Title
Catotocan vs. Lourdes School of Quezon City, Inc.
Case
G.R. No. 213486
Decision Date
Apr 26, 2017
A teacher retired after 35 years at 56, accepted benefits, and worked contractually, then claimed illegal dismissal; SC ruled her actions implied consent to retirement policy.

Case Summary (G.R. No. 213486)

Employment History and Retirement Policy

Editha Catotocan commenced her employment with Lourdes School in 1971, eventually serving for thirty-five years as a music teacher. The school’s retirement policy enables employees to retire upon reaching sixty years of age or after thirty years of service, whichever comes first. Catotocan raised objections to aspects of this policy, particularly its provision stipulating an earlier retirement age based on years of service.

Requests and School Response

In March 2004, Catotocan, together with several colleagues, formally requested the deferment of the new retirement provision set forth in Administrative Order No. 2003-004. Their appeal sought to allow for retirement at the age of sixty instead of after thirty years of service. The school's leadership maintained that the retirement age reflected similar policies in other educational institutions and advised patience due to an ongoing related case.

Interaction with Labor Authorities and Subsequent Developments

After multiple communications with school officials, Catotocan sought intervention from the Department of Labor and Employment-National Capital Region. Notably, Atty. Jose Mari Villaflor emphasized that mandatory retirement could resemble constructive dismissal if not appropriately addressed.

Retirement Notification and Benefits

In January 2005, Catotocan was advised that she would be retired by the end of the school year, after serving thirty years, with calculated retirement benefits amounting to over one million Philippine pesos. Following her "retirement," Catotocan initially expressed dissatisfaction but later engaged in activities consistent with acceptance of her status as a retiree, including opening a savings account linked to her retirement proceeds.

Contractual Employment After Retirement

Upon her retirement in June 2006, Catotocan was offered a rehired position under a contractual arrangement as a Grade School Guidance Counselor. Over the following years, she continued to apply for and accept appointments in this role, receiving compensation throughout.

Labor Complaint and Initial Rulings

In June 2009, Catotocan filed for illegal dismissal, alleging her retirement was effectively forced. The Labor Arbiter dismissed her complaint, citing that her actions indicated acquiescence to the retirement policy. This decision was upheld by the National Labor Relations Commission, which recognized her voluntary acceptance of retirement benefits and her subsequent contractual employment actions.

Court of Appeals’ Decision

Catotocan sought certiorari before the Court of Appeals, which ultimately affirmed the prior rulings, concluding that the respondent did not illegally dismiss her and that her actions post-retirement implied consent to the school’s retirement policy.

Legal Principles and Conclusions

The Supreme Court upheld the decisions made by the lower courts, emphasizing that retirement is a bilateral act dependent on mutual agreement. The r

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