Father Saturnino Urios University (Fsuu) Inc. v.

Curaza
June 10, 2020
Ponente: Leonen, J.
By: Rein Justin F. Nantes
Topics: Retirement pay, covered employees.
Facts:
Father Saturnino Urios University (FSUU) hired Atty. Ruben Curaza (Curaza) as a part-
time teacher. Curaza taught multiple classes spanning twenty-nine years of employment. In 2008,
Curaza applied for an early retirement under RA 7641 or the Retirement Pay Law. Curaza’s
application was not acted upon by the Human Resources Department of FSUU. Time went until
Curza reached the age of sixty with his application for retirement remaining unacted upon. In
2010, Curaza filed a complaint against FSUU for damages and retirement benefits. In its answer,
FSUU argued that Curaza was not a covered employee under the retirement benefits provided
by RA 7641. FSUU opined that Curaza, being a mere part-time employee, is exempted from the
coverage of RA 7641. Additionally, FSUU argued that the collective bargaining agreement
between the university and its employees’ union specifically provides that part-time teachers are
excluded from the retirement pay benefit.
Issue: W/N part-time employees may be entitled to retirement benefits under Republic Act No.
7641
Held: Yes. Republic Act No. 7641 specifically states that "any employee may be retired upon
reaching the retirement age" and that in case of retirement, in the absence of a retirement
agreement, an employee who reaches the retirement age "who has served at least five
years…..may retire and shall be entitled to retirement pay". No exception is made for part-time
employees.
In this case, the main argument of FSUU must fall since the very law they rely on provides no
express exemption for part-time workers for being covered by a retirement pay benefit. It has
been held by the Supreme Court in previous cases that the retirement pay under RA 7641 shall
include part-time employees, employees in the service of another, as well as other job contractors
and domestic helpers.