CONRADO M. AQUINO, NAPOLEON B. AROMIN, ROBERTO A. GASPAN and NICARDO P. BLANQUISCO, vs. NATIONAL LABOR RELATIONS COMMISSION AND OTIS ELEVATOR COMPANY.
- G.R. Number: G.R. No. 87653
- Promulgated: 1992-02-11
- Ponente: Cruz, J.
Doctrine
Collective bargaining results in binding contracts that create demandable rights, not withdrawable doles; when an employer signs a CBA it recognizes workers' rights rather than merely granting privileges.
Acceptance of separation pay does not automatically waive an employee's contractual right to retirement benefits absent clear proof of waiver.
Retirement benefits provided by a Retirement Plan and embodied in a CBA are binding and must be upheld if not contrary to law, morals, good customs, public order, or public policy.
Facts
Petitioners were employees of Otis Elevator Company whose services were terminated as part of a retrenchment to streamline operations and reduce manpower.
They were informed they would be given separation pay or retirement benefits, whichever was higher, and they received separation pay computed based on basic monthly salary and years of service.
After receiving separation pay (double that required by the Labor Code), petitioners demanded retirement benefits under the company's Retirement Plan, which they characterized as contractual rather than statutory.
The Labor Arbiter ruled the petitioners were entitled to retirement benefits, but the NLRC reversed that decision, prompting the present appeal.
Issues
Whether, having received separation pay, the petitioners are nevertheless entitled to retirement benefits under the company's Retirement Plan and CBA.
Ruling
Yes. The petition is granted; the NLRC decision is reversed and the petitioners are directed to be paid retirement benefits in accordance with the company's Retirement Plan and its Collective Bargaining Agreement.
Receiving separation pay did not constitute a waiver of petitioners' right to retirement benefits when those benefits arise from binding contractual instruments (CBA and Retirement Plan).
Keywords
G.R. No. 87653, retrenchment, separation pay, retirement benefits, Labor Code, Collective Bargaining Agreement, CBA, estoppel, discrimination, Labor Arbiter, NLRC, Articles 283 and 284 of the Labor Code, statutory right, Batangas Laguna Tayabas Bus Co. v. Court of Appeals, Cipriano vs. San Miguel Corporation, company, service, entitled, employer, petitioners