Retirement Pay Law
Dear Atty. Joji,
My Dad has been a part-time faculty member of a well-known university since the 1980s. At 65, the age of retirement, he claimed, in accordance with Republic Act 7641, otherwise known as the New Retirement Pay Law, retirement benefits after two decades of employment and service.
However, the university denied my dad's claim for retirement benefits because only full-time permanent faculty of the said university is entitled to said benefits pursuant to university policy and the CBA.
Since my dad has not been granted retirement benefits under any agreement with or by a voluntary act, can my dad claim retirement benefits by mandate of any law?
Cedrick
Dear Cedrick,
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.
The law does not cover employees of retail, service and agricultural establishments or operations employing not more than 10 employees or workers and 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.
Moreover, in the case of De Lasalle Araneta University vs Bernardo, G.R. 190809, the Supreme Court ruled:
"For the availing of the retirement benefits under Article 302 [287] of the Labor Code, as amended by Republic Act 7641, the following requisites must concur: (1) the employee has reached the age of 60 years for optional retirement or 65 years for compulsory retirement; (2) the employee has served at least five years in the establishment; and (3) there is no retirement plan or other applicable agreement providing for retirement benefits of employees in the establishment. It is a settled rule of statutory construction that the express mention of one person, thing, or consequence implies the exclusion of all others.
