Clarissa Ann

Employees cannot be forced into early retirement without their clear and voluntary consent, the Supreme Court (SC) has ruled, affirming that the compulsory retirement age is 65 unless a lower age is mutually agreed upon. In a 22-page decision, the SC First Division said the Labor Code allows employees to choose to retire at 60, while retirement at 65 is mandatory in the absence of an agreement setting a different age. The case stemmed from the dismissal of Rodolfo C. Ondevilla, whose employment with Colegio de San Juan de Letran-Laguna was treated as having ended after he turned 60. The Labor Arbiter, National Labor Relations Commission, and Court of Appeals all ruled in Ondevilla’s favor, finding that he had been illegally dismissed. Although the appellate court noted that Ondevilla had written to the school expressing his intention to retire on July 31, 2020, the SC upheld the illegal dismissal finding after the school rejected his preferred retirement terms. The high court stressed that optional retirement requires a mutual agreement and the employee’s express, voluntary consent. Since early retirement means giving up security of tenure, the decision must not be made under pressure or coercion. The SC ordered the school to pay Ondevilla full backwages from August 29, 2019, to August 29, 2024. He was also awarded separation pay instead of reinstatement and retirement benefits for his service from June 16, 2004, until he reached the compulsory retirement age of 65 on August 29, 2024. The monetary award will earn legal interest at 6% annually from August 29, 2019, until fully paid. The decision, penned by Associate Justice Ramon Paul L. Hernando, was promulgated in June 2026 and posted on social media on October 27, 2026. (✍🏻: John Lloyd Aleta) #radarPHBusiness #radarPH