Lone Grant of Optional Retirement may not Establish Company Practice
Maureen Perez wanted to retire from employer CII. But it was denied. She asked CII to reconsider its stand and she cited names of former employees who were allowed to optionally retire and who were given separation pays even if they were managerial employees. Still, CII was not convinced.
Perez filed a complaint with the NLRC for discrimination, moral damages and attomey’s fees against and praying for separation pay in the form of optional retirement benefits, either under the Retirement Plan for CII officers or under the Collective Bargaining Agreement (CBA) for rank-and-file employees. She argued that the company previously granted optional retirement to another employee
On the whole, Perez asked for payment of separation pay under all circumstances of severance of employment, including separation pay due to a retrenchment.
Citing Metropolitan Bank and Trust Company vs. NLRC, the SC held that to be considered a company practice, the giving of the benefits should have been done over a long period of time, and must be shown to be consistent and deliberate.
The test or rational of this rule on long practice requires an indubitable showing that the employer agreed to continue giving the benefits knowing fully well that said employees are not covered by the law requiring payment thereof.
There is no element of consistency or pattern in the employees granted optional retirement benefits by CII in the years prior to the effectivity of the Retirement Plan.
In addition, CII did not voluntarily grant the benefits and only did so upon application and request of the employee, unlike in Metrobank where the bank itself issued the Memoranda and specifically included managerial employees and bank officers in the coverage of the CBA.
On the contrary, no company practice can be gleaned from a single managerial employee availing of optional retirement benefits under the CBA after effectivity of the Retirement Plan for CII Officers.
Option to Undertake Retrenchment is Employer Prerogative
The option to undertake the retrenchment is the employer’s prerogative to serve the interest of the establishment. It is not for the benefit of an employee who has opted to sever the employment relations.
(Perez vs. Comparts Industries, Inc., G.R. No. 197557, October 5, 2016)
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