CASE 2019-0057: CARISSA E. SANTO VS. UNIVERSITY OF CEBU (G.R. NO. 232522. AUGUST 28, 2019, LAZARO-JAVIER) (SUBJECT/S: RETIREMENT BENEFITS; HOW COMPUTED)  (BRIEF TITLE: SANTO VS UNIVERSITY OF CEBU)

 

DISPOSITIVE:

 

santo-dispositive

 

SUBJECTS/DOCTRINES/DIGEST:

 

WHAT HAPPENED IN THIS CASE?

 

THE UNIVERSITY OF CEBU OFFERS OPTIONAL RETIREMENT TO THOSE WHO HAVE COMPLETED AT LEAST 15 YEARS OF SERVICE. THE RETIREMENT BENEFIT IS COMPUTED AT 15 DAYS PER YEAR OF SERVICE. SANTO, 42 YEARS OLD, APPLIED FOR OPTIONAL RETIREMENT BUT INSISTS THAT THE RETIREMENT BENEFIT BE COMPUTED AT 22.5 DAYS PER YEAR OF SERVICE IN ACCORDANCE WITH THE RETIREMENT LAW. UNIVERSITY OF SEBU CONTENDED THAT RETIREMENT LAW DOES NOT APPLY BECAUSE SANTO IS BELOW 60 YEARS OLD AND THEIR SCHOOL MANUAL EXPRESSLY STATES THAT SUCH OPTIONAL RETIREMENT IS RESIGNATION WITH SEPARATION BENEFIT SUPREME COURT SAID SHE IS ENTILED TO THE BENEFIT UNDER THE RETIREMENT LAW BECAUSE IT IS MORE BENEFICIAL. THE AMBIGUITY IN THE UNIVERSITY MANUAL (WHETHER RESIGNATION OR RETIREMENT) MUST BE INTERPRETED IN FAVOR OF THE RETIREE. THE RULINGS OF THE SUPREME COURT ARE AS FOLLOWS:

 

 

WHAT IS MORE BENEFICIAL TO BENEFICIARY MUST BE APPLIED. ART. 287 OF THE LABOR CODE IS MORE BENEFICIAL. THUS ITS COMPUTATION OF 22.5 DAYS PER YEAR OF SERVICE MUST BE APPLIED.

 

SANTO 1

 

SANTO 2

 

SUPREME COURT RECOGNIZES RETIREMENT PLANS WHICH SET THE MINIMUM RETIREMENT AGE  OF EMPLOYEES BELOW 60 YEARS OLD.

 

SANTO 3

 

SUPREME COURT WILL NOT SUSTAIN A RETIREMENT CLAUSE THAT GIVES RETIREES LESS BENEFITS THAT WHAT THE LAW GUARANTEES.

  

SANTO 4

 

TO READ THE DECISION, JUST CLICK/DOWNLOAD THE FILE BELOW. IF FILE DOES NOT APPEAR ON SCREEN GO TO DOWNLOAD. IT IS THE FIRST ITEM. OPEN IT.

 

SCD-2019-0058-Carissa E. Santo Vs. University of Cebu

 

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