Title
Pulong vs. Super Manufacturing, Inc.
Case
G.R. No. 247819
Decision Date
Oct 14, 2019
Worker denied entry at 60, claimed illegal dismissal; SC ruled MOA invalid, ordered backwages, separation pay, retirement benefits, and attorney's fees.

Case Digest (G.R. No. 5751)
Expanded Legal Reasoning Model

Facts:

  • Background and Employment History
    • Petitioner Guido B. Pulong was hired by respondent Super Manufacturing Inc. (SMI) in December 1978 as a spot welder at its Quezon City plant.
    • In May 1998, following SMI’s transfer of production to Calamba City, Laguna, petitioner and other workers received separation pay.
    • Petitioner was re-employed on August 1, 1998 as a Senior Die Setter and continued working for SMI until 2014.
  • Circumstances Leading to Dispute
    • On September 22, 2014, petitioner was denied entry into SMI’s plant by Personnel Manager Ermilo Pico, who presented a document indicating petitioner was compulsorily retired upon reaching age 60.
    • Petitioner refused to sign retirement papers, expressing his desire to work until age 65, but SMI prevented his return.
  • Respondents’ Defense and MOA
    • Respondents justified the compulsory retirement citing a Memorandum of Agreement (MOA) dated January 1, 2013 between SMI and workers’ representatives (Eduardo K. Abad, Glenn B. Bionat, Julio D. Cruz).
    • The MOA provided for:
      • Retirement age at 60 years with at least five years continuous service;
      • Optional retirement at 20 years continuous service;
      • Retirement pay in accordance with the law.
  • Petitioner’s Counterarguments
    • Petitioner asserted he was not a party to the MOA as he did not sign it, and that the supposed workers’ representatives lacked authority to bind him and others.
    • An affidavit from thirteen other SMI workers denied authorizing the MOA signatories or being aware of the MOA and its retirement provisions.
  • Labor Arbiter’s Decision
    • Labor Arbiter ruled petitioner was illegally dismissed due to failure of respondents to prove the MOA’s binding effect and authenticity of workers’ representatives.
    • Ordered reinstatement without loss of seniority and payment of backwages amounting to PHP 125,815.03, plus attorney’s fees.
  • NLRC Proceedings
    • Initially affirmed the Labor Arbiter’s decision on September 30, 2015, finding lack of proof on the authorization of MOA signatories.
    • Upon respondents’ motion and submission of documentary proofs of benefits availed under the MOA (uniforms, Christmas gift, leave credits monetization, health cards), the NLRC issued a February 29, 2016 resolution:
      • Ruled petitioner and co-workers were estopped from assailing MOA validity due to acceptance of benefits;
      • Found the MOA binding and ordered dismissal of illegal dismissal complaint;
      • Directed payment of retirement benefits amounting to PHP 211,200.00.
    • Denied petitioner’s motion for reconsideration while modifying retirement pay to PHP 216,000.00 under DOLE Advisory and jurisprudence.
  • Court of Appeals Ruling
    • On July 13, 2018, the CA affirmed the NLRC’s ruling upholding compulsory retirement at age 60 under the MOA signed by authorized workers’ representatives.
    • Denied petitioner’s motion for reconsideration on March 6, 2019.
  • Present Petition before the Supreme Court
    • Petitioner sought to nullify appellants’ rulings, contending the retirement was illegal since he did not consent and only accepted benefits as gratuities.
    • Respondents maintained the MOA’s binding nature due to petitioner’s receipt of benefits and its execution by authorized representatives.

Issues:

  • Whether the Court of Appeals erred in upholding petitioner’s compulsory retirement at age 60 under the MOA dated January 1, 2013.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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