EMPLOYEES CANNOT BE FORCED TO RETIRE BEFORE 65 – SC

THE Supreme Court (SC) has ruled that employees cannot be retired before the compulsory retirement age of 65 without their clear and voluntary consent.

Based on a decision written by Associate Justice Ramon Paul L. Hernando, the SC’s First Division partly granted the petition of Rodolfo C. Ondevilla and found Colegio de San Juan de Letran in Laguna (CSJL) guilty of illegal dismissal.

Ondevilla joined CSJL as comptroller in 2004 and later became Assistant Vice President for Finance. His appointment was renewed several times.

In 2018, CSJL underwent a management reorganization, and Ondevilla was reassigned as comptroller. Although he objected to the reassignment, claiming it was a demotion, he continued working at the same salary and benefits.

When Ondevilla turned 60 on August 29, 2019, CSJL considered his appointment expired. Ondevilla then filed a complaint for illegal dismissal.

The SC agreed with Ondevilla, emphasizing that an optional retirement plan must be based on a voluntary agreement between the employer and the employee.

The employee must freely and expressly agree to it, without pressure or coercion, because accepting optional retirement means giving up the right to security of tenure.

In this case, the Court found that Ondevilla’s early retirement was not the result of a mutual agreement between him and CSJL.

The SC noted that CSJL never made any offer or proposal for a retirement plan that Ondevilla could freely accept or reject. There was also no indication that CSJL was willing to discuss his retirement.

The SC thus ruled that Ondevilla was entitled to full backwages and separation pay instead of reinstatement.

The SC also awarded him retirement benefits covering his employment from June 16, 2004, until August 29, 2024, when he reached the mandatory retirement age of 65.