational -nstitution( -n'.( 3rovi2e2 t5att5ey 5ave ren2ere2 at least ten #*6 years o? 'ontinuous servi'e. -tali's su33lie26

J6 T5ose 5o 5ave not attaine2 t5e a:e o? $K years( ut 5o 5ave ren2ere2 atleast )* years o? 'ontinuous servi'e to t5e Manuel L. Quezon E2u'ational -nstitution(-n'. at t5e 2ate o? retire!ent. -tali's su33lie26

J'6 T5is 3lan 2oes not a33ly to !e!ers o? t5e 1oar2 o? Re:ents( t5e Presi2ent(t5e E@e'utive O>'er( an2 t5e Treasurer( 5ose retire!ent s5all e 2eter!ine2 yt5e 1oar2 o? Re:ents it5out 3reu2i'e to t5eir retire!ent un2er t5is 3lan as!e!ers o? t5e ?a'ulty.

JART-CLE -

JCOMPULSOR/ NATURE O RET-REMENT

Ja6 U3on ?ul;ll!ent o? t5e 'on2itions set ?ort5 in 3ara:ra35s a6 an2 6 o? Arti'le---( retire!ent o? ?a'ulty !e!ers an2 e!3loyees 'on'erne2 s5all e 'o!3ulsory(unless t5e 1oar2 o? Re:ents e@3ressly an2 in ritin: 2e'i2es to 2e?er t5eirretire!ent on a year to year asis or ?or a 2e;nite 3erio2.

JART-CLE

JTE RET-REMENT PLAN

Ja6 Every ?a'ulty !e!er or e!3loyee is entitle2 to re'eive as retire!ent'o!3ensation an a!ount euivalent to one !ont5 3ay ?or every year o? servi'e.

T5e one !ont5 s5all e 'o!3ute2 as s3e'i;e2 in 3ara:ra35 6 elo. -tali'ssu33lie26


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J6 -n 2eter!inin: t5e one !ont5 salary to 5i'5 a retiree is entitle2( allsalaries( onuses an2 ot5er a!ounts re'eive2 y 5i! as a ?a'ulty !e!er ore!3loyee 2urin: t5e entire 3erio2 o? 5is e!3loy!ent s5all e a22e2 an2 t5e sa!es5all e 2ivi2e2 y t5e nu!er o? years t5at 5e 5as

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een e!3loye29 servi'e e@'ee2in: si@ $6 !ont5s s5all e 'onsi2ere2 as servi'e?or one year. T5e uotient s5all t5en e 2ivi2e2 y telve #)6( in 'ase o? retireesren2erin: servi'es t5rou:5out t5e year( t5at is( 2urin: a 3erio2 o? telve #)6!ont5s( an2 in t5e 'ase o? retirees( not ren2erin: servi'e t5rou:5out t5e year( su'5as ?a'ulty !e!ers not re'eivin: !ont5ly 'o!3ensations( t5e uotient s5all t5ene 2ivi2e2 y t5e nu!er o? !ont5s 2eter!ine2 as ?ollosI #6 i? t5ey tau:5t ?oronly one se!ester 2urin: t5e year( ?our an2 one 5al? 4 #0)6 !ont5s9 )6 i? ?or to

se!esters( nine F6 !ont5s9 &6 i? ?or one se!ester an2 su!!er( $ !ont5s. T5is lastuotient s5all e 'onsi2ere2 ?or t5e 3ur3ose o? t5is retire!ent 3lan.

Joever( any su!s 3ai2 to t5e e!3loyee y reason o? 5is !e!ers5i3 in t5eSo'ial Se'urity Syste! an2 any su!s 3ai2 to 5i! as 'o!3ensation un2er t5e=orH!enGs Co!3ensation A't s5all e e@'lu2e2( t5at is( it s5all not e 'onsi2ere2as 3art o? 5is :ross in'o!e ?or t5e 3ur3ose o? 'o!3utin: 5is retire!ent 3ay.

J-? t5e retiree is an e!3loyee an2 a ?a'ulty !e!er at t5e sa!e ti!e( 5is earnin:s

re'eive2 ?ro! t5e Manuel L. Quezon E2u'ational -nstitution( -n'. in ot5 'ate:oriess5all e a22e2 ?or t5e 3ur3ose o? 2eter!inin: 5is retire!ent 3ay.

J'6 T5e ?a'ulty !e!er or e!3loyee 5o is on an e@ten2e2 leave o? asen'e!ay( at t5e 2is'retion o? t5e 1oar2 o? Re:ents( e 'onsi2ere2 in t5e servi'e'ontinuously until t5e en2 o? 5is e@ten2e2 leave ?or t5e 3ur3ose o? 2eter!inin: t5etenty )*6 years servi'e reuire!ent. erea?ter( no e@ten2e2 leave o? asen'e


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s5all e :rante2 ?or a lon:er 3erio2 t5an one year unless( in s3e'ial 'ases( t5e1oar2 o? Re:ents 2e'i2es ot5erise. E@ten2e2 leave o? asen'e 5ereto?ore :rante2s5all 'ontinue only ?or a 3erio2 o? to years ?ro! t5e a33roval o? t5is 3lan y t5e1oar2 o? Re:ents( unless in s3e'ial 'ases( t5e 1oar2 2e'i2es ot5erise.

J@ @ @ @ @ @ @ @ @

JNoe!i 1. 7uat( no $8 years o? a:e( orHe2 ?or al!ost tenty nine )F6 years an2starte2 as a 3artti!e instru'tor o? t5e 3etitioner( Manuel L. Quezon UniversityMLQU6( ?ro! 7une #$( #F$K until 5er 'o!3ulsory retire!ent on Mar'5 ( #FF4.

J@ @ @ On 7anuary #4( #FF&( t5en MLQU Presi2ent A!a2o Dizon in?or!e2 in ritin:3rivate res3on2ent 7uat t5at s5e as eli:ile ?or retire!ent un2er Arti'le ---( Se'tion

- o? t5e MLQU Retire!ent Plan as 'ite2 in t5e Revise2 a'ulty Manual o? 7une #&(#FF*. T5e retire!ent o? 3rivate res3on2ent as 2e?erre2 e'ause s5e as still:iven tea'5in: loa2 ?or s'5ool year #FFFF4. On eruary #( #FF4 s5e re'eive2anot5er letter ?ro! Presi2ent Dizon in?or!in: 5er t5at s5e as 'onsi2ere2'o!3ulsorily retire2 eBe'tive at t5e en2 o? se'on2 se!ester o? s'5ool year #FFFF4

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3ursuant to t5e Retire!ent Plan. On eruary &( #FF4( 3rivate res3on2ent 7uatre'eive2 a t5ir2 letter ?ro! Dean Leti'ia L. Lava o? 3etitioner UniversityGs S'5ool o?Arts an2 S'ien'e in?or!in: 5er o? t5e a33roval y t5e 1oar2 o? Re:ents 'onsi2erin:5er as 'o!3ulsorily retire2. On Nove!er #%( #FF)( a letter as sent y 3rivateres3on2ent to 3etition inuirin: t5e a!ount o? retire!ent ene;ts 2ue to 5er an2 inres3onse 3etitioner 3rovi2e2 5er it5 a 'o!3utation o? t5e retire!ent ene;tst5rou:5 a letter 2ate2 7uly )F( #FF4. On t5e sa!e 2ay 3rivate res3on2ent 7uatre'eive2( un2er 3rotest( t5e to install!ents o? 5er retire!ent 3ay in t5e total


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a!ount o? P%#($%4.F#( as evi2en'e2 y t5e :eneral vou'5er( 5en t5e alle:e2'orre't a!ount s5oul2 e P#4F(4*#.$).

J1elievin: t5at s5e as entitle2 to a 5i:5er a!ount o? retire!ent ene;ts( 3rivate

res3on2ent en:a:e2 t5e servi'es o? t5e University o? t5e P5ili33ines( O>'e o? Le:alAi2 to 3rose'ute 5er 'lai! ?or 2e;'ien'y. On Se3te!er )*( #FF$ 3rivateres3on2ent t5rou:5 'ounsel sent a letter o? 2e!an2 to MLQU Presi2ent Au:ustSuni'o( 2e!an2in: t5e 3ay!ent o? t5e 2e;'ien'y 3lus interest at t5e rate o? #) ayear ?ro! t5e 2ate o? retire!ent. On O'toer &( #FF$( 3etitioner re3lie2( alle:in:t5at 3rivate res3on2ent as not entitle2 to re'eive retire!ent ene;ts as s5e asonly a J3artti!e e!3loyee o? MLQU( !u'5 less to t5e 3ay!ent o? 2e;'ien'y. -nt5e sa!e letter it e@3resse2 its illin:ness to settle t5e !atter a!i'aly ut to noavail as no a!i'ale settle!ent as rea'5e2. On Mar'5 )K( #FF%( 3rivateres3on2ent ;le2 a 'o!3laint e?ore t5e National Laor Relations Co!!issionNLRC6 to re'over t5e alan'e o? 5er retire!ent ene;ts un2er Re3uli' A't No.%$4#.

JE2ilerto D. Azurin is a Certi;e2 Puli' A''ountant CPA6 an2 as 5ire2 as atea'5er0instru'tor( on a ?ullti!e asis( o? t5e 3etitioner MLQU6 ?or tenty;ve )K6years( ?ro! Se3te!er #F$F until 7une %( #FF4. As !e!er o? t5e ?a'ulty o? t5eS'5ool o? Co!!er'e( 3rivate res3on2ent tau:5t a''ountin: sue'ts in se!estralan2 su!!er 'lasses an2 as liHeise :iven tea'5in: assi:n!ents in ot5er 'olle:eso? 3etitioner university. e re'eive2 !ont5ly 'o!3ensation( t5e last an2 5i:5est o?5i'5 as P##(#**.K*( 3ayale every t5irtiet5 2ay o? every !ont5.

JOn 7une %( #FF4( a letter as re'eive2 y 3rivate res3on2ent Azurin( in?or!in: 5i!t5at 5e as ein: retire2 un2er Arti'le ---( Se'tion a6 o? t5e MLQU Retire!ent Plan.As state2 in sai2 letter( 5e ill re'eive t5e a!ount o? P&4()8).*) 5i'5 a!ount 5ere'eive2 un2er 3rotest( as evi2en'e2 ?or!ally reueste2 ?or re'onsi2eration an2re'o!3utation o? 5is retire!ent o? 5is retire!ent :ratuity( statin: t5at un2er R.A.%$4#( 5e s5oul2 5ave re'eive2 t5e total a!ount o? P#K*()#K.%K ase2 on t5e lastsalary an2 ene;ts re'eive2 y 5i!. Des3ite re'ei3t o? sai2 2e!an2 letter(3etitioner ?aile2 an2 re?use2 an2 'ontinuously re?use to 5ee2 'o!3lain

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antGs 2e!an2 ?or t5e 3ay!ent o? 5is vali2 'lai!( 3ro!3tin: 3rivate res3on2ent toinstitute a 'o!3laint a:ainst 3etitioner asHin: ?or t5e 3ay!ent o? 2e;'ien'y o?retire!ent ene;ts an2 attorneyGs ?ee. T5is as assi:ne2 to onorale LaorAriter 7oven'io Mayor. oever( u3on !otion ?or re'onsi2eration y 5erein3etitioners( t5e 'o!3laint as 'onsoli2ate2 it5 3rivate res3on2ent 7uatGs'o!3laint ;le2 it5 t5e onorale Laor Ariter Manuel R. Ca2ay. A?ter t5e 3arties?aile2 to rea'5 an a!i'ale settle!ent 2urin: t5e 'on'iliatory 3ro'ee2in:s o? t5e'ases( t5ey ere reuire2 to su!it t5eir res3e'tive 3osition 3a3ers. On 7une )4(#FF8( Laor Ariter Manuel R. Ca2ay ren2ere2 a 2e'ision ?or 3etitioners( 2is3osin:t5usI

J=EREORE( 3re!ises 'onsi2ere2( t5e instant 'o!3laints s5oul2 e( as t5ey are5erey D-SM-SSED ?or la'H o? !erit an2 ant o? le:al an2 ?a'tual ases.

JSO ORDERED.

J1elievin: t5at t5e 2e'ision o? Laor Ariter Ca2ay as erroneous 3rivateres3on2ents Azurin an2 7uat ;le2 t5eir Me!oran2u! o? A33eal on 7uly )%( #FF8 an2

7uly &*( #FF8( res3e'tively( it5 t5e NLRC.

JOn O'toer )8( #FF8( t5e T5ir2 Division o? t5e NLRC 'a!e out it5 t5e uestione2resolution( reversin: t5e rulin: o? t5e Laor Ariter( an2 2is3osin: t5usI

J=EREORE( 3re!ises 'onsi2ere2( t5e tin A33eals are 5erey "RANTED e@'e3tit5 re:ar2 to t5e 'lai!s ?or a'tual 2a!a:es an2 ten 3er'ent #*6 attorneyGs ?ees.A''or2in:ly( t5e De'ision a33eale2 ?ro! is 5erey REERSED an2 SET AS-DE an2 ane one entere2 2ire'tin: res3on2ent University to 3ay 'o!3lainants 7uat an2

Azurin t5eir retire!ent 2iBerential 3ay o? P%%(%)$.%) an2 P##K(F&&.%&( res3e'tively(3lus le:al interest o? si@ 3er'ent $6 3er annu! ?ro! t5e 2ate o? ;lin: o? t5eir'o!3laints on Mar'5 )%( #FF% u3 to a'tual 3ay!ent.

JSO ORDERED.


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JOn 7anuary #8( #FFF( a !otion ?or re'onsi2eration as ;le2 y 3etitioner 5i'5as outri:5tly 2enie2 in a resolution 2ate2 Mar'5 #%( #FFF. Dissatis;e2 it5 t5ea?oresai2 2e'ision( 3etitioner ?oun2 its ay to t5is Court via t5e 3etition un2er'onsi2eration( 'onten2in: t5at t5e NLRC :ravely ause2 its 2is'retion in reversin:t5e 2e'ision o? t5e Laor Ariter an2 aar2in: retire!ent ene;ts to 3rivate

res3on2ents 7uat an2 Azurin y :ivin: retroa'tive a33li'ation to t5e 3rovision o? R.A.%$4#.)

) Petition( Anne@ J1( Rollo( 33. K&$8( at 33. K4$*.

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On Se3te!er &( #FFF( t5e Court o? A33eals 3ro!ul:ate2 a 2e'ision& a>r!in: t5eresolutions o? t5e NLRC as set out in t5e o3enin: 3ara:ra35 o? t5is 2e'ision.

On O'toer #4( #FFF( 3etitioners ;le2 a !otion ?or re'onsi2eration o? t5e NLRCresolution.4

On 7anuary #8( )***( t5e Court o? A33eals 2enie2 3etitionerGs !otion ?or

re'onsi2eration.K

en'e( t5is a33eal.$

T5e -ssue


10/12

T5e issue raise2 is 5et5er res3on2ents are entitle2 to t5e retire!ent ene;ts3rovi2e2 ?or un2er Re3uli' A't No. %$4#( even i? t5e 3etitioner 5as an e@istin: vali2retire!ent 3lan.

T5e CourtGs Rulin:

=e a>r! t5e 2e'ision o? t5e Court o? A33eals. T5e la( Re3uli' A't No. %$4#(inten2s to :ive t5e !ini!u! retire!ent ene;ts to e!3loyees not entitle2 t5eretoun2er 'olle'tive ar:ainin: an2 ot5er a:ree!ents. -ts 'overa:e a33lies toestalis5!ents it5 e@istin: 'olle'tive ar:ainin: or ot5er a:ree!ents or voluntaryretire!ent 3lans 5ose ene;ts are less t5an t5ose 3res'rie2 un2er t5e 3roviso inuestion.

Re3uli' A't No. %$4# is a 'urative so'ial le:islation.% 1y t5eir nature( 'urativestatutes !ay e :iven retroa'tive eBe't( unless it ill i!3air veste2 ri:5ts.8

Re3uli' A't No. %$4# 5as retroa'tive

& Su3ra( Notes # an2 ).

4 Petition( Anne@ JC( Rollo( 33. $FF4.

K Petition( Anne@ JA( Rollo( 33. K*K#.

$ ile2 on eruary #4( )***. Petition( Rollo( 33. &4%. On 7uly ( )***( e :ave2ue 'ourse to t5e 3etition Rollo( 33. K4*K4#6.

% Oro Enter3rises( -n'. v. NLRC( )&8 SCRA #*K( ##) #FF4.

8 Develo3!ent 1anH o? t5e P5ili33ines v. Court o? A33eals( F$ SCRA &4)( &K4#F8*9 Sui2o( 7r. v. San2i:anayan( &&4 P5il. &4$9 )$$ SCRA &%F #FF%9Muni'i3ality o? San Nar'iso( Quezon v. Men2ez( Sr.( )&F SCRA ## #FF4.

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eBe't to in'lu2e in its 'overa:e t5e e!3loyeesG servi'es to an e!3loyer ren2ere23rior to its eBe'tivity.F -t a33lies to e!3loyees in t5e e!3loy o? e!3loyers at t5eti!e t5e la tooH eBe't an2 5o are eli:ile to ene;ts un2er t5at statute.#*

T5e allo

=EREORE( e A-RM t5e 2e'ision o? t5e Court o? A33eals in toto.

No 'osts.

SO ORDERED.

Davi2e( 7r. C.7.( C5air!an6( Puno an2 /naresSantia:o( 77.( 'on'ur.

a3unan( 7.( On o>'ial leave.

7u2:!ent a>r!e2 in toto.

Notes.


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Retire!ent las are lierally inter3rete2 in ?avor o? t5e retiree e'ause t5eirintention is to 3rovi2e ?or 5is sustenan'e an2 5o3e?ully even 'o!?ort( 5en 5e nolon:er 5as t5e sta!ina to 'ontinue earnin: 5is liveli5oo2. Reuest o? ClerH o? Court

Tessie L. "at!aitan( CA( ?or Pay!ent o? Retire!ent 1ene;ts o? CA 7usti'e 7or:e S.-!3erial( & SCRA #&4 #FFF6

manuel l. quezon university vs. national labor relations commission, 367 scra 488(2001)

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