Title
Supreme Court
Portuguez vs. GSIS Family Bank
Case
G.R. No. 169570
Decision Date
Mar 2, 2007
A bank employee voluntarily retired under an early retirement program, receiving full benefits, but later claimed constructive dismissal and underpayment. Courts ruled his retirement was voluntary, dismissing his claims due to lack of evidence.

Case Digest (G.R. No. 169570)
Expanded Legal Reasoning Model

Facts:

  • Employment History and Roles of Petitioner
    • Ricardo Portuguez was employed by the respondent bank on 1 February 1971 as a utility clerk.
    • He steadily rose from the ranks, being promoted to branch manager of the Gen. Trias Branch and later assigned to other branches in Cavite.
    • He was eventually appointed as Business Development and Public Relations (BDPR) Officer, in addition to serving as a member of the Procurement Bidding and Awards Committee (PBAC), Oversight Committee, and Investigating Committee.
    • On 23 October 1997, he was temporarily assigned as caretaker of the bank.
    • On 15 June 1998, he was designated as Acting Assistant Vice-President and Officer-In-Charge, solidifying his role in management.
  • Background and Evolution of the Respondent Bank
    • Originally known as Royal Savings Bank, the institution faced liquidity problems in 1983–1984, leading the Central Bank to place it under receivership and, eventually, order its closure in July 1984.
    • After a brief closure, it was reopened under the management of the Commercial Bank of Manila and renamed Comsavings Bank.
    • In 1987, the Government Service Insurance System (GSIS) acquired a controlling interest, infused fresh capital, and assumed management, renaming it as GSIS Family Savings Bank.
    • Amando Macalino was appointed President on 21 December 1998, marking a shift in management policies.
  • The Dispute and Procedural History
    • In line with a cost-cutting measure, the respondent bank introduced an early voluntary retirement program. On 15 April 2001, petitioner availed himself of this package and received retirement pay amounting to P1.324 million.
    • On 11 July 2002, petitioner filed a complaint before the Labor Arbiter alleging constructive dismissal, underpayment of wages, non-payment of 13th month pay, and inadequate retirement benefits, contending that he was forced to retire due to discriminatory practices and intense pressure from the new management.
    • The Labor Arbiter issued a Decision on 30 June 2003 finding the bank guilty of illegal dismissal and awarding various monetary remedies including backwages, separation pay, salary differentials, moral and exemplary damages, as well as attorney’s fees.
    • The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s ruling on 30 January 2004 and denied the respondent bank’s motion for reconsideration on 22 June 2004.
    • Subsequently, respondent bank elevated the matter to the Court of Appeals on 16 August 2004 through a Special Civil Action for Certiorari, including a plea for a Temporary Restraining Order (TRO) and/or writ of preliminary injunction.
    • The Court of Appeals issued a TRO to enjoin the NLRC decision’s execution, and later, on 25 April 2005, reversed the decisions of the Labor Arbiter and the NLRC by ruling that petitioner’s separation was voluntary.
    • Petitioner then elevated the issue to the Supreme Court through a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court.

Issues:

  • Whether the Court of Appeals erred in declaring that petitioner was not constructively dismissed from his employment.
    • The contention centers on whether petitioner's resignation under the early retirement program should be deemed voluntary or a constructively brought about situation due to employer conduct.
  • Whether the Court of Appeals erred in denying petitioner's claim for salary differential.
    • The issue involves evaluating if petitioner was prejudiced by receiving a lower salary and benefits compared to newly hired bank officers, and whether such disparity could support a claim for discrimination and unfair treatment.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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