Title
Bacolod City Water District vs. Bayona
Case
G.R. No. 168780
Decision Date
Nov 23, 2007
BACIWA employee Bayona retired at 60 per CBA, conflicting with Civil Service Law's 65. SC upheld CSC rulings, ordering back pay for illegal termination.

Case Summary (G.R. No. 188308)

Case Background

BACIWA and its employees entered into a CBA that designated a compulsory retirement age of 60 years, despite the ruling in the case of Davao Water District, which stated that employees in water districts were covered under the Civil Service Law with a compulsory retirement age of 65 years. This CBA was established before the Supreme Court's ruling became final.

Retirement Circumstances

Bayona, who turned 60 on May 16, 1994, had been employed at BACIWA for thirteen years as the manager of the General Services Division. In seeking clarification regarding his retirement age, he received conflicting advice that led him to question the provisions in the CBA. Despite this, he was conditionally allowed to continue working until December 31, 1995, by BACIWA’s Board of Directors.

Legal Queries and Subsequent Developments

In a subsequent letter to the Civil Service Commission (CSC), Bayona formally requested clarification about his retirement age and sought reinstatement following BACIWA’s failure to acknowledge his right to serve until the statutory age of 65. The CSC opined that the provisions of P.D. 1146, which governed retirement ages, should prevail over the CBA.

CSC Resolutions

The CSC issued multiple resolutions affirming that the CBA's retirement age provision was in violation of P.D. 1146, leading to Bayona's entitlement to reinstatement. Resolution No. 964918 confirmed the compulsory retirement age at 65 with an option for earlier retirement at 60, but did not specifically mention Bayona.

Appellate Court Ruling

On appeal, the Court of Appeals upheld the CSC's resolutions, ruling that BACIWA did not contravene Bayona’s right to due process when it failed to notify him of his reinstatement request. It affirmed that employees like Bayona are covered under Civil Service Law, which mandates a retirement age of 65 years.

Challenges by BACIWA

BACIWA filed for reconsideration, arguing that Bayona's removal was justified based on the CBA and seeking to contest the CSC's rulings that mandated payment of Bayona's back salaries and benefits. BACIWA contended that reinstatement and the awarding of back salaries for the period prior to his formal retirement were procedural mistakes by the CSC.

Final Judicial Determination

The Supreme Court denied BACIWA's petition, emphasizing the mandatory nature of P.D. 1146 concerning retirement ages. The ruling reinforced the n

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