Republic of the Philippines

Supreme Court
Manila

THIRD DIVISION


ALBERTO P O!ALES" #R No $%&''$
Petitioner,
Present:

YNARES-SANTIAGO, J.,
Chairperson,
- versus - QUISUMBING*
AUSTRIA-MARTINEZ,
AZCUNA,** and
REYES, JJ

Pro!"#$ated:
(NITED LABORATORIES" INC"
Res%ondent &"#' (), (**+

, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,


D E C I S I O N



RE)ES" RT" J*


-O. s/o"#d a %ri0ate 1o!%an' retire!ent %#an 2or e!%#o'ees 3e
i!%#e!ented 0is-4-0is T/e Retire!ent Pa' 5a6 7Re%"3#i1 A1t No 89:);<

Papaano ipapatupad ang isang plano ng pribadong kompanya para sa
pagreretiro ng mga empleyado sa harap ng Batas ng Pagbabayad sa Pagreretiro
(Batas Republika Blg. 7641)?


.e address t/e 1on1ern in t/is a%%ea# 3' certiorari o2 t/e =e1ision o2 t/e
Co"rt o2 A%%ea#s 7CA; a22ir!in$ t/e Reso#"tion and =e1ision o2 t/e 5a3or Ar3iter
and t/e Nationa# 5a3or Re#ations Co!!ission 7N5RC;, res%e1ti0e#', dis!issin$
%etitioner A#3erto P O,a#es> 1o!%#aint 2or additiona# retire!ent 3ene2its, re1o0er'
o2 t/e 1as/ e?"i0a#ent o2 /is "n"sed si1@ #ea0es, da!a$es, and attorne'>s 2ees,
a$ainst res%ondent United 5a3oratories, In1 7UNI5AB;

The +,cts

So!eti!e in )ABA, UNI5AB esta3#is/ed t/e United Retire!ent P#an 7URP;
T/e %#an is a 1o!%re/ensi0e retire!ent %ro$ra! ai!ed at %ro0idin$ 2or
retire!ent, resi$nation, disa3i#it', and deat/ 3ene2its o2 its !e!3ers An e!%#o'ee
o2 UNI5AB 3e1o!es a !e!3er o2 t/e URP "%on /is re$"#ariCation in t/e
1o!%an' T/e URP !andates t/e 1o!%"#sor' retire!ent o2 an' !e!3er-e!%#o'ee
6/o rea1/es t/e a$e o2 9*

Bot/ UNI5AB and t/e e!%#o'ee 1ontri3"te to t/e URP On one /and,
UNI5AB %ro0ides 2or t/e a11o"nt o2 t/e e!%#o'ee an a1t"aria##'-deter!ined
a!o"nt to Tr"st D"nd A On t/e ot/er /and, t/e e!%#o'ee 1/i%s in (EF o2 /is
!ont/#' sa#ar' to Tr"st D"nd B U%on retire!ent, t/e e!%#o'ee $ets 3ot/ a!o"nts
standin$ in /is na!e in Tr"st D"nd A and Tr"st D"nd B

As retire!ent 3ene2its, t/e e!%#o'ee re1ei0es 7); 2ro! Tr"st D"nd A a #"!%
s"! o2 )E !ont/>s %a' %er 'ear o2 ser0i1e G3ased on t/e !e!3er>s #ast or ter!ina#
3asi1 !ont/#' sa#ar',H and 7(; 6/ate0er t/e e!%#o'ee /as 1ontri3"ted to Tr"st
D"nd B, to$et/er 6it/ t/e in1o!e !in"s an' #osses in1"rred T/e URP e,1#"des
1o!!issions, o0erti!e, 3on"ses, or e,tra 1o!%ensations in t/e 1o!%"tation o2 t/e
3asi1 sa#ar' 2or %"r%oses o2 retire!ent

O,a#es Ioined UNI5AB on Se%te!3er ), )A9+ -e 6as 1o!%"#sori#' retired
3' UNI5AB 6/en /e rea1/ed /is 9*t/ 3irt/da' on Se%te!3er 8, )AA:, a2ter /a0in$
rendered ser0i1e o2 t6ent'-2i0e 7(B; 'ears, e#e0en 7)); !ont/s, and si, 79; da's
-e 6as t/en =ire1tor o2 Man"2a1t"rin$ Ser0i1es Gro"%

In 1o!%"tin$ t/e retire!ent 3ene2its o2 O,a#es 3ased on t/e )E !ont/s 2or
e0er' 'ear o2 ser0i1e "nder t/e URP, UNI5AB too@ into a11o"nt on#' /is 3asi1
!ont/#' sa#ar' It did not in1#"de as %art o2 t/e sa#ar' 3ase t/e %er!anent and
re$"#ar 3on"ses, reasona3#e 0a#"e o2 2ood a##o6an1es, )J)( o2 t/e )Kt/ !ont/ %a',
and t/e 1as/ e?"i0a#ent o2 ser0i1e in1enti0e #ea0e

T/"s, O,a#es re1ei0ed 2ro! Tr"st D"nd A P),BAA,)8A**, instead o2
P:,(9*,(BB8* -e a#so re1ei0ed P)89,K)K*9, instead o2 P:B9,*KA(* as 1as/
e?"i0a#ent o2 /is "n"sed si1@ #ea0es 5ast#', /e re1ei0ed PKA8,8K+KK 2ro! /is
1ontri3"tions to Tr"st D"nd B In s"!, O,a#es re1ei0ed t/e tota# a!o"nt o2
P (,)8K,(K*KA as /is retire!ent 3ene2its

On A"$"st (), )AA8, O,a#es 6rote UNI5AB, 1#ai!in$ t/at /e s/o"#d /a0e
3een %aid P),88B,A*8(K !ore in retire!ent %a' and "n"sed #ea0e 1redits -e
insisted t/at /is 3on"ses, a##o6an1es and )Kt/ !ont/ %a' s/o"#d /a0e 3een
2a1tored in t/e 1o!%"tation o2 /is retire!ent 3ene2its

On Se%te!3er A, )AA8, UNI5AB 6rote 3a1@ and re!inded O,a#es a3o"t t/e
%ro0ision o2 t/e URP e,1#"din$ an' 1o!!issions, o0erti!e, 3on"ses or e,tra
1o!%ensations in t/e 1o!%"tation o2 t/e 3asi1 sa#ar' o2 t/e retirin$ e!%#o'ee

=is$r"nt#ed, O,a#es 2i#ed a 1o!%#aint 6it/ t/e 5a3or Ar3iter 2or 7); t/e
1orre1t 1o!%"tation o2 /is retire!ent 3ene2its, 7(; re1o0er' o2 t/e 1as/ e?"i0a#ent
o2 /is "n"sed si1@ #ea0es, 7K; da!a$es, and 7:; attorne'>s 2ees -e ar$"ed t/at in
t/e 1o!%"tation o2 /is retire!ent 3ene2its, UNI5AB s/o"#d /a0e in1#"ded in /is
3asi1 %a' t/e 2o##o6in$, to 6it: 7a; 1as/ e?"i0a#ent o2 not !ore t/an 2i0e 7B; da's
ser0i1e in1enti0e #ea0eL 73; )J)(t/ o2 )Kt/ !ont/ %a'L and 71; a## ot/er 3ene2its /e
/as 3een re1ei0in$

E22orts 6ere e,erted 2or a %ossi3#e a!i1a3#e sett#e!ent As t/is %ro0ed
2"ti#e, t/e %arties 6ere re?"ired to s"3!it t/eir res%e1ti0e %#eadin$s and %osition
%a%ers

L,bor Arbiter" NLRC ,n- CA Dispositions

On &"ne K*, )AA+, 5a3or Ar3iter Ro!"#"s A Protasio rendered a de1ision
dis!issin$ t/e 1o!%#aint, t/"s:

.HERE+ORE" %re!ises 1onsidered, I"d$!ent is /ere3' rendered
dis!issin$ t/e instant 1o!%#aint 2or #a1@ o2 !erit

SO OR=ERE=

T/e 5a3or Ar3iter /e#d t/at t/e URP 1#ear#' e,1#"des 1o!!ission, o0erti!e,
3on"ses, or ot/er e,tra 1o!%ensation -en1e, t/e 3ene2its as@ed 3' O,a#es to 3e
in1#"ded in t/e 1o!%"tation o2 /is retire!ent 3ene2its s/o"#d 3e e,1#"ded

T/e Ar3iter a#so /e#d t/at t/e in1#"sion o2 t/e 2rin$e 3ene2its 1#ai!ed 3'
O,a#es 6o"#d %"t UNI5AB in 0io#ation o2 t/e ter!s and 1onditions set 2ort/ 3' t/e
B"rea" o2 Interna# Re0en"e 7BIR; 6/en it a%%ro0ed t/e URP as a ta,-?"a#i2ied
%#an More, an' o0er%a'!ent o2 3ene2its 6o"#d ad0erse#' a22e1t t/e a1t"aria#
so"ndness o2 t/e %#an It 6o"#d a#so e,%ose t/e tr"stees o2 t/e URP to #ia3i#ities
and %reI"di1e t/e ot/er e!%#o'ees .orse, t/e BIR !i$/t e0en 6it/dra6 t/e ta,
e,e!%tion $ranted to t/e URP 5ast#', t/e 5a3or Ar3iter o%ined t/at t/e URP
%re1#"des t/e a%%#i1ation o2 t/e %ro0isions o2 RA No 89:)

O,a#es a%%ea#ed to t/e N5RC On De3r"ar' +, )AAA, t/e N5RC a22ir!ed t/e
de1ision o2 t/e 5a3or Ar3iter, dis%osin$ as 2o##o6s:

.-EREDORE, in 0ie6 t/ereo2, t/e instant a%%ea# is /ere3' dis!issed 2or
#a1@ o2 !erit and t/e a%%ea#ed de1ision is ordered a22ir!ed

SO OR=ERE=

T/e N5RC r"#ed t/at t/e inter%retation 3' O,a#es o2 RA No 89:) is
se#e1ti0e -e on#' 1"##ed t/e %ro0isions t/at are 3ene2i1ia# to /i!, %"ttin$ in $ra0e
do"3t t/e sin1erit' o2 /is !oti0es Dor instan1e, /e 1#ai!s t/at t/e 0a#"e o2 t/e
2ood 3ene2its and ot/er a##o6an1es s/o"#d 3e in1#"ded in /is !ont/#' sa#ar' as
!"#ti%#i1and to t/e n"!3er o2 /is 'ears o2 ser0i1e 6it/ UNI5AB At t/e sa!e
ti!e, /o6e0er, /e does not intend to red"1e t/e )E !ont/ sa#ar' as !"#ti%#ier
"nder t/e URP to E "nder RA No 89:)

T/e N5RC a$reed 6it/ t/e 5a3or Ar3iter t/at t/e %ro0isions o2 RA No
89:) do not a%%#' in 0ie6 o2 t/e URP T/e N5RC a#so too@ into a11o"nt t/e 2a1t
t/at t/e 3ene2its $ranted to O,a#es 3' 0irt"e o2 t/e URP 6as e0en /i$/er t/an 6/at
RA No 89:) re?"ires

-is !otion 2or re1onsideration /a0in$ 3een denied, O,a#es 2i#ed 6it/ t/e CA
a %etition 2or certiorari "nder R"#e 9B


In a de1ision %ro!"#$ated on A%ri# )(, (**(, t/e CA dis!issed t/e %etition
T/e CA r"#ed t/at t/e %etition o2 O,a#es 1a##s 2or a re0ie6 o2 t/e 2a1t"a# 2indin$s o2
t/e 5a3or Ar3iter as a22ir!ed 3' t/e N5RC It is not t/e nor!a# 2"n1tion o2 t/e
CA in a s%e1ia# 1i0i# a1tion 2or certiorari to in?"ire into t/e 1orre1tness o2 t/e
e0a#"ation o2 t/e e0iden1e 3' t/e 5a3or Ar3iter Its a"t/orit' is 1on2ined on#' to
iss"es o2 I"risdi1tion or $ra0e a3"se o2 dis1retion

&"st #i@e t/e 5a3or Ar3iter and t/e N5RC, t/e CA a#so /e#d t/at RA No
89:) is a%%#i1a3#e on#' in t/e a3sen1e o2 a retire!ent %#an or a$ree!ent %ro0idin$
2or t/e retire!ent 3ene2its o2 e!%#o'ees in an esta3#is/!ent

Dina##', t/e CA denied t/e 1#ai! o2 O,a#es to !ora# and e,e!%#ar'
da!a$es A11ordin$ to t/e a%%e##ate 1o"rt, /e 2ai#ed to %ro0e t/e %resen1e o2 3ad
2ait/ or 2ra"d on t/e %art o2 UNI5AB -is !ere a##e$ations o2 /a0in$ s"22ered
s#ee%#ess ni$/ts, serio"s an,iet', and !enta# an$"is/ are not eno"$/ No %re!i"!
s/o"#d 3e %#a1ed on t/e ri$/t to #iti$ate

5e2t 6it/ no ot/er o%tion, O,a#es 2i#ed t/e %resent re1o"rse "nder R"#e :B o2
t/e )AA8 R"#es o2 Ci0i# Pro1ed"re

Issues

In /is Me!orand"!, O,a#es raises t/e 2o##o6in$ iss"es 2or O"r dis%osition,
to 6it:

) .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT DIN=ING T-AT ACCOR=ING TO PREMAI5ING &URISPRU=ENCE,
SUC- ERRORS IN T-E COMPUTATION OD RETIREMENT BENEDITS OD
PETITIONER S-OU5= BE CORRECTE= IN A SPECIA5 ACTION DOR
CERTIORARIL

( .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT DIN=ING T-AT T-E N5RC COMMITTE= GRAME ABUSE OD
=ISCRETION IN INCORRECT5Y INTERPRETING T-E URP TO ENC5U=E
SEMERA5 REMUNERATIONS DROM T-E SAI= SA5ARY BASEL

K .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE=
AN= COMMITTE= GRAME ABUSE OD =ISCRETION IN TOTA55Y
IGNORING T-E ISSUE AN= IN NOT DIN=ING T-AT T-E N5RC
COMMITTE= GRAME ABUSE OD =ISCRETION IN INCORRECT5Y
INTERPRETING T-E URP TO ENC5U=E PERMANENT AN= REGU5AR
A55O.ANCES DROM T-E SA5ARY BASE DOR COMPUTING
RETIREMENT BENEDITS OD PETITIONERL

: .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT DIN=ING T-AT T-E N5RC COMMITTE= GRAME ABUSE OD
=ISCRETION IN INCORRECT5Y INTERPRETING T-E URP TO ENC5U=E
PERMANENT AN= REGU5AR REMUNERATIONS MIS5ABE5E= AS
BONUSES DROM T-E SA5ARY BASE DOR COMPUTING T-E
RETIREMENT BENEDITS OD T-E PETITIONERL

B .-ET-ER OR NOT T-E COURT OD APPEA5S ERRE= IN NOT
DIN=ING T-AT T-E N5RC COMMITTE= GRAME ABUSE OD
=ISCRETION IN INCORRECT5Y INTERPRETING T-E URP TO ENC5U=E
ONE T.E5DT- 7)J)(t/; OD T-E STATUTORY T-IRTEENT- MONT- PAY
DROM T-E SA5ARY BASE DOR COMPUTING RETIREMENT BENEDITSL

9 .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
T-E INTERPRETATION OD RA NO 89:) .-EN IT CONC5U=E= T-AT
T-E SAI= 5A. IS APP5ICAB5E ON5Y IN T-E ABSENCE OD
RETIREMENT P5AN OR AGREEMENT PROMI=ING DOR T-E
RETIREMENT BENEDITS OD EMP5OYEES IN AN ESTAB5IS-MENTL

8 .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT DIN=ING T-AT T-E =EDINITION OD GSA5ARYH UN=ER T-E
IMP5EMENTING RU5ES OD RA NO 89:) S-OU5= BE INTERPRETE=
TO INC5U=E T-E PERMANENT AN= REGU5AR REMUNERATIONS OD
PETITIONER IN T-E SA5ARY BASE DOR COMPUTING RETIREMENT
BENEDITSL

+ .-ET-ER OR NOT T-E 5ABOR ARBITER, T-E N5RC, AN= COURT
OD APPEA5S COMMITTE= GRAME ABUSE OD =ISCRETION IN
IGNORING AN= NOT RESO5MING T-E ISSUES REGAR=ING
PETITIONER>S UNPAI= CAS- EQUIMA5ENT OD T-E UNUSE= SICO
5EAME CRE=ITSL

A .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT RU5ING T-AT T-E N5RC GRAME5Y ABUSE= ITS
=ISCRETION IN ITS DAI5URE TO PROPER5Y INTERPRET T-E URP IN
=ETERMINING T-E EMP5OYMENT PERIO= OD PETITIONER DOR T-E
PURPOSE OD COMPUTING RETIREMENT BENEDITSL

)* .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT RU5ING T-AT T-E N5RC COMMITTE= GRAME ABUSE OD
=ISCRETION IN NOT REINSTATING T-E ME=ICA5 RETIREMENT
BENEDITS OD PETITIONERL

)) .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE=
AN= GRAME5Y ABUSE= ITS =ISCRETION IN TOTA55Y AN=
ARBITRARI5Y IGNORING T-E ISSUE AN= IN NOT DIN=ING T-AT T-E
N5RC COMMITTE= GRAME ABUSE OD =ISCRETION IN REN=ERING A
=ECISION IN MIO5ATION OD T-E CONSTITUTIONA5 REQUIREMENTS
.-IC- IN EDDECT =ENIE= PETITIONER>S RIG-T TO =UE PROCESSL

)( .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE=
AN= GRAME5Y ABUSE= ITS =ISCRETION IN 5IOE.ISE REN=ERING A
=ECISION IN MIO5ATION OD T-E CONSTITUTIONA5 REQUIREMENT
T-AT =ECISIONS S-OU5= ENPRESS C5EAR5Y AN= =ISTINCT5Y T-E
DACTS OD T-E CASE AN= T-E 5A. ON .-IC- IT IS BASE=L

)K .-ET-ER OR NOT T-E COURT OD APPEA5S SERIOUS5Y ERRE= IN
NOT GRANTING MORA5 AN= ENEMP5ARY =AMAGES AN=
ATTORNEY>S DEES TO PETITIONERL

): .-ET-ER OR NOT T-E SUPREME COURT S-OU5= GRANT
PETITIONER UNPAI= RETIREMENT PAY, UNPAI= CAS- EQUIMA5ENT
OD UNUSE= 5EAME CRE=ITS, REINSTATEMENT OD ME=ICA5
BENEDITS, MORA5 AN= ENEMP5ARY =AMAGES, AN= ATTORNEY>S
DEES 7Unders1orin$ s"%%#ied;

T/e iss"es %osed 3' O,a#es !a' 3e 1o!%ressed as 2o##o6s: first, 6/et/er in
t/e 1o!%"tation o2 /is retire!ent and si1@ #ea0e 3ene2its, UNI5AB s/o"#d /a0e
2a1tored s"1/ 3ene2its #i@e 3on"ses, 1as/ and !ea# a##o6an1es, ri1e rations, ser0i1e
in1enti0e #ea0es, and )J)( o2 t/e )Kt/ !ont/ %a'L secon-, 6/et/er RA No 89:)
is a%%#i1a3#e 2or %"r%oses o2 1o!%"tin$ /is retire!ent 3ene2itsL and thir-, 6/et/er
UNI5AB is #ia3#e 2or !ora# da!a$es, e,e!%#ar' da!a$es, and attorne'>s 2ees





Our Rulin/

he !lear language o" the #RP should be
respe!ted.

A retirement pl,n in a 1o!%an' %arta@es t/e nat"re o2 a 1ontra1t, 6it/ t/e
e!%#o'er and t/e e!%#o'ee as t/e 1ontra1tin$ %arties It 1reates a 1ontra1t"a#
o3#i$ation in 6/i1/ t/e %ro!ise to %a' retire!ent 3ene2its is !ade in 1onsideration
o2 t/e 1ontin"ed 2ait/2"# ser0i1e o2 t/e e!%#o'ee 2or t/e re?"isite %eriod

T/e e!%#o'er and t/e e!%#o'ee !a' esta3#is/ s"1/ sti%"#ations, 1#a"ses,
ter!s, and 1onditions as t/e' !a' dee! 1on0enient In Allgeyer v. Louisiana, New
or! Li"e Ins. Co. v. #o$ge, Coppage v. %ansas, A$air v. &nite$ 'tates, Lochner v.
New or!, and (uller v. Oregon, t/e United States S"%re!e Co"rt /e#d t/at t/e
ri$/t to 1ontra1t a3o"t one>s a22air is %art and %ar1e# o2 t/e #i3ert' o2 t/e indi0id"a#
6/i1/ is %rote1ted 3' t/e Gd"e %ro1ess o2 #a6H 1#a"se o2 t/e Constit"tion

T/e o3#i$ations arisin$ 2ro! t/e a$ree!ent 3et6een t/e e!%#o'er and t/e
e!%#o'ee /a0e t/e 2or1e o2 #a6 3et6een t/e! and s/o"#d 3e 1o!%#ied 6it/ in
$ood 2ait/ -o6e0er, t/o"$/ t/e e!%#o'er and t/e e!%#o'ee are $i0en t/e 6idest
#atit"de %ossi3#e in t/e 1ra2tin$ o2 t/eir 1ontra1t, s"1/ ri$/t is not a3so#"te T/ere
is no s"1/ t/in$ as a3so#"te 2reedo! o2 1ontra1t A #i!itation is %ro0ided 2or 3'
t/e #a6 itse#2 T/eir sti%"#ations, 1#a"ses, ter!s, and 1onditions s/o"#d not 3e
1ontrar' to #a6, !ora#s, $ood 1"sto!s, %"3#i1 order, or %"3#i1 %o#i1' Indeed, t/e
#a6 res%e1ts t/e 2reedo! to 1ontra1t 3"t, at t/e sa!e ti!e, is 0er' Cea#o"s in
%rote1tin$ t/e 1ontra1tin$ %arties and t/e %"3#i1 in $enera# So !"1/ so t/at t/e
1ontra1tin$ %arties need not in1or%orate t/e e,istin$ #a6s in t/eir 1ontra1t, as t/e
#a6 is dee!ed 6ritten in e0er' 1ontra1t )uan$o a*est, proviso parties, a$est
proviso legis ./en t/e %ro0ision o2 t/e %art' is #a1@in$, t/e %ro0ision o2 t/e #a6
s"%%#ies it $ung may kulang na kondisyon sa isang kasunduan% ang batas ang
magdaragdag dito.

Mie6ed 2ro! t/e 2ore$oin$, .e r"#e t/at O,a#es is not entit#ed to t/e
additiona# retire!ent 3ene2its /e is as@in$ T/e URP is 0er' 1#ear: G3asi1 !ont/#'
sa#ar'H 2or %"r%oses o2 1o!%"tin$ t/e retire!ent %a' is Gt/e 3asi1 !ont/#' sa#ar',
or i2 dai#'P,Q !eans t/e 3asi1 rate o2 %a' 1on0erted to 3asi1 !ont/#' sa#ar' o2 t/e
e!%#o'ee e0clu-in/ an' 1o!!issions, o0erti!e, 3on"ses, or e,tra
1o!%ensationsH Inclusio unius est e+clusio alterius. T/e in1#"sion o2 one is t/e
e,1#"sion o2 ot/ers &ng pagsama ng isa% pagp'era naman sa iba.

The (RP is not contr,r1 to l,2" mor,ls" /oo- customs" public or-er" or
public polic1 to merit its nullific,tion .e, t/"s, s"stain it At 2irst 3#"s/, t/e
URP see!s to 3e disad0anta$eo"s to t/e retirin$ e!%#o'ee 3e1a"se o2 t/e
e,1#"sion o2 1o!!issions, o0erti!e, 3on"ses, or e,tra 1o!%ensations in t/e
1o!%"tation o2 t/e 3asi1 !ont/#' sa#ar' -o6e0er, a 1#ose readin$ o2 its
%ro0isions 6o"#d re0ea# ot/er6ise .e ?"ote 6it/ a%%ro0a# t/e e,%#anation o2 t/e
N5RC in t/is re$ard, vi,.:

, , , t/e United Retire!ent P#an o2 t/e res%ondent PUni#a3Q /as a one and
one-/a#2 !ont/s sa#ar' 2or e0er' 'ear o2 ser0i1e as t/e 3asis o2 entit#e!ent
Under t/e ne6 #a6, on#' one-/a#2 !ont/ o2 t/e retiree>s sa#ar' in1#"si0e /o6e0er,
o2 not !ore t/an 2i0e 7B; da's o2 ser0i1e in1enti0e #ea0e and one-t6e#2t/ 7)J)(; o2
t/e )Kt/ !ont/ %a' are "sed as t/e 3ases in t/e retire!ent 3ene2its 1o!%"tation

Mat/e!ati1a##' s%ea@in$ t/ere2ore, 1o!%#ainant>s PO,a#esQ 3ene2its
re1ei0ed a!o"ntin$ to P ),BAA,)8A** "nder Tr"st D"nd A to$et/er 6it/ t/e 1as/
e?"i0a#ent o2 /is "n"sed #ea0es 6/i1/ /as an a!o"nt o2 P )89,K)K*9 and /is
1ontri3"tion in t/e Tr"st D"nd B a!o"ntin$ to P KA8,8K+KK are 6a' a3o0e t/e
entit#e!ent /e 1o"#d /a0e re1ei0ed "nder Re%"3#i1 A1t 89:), ot/er6ise @no6n as
t/e Ne6 Retire!ent 5a6 7Unders1orin$ s"%%#ied;

Bot/ #a6 and I"ris%r"den1e !andate t/at i2 t/e ter!s o2 a 1ontra1t are 1#ear
and #ea0e no do"3t "%on t/e intention o2 t/e 1ontra1tin$ %arties, t/e #itera# !eanin$
o2 its sti%"#ations s/a## 1ontro# T/"s, i2 t/e ter!s o2 a 6ritin$ are %#ain and
"na!3i$"o"s, t/ere is no roo! 2or 1onstr"1tion, sin1e t/e on#' %"r%ose o2 I"di1ia#
1onstr"1tion is to re!o0e do"3t and "n1ertaint' On#' 6/ere t/e #an$"a$e o2 a
1ontra1t is a!3i$"o"s and "n1ertain t/at a 1o"rt !a', "nder 6e##-esta3#is/ed r"#es
o2 1onstr"1tion, inter2ere to rea1/ a %ro%er 1onstr"1tion and !a@e 1ertain t/at
6/i1/ in itse#2 is "n1ertain ./ere t/e #an$"a$e o2 a 1ontra1t is %#ain and
"na!3i$"o"s, its !eanin$ s/o"#d 3e deter!ined 6it/o"t re2eren1e to e,trinsi1
2a1ts or aids

R.&. (o. 7641 does not apply in )ie' o" the
#RP 'hi!h gi)es to the retiring employee
more than 'hat the la' re*uires+ the
supporting !ases !ited by ,-ales are o"".
tangent.

RA No 89:), ot/er6ise @no6n as GT/e Retire!ent Pa' 5a6,H on#' a%%#ies
in a sit"ation 6/ere 7); t/ere is no 1o##e1ti0e 3ar$ainin$ a$ree!ent or ot/er
a%%#i1a3#e e!%#o'!ent 1ontra1t %ro0idin$ 2or retire!ent 3ene2its 2or an e!%#o'eeL
or 7(; t/ere is a 1o##e1ti0e 3ar$ainin$ a$ree!ent or ot/er a%%#i1a3#e e!%#o'!ent
1ontra1t %ro0idin$ 2or retire!ent 3ene2its 2or an e!%#o'ee, 3"t it is belo2 t/e
re?"ire!ents set 2or 3' #a6 T/e reason 2or t/e 2irst sit"ation is to %re0ent t/e
a3s"rd sit"ation 6/ere an e!%#o'ee, 6/o is ot/er6ise deser0in$, is denied
retire!ent 3ene2its 3' t/e ne2ario"s s1/e!e o2 e!%#o'ers in not %ro0idin$ 2or
retire!ent 3ene2its 2or t/eir e!%#o'ees T/e reason 2or t/e se1ond sit"ation is
e,%ressed in t/e #atin !a,i! pacta privata -uri pu*lico $erogare non possunt
Pri0ate 1ontra1ts 1annot dero$ate 2ro! t/e %"3#i1 #a6 &ng kasunduang pribado
ay hindi makasisira sa batas publiko Di0e 7B; reasons s"%%ort t/is 1on1#"sion

+irst, a %#ain readin$ o2 t/e Retire!ent Pa' 5a6 RA No 89:) ori$inated
2ro! t/e -o"se o2 Re%resentati0es as -o"se Bi## K)8 6/i1/ 6as #ater 1onso#idated
6it/ Senate Bi## )K( It 6as a%%ro0ed on =e1e!3er A, )AA( and too@ e22e1t on
&an"ar' 8, )AAK A!endin$ Arti1#e (+8 o2 t/e 5a3or Code, it %ro0ides as 2o##o6s:


Art (+8 Retire.ent R An' e!%#o'ee !a' 3e retired "%on rea1/in$ t/e
retire!ent a$e esta3#is/ed in t/e 1o##e1ti0e 3ar$ainin$ a$ree!ent or ot/er
a%%#i1a3#e e!%#o'!ent 1ontra1t

In 1ase o2 retire!ent, t/e e!%#o'ee s/a## 3e entit#ed to re1ei0e s"1/
retire!ent 3ene2its as /e !a' /a0e earned "nder e,istin$ #a6s and an' 1o##e1ti0e
3ar$ainin$ a$ree!ent and ot/er a$ree!ents: Pro0ided, /o6e0er, t/at an
e!%#o'ee>s retire!ent 3ene2its "nder an' 1o##e1ti0e 3ar$ainin$ and ot/er
a$ree!ents s/a## not 3e #ess t/an t/ose %ro0ided /erein

In t/e a3sen1e o2 a retire!ent %#an or a$ree!ent %ro0idin$ 2or retire!ent
3ene2its o2 e!%#o'ees in t/e esta3#is/!ent, an e!%#o'ee "%on rea1/in$ t/e a$e o2
si,t' 79*; 'ears or !ore, 3"t not 3e'ond si,t'-2i0e 79B; 'ears 6/i1/ is /ere3'
de1#ared t/e 1o!%"#sor' retire!ent a$e, 6/o /as ser0ed at #east 2i0e 7B; 'ears in
t/e said esta3#is/!ent, !a' retire and s/a## 3e entit#ed to retire!ent %a'
e?"i0a#ent to at #east one-/a#2 7)J(; !ont/ sa#ar' 2or e0er' 'ear o2 ser0i1e, a
2ra1tion o2 at #east si, 79; !ont/s 3ein$ 1onsidered as one 6/o#e 'ear

Un#ess t/e %arties %ro0ide 2or 3roader in1#"sions, t/e ter! Sone-/a#2 7)J(;
!ont/ sa#ar' s/a## !ean 2i2teen 7)B; da's %#"s one-t6e#2t/ 7)J)(; o2 t/e )Kt/
!ont/ %a' and t/e 1as/ e?"i0a#ent o2 not !ore t/an 2i0e 7B; da's o2 ser0i1e
in1enti0e #ea0es 7Unders1orin$ s"%%#ied;

Secon-, t/e #e$is#ati0e /istor' o2 t/e Retire!ent Pa' 5a6 It !a' 3e
re1a##ed t/at RA No 89:) tra1es 3a1@ its /istor' in t/e 1ase o2 Llora (otors, Inc.
v. #rilon In t/is 1ase, t/e Co"rt /e#d t/at t/e t/en Arti1#e (+8 o2 t/e 5a3or Code
and its I!%#e!entin$ R"#es !a' not 3e t/e so"r1e o2 an e!%#o'ee>s entit#e!ent to
retire!ent %a' a3sent t/e %resen1e o2 a 1o##e1ti0e 3ar$ainin$ a$ree!ent or
0o#"ntar' 1o!%an' %o#i1' t/at %ro0ides 2or retire!ent 3ene2its 2or t/e e!%#o'ee

Thir-, t/e #e$is#ati0e intent o2 t/e Retire!ent Pa' 5a6 A readin$ o2 t/e
e,%#anator' note o2 Re%resentati0e A#3erto S Me#oso 6o"#d s/o6 6/' Con$ress
so"$/t to %ass t/e Retire!ent Pa' 5a6: !an' e!%#o'ers re2"se or ne$#e1t to
ado%t a retire!ent %#an 2or t/eir e!%#o'ees 3e1a"se o2 t/e a3sen1e o2 an' #e$a#
1o!%"#sion 2or t/e! to do so, t/"s:

./en t/e 5a3or Code 1a!e into e22e1t in )A8:, retire!ent %a' /ad, as a
!atter o2 1o"rse, 3een $ranted to e!%#o'ees in t/e %ri0ate se1tor 6/en t/e' rea1/
t/e a$e o2 si,t' 79*; 'ears T/is /ad %ra1ti1a##' 3een t/e r"#e o3ser0ed 3'
e!%#o'ers in t/e 1o"ntr' %"rs"ant to t/e r"#es and re$"#ations iss"ed 3' t/e t/en
Minister o2 5a3or and E!%#o'!ent to i!%#e!ent t/e %ro0isions o2 t/e 5a3or
Code, !ore %arti1"#ar#', 6/ere t/ere is no %ro0ision 2or t/e sa!e in t/e 1o##e1ti0e
3ar$ainin$ a$ree!ent or retire!ent %#an o2 t/e esta3#is/!ent

At %resent, /o6e0er, s"1/ 3ene2it o2 retire!ent %a' is no #on$er a0ai#a3#e
6/ere t/ere is no 1o##e1ti0e a$ree!ent t/ereon or an' retire!ent %#an at a## T/is
is so 3e1a"se, in a de1ision o2 t/e S"%re!e Co"rt 7 Llora (otors vs. #rilon an$
NLRC, et al. , GR No +(+AB, No0e!3er 8, )A+A;, it 6as /e#d t/at t/e $rant o2
s"1/ 3ene2it "nder t/e r"#es i!%#e!entin$ t/e 5a3or Code is not s"%%orted 3' an'
e,%ress %ro0ision o2 t/e 5a3or Code itse#2 In s/ort, t/ere is no s%e1i2i1 stat"tor'
3asis 2or t/e $rant o2 retire!ent 3ene2its 2or e!%#o'ees in t/e %ri0ate se1tor
rea1/in$ t/e a$e o2 9* 'ears

Sin1e t/e ti!e o2 s"1/ n"##i2i1ation 3' t/e S"%re!e Co"rt o2 said
i!%#e!entin$ r"#es on retire!ent %a' 2or %ri0ate se1tor e!%#o'ees, !an'
e!%#o'ers si!%#' re2"se or ne$#e1t to ado%t an' retire!ent %#an 2or t/eir 6or@ers,
o30io"s#' e!3o#dened 3' t/e t/o"$/t t/at, a2ter said r"#in$, t/ere is no #on$er an'
#e$a# 1o!%"#sion to $rant s"1/ retire!ent 3ene2its In o"r 1ontin"o"s ?"est to
%ro!ote so1ia# I"sti1e, "n2air sit"ations #i@e t/is, %rod"1ti0e o2 $rie0an1e or
irritants in t/e #a3or-!ana$e!ent re#ations, !"st i!!ediate#' 3e 1orre1ted or
re!edied 3' #e$is#ation 7Unders1orin$ s"%%#ied;

+ourth, t/e tit#e o2 t/e Retire!ent Pa' 5a6 T/e 1o!%#ete tit#e o2 RA No
89:) is GAn A1t A!endin$ Arti1#e (+8 o2 Presidentia# =e1ree No ::(, As
A!ended, Ot/er6ise Ono6n as t/e 5a3or Code o2 t/e P/i#i%%ines, B' Pro0idin$
2or Retire!ent Pa' to Q"a#i2ied Pri0ate Se1tor in t/e A3sen1e o2 An' Retire!ent
P#an in t/e Esta3#is/!entH Res ipsa lo/uitur T/e t/in$ s%ea@s 2or itse#2. /sang
bagay na nangungusap na sa kanyang sarili

+ifth, I"ris%r"den1e In Oro Enterprises, Inc. v. National La*or Relations
Co..ission, t/e Co"rt /e#d t/at RA No 89:) Gis "ndo"3ted#' a so1ia#
#e$is#ation T/e #a6 /as 3een ena1ted as a #a3or %rote1tion !eas"re and as a
1"rati0e stat"te t/at R a3sent a retire!ent %#an de0ised 3', an a$ree!ent 6it/, or a
0o#"ntar' $rant 2ro!, an e!%#o'er R 1an res%ond, in %art at #east, to t/e 2inan1ia#
6e##-3ein$ o2 6or@ers d"rin$ t/eir t6i#i$/t 'ears soon 2o##o6in$ t/eir #i2e o2
#a3orH

In 0antranco North E+press, Inc. v. National La*or Relations Co..ission,
t/e Co"rt /e#d t/at Arti1#e (+8 o2 t/e 5a3or Code G!a@es 1#ear t/e intention and
s%irit o2 t/e #a6 to $i0e e!%#o'ers and e!%#o'ees a 2ree /and to deter!ine and
a$ree "%on t/e ter!s and 1onditions o2 retire!ent,H and t/at t/e #a6 G%res"!es
t/at e!%#o'ees @no6 6/at t/e' 6ant and 6/at is $ood 2or t/e! a3sent an'
s/o6in$ t/at 2ra"d or inti!idation 6as e!%#o'ed to se1"re t/eir 1onsent t/eretoH

5ast#', in 1rion v. 'outh 0hilippine &nion (ission o" the 'eventh #ay
A$ventist Church, t/e Co"rt r"#ed t/at a readin$ o2 Arti1#e (+8 o2 t/e 5a3or Code
6o"#d re0ea# t/at t/e Ge!%#o'er and e!%#o'ee are 2ree to sti%"#ate on retire!ent
3ene2its, as #on$ as t/ese do not 2a## 3e#o6 2#oor #i!its %ro0ided 3' #a6H

.e are a6are o2 t/e se0era# 1ases 1ited 3' O,a#es to s"%%ort /is 1#ai! t/at
t/e 1o!%"tation o2 /is retire!ent 3ene2its s/o"#d not /a0e 3een #i!ited to t/e 3asi1
!ont/#' sa#ar' as de2ined 3' t/e URP -o6e0er, t/ese 1ases ne$ate, rat/er t/an
s"%%ort, /is 1#ai!

In 2illena v. National La*or Relations Co..ission, t/e G1o!%"#sor'
retire!entH o2 Mi##ena 6as, in 2a1t, an i##e$a# dis!issa# in dis$"ise T/"s, t/e Co"rt
ordered t/e Batan$as, 5a$"na, Ta'a3as B"s Co to %a' Mi##ena G/is 2"## 3a1@6a$es,
a##o6an1es, and ot/er 3ene2its 2or a %eriod o2 t/ree 7K; 'ears a2ter /is i##e$a#
dis!issa# on A%ri# (:, )A+8, "nti# /e rea1/ed t/e 1o!%"#sor' retire!ent a$e %#"s
/is retire!ent 3ene2its e?"i0a#ent to /is $ross !ont/#' %a', a##o6an1es and ot/er
3ene2its 2or e0er' 'ear o2 ser0i1e "% to a$e si,t' 79*;, 6/i1/ is t/e nor!a#
retire!ent a$e 2or /i!H

T/e distin1tion 3et6een 2illena 6it/ t/e instant 1ase is readi#' a%%arent
T/e Co"rt "sed t/e re$"#ar 1o!%ensation o2 Mi##ena in 1o!%"tin$ /is retire!ent
3ene2its 3e1a"se t/e %ro0ision o2 t/e CBA 2or ran@-and-2i#e e!%#o'ees is
in,pplic,ble to /i!, 3ein$ a !ana$eria# e!%#o'ee T/e 2illena 1ase 6as a#so
de1ided 3e2ore t/e %assa$e o2 RA No 89:)

In 0lanters 0ro$ucts, Inc. v. National La*or Relations Co..ission, t/e
%etitionin$ e!%#o'ees 6ere $i0en ter!ination 3ene2its 3ased on t/eir 3asi1 sa#ar'
-o6e0er, P#anters Prod"1ts, In1 /ad inte$rated t/e a##o6an1es o2 its re!ainin$
e!%#o'ees into t/eir 3asi1 sa#ar' T/"s, it 6as t/e 3asi1 sa#ar' t/at in1reased
A#so, it 6as t/e 3asi1 sa#ar' as in1reased 7not t/e 3asi1 sa#ar' and a##o6an1es;
6/i1/ sti## 2or!ed t/e 3asis 2or t/e 1o!%"tation o2 t/e ter!ination 3ene2its o2 t/e
re!ainin$ e!%#o'ees o2 t/e 1o!%an' T/e Co"rt /e#d t/at 2airness de!anded t/at
t/e ter!inated e!%#o'ees re1ei0e t/e sa!e treat!ent C#ear#', s"1/ sit"ation is
a3sent /ere

In (anuel L. )ue,on &niversity v. National La*or Relations Co..ission,
t/e iss"e raised 6as 6/et/er res%ondents are entit#ed to t/e retire!ent 3ene2its
%ro0ided 2or "nder RA No 89:), e0en i2 %etitioner /as an e,istin$ 0a#id
retire!ent %#an T/e Co"rt /e#d t/at t/e 1o0era$e o2 t/e #a6 Ga%%#ies to
esta3#is/!ents 6it/ e,istin$ 1o##e1ti0e 3ar$ainin$ or ot/er a$ree!ents or 0o#"ntar'
retire!ent %#ans 6/ose 3ene2its are #ess t/an t/ose %res1ri3ed "nder t/e %ro0iso in
?"estionH

Ad!itted#', t/is Co"rt /e#d in t/e 1ase o2 'ongco v. National La*or
Relations Co..ission t/at not on#' t/e 3asi1 sa#ar' 3"t a#so t/e Ga##o6an1esH 7#i@e
trans%ortation and e!er$en1' #i0in$ a##o6an1es; and Gearned sa#es 1o!!issionsH
s/o"#d 3e ta@en into 1onsideration in 1o!%"tin$ t/e 3a1@6a$es and se%aration %a'
o2 t/e e!%#o'ee -o6e0er, a 1#oser e,a!ination o2 t/e 1ase 6o"#d s/o6 t/at t/e
CBA 3et6een Z"e##i$ and DE Z"e##i$ E!%#o'ees Asso1iation, in 6/i1/ Son$1o
6as a !e!3er, did not 1ontain an e,%#i1it de2inition o2 6/at sa#ar' is Neit/er 6as
t/ere an' in1#"sions or e,1#"sions in t/e deter!ination o2 t/e sa#ar' o2 t/e
e!%#o'ee -ere, t/e URP /as an e,%#i1it %ro0ision e,1#"din$ an' 1o!!issions,
o0erti!e, 3on"ses, or e,tra 1o!%ensations 2or %"r%oses o2 1o!%"tin$ t/e 3asi1
sa#ar' o2 a retirin$ e!%#o'ee Too, t/e 'ongco 1ase 6as de1ided 3e2ore t/e
%assa$e o2 RA No 89:)

C#ear#' t/en, RA No 89:) does not a%%#' 3e1a"se t/e URP $rants to t/e
retirin$ e!%#o'ee !ore t/an 6/at t/e #a6 $i0es Under t/e URP, t/e e!%#o'ee
re1ei0es a #"!% s"! o2 )E %a' %er 'ear o2 ser0i1e, 1o!%ared to t/e !ini!"! E
!ont/ sa#ar' 2or e0er' 'ear o2 ser0i1e set 2ort/ 3' RA No 89:)



O,a#es is tr'in$ to /a0e t/e 3est o2 3ot/ 6or#ds -e 6ants to /a0e /is 1a@e
and eat it too: t/e )E !ont/s 2or!"#a "nder t/e URP, and t/e in1#"sion o2 t/e
0a#"e o2 2ood 3ene2its and ot/er a##o6an1es /e 6as entit#ed to as e!%#o'ee o2
UNI5AB 6it/ /is !ont/#' sa#ar' as t/e !"#ti%#i1and o2 /is n"!3er o2 'ears in t/e
ser0i1e T/is /e s/o"#d not 3e %er!itted to do, #est a $ra0e inI"sti1e is 1a"sed to
UNI5AB, and its %ast and 2"t"re retirees

.e a$ree 6it/ t/e N5RC o3ser0ation on t/is s1ore:

As an i##"stration, Co!%#ainant 1#ai!s t/at /is !ont/#' sa#ar' as t/e
!"#ti%#i1and o2 /is n"!3er o2 'ears in t/e ser0i1e s/o"#d in1#"de t/e 0a#"e o2 t/e
2ood 3ene2its and ot/er a##o6an1es /e 6as entit#ed 6/i#e in t/e e!%#o' o2
res%ondent -o6e0er, /e did not e0en, 3' i!%#i1ation, intend to red"1e t/e )E
!ont/ sa#ar' as !"#ti%#ier "nder t/e URP to E "nder t/e #a6 /e in0o@ed T/is is
a si$n o2 1o0eto"sness, "n2air 3ot/ to t/e e!%#o'er and t/ose e!%#o'ees 6/o
/a0e ear#ier retired "nder said %#an

,-ales is not entitled to the reinstatement
o" his medi!al bene"its% 'hi!h are not part
o" the #RP. 0orollarily% he is not also
entitled to moral damages% e-emplary
damages% and attorney1s "ees.

O,a#es 1#ai!s t/at UNI5AB "ni#atera##' re0o@ed /is !edi1a# 3ene2its,
1a"sin$ /i! /"!i#iation and an,iet' T/is, /e ar$"es, entit#es /i! to !ora#
da!a$es, e,e!%#ar' da!a$es, %#"s attorne'>s 2ees

.e 1annot a$ree T/e re1ords 3ear o"t t/at a2ter O,a#es retired 2ro!
UNI5AB, /e 1/ose to Ioin a ri0a# 1o!%an', 5#o'ds 5a3oratories, In1 As UNI5AB
1orre1t#' %"ts it, GPiQ2 an' e!%#o'er 1an #e$a##' and 0a#id#' do t/e s"%re!e a1t o2
dis!issin$ a dis#o'a# e!%#o'ee 2or /a0in$ Ioined or s'!%at/iCed 6it/ a ri0a#
1o!%an', 6it/ !ore reason !a' it do t/e #esser a1t o2 !ere#' dis1ontin"in$ a
3ene2it "ni#atera##' $i0en to an a#read'-retired e!%#o'eeH As a retired e!%#o'ee,
O,a#es !a' not 1#ai! a 0ested ri$/t on t/ese !edi1a# 3ene2its A 1are2"#
e,a!ination o2 t/e URP 6o"#d s/o6 t/at me-ic,l benefits ,re not inclu-e- in
the (RP

Indeed, 6/i#e t/ere is not/in$ 6ron$ in t/e a1t o2 O,a#es in Ioinin$ a ri0a#
1o!%an' a2ter /is retire!ent, I"sti1e and 2air %#a' 6o"#d di1tate t/at 3' doin$ so,
/e 1annot no6 #e$a##' de!and t/e 1ontin"an1e o2 /is !edi1a# 3ene2its 2ro!
UNI5AB To r"#e ot/er6ise 6o"#d res"#t in an a3s"rd sit"ation 6/ere O,a#es
6o"#d 1ontin"e to re1ei0e !edi1a# 3ene2its 2ro! UNI5AB 6/i#e 6or@in$ in a ri0a#
1o!%an' .e note t/at t/ese !edi1a# 3ene2its are !ere#' "ni#atera##' $i0en 3'
UNI5AB to its retired e!%#o'ees

.e are not "na6are o2 t/is Co"rt>s %rono"n1e!ent in 1rion v. 'outh
0hilippine &nion (ission o" the 'eventh #ay A$ventist Church -o6e0er, O,a#es>
%#i$/t -iffers 2ro! 1rion 3e1a"se t/e URP does not e,%ress#' 1o0er !edi1a#
3ene2its to retirees In 1ontrast, t/e retired e!%#o'ee in 1rion /ad a1?"ired a
0ested ri$/t to t/e 6it//e#d 3ene2its

T/e 1#ai! o2 O,a#es to !ora# da!a$es, e,e!%#ar' da!a$es, and attorne'>s
2ees !"st a#so 3e denied 2or 6ant o2 3asis in #a6 or I"ris%r"den1e On t/is s1ore,
.e e1/o t/e %rono"n1e!ent o2 t/e Co"rt in Au$ion v. Electric Co., Inc. v. National
La*or Relations Co..ission, to 6it:

Mora# and e,e!%#ar' da!a$es are re1o0era3#e on#' 6/ere t/e dis!issa# o2
an e!%#o'ee 6as attended 3' 3ad 2ait/ or 2ra"d, or 1onstit"ted an a1t o%%ressi0e
to #a3or, or 6as done in a !anner 1ontrar' to !ora#s, $ood 1"sto!s or %"3#i1
%o#i1' T/e %erson 1#ai!in$ !ora# da!a$es !"st %ro0e t/e e,isten1e o2 3ad 2ait/
3' 1#ear and 1on0in1in$ e0iden1e 2or t/e #a6 a#6a's %res"!es $ood 2ait/ It is
not eno"$/ t/at one !ere#' s"22ered s#ee%#ess ni$/ts, !enta# an$"is/, serio"s
an,iet' as t/e res"#t o2 t/e a1t"ations o2 t/e ot/er %art' In0aria3#', s"1/ a1tion
!"st 3e s/o6n to /a0e 3een 6i##2"##' done in 3ad 2ait/ or 6it/ i## !oti0e, and 3ad
2ait/ or i## !oti0e "nder t/e #a6 1annot 3e %res"!ed 3"t !"st 3e esta3#is/ed 6it/
1#ear and 1on0in1in$ e0iden1e Pri0ate res%ondent %redi1ated /is 1#ai! 2or s"1/
da!a$es on /is o6n a##e$ations o2 s#ee%#ess
ni$/ts and !enta# an$"is/, 6it/o"t esta3#is/in$ 3ad 2ait/, 2ra"d or i##
!oti0e as #e$a# 3asis t/ere2or

Pri0ate res%ondent not 3ein$ entit#ed to a6ard o2 !ora# da!a$es, an a6ard
o2 e,e!%#ar' da!a$es is #i@e6ise 3ase#ess ./ere t/e a6ard o2 !ora# and
e,e!%#ar' da!a$es is e#i!inated, so !"st t/e a6ard 2or attorne'>s 2ees 3e
de#eted Pri0ate res%ondent /as not s/o6n t/at /e is entit#ed t/ereto %"rs"ant to
Art ((*+ o2 t/e Ci0i# Code 7Citations o!itted;

-ere, t/ere 6as no dis!issa#, as O,a#es 6as retired 3' UNI5AB 3' 0irt"e o2
t/e URP -e 6as a#so %aid /is 1o!%#ete retire!ent 3ene2its

2pilogue

It is not dis%"ted t/at O,a#es /as 6or@ed tire#ess#' 2or UNI5AB Dor one
t/in$, /e /as s%ent a 1onsidera3#e a!o"nt o2 'ears 6it/ t/e 1o!%an' Dor anot/er,
/e /as 1ontri3"ted !"1/ to its $ro6t/ and e,%ansion -o6e0er, e0en as .e
e!%at/iCe 6it/ /i! in /is ti!e o2 $reat need, it 3e/oo0es Us to inter%ret t/e #a6
a11ordin$ to 6/at it !andates

.e reiterate t/e ti!e-/onored %rin1i%#e t/at t/e #a6, in %rote1tin$ t/e ri$/ts
o2 t/e #a3orer, a"t/oriCes neit/er o%%ression nor se#2-destr"1tion o2 t/e e!%#o'er
./i#e t/e Constit"tion is 1o!!itted to t/e %o#i1' o2 so1ia# I"sti1e and t/e
%rote1tion o2 t/e 6or@in$ 1#ass, !ana$e!ent a#so /as its o6n ri$/ts, 6/i1/ are
entit#ed to res%e1t and en2or1e!ent in t/e interest o2 2air %#a' O"t o2 its 1on1ern
2or t/ose 6it/ #ess %ri0i#e$e in #i2e, t/is Co"rt /as in1#ined !ore o2ten t/an not
to6ard t/e e!%#o'ee and "%/e#d /is 1a"se 6it/ /is 1on2#i1ts 6it/ t/e e!%#o'er
S"1/ 2a0ora3#e treat!ent, /o6e0er, /as not 3#inded t/e Co"rt to r"#e t/at I"sti1e is
in e0er' 1ase 2or t/e deser0in$ &"sti1e s/o"#d 3e dis%ensed in t/e #i$/t o2 t/e
esta3#is/ed 2a1ts and a%%#i1a3#e #a6 and do1trine

.HERE+ORE, t/e a%%ea#ed =e1ision is A++IR3ED No 1osts

SO ORDERED



R(BEN T RE)ES
Asso1iate &"sti1e



.E CONCUR:




CONS(ELO )NARES4SANTIA#O
Asso1iate &"sti1e
C/air%erson




LEONARDO A 5(IS(3BIN# 3A ALICIA A(STRIA43ARTINE6 Asso1iate
&"sti1e Asso1iate &"sti1e




ADOL+O S A6C(NA
Asso1iate &"sti1e




A T T E S T A T I O N


I attest t/at t/e 1on1#"sions in t/e a3o0e =e1ision /ad 3een rea1/ed in
1ons"#tation 3e2ore t/e 1ase 6as assi$ned to t/e 6riter o2 t/e o%inion o2 t/e Co"rt>s
=i0ision



CONS(ELO )NARES4SANTIA#O
Asso1iate &"sti1e
C/air%erson






C E R T I + I C A T I O N


P"rs"ant to Se1tion )K, Arti1#e MIII o2 t/e Constit"tion and t/e =i0ision
C/air%erson>s Attestation, I 1erti2' t/at t/e 1on1#"sions in t/e a3o0e =e1ision /ad
3een rea1/ed in 1ons"#tation 3e2ore t/e 1ase 6as assi$ned to t/e 6riter o2 t/e
o%inion o2 t/e Co"rt>s =i0ision




RE)NATO S P(NO
C/ie2 &"sti1e
* Mi1e Asso1iate &"sti1e Minita M C/i1o-NaCario &"sti1e NaCario is on o22i1ia# #ea0e %er
S%e1ia# Order No B*+ dated &"ne (B, (**+
** =esi$nated as additiona# !e!3er 0i1e Asso1iate &"sti1e Antonio Ed"ardo B Na1/"ra %er
ra22#e dated &"ne (B, (**+ &"sti1e Na1/"ra %arti1i%ated as So#i1itor Genera# in t/e %resent 1ase
Rollo, %% )((-)(+L Anne, GAH CA-GR SP No BBB(+ Penned 3' Asso1iate &"sti1e &"an Q
Enri?"eC, &r, 6it/ Asso1iate &"sti1es =e#i#a/ Mida##on-Ma$to#is and E#ieCer R =e 5os Santos,
1on1"rrin$
Id at )8*-)+(L Anne, GOH N5RC-CA *)99(8-A+ Penned 3' Co!!issioner A#3erto R
Q"i!%o, 6it/ Co!!issioners Ro$e#io I Ra'a#a and Mi1ente SE Me#oso, 1on1"rrin$
Id at )9K-)9AL Anne, GNH N5RC-NCR Case No **-*+-*9*8K-A8 Penned 3' 5a3or Ar3iter
Ro!"#"s S Protasio
Anne, GCH
United Retire!ent P#an, Art M, Se1 )7a;
Anne, G5H
Anne, G5-)H
Rollo, % )9A
Id at )9+
Id at )9+-)9A
Id at )9A
Id at )+)
Id at )8A-)+*
Id at )8+-)8A
Id at )(9
Id at )(8
Id at )(9-)(8
Id at ))-)(*
Id at :K+-B9+
Id at :B9-:B+
1rion v. 'outh 0hilippine &nion (ission o" the 'eventh #ay A$ventist Church, GR No )KB)K9,
Ma' )A, )AAA, K*8 SCRA :A8, B*:
See Ci0i# Code, Art )K*9
)9B US B8+, BA)
(:9 US KB8, K8K, K8:
(K9 US ), )*, ):
(*+ US )9)
)A+ US :B, :A
(*+ US :)(, :()
See Ci0i# Code, Art ))BAL 0ichel v. Alon,o, GR No 5-K9A*(, &an"ar' K*, )A+(, ))) SCRA
K:)L #e Cortes v. 2enturan,a, GR No 5-(9*B+, O1to3er (+, )A88, 8A SCRA 8*AL 2illonco
Realty Co.pany v. 1or.aheco, Inc., GR No 5-(9+8(, &"#' (B, )A8B, 9B SCRA KB(L
3overn.ent v. 2aca, 9: P/i# 9 7)AK8;L 3overn.ent v. Li., 9) P/i# 8K8 7)AKB;L 3overn.ent v.
Con$e, 9) P/i# 8): 7)AKB;L 4anlon v. 4ausser.ann, :) P/i# (89 7)A(*;L Ollen$or"" v.
A*raha.son, K+ P/i# B+B 7)A)+;L Co.pa5ia $e Ta*acos v. O*e$, )K P/i# KA) 7)A*A;L #e la
Ra.a v. Inventor, )( P/i# :: 7)A*+;L Alcantara v. Alinea, + P/i# ))) 7)A*8;L 1orro.eo v.
6ranco, B P/i# :A 7)A*B;L 'alonga v. Concepcion, K P/i# B9K 7)A*:;L Co-Tiangco v. To-Ja.co, K
P/i# ()* 7)A*+;
Id, Art )K*9
Rollo, % )K)L United Retire!ent P#an, Art II, Se1 )7I; 7E!%/asis s"%%#ied;
Id at )8A
Ci0i# Code, Art )K8* See a#so RU5ES OD COURT, R"#e )K*, Se1s )*-)A on Inter%retation o2
=o1"!ents
Chinchilla v. Ra"el, KA P/i# +++ 7)A)A;L Escario v. Regis, K) P/i# 9)+ 7)A)B;L #e Li,ar$i v.
aptico, K* P/i# ()) 7)A)B;L Nolan v. (a-inay, )( P/i# BBA 7)A*A;L Nolan v. (a-inay, )( P/i#
):* 7)A*+;L 0alacios v. (unicipality o" Cavite, )( P/i# ):* 7)A*+;L A,arraga v. Ro$rigue,, A
P/i# 9K8 7)A*+;L Al*uro v. 2illanueva, 8 P/i# (88 7)A*8;
)8A A! &"r (d T KK8, 1itin$ 1ingha.ton 1ri$ge, 8* US B), )+ 5 Ed )K8L 'outh 4a.pton Co.
v. 'tinnes Corp., 7CAB Te,; 8KK D (d ))*+, K+ UCCRS ))K8L (urray v. %aiser Alu.inu. 7
Che.ical Corp., 7S= . Ma; BA) D S"%% )BB*, a22d 6it/o"t o% 7CA: . Ma; 898 D (d A)(L
'chulist v. 1lue Cross o" Iowa, 7N= I##; BBK D S"%% (:+, : EBC ))AK, a22>d 7CA8 I##; 8)8 D (d
))(8, : EBC ((K8L 0 7 ' 1usiness, Inc. v. 'outh Cent. 1ell Tel. Co., 7A#a; :99 So (d A(+L
Estate o" 8a.ac!, 7(nd =ist; )K8 Ca# A%% (d ))(, (+A P (d +8)L 1(8 o" North A.erica, Inc.
v. %rathen, 7D#a A%% =:; :8) So (d B+B, )* D5. ):B(, re0ie6 den 7D#a; :+: So (d 8, #ater
%ro1eedin$ 7D#a A%% =:; B)* So (d K99, )( D5. )+B8L 0etro,iello v. &nite$ 'tates Leasing
Corp., EO' Leasing #iv., )89 Ga A%% +B+, KK+ SE (d 9KL 4anaga.i v. China Airlines, Lt$., 98
-a6aii KB8, 9++ P (d ))KAL 0. A. 1ergner 7 Co. v. Lloy$s Jewelers, Inc., ))( I## (d )A9, A8 I##
=e1 :)B, :A( NE (d )(++L Jen!ins v. %ing, ((: Ind )9:, 9B NE (d )(), )9K A5R KA8L 'cott v.
An$erson Newspapers, Inc., 7Ind A%%; :88 NE (d BBKL Allen v. 4ighway E/uip.ent Co., 7Io6a;
(KA N. (d )KBL 3eneral (otors Acceptance Corp. v. #aniels, K*K Md (B:, :A( A (d )K*9L
Craig v. 1ossen*ery, )K: Mi1/ A%% B:K, KB) N. (d BA9L %uhl.an v. E$ucational 0u*lishers,
(:B Minn )8), 8) N. (d ++AL 'tate *y Crow 8ing Environ.ent 0rotection Asso. v. 1ree,y
0oint, 7Minn A%%; K9K N. (d 88+, #ater a%% 7Minn A%%; KA: N. (d BA(L A$a.s v. %err, 7Mo
A%%; 9BB S. (d :AL T.2. Trans.ission, Inc. v. Lincoln, ((* Ne3 ++8, K8: N. (d :AL 0ar!s v.
2enters Oil Co., (BB NC :A+, )() SE (d +B*L Re Ro*inson9s 8ill, )*) Mt :9:, ):: A :B8, 8B
A5R BAL Ross v. 4ar$ing, 9: .as/ (d (K), KA) P (d B(9L Cotiga #ev. Co. v. &nite$ 6uel 3as
Co., ):8 . Ma :+:, )(+ SE (d 9(9, )8 OGR B+K
Id, 1itin$ 3ul" Cities 3as Corp. v. Tangelo 0ar! 'ervice Co., 7D#a A%% =:; (BK So (d 8::L
'ears, roe*uc! 7 Co. v. 0oling, (:+ Io6a B+(, +) N. (d :9(L 3ans v. Aetna Li"e Ins. Co., ():
NY K(9, )*+ NE ::KL 3eneral A.erican In$e.. Co. v. 0epper, )9) Te, (9K, KKA S. (d 99*L
3ri""in v. 6air.ont Coal Co., BA . Ma :+*, BK SE (:
Id, 1itin$ (assey-6erguson v. 1ent E/uip.ent Co., 7CAB D#a; (+K D (d )(, K DR Ser0 (d )KBL
Atlas 'ewing Center, Inc. v. 1el!9s #ept. 'tore, Inc., 7D#a A%% =(; )9( So (d (8:L Coopers.ith
v. Isherwoo$, ()A Md :BB, )B* A (d (:KL 'hapleigh 4ar$ware Co. v. 'piro, ):) Miss K+, )*9
So (*A, :: A5R KAK, #ater a%% )BK Miss +), ))+ So :(A, !otion o0err )BK Miss )AB, ))A So
(*9L 8oo$ v. 'ecurity (ut. Li"e Ins. Co., ))( Ne3 99, )A+ N. BK8, K: A5R 8)(L Repu*lic Nat.
Li"e Ins. Co. v. 'pillars, 7Te,; K9+ S. (d A(, B A5R Kd AB8
CJC Tra$ing, Inc. v. National La*or Relations Co..ission, GR No ))B++:, &"#' (*, )AAAB,
(:9 SCRA 8(:L Oro Enterprises v. National La*or Relations Co..ission, GR No ))*+9),
No0e!3er ):, )AA:, (K+ SCRA )*B
GR No +(+AB, No0e!3er 8, )A+A, )8A SCRA )8B
Arti1#e (+8 Retire.ent R An' e!%#o'ee !a' 3e retired "%on rea1/in$ t/e a$e esta3#is/ed in t/e
Co##e1ti0e Bar$ainin$ A$ree!ent or ot/er a%%#i1a3#e e!%#o'!ent 1ontra1t
In 1ase o2 retire!ent, t/e e!%#o'ee s/a## 3e entit#ed to re1ei0e s"1/ retire!ent 3ene2its as /e
!a' /a0e earned "nder e,istin$ #a6s and an' 1o##e1ti0e 3ar$ainin$ or ot/er a$ree!ent
Se1tion )K Retire.ent R In t/e a3sen1e o2 an' 1o##e1ti0e 3ar$ainin$ a$ree!ent or ot/er
a%%#i1a3#e a$ree!ent 1on1ernin$ ter!s and 1onditions o2 e!%#o'!ent 6/i1/ %ro0ides 2or
retire!ent at an o#der a$e, an e!%#o'ee !a' 3e retired "%on rea1/in$ t/e a$e o2 si,t' 79*; 'ears
Se1tion ): Retire.ent 1ene"its R 7a; An e!%#o'ee 6/o is retired %"rs"ant to a *ona-"i$e
retire!ent %#an or in a11ordan1e 6it/ t/e a%%#i1a3#e indi0id"a# or 1o##e1ti0e a$ree!ent or
esta3#is/ed e!%#o'er %o#i1' s/a## 3e entit#ed to a## t/e retire!ent 3ene2its %ro0ided t/erein or to
ter!ination %a' e?"i0a#ent at #east to one-/a#2 !ont/ sa#ar' 2or e0er' 'ear o2 ser0i1e, 6/i1/e0er
is /i$/er, a 2ra1tion o2 at #east si, 79; !ont/s 3ein$ 1onsidered as one 6/o#e 'ear
73; ./ere 3ot/ t/e e!%#o'er and t/e e!%#o'ee 1ontri3"te to t/e retire!ent %#an, a$ree!ent
or %o#i1', t/e e!%#o'er>s tota# 1ontri3"tion t/ereto s/a## not 3e #ess t/an t/e tota# ter!ination %a'
to 6/i1/ t/e e!%#o'ee 6o"#d /a0e 3een entit#ed /ad t/ere 3een no retire!ent 2"nd In 1ase t/e
e!%#o'er>s 1ontri3"tion is #ess t/an t/e ter!ination %a' t/e e!%#o'ee is entit#ed to re1ei0e, t/e
e!%#o'er s/a## %a' t/e de2i1ien1' "%on t/e retire!ent o2 t/e e!%#o'ee
71; T/is Se1tion s/a## a%%#' 6/ere t/e e!%#o'ee retires at t/e a$e o2 si,t' 79*; 'ears or
o#der 7R"#es to I!%#e!ent t/e 5a3or Code, Boo@ MI, R"#e I, Se1 ):;
Llora (otors, Inc. v. #rilon, s"%ra note KA, at )+)-)+8
GR No ))*+9), No0e!3er ):, )AA:, (K+ SCRA )*B
Oro Enterprises, Inc. v. National La*or Relations Co..ission, id at ))(
GR No ABA:*, &"#' (:, )AA9, (BA SCRA )9)
0antranco North E+press, Inc. v. National La*or Relations Co..ission, id at )8K
Id
GR No )KB)K9, Ma' )A, )AAA, K*8 SCRA :A8
1rion v. 'outh 0hilippine &nion (ission o" the 'eventh #ay A$ventist Church, id at B*:
GR No A*99:, De3r"ar' 8, )AA), )AK SCRA 9+9
2illena v. National La*or Relations Co..ission, id at 9AK
GR Nos 8+B(: U 8+8KA, &an"ar' (*, )A+A, )9A SCRA K(+
0lanters 0ro$ucts, Inc. v. National La*or Relations Co..ission, id at KKA
GR No ):)98K, O1to3er )8, (**), K98 SCRA :++
(anuel L. )ue,on &niversity v. National La*or Relations Co..ission, id at :A:
GR Nos B*AAA-B)***, Mar1/ (K, )AA*, )+K SCRA 9)*
Arti1#e NIM Retire.ent 3ratuity
Se1tion )7a; An' e!%#o'ee, 6/o is se%arated 2ro! e!%#o'!ent, d"e to o#d a$e,
si1@ness, deat/ or %er!anent #a'-o22 not d"e to t/e 2a"#t o2 said e!%#o'ee s/a## re1ei0e
2ro! t/e 1o!%an' a retire!ent $rat"it' in an a!o"nt e?"i0a#ent to one 7); !ont/>s
sa#ar' %er 'ear o2 ser0i1e One !ont/ o2 sa#ar' s/a## 3e dee!ed e?"i0a#ent to t/e sa#ar'
at date o2 retire!entL 'ears o2 ser0i1e s/a## 3e dee!ed e?"i0a#ent to tota# ser0i1e 1redits,
a 2ra1tion o2 at #east si, !ont/s 3ein$ 1onsidered as one 'ear, in1#"din$ %ro3ationar'
e!%#o'!ent 7'ongco v. National La*or Relations Co..ission, id at 9)K, 1itin$ rollo,
% 8);
Rollo, % )+*
Id at :K(
S"%ra note :+
GR No )*99:+, &"ne )8, )AAA, K*+ SCRA K:*
Au$ion v. Electric Co., Inc. v. National La*or Relations Co..ission, id at KBB
Revi$a$ v. National La*or Relations Co..ission, GR No ))))*B, &"ne (8, )AAB, (:B SCRA
KB9, K8(-K8K, 1itin$ (ercury #rug Corporation v. National La*or Relations Co..ission, GR
No 8B99(, Se%te!3er )B, )A+A, )88 SCRA B+*