G.R. No. 183619 - People vs. Sumingwa

Father Saturnino Urios University, Inc. (FSUU) employed Atty. Ruben B. Curaza as a part-time instructor beginning in the second semester of school year 1979–1980.
Atty. Curaza taught various subjects in the Commerce Department, later in the College of Engineering, the College of Arts and Sciences, and eventually as a pioneering professor in the College of Law.

On November 21, 2008, Atty. Curaza submitted a letter applying for early retirement in accordance with the University’s Personnel Policy and Procedure as well as the Retirement Pay Law.
After receiving no response, he followed up with the University’s Human Resource Management and Development Office. There, he was informed that the University did not allow retirement benefits for its part-time teachers.
Atty. Curaza reiterated his retirement application on March 5, 2009 by sending another letter accompanied by a copy of the Labor Advisory on the Retirement Pay Law.
By the time Atty. Curaza turned 60 years old, his application remained unaddressed, prompting him to file a complaint.

On June 25, 2010, Atty. Curaza filed a complaint before the National Labor Relations Commission (NLRC) Regional Arbitration Branch XIII in Butuan City seeking retirement benefits, damages, and attorney’s fees.
The University, represented by its president and vice president, countered by asserting that:

Atty. Curaza was only a part-time instructor and not a permanent employee.
His payment was based on per hour, per teaching load, and per semester rates.
His last teaching assignment involved a limited load, and his last gross salary was minimal (P1,400.00).
The Collective Bargaining Agreement (CBA) expressly excluded part-time faculty from its coverage, and similarly, Republic Act No. 7641 (RA 7641) purportedly excludes part-time instructors in private educational institutions.
Gaps in his teaching load (with periods of non-service) further justified his ineligibility for retirement benefits and damages.

The Executive Labor Arbiter issued a December 28, 2010 decision holding that part-time employees are entitled to retirement benefits under RA 7641, emphasizing that the law prevails over internal policies.
The NLRC affirmed the Labor Arbiter’s decision on December 29, 2011.
The Court of Appeals followed suit by affirming NLRC’s and the Labor Arbiter’s rulings, while modifying the computation of Atty. Curaza’s service length to 22 years based on his teaching load evidences.
Subsequently, the University filed a Petition for Review on Certiorari, which was initially denied by the Supreme Court.
Petitioners later filed a Motion for Reconsideration, and after an opposition and comment, the petition was reinstated.
The Catholic Educational Association of the Philippines, a member association of the University, intervened via a Petition-in-Intervention, contesting the inclusion of part-time faculty under RA 7641.

RA 7641 should not be extended to part-time employees as they do not acquire “regular permanent status.”
Regular permanent status is a precondition for entitlement to retirement benefits, and the University’s Manual of Regulations reinforces this limitation.
The five-year service requirement should be interpreted as representing five continuous years – making it practically impossible for part-time employees, who work on fixed contracts, to qualify.

RA 7641 explicitly provides that any employee reaching retirement age with at least five years of service is entitled to retirement benefits, without excluding part-time employees.
The Labor Advisory on Retirement Pay Law makes clear that part-time employees are included in the coverage.
The computation of his service years should properly aggregate all periods of teaching, regardless of gaps, leading to a total of 22 creditable years.

Whether part-time employees, like Atty. Ruben B. Curaza, are entitled to retirement benefits under Republic Act No. 7641 regardless of their non-permanent status.

Does RA 7641 distinguish between full-time (permanent) and part-time employees regarding retirement benefits?
Can the exclusion of part-time faculty from internal University policies or collective bargaining agreements override the provisions of RA 7641?

The proper computation of Atty. Curaza’s creditable years of service for the purpose of determining the retirement benefits.

Is it appropriate to reduce the length of service for retirement benefit computation based on gaps or partial periods of employment?
What criteria should be adopted to fairly quantify the service period rendered by a part-time employee?