G.R. No.

190809

DE LA SALLE ARANETA UNIVERSITY, Petitioner

vs.
JUANITO c. BERNARDO, Respondent

FACTS OF THE CASE:

Juanito Bernardo work as a part time lecturer in De La Salle Araneta

University for 27 years. Juanito Bernardo’s contract with the school is
renewed every semester and summer. Upon reaching the age of 65,
Juanito Bernardo still continue to render his services to the school as a part
time teacher with the school’s consent and in fact there existed a
contractual relationship between the parties until on November 8, 2003 that
the school informed Bernardo that he could no longer continue to teach
since the school was implementing the retirement age limit for its faculty
members. Bernardo is already 75 years old at that time and had no choice
but to retire.

Bernardo was denied of his retirement benefits because according to the

school as mandated by the DLS-AU's policy and Collective Bargaining
Agreement (CBA), only full-time permanent faculty of DLS-AU for at least
five years immediately preceeding the termination of their employment
could avail themselves of the postemployment benefits. As part-time
faculty member, Bernardo did not acquire permanent employment under
the Manual of Regulations for Private Schools, in relation to the Labor Code,
regardless of his length of service.

ISSUE: WHETHER OR NOT JUANITO BERNARDO IS ENTITLED FOR RETIREMENT

BENEFIT.

RULING:

In the case at hand Juanito Bernardo did not question whether or not he is
a permanent employee of the school. The very question is whether
Bernardo is entitled for retirement benefit.
The court ruled in the positive. While it is true that Bernardo is not covered
under the school policy and CBA in terms of retirement benefits however
Bernardo is covered under RA 7641 or the Retirement Pay Law shall apply
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. They shall include part-time employees, employees of service and
other job contractors and domestic helpers or persons in the personal
service of another.

RA 7641 being a curative social legislation states that: Qualified workers

shall be entitled to the retirement benefit under RA 7641 in the absence of
any individual or collective agreement, company policy or practice.

Republic Act No. 7641 states that "any employee may be retired upon
reaching the retirement age x x x;" and "[i]n case of retirement, the
employee shall be entitled to receive such retirement benefits as he may
have earned under existing laws and any collective bargaining agreement
and other agreements." The Implementing Rules provide that Republic Act
No. 7641 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 to those specifically exempted x x x." And
Secretary Quisumbing' s Labor Advisory further clarifies that the employees
covered by Republic Act No. 7641 shall "include part-time employees,
employees of service and other job contractors and domestic helpers or
persons in the personal service of another."

The only exemptions specifically identified by Republic Act No. 7641 and its
Implementing Rules are: (1) 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 (2) employees of retail, service and agricultural
establishments or operations regularly employing not more than 10
employees.

Art. 302 [287]. Retirement. -Any employee may be retired upon reaching
the retirement age established in the collective bargaining agreement or
other applicable employment contract.

In case of retirement, the employee shall be entitled to receive such

retirement benefits as he may have earned under existing Jaws and any
collective bargaining agreement and other agreements: Provided
however, that an employee's retirement benefits under any collective
bargaining and other agreement shall not be less than those provided
herein.

In the absence of retirement plan or agreement providing for retirement

benefits of employees in the establishment, an employee upon reaching
the age of sixty (60) years or more, but not beyond sixty five (65) years which
is hereby declared the compulsory retirement age, who has served at least
five (5) years in said establishment, may retire and shall be entitled to
retirement pay equivalent to at least one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one
whole year.

Unless the parties provide for broader inclusions, the term one-half month
salary shall mean fifteen (15) days plus one twelfth (1/12) of the 13th month
pay and the cash equivalent of not more than five (5) days of service
incentive leaves.
The school argued that the claim of Bernardo for retirement benefit is
already barred since the 3year period has already lapsed since his services
with the school is already severed when he reached the age of 65, citing
among others the provision in the labor code in term of money claims;

Art. 306 [291]. Money claims. - All money claims arising from employer-
employee relations accruing during the effectivity of this Code shall be filed
within three years from the time the cause of action accrued; otherwise
they shall be forever barred.

The court is not persuaded. The school extended Bernardo’s contract upon
reaching the age of 65. The school renewed its contract with Bernardo up
until in 2003 when the school informed Bernardo that he could no longer
teach, at that time Bernardo is already 75 years old. The cause of action of
Bernardo in invoking his right to retirement benefit accrued when he was
informed that he could no longer teach. The school is estopped in its
actions in renewing and hiring Bernardo as a part time teacher even after
reaching the age of 65.