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Tag: Part-Time Employees

  • Unlocking Retirement Benefits for Part-Time Workers: A Landmark Philippine Supreme Court Ruling

    Part-Time Employees Deserve Retirement Benefits: A Clear Message from the Philippine Supreme Court

    Father Saturnino Urios University, Inc., et al. v. Atty. Ruben B. Curaza, G.R. No. 223621, June 10, 2020

    Imagine dedicating decades to teaching, shaping young minds, yet being denied the retirement benefits you rightfully earned because you were classified as a part-time employee. This was the reality for Atty. Ruben B. Curaza until the Philippine Supreme Court intervened, setting a precedent that could change the lives of countless part-time workers across the nation.

    In the case of Father Saturnino Urios University, Inc., et al. v. Atty. Ruben B. Curaza, the Supreme Court addressed a critical issue: whether part-time employees are entitled to retirement benefits under Republic Act No. 7641, the Retirement Pay Law. Atty. Curaza, a part-time professor at Father Saturnino Urios University (FSUU), sought retirement benefits after serving for nearly three decades. The university argued that as a part-time employee, he was not eligible. The Court’s decision not only clarified the law but also underscored the importance of recognizing the contributions of all employees, regardless of their employment status.

    Understanding the Legal Landscape

    Republic Act No. 7641, enacted to ensure that employees receive retirement benefits upon reaching the age of 60 and having served at least five years, is a cornerstone of Philippine labor law. The law aims to reward employees for their dedication and service. However, the question of whether part-time employees fall under its purview had been a contentious issue.

    The Supreme Court’s decision hinges on the interpretation of the law’s coverage. The relevant section states, “Any employee may be retired upon reaching the retirement age…” and specifies that employees who have served at least five years are entitled to retirement benefits. Importantly, the law does not explicitly exclude part-time employees.

    The Implementing Rules of the Labor Code further clarify that the law applies to “all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid,” except for specific exemptions. These exemptions include employees of the National Government and its subdivisions, and those of small retail, service, and agricultural establishments.

    A Labor Advisory issued in 1996 by then Secretary of Labor Leonardo A. Quisumbing explicitly includes part-time employees among those covered by the law. This advisory, coupled with the broad language of the statute, forms the legal foundation for the Court’s ruling.

    The Journey to Justice: Atty. Curaza’s Case

    Atty. Ruben B. Curaza began his teaching career at FSUU in 1979, initially as a part-time instructor in commercial law. Over the years, he expanded his role, teaching in various departments and even becoming a pioneering professor in the College of Law. Despite his long service, when he applied for early retirement in 2008, FSUU denied his request, citing his part-time status.

    Undeterred, Atty. Curaza filed a complaint with the National Labor Relations Commission (NLRC) in 2010, seeking retirement benefits, damages, and attorney’s fees. The university argued that Atty. Curaza was not a permanent employee and therefore not entitled to benefits under Republic Act No. 7641.

    The Executive Labor Arbiter ruled in favor of Atty. Curaza, stating that the law applies to part-time employees and that his 24 years of service qualified him for retirement benefits. On appeal, the NLRC affirmed this decision.

    The case eventually reached the Court of Appeals, which upheld the NLRC’s ruling but modified the computation of Atty. Curaza’s service to 22 years based on his teaching load records. The university and the Catholic Educational Association of the Philippines, as intervenor, sought a review by the Supreme Court, arguing that part-time employees cannot attain regular permanent status and thus should not receive retirement benefits.

    The Supreme Court, however, rejected these arguments. In its decision, the Court emphasized that Republic Act No. 7641 does not distinguish between permanent and non-permanent employees. The Court stated, “The text of the law as passed nonetheless makes no distinction between permanent and non-permanent employees. Thus, the exclusion of non-permanent employees from the coverage of Republic Act No. 7641 has no legal basis.”

    Furthermore, the Court upheld the Court of Appeals’ computation of Atty. Curaza’s service, affirming that he was entitled to retirement benefits for 22 years of service.

    Impact and Practical Advice

    The Supreme Court’s ruling in this case sets a significant precedent for part-time employees across the Philippines. It affirms that part-time workers are entitled to retirement benefits under Republic Act No. 7641, provided they meet the age and service requirements.

    For businesses and educational institutions, this decision means reviewing and potentially revising employment policies to ensure compliance with the law. Employers must recognize that part-time employees contribute significantly to their operations and should be treated fairly in terms of retirement benefits.

    Individuals working part-time should be aware of their rights under the law. If you believe you are eligible for retirement benefits, it is crucial to document your service carefully and, if necessary, seek legal advice to enforce your rights.

    Key Lessons:

    • Part-time employees are entitled to retirement benefits under Republic Act No. 7641 if they meet the age and service requirements.
    • Employers must ensure their retirement policies comply with the law and do not discriminate against part-time workers.
    • Employees should keep detailed records of their service to support claims for retirement benefits.

    Frequently Asked Questions

    Who is covered by Republic Act No. 7641?

    All employees in the private sector, regardless of their employment status, are covered by the law, except for specific exemptions such as government employees and those of small establishments.

    How many years of service are required to qualify for retirement benefits?

    An employee must have served at least five years to be eligible for retirement benefits under Republic Act No. 7641.

    Can part-time employees claim retirement benefits if they have worked for multiple employers?

    Yes, as long as the total service across all employers meets the five-year requirement, part-time employees can claim retirement benefits.

    What should I do if my employer denies me retirement benefits?

    You should gather evidence of your service and consider filing a complaint with the National Labor Relations Commission or seeking legal advice.

    How is the length of service calculated for part-time employees?

    The length of service is typically calculated based on the actual time worked, as evidenced by employment records and payroll documents.

    ASG Law specializes in labor and employment law. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Retirement Rights for Part-Time Employees: De La Salle Araneta University vs. Bernardo

    In De La Salle Araneta University vs. Juanito C. Bernardo, the Supreme Court affirmed that part-time employees are entitled to retirement benefits under Republic Act No. 7641, also known as the New Retirement Law. The Court emphasized that the law’s coverage extends to all employees in the private sector, regardless of their employment status, unless specifically exempted. This decision ensures that part-time workers who meet the age and service requirements receive retirement pay, promoting social justice and protecting vulnerable employees.

    Beyond Full-Time: Does Retirement Law Protect Part-Time Lecturers?

    Juanito C. Bernardo, a part-time lecturer at De La Salle Araneta University (DLS-AU), sought retirement benefits after teaching for 27 years. Despite his long service, DLS-AU denied his claim, arguing that only full-time permanent faculty were entitled to such benefits based on university policy and the Collective Bargaining Agreement (CBA). Bernardo filed a complaint, leading to a legal battle that questioned whether Republic Act No. 7641, the New Retirement Law, extends protection to part-time employees. The core legal question was whether Bernardo, as a part-time lecturer, was entitled to retirement benefits under the law, despite the university’s internal policies.

    The Labor Arbiter initially dismissed Bernardo’s complaint, citing prescription. It was argued that Bernardo should have claimed his retirement benefits upon reaching the compulsory retirement age of 65, not ten years later when he was 75. However, the National Labor Relations Commission (NLRC) reversed this decision, finding that Bernardo’s claim was timely because DLS-AU had extended his employment beyond the standard retirement age. The NLRC emphasized that Republic Act No. 7641 does not exclude part-time employees from enjoying retirement benefits, citing the law’s broad coverage of all private-sector employees, regardless of status.

    The Court of Appeals affirmed the NLRC’s decision, reinforcing the principle that labor and social laws should be liberally construed to favor employees. DLS-AU then elevated the case to the Supreme Court, raising two key issues: whether part-time employees are excluded from retirement benefits under Republic Act No. 7641, and whether Bernardo’s claim had prescribed under Article 291 of the Labor Code. The Supreme Court ultimately sided with Bernardo, emphasizing that Republic Act No. 7641’s coverage includes part-time employees unless they fall under specific exemptions.

    The Supreme Court began its analysis by addressing Bernardo’s employment status. While acknowledging that Bernardo was a part-time lecturer with a fixed-term contract, the Court clarified that these factors were not relevant to his claim for retirement benefits. Bernardo was not questioning his termination but asserting his right to retirement benefits after the termination of his employment at age 75. This distinction was crucial in understanding the legal basis for Bernardo’s claim.

    The Court then delved into the core issue of whether part-time employees are entitled to retirement benefits. The Court emphasized that Republic Act No. 7641 is a curative social legislation designed to provide minimum retirement benefits to employees not covered by collective bargaining agreements or other retirement plans. Article 302 [287] of the Labor Code, as amended by Republic Act No. 7641, states that any employee may be retired upon reaching the retirement age and is entitled to retirement benefits under existing laws and agreements.

    To reinforce this point, the Court cited Book VI, Rule II of the Rules Implementing the Labor Code, which describes the broad coverage of Republic Act No. 7641, explicitly including all employees in the private sector, regardless of their position, designation, or status. The only exemptions are employees of the National Government, domestic helpers, and employees of retail, service, and agricultural establishments employing not more than ten employees. The Court noted that Bernardo did not fall under any of these exemptions.

    The Court also highlighted a Labor Advisory issued by then Secretary of Labor Leonardo A. Quisumbing, which provided guidelines for the effective implementation of Republic Act No. 7641. This advisory explicitly stated that the law applies to all employees in the private sector, including part-time employees. The Supreme Court gave weight to this contemporaneous interpretation of the law by administrative officials charged with its enforcement.

    The Court applied the rule of statutory construction of expressio unius est exclusio alterius, meaning the express mention of one thing implies the exclusion of all others. Since part-time employees were not among those specifically exempted under Republic Act No. 7641, their claim for retirement benefits could not be denied on that basis. The Court stated that the Implementing Rules partake the nature of a statute and are binding as if written in the law itself.

    Addressing the issue of prescription, the Court rejected DLS-AU’s argument that Bernardo’s claim had prescribed because he filed it more than three years after reaching the compulsory retirement age of 65. The Court emphasized that a cause of action has three elements: a right in favor of the plaintiff, an obligation on the part of the defendant, and a violation of the plaintiff’s right by the defendant.

    In Bernardo’s case, the cause of action accrued only after DLS-AU informed him that his contract would not be renewed and subsequently denied his claim for retirement benefits. The Court found that DLS-AU’s refusal to pay the retirement benefits, as expressed in Dr. Bautista’s letter dated February 12, 2004, triggered the prescriptive period. Therefore, Bernardo’s complaint filed on February 26, 2004, was well within the three-year period provided under Article 291 of the Labor Code.

    The Court further invoked the equitable doctrine of estoppel. This doctrine prevents a party from denying a fact that they have previously acted in a way that suggests its truth, especially when another party has relied on that conduct to their detriment. DLS-AU had repeatedly extended Bernardo’s employment even after he reached the compulsory retirement age, leading him to believe that he would be entitled to retirement benefits upon the actual termination of his employment. The Court held that DLS-AU could not now escape its obligation by blaming Bernardo for the delayed claim.

    FAQs

    What was the key issue in this case? The primary issue was whether a part-time employee is entitled to retirement benefits under Republic Act No. 7641, despite not being a full-time permanent employee.
    What is Republic Act No. 7641? Republic Act No. 7641, also known as the New Retirement Law, provides for retirement benefits for employees in the private sector, aiming to ensure their financial security after retirement.
    Are part-time employees covered by Republic Act No. 7641? Yes, the Supreme Court affirmed that part-time employees are covered by Republic Act No. 7641 unless they fall under specific exemptions, such as government employees or those in small retail establishments.
    What are the requirements to qualify for retirement benefits under this law? To qualify, an employee must have reached the age of 60 for optional retirement or 65 for compulsory retirement, and must have served at least five years in the establishment.
    What does “expressio unius est exclusio alterius” mean? It’s a rule of statutory construction meaning the express mention of one thing implies the exclusion of all others. In this case, since part-time employees weren’t excluded, they’re included.
    When does the cause of action for retirement benefits accrue? The cause of action accrues when the employer refuses to pay the retirement benefits after the employee’s separation from service. This is when the prescriptive period begins.
    What is the doctrine of estoppel? The doctrine of estoppel prevents a party from denying a fact that they have previously acted in a way that suggests its truth, especially when another party has relied on that conduct.
    Why was the doctrine of estoppel applied in this case? It was applied because DLS-AU continuously extended Bernardo’s employment beyond the compulsory retirement age, leading him to believe he would receive retirement benefits upon termination.
    How is retirement pay calculated under Republic Act No. 7641? Retirement pay is equivalent to at least one-half month salary for every year of service, with a fraction of at least six months being considered as one whole year.

    The Supreme Court’s decision in De La Salle Araneta University vs. Juanito C. Bernardo reinforces the broad protective scope of Republic Act No. 7641, ensuring that part-time employees are not unjustly excluded from retirement benefits. This ruling underscores the importance of social justice and equitable treatment in labor relations, providing a safety net for vulnerable employees who contribute significantly to the workforce. For businesses, it is a reminder to review retirement policies to ensure compliance with the law and to avoid potential liabilities.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: De La Salle Araneta University, vs. Juanito C. Bernardo, G.R. No. 190809, February 13, 2017