GR 152991
July 21,
2008
Facts: Alberto
Oxales was compulsory retired by UNILAB and he received his share in Trust Fund
A, Trust Fund B and unused sick leaves and under United Retirement Plan (URP). He
claimed that total computed retirement pay was lacking P1,775,907.23. UNILAB
countered that provision of the URP excludes commissions, overtime, bonuses, or
extra compensations in the computation of basic salary of the retiring
employee.
Issues:
1.
W/N in the computation of his retirement
and sick leaves benefits, UNILAB should have factored such benefits like
bonuses, cash and meal allowances, rice rations, service incentive leaves, and ½
of the 13th month pay
2.
W/N RA 7641 is applicable for purposes
of computing retirement benefits
3.
W/N UNILAB is liable for moral
damages, exemplary damages, and atty’s fees
Held: 1.
The clear language of the URP should be respected. The law respects the freedom
to contract but, at the same time, it is very zealous in protecting the
contracting parties and the public in general. So much so that the contracting
parties need not incorporate existing laws in their contract. §quando
abest, proviso parties, adest proviso legis (when the provision of the party islacking, provision of
the law supplies it)
Oxales is not entitled to the
additional retirement benefits he is asking because URP is very clear. URP is
not contrary to law, morals, public policy, public order thus it must be
sustained. §inclusio unius est exclusion alterius (inclusion of one is the exclusion of
others)
2.
RA 7641 does not apply in view of the URP which gives retiring employee more
than what the law requires. The Retirement Pay Law (RA 7641) only applies in the
situation where (1) there is no collective bargaining agreement/ other
applicable employment contract providing for retirement benefits or (2) there
is such agreement but is below requirements set by law because private
contracts cannot derogate from public law (§pacta
privata juri public derogare non possunt).
Legislative intent (RA 7641) because
many employers refuse/ neglect to adopt a retirement plan for their employees
due to the absence of any legal compulsion
URP grants more than what the law
gives. Oxales is trying to have the best of both worlds thus a sign of
covetousness.
3. Oxales
is not entitled to the awards. He claimed that the revocation of his medical
benefits caused him humiliation and anxiety. Medical benefits are not included
in the URP.
After
he retired, he joined rival company which gives more reason to discontinue
benefits
DOCTRINE
Management also has its own rights. Justice
should be dispensed in light of the established facts and applicable law and
doctrine. RA 7641 applies only when there’s no agreement/ if there is, is below
requirements set by law.