Case Summary (G.R. No. 148542)
Factual Background
Marilyn Odchimar Gerlach was employed by Reuters Limited, Phils. as a local correspondent starting on February 15, 1982. In October 1983, Reuters initiated a local Retirement Benefit Plan for its Philippine employees, which was primarily company-funded, though employees could voluntarily contribute. Gerlach opted out of contributions and continued her employment until December 23, 1983, after which she was assigned to Reuters in Singapore, maintaining her home base in the Philippines.
Assignment and Salary Structure
Before relocating to Singapore, Gerlach was informed by Rachel Addison, a manager at Reuters, that her Philippine salary would cease, replaced by a Singapore salary of S$3,500 per month. Additionally, it was confirmed that upon returning to the Philippines, her employment terms would revert to those applicable to local staff. The correspondence also clarified that her participation in the Retirement Benefit Plan, which was non-contributory for the duration of her assignment, would be based on a notional Philippine salary.
Changes During Assignments
Gerlach worked in Singapore until December 1985 and was subsequently assigned to Reuters in Hongkong, followed by Sri Lanka. She received salary increases during her assignments, but always with the stipulation that her retirement benefits would reference her notional Philippine salary. She was instructed to return to Manila by December 1988 following a brief leave request, during which she sought additional overseas assignments, which were denied due to workforce reductions.
Resignation and Retirement Benefits
After a scheduled leave without pay, Gerlach resigned from Reuters on May 20, 1990. Upon retirement, she received benefits calculated based on her notional salary amounting to P79,228.04. Gerlach contested this computation, asserting her retirement benefits should reflect her actual overseas earnings, prompting further correspondence with Reuters regarding the retirement calculations and entitlement to a disturbance grant.
Legal Proceedings and NLRC Decisions
Disputes regarding the retirement benefits led Gerlach to file a case with the Office of the Labor Arbiter, seeking additional retirement benefits and other compensation. Initially, the Labor Arbiter ruled in her favor, granting substantial benefits based on her actual salary. However, on appeal, the NLRC reversed this decision and dismissed her complaint. A motion for reconsideration was granted, only for the NLRC to later uphold the dismissal of the complaint.
Court of Appeals' Rulings
Gerhgal appealed to the Court of Appeals, which ultimately reinstated the NLRC’s dismissal while affirmatively recognizing Gerlach's entitlement to a disturbance and resettlement grant. The Court of Appeals ruled that the computation of retirement benefits must adhere to the notional salary as this practice is consistent within Reuters' worldwide policy framework, and is embedded within the employment agreements relevant at the time.
Final Ruling
In the
...continue readingCase Syllabus (G.R. No. 148542)
Overview of the Case
- This case revolves around a petition for review on certiorari filed by Marilyn Odchimar Gerlach against Reuters Limited, Phils.
- The petition challenges the Decision of the Court of Appeals dated September 29, 2000, and its subsequent Resolution dated June 21, 2001, in CA-G.R. SP No. 51495.
- The central issue pertains to the computation of retirement benefits under the company's Retirement Benefit Plan.
Background Facts
- Marilyn Odchimar Gerlach was employed as a local correspondent by Reuters Limited, Phils. on February 15, 1982.
- On October 1, 1983, Reuters implemented a local Retirement Benefit Plan that was funded by the company, allowing employee-participants the option to contribute a percentage of their basic monthly salary.
- Gerlach, however, opted not to contribute and worked at Reuters Philippines until December 23, 1983.
Assignment and Salary Structure
- Gerlach was assigned as a journalist to Reuters Singapore on January 23, 1984, with her home base remaining in the Philippines.
- Her Philippine salary ceased, and she began receiving a Singapore salary of SGD 3,500 per month, in addition to furnished accommodation.
- Gerlach was informed that her notional Philippine salary, which would be used for retirement fund contributions, was PHP 5,980 per month, payable 13 times a year.
Subsequent Assignments and Salary Increases
- Gerlach worked in Singapore until December 1985, receiving increases to her notional salary, which was adjusted based on her performance and company policies.
- In July 1986,