Catarman, Isiah Thomas

de Castro, Marvin Doods

LLB 1-Manresa
Leg Wri 111 ThF 5-6 pm
Aug 1, 2016
Aquino VS NLRC
G.R. No. 87653 (February 11, 1992)
Petitioners were employees of Otis Elevator Company (respondent), dismissed from
their jobs without just cause. They claimed separation pay, along with retirement
benefits. The company paid for the former, but refused the latter. While the Labor
Arbiter sided with the petitioners, the NLRC reversed its decision, thus this petition.
Petitioner states that they have contributed to the retirement fund, have been
retrenched, served the company for more than ten years, and are entitled to retirement
benefits like their other workmates who were doled out with the same. NLRC
contends that separation and retirement benefits are exclusive, and that the petitioners
should only receive which is higher.
Whether or not petitioners should receive retirement benefits, apart from their
separation pay?
The court ruled in favor of the petitioner.
In labor jurisprudence, nothing bars the payment of both retirement benefits and
separation pay. Citing the cases of Batangas Laguna Tayabas Bus Co. v. Court of
Appeals and University of the East v. Minister of Labor, it was held that unless
otherwise arranged, separation pay and retirement benefits should be given to
employers. In this case, they were dismissed without cause, as stated in the company
letter stating their retrenchment: Finally, we want to assure you that your
retrenchment is through no fault of your own but mainly due to prevention of further
losses. In behalf of the Company, we express our sincere appreciation for your
services and loyalty and wish you every success in your future undertakings. This
clarifies the need for them to be provided with finance, in the immediate period that
they would be looking for employment. More importantly, operating on the principle
that any doubt concerning the rights of labor should be resolved in its favor, the
court sees that that the petitioners are entitled to retirement benefits, apart from their
separation pay.