CHAPTER V

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents the summary of findings, conclusions, recommendations

after identifying the problems and presenting the analysis of all relevant data gathered.

A. Summary of Findings

Based on the gathered data, the following are the findings obtained in this study:

1. In Philippines, right to retirement is upheld by the police power of the state

through enactment of the Retirement Pay Law.

2. The right to retirement grants retirement pay benefits to qualified private

sector employees. Under the current law and latest issuances by relevant

government agency, there are private sector employees who may have

favorable protections with regard to retirement pay. However, these do not

tantamount inequality, as there are reasonable circumstances justifying such

special protection.

3. The Retirement Pay Law provides for the cumulative requirements of age and

tenure requirements before a qualified employee maybe eligible for the grant

of retirement pay benefits.

4. Retirement pay benefits are intended to help the employee enjoy the

remaining years of his life, releasing him from the burden of worrying for his

financial support, and are a form of reward for his loyalty to the employer.
 5. Retirement pay benefits under the law is imposed only upon the last employer

upon retirement, in the absence of any applicable agreement to other prior

employers .

6. Loyalty of employees to their employers are strictly based on the age and

tenure requirements.

B. Conclusion

In view of the foregoing findings, the following conclusions are formulated:

1. The right to retirement is a statutory right that promotes the general welfare of

retired employees .

2. The retirement laws provide for strict requirements of age and tenure before

granting the minimum retirement pay benefits, in which non-compliance of

either or both requirements will prohibit the grant of the same.

3. Employees who have served their employers for long time but who have not

reached at least the optional retirement age will not enjoy such retirement pay

benefits in the absence of any applicable agreement.

4. Existing general retirement law is not attuned to the prevailing life cycle of an

employee. The cost of such retirement pay is only covered by the last

employer.

5. The seemingly inequality for those long-serving employees who fail to meet

the minimum retirement age and those last employers burdened with the
 obligations to pay for the minimum retirement benefits, presents a gap of the

existing retirement law that necessarily needs to be filled by amending the

said law.

6. In amending the existing Retirement Pay Law, the Congress may further refer

to and adopt the tenure required for those loyalty awardees in civil service of

the Philippine government.

C. Recommendation

In consideration of the findings and conclusions attained, the following is highly

recommended:

1. That Congress must amend the existing Retirement Pay Law by adding a

new provision therein allowing the qualified long-serving private sector

employees the option to retire and to receive the minimum retirement pay.

D. Proposed Legislation

Base on the foregoing findings, conclusions, and recommendations, below is the

proposed law related to retirement benefits of employees in the private sector.

AN ACT AMENDING ARTICLE 302 OF PRESIDENTIAL DECREE NO. 442, AS

AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR
EMPLOYEES WHO HAVE SERVED AT LEAST TEN YEARS IN THE
ESTABLISMENT.

Section 1. Article 302 of Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines, is hereby amended to read as follows:
Art. 302. Retirement. – Any employee may be retired upon reaching the retirement age
established in the collective bargaining agreement or other applicable employment
contract.

In case of retirement, the employee shall be entitled to receive such retirement benefits
as he may have earned under existing laws and any collective bargaining agreement
and other agreements: Provided, however, That an employee's retirement benefits
under any collective bargaining and other agreements shall not be less than those
provided herein.

In the absence of a retirement plan or agreement providing for retirement benefits of

employees in the establishment, an employee upon reaching the age of sixty (60) years
or more, but not beyond sixty-five (65) years which is hereby declared the compulsory
retirement age, who has served at least five (5) years in the said establishment, may
retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month
salary for every year of service, a fraction of at least six (6) months being considered as
one whole year.

However, an employee who has not reached the age of the sixty (60) years but
has served at least ten (10) years in the establishment, may retire and shall be
entitled to retirement pay equivalent to at least one-half (1/2) month salary for
every year of service, a fraction of at least six (6) months being considered as one
whole year.

Unless the parties provide for broader inclusions, the term one-half (1/2) month salary
shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash
equivalent of not more than five (5) days of service incentive leaves.

Retail, service and agricultural establishments or operations employing not more than
(10) employees or workers are exempted from the coverage of this provision.

Violation of this provision is hereby declared unlawful and subject to the penal
provisions provided under Article 288 of this Code."

Section 2. Nothing in this Act shall deprive any employee of benefits to which he may be
entitled under existing laws or company policies or practices.

Section 3. Separability Clause. – If any provision of this Act is declared unconstitutional,

the same shall not affect the validity and effectivity of the other provisions hereof.
Section 4. Repealing Clause. – All laws, decrees, orders, and issuances or portions
thereof, which are inconsistent with the provisions of this Act, are hereby repealed,
amended, or modified accordingly.

Section 5. Effectivity. –This Act shall take effect fifteen (15) days following its publication
in at least two (2) national newspapers of general circulation.
 BIBLIOGRAPHY

I. PRIMARY AUTHORITIES

A. Constitutions

The 1987 Constitution of the Philippines.

The 1973 Constitution of the Philippines.

B. Codes and Statutes

Labor Code of the Philippines, Presidential Decree No. 442.

Amending Certain Sections of Presidential Decree No. 442 Entitled “Labor Code of the
Philippines”, Presidential Decree No. 570-A.

The Retirement Pay Law, Republic Act. No. 7641.

Social Security Act of 1997, Republic Act No. 8282.

Social Security Act of 2018, Republic Act No. 11199.

Civil Code of the Philippines, Republic Act No. 386.

An Act Amending Presidential Decree No. 1752 (Home Development Mutual Fund Law
of 1980), As Amended, Republic Act. No. 7742.

Home Development Mutual Fund Law of 2009, Republic Act No. 9679.

An Act Amending Article 287 of Presidential Decree No. 442, As Amended, Otherwise
Known as the Labor Code of the Philippines by Reducing the Retirement Age of
Underground Mine Workers From Sixty (60) to Fifty (50), Republic Act No. 8558.

An Reducing the Retirement Age of Surface Mine Workers From Sixty (60) to Fifty (50)
Years, Amending for the Purpose Article 302 of Presidential Decree No. 442, As
Amended, Otherwise Known as the “Labor Code of the Philippines”, Republic Act
No. 10757.

An Act Amending Presidential Decree No. 442, As Amended, Otherwise Known as The
Labor Code of the Philippines By Adding a New Article 302-A Reducing the
Retirement Age of Racehorse Jockeys from Sixty (60) to Fifty-five (55), Republic
Act No. 10789.
An Act Strengthening Compliance with Occupational Safety and Health Standards and
Providing Penalties for Violations Thereof, Republic Act No. 11058.

Anti-Age Discrimination in Employment, Republic Act No. 10911.

C. Jurisprudence

Pantranco North Express, Inc. v. National Labor Relations Commission And Urbano
Suñiga, G.R. No. 95940, July 24, 1996.

De La Salle Araneta University v. Juanito C. Bernardo, G.R. No. 190809, February 13,
2017.

Padillo v. Rural Bank of Nabunturan, Inc., G.R. No. 199338, January 21, 2013.

Santos v. Servier Philippines, Inc., G.R. No. 166377, November 28, 2008.

Paz v. Northern Tobacco Redrying Co. Inc., G.R. No. 199554, February 18, 2015.

Conrado M. Aquino v. NLRC, G.R. No. 87653, February 11, 1992.

Calalang v. Williams, G.R. No. 47800, December 2, 1940.

Philippine Association of Service Exporters, Inc. v. Drilon, G.R. No. 81958, June 30,
1988.

Bataan Shipyard & Engineering Co., Inc. v. Presidential Commission on Good

Government, G.R. No. 75885, May 27, 1987.

Ermita-Malate Hotel and Motel Operators Association, Inc. v. City Mayor of Manila, G.R.
No. L-24693, October 23, 1967.

People v. Reyes, G.R. No. L-45748, April 5, 1939.

People v. Pomar. G.R. No. L-22008, November 3, 1924.

Agabon v. NLRC, G.R. No. 158693, November 17, 2004.

Metropolitan Manila Development Authority v. Bel-Air Village Association, Inc., G.R. No.
135962, March 27, 2000.

Anucension v. National Labor Union, G.R. No. L-26097, November 29, 1977.
Leyte Geothermal Power Progressive Employees Union-ALU-TUCP v. Philippine
National Oil Company-Energy Development Corporation, G.R. No. 170351,
March 30, 2011.

Alhambra Industries, Inc. v. NLRC, G.R. No. 106771, November 18, 1994.

JMM Promotion and Management, Inc. v. CA, G.R. No. 120095, August 5, 1996.

Rivera v. United Laboratories, Inc., G.R. No. 155639, April 22, 2009.
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Carlos Superdrug Corp. v. DSWD, G.R. No. 166494, June 29, 2007.

Zomer Development Company, Inc. v. Special Twentieth Division of the Court of

Appeals, Cebu City, G.R. No. 194461, January 7, 2020.

Victoriano v. Elizalde Rope Workers’ Union, G.R. No. L-25246, September 12, 1974.

Serrano v. Gallant Maritime Services, Inc., G.R. No. 167614, March 24, 2009.

Central Bank Employee Association, Inc. v. Bangko Sentral ng Pilipinas, G.R. No.
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Fuentes v. National Labor Relations Commission, G.R. No. 110017, January 2, 1997.

Philippine Aelus Automative United Corporation v. National Labor Relations

Commission, G.R. No. 124617, April 28, 2000.

Nippon Express Philippines Corporation v. Daguiso, G.R. No. 217970, June 17, 2020.

Rance v. National Labor Relations Commission, G.R. No. L-68147, June 30, 1988.

Cainta Catholic School v. Cainta Catholic School Employees Union, G.R. No.
151021, May 4, 2006.

Re: Letter Of Mrs. Ma. Cristina Roco Corona Requesting The Grant Of Retirement And
Other Benefits To The Late Former Chief Justice Renato C. Corona And Her
Claim For Survivorship Pension As His Wife Under Republic Act No. 9946, A.M.
No. 20-07-10-SC.

City Service Corporation Workers Union v. City Service Corporation, G.R. No. L-
59407, March 29, 1985.

Madlos v. National Labor Relations Commission, G.R. No. 115365, March 4, 1996.
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Serrano v. National Labor Relations Commission, G.R. No. 117040, January 27, 2000.

Rural Bank of Cantilan, Inc. v. Julve, G.R. No. 169750, February 27, 2007.

Peckson v. Robinsons Supermarket Corporation, G.R. No. 198534, July 3, 2013.

SCA Hygiene Products Corporation Employees Association-FFW v. SCA Hygiene

Products Corporation, G.R. No. 182877, August 9, 2010.

San Miguel Brewery Sales Force Union (PTGWO) v. Ople, G.R. No. L-53515, February
8, 1989.

SPI Technologies, Inc. and Lea Villanueva v. Victoria K. Mapua, G.R. No. 191154, April
7, 2014.

Innodata Philippines, Inc. v. Quejada-Lopez, G.R. No. 162839, October 12, 2006.

Businessday Information Systems and Services, Inc. v. NLRC, G.R. No. 103575, April
5, 1993.

Unicorn Safety Glass, Inc. v. Basarte, G.R. No. 154689, November 25, 2004.

The Orchard Golf and Country Club v. Francisco, G.R. No. 178125, March 18, 2013.

Dongon v. Rapid Movers and Forwarders Co., Inc., G.R. No. 163431, August 28, 2013.

Philippine Airlines, Inc. v. NLRC, G.R. No. 85985, August 13, 1993.

St. Luke’s Medical Center Employee’s Association-AFW v. National Labor Relations

Commission, G.R. No. 162053, March 7, 2007.

Capili v. National Labor Relations Commission, G.R. No. 117378, March 26, 1997.

Pacific Mills, Inc. v. Zenaida Alonzo, G.R. No. 78090, July 26, 1991.

Philippine Geothermal, Inc. v. NLRC, G.R. No. 106370, September 8, 1994.

Llora Motors, Inc. v. Drilon, G.R. No. 82895, November 7, 1989.

Alberto P. Oxales v. United Laboratories, Inc., G.R. No. 152991, July 21, 2008.

Oro Enterprises, Inc. v. NLRC, G.R. No. 110861, November 14, 1994.
Brion v. South Philippine Union Mission of the Seventh Day Adventist Church, G.R. No.
135136, May 19, 1999.

Elejir v. Philippine Airlines, Inc., G.R. No. 181995, July 16, 2012.

Capitol Wireless, Inc. v. Confessor, G.R. No. 117174, November 13, 1996.

Government Service Insurance System (GSIS) v. Palmiery, G.R. No. 217949, February
20, 2019.

Sta. Catalina College v. National Labor Relations Commission, G.R. No.

144483, November 19, 2003.

D. Administrative Issuances

CSC Memorandum Circular No. 06, Series of 2002.

Labor Code of the Philippines Renumbered, Department Advisory No. 1, Series of

2015.

Revised Guidelines Governing the Employment and Working Conditions of Security

Guards and Other Private Security Personnel in the Private Security Industry,
DOLE Department Order No. 150-16, Series of 2016.

Rules Implementing Articles 106 to 109 of the Labor Code, As Amended, DOLE
Department Order No. 174, Series of 2017.

Amending the Implementing Rules and Regulations of Book VI of the Labor Code of the
Philippines, As Amended, DOLE Department Order No. 147-15, Series of 2015.

Guidelines for the Effective Implementation of R.A. 7641, the Retirement Law, October
24, 1996.

Rules Implementing the New Retirement Law (R.A. No. 7641), April 1, 1993.

Implementing Rules and Regulations of Republic Act No. 10789 Otherwise Known as
the Racehorse Jockeys Retirement Act, DOLE Department Order No. 160,
Series of 2017.

Implementing Rules and Regulations of Republic Act No. 11058 Entitled “An Act
Strengthening Compliance with Occupational Safety and Health Standards and
Providing Penalties for Violations Thereof, DOLE Department Order No. 198,
Series of 2018.
Guidelines Governing the Employment and Working Conditions of Security Guards and
Similar Personnel in the Private Security Industry, DOLE Department Order No.
14, Series of 2001.

E. Legislative Materials

Senate Bill No. 132, Senate of the Philippines, Ninth Congress.

House Bill No. 317, House of Representative of the Philippines, Ninth Congress.

Transcript of Plenary Debates, Bill on Second Reading, Senate Bill No. 132, September
3, 1992.

II. SECONDARY AUTHORITIES

A. Book and Non-periodic Materials

Gary A. Adams, & Terry A. Beehr, (Eds.). (2003). Retirement: Reasons, processes, and
results. Springer Publishing Company.

Diego P. Atienza, 2016, Fundamentals of Labor Law, (Quezon City: Rex Printing
Company, Inc.), 2016 Edition.

Cesario A. Azucena Jr., 2016, The Labor Code With Comments and Cases, (1) 9th
Edition.

Cesario A. Azucena Jr., 2018, Everyone’s Labor Code, (Quezon City: Rex Printing
Company, Inc.), 2018 Edition.

Joaquin G. Bernas, S.J., 2009, The 1987 Constitution of the Republic of the Philippines,
(Quezon City: Rex Printing Company, Inc.), 2009 Edition.

Daniel J. Levinson, (1986). The Seasons of a Man's Life: The Groundbreaking 10-Year
Study That Was the Basis for Passages!. Ballantine Books.

Kenneth S. Shultz, & Mo Wang, (2011). Psychological perspectives on the changing

nature of retirement. American psychologist, 66(3), 170.

B. Journals

Bob Hepple, Rights at Work, available at https://www.ilo.org/wcmsp5/groups/public/---

dgreports/---inst/documents/publication/wcms_079203.pdf (last accessed
November 13, 2022).
CFA Institute & Mercer, Mercer CFA Institute Global Pension Index 2022, available at
https://www.mercer.com/content/dam/mercer/attachments/private/gpi/gl-2022-
global-pension-index-full-report.pdf (last accessed January 22, 2023).

CFA Institute & Mercer, Mercer CFA Institute Global Pension Index 2021, available at
https://www.mercer.com/content/dam/mercer/attachments/private/gl-2021-global-
pension-index-mercer.pdf (last accessed January 22, 2023).

Collins, H., 2010. Employment law, ( Oxford University Press) 3-4.

David Stein, The New Meaning of Retirement, available at

https://citeseerx.ist.psu.edu/document?
repid=rep1&type=pdf&doi=1b0a2a2cb5b8172f3ca48b1f19785e7df4a0eb2d (last
accessed January 22, 2023).

International Labour Organization, World Social Protection Report 2017-19: Universal

Social Protection to Achieve thte Sustainable Development Goals, available at
https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/
documents/publication/wcms_604882.pdf (last accessed January 22, 2023).

INWORK, Why Work is Important, available at http://www.inworkproject.eu/toolbox/

(last accessed November 13, 2022).

Kène Henkens, PhD, Hendrik P van Dalen, PhD, David J Ekerdt, PhD, Douglas A
Hershey, PhD, Martin Hyde, PhD, Jonas Radl, PhD, Hanna van Solinge, PhD,
Mo Wang, PhD, Hannes Zacher, PhD, What We Need to Know About
Retirement: Pressing Issues for the Coming Decade, The Gerontologist, Volume
58, Issue 5, October 2018, Pages 805–812, available at
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January 22, 2023).

Magdalena Sepulveda & Carly Nyst, The Human Rights Approach to Social Protection,
available at
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HumanRightsApproachToSocialProtection.pdf (last accessed January 22, 2023).

Martin Wetzel, Catherine Bowen & Oliver Huxhold, Level and Change in Economic,
Social, and Personal Resources for People Retiring From Paid Work and Other
Labour Market Statuses, available at
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22, 2023).

Sherry E. Sullivan & Akram Al Ariss, Employment After Retirement: A Review and
Framework for Future Research. Journal of Management, 45(1), 262–284,
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22, 2023).
Shultz, K. S., & Wang, M. (2011). Psychological perspectives on the changing nature of
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version/sustainable-economy/employment-g (last accessed November 13,
2022).

World Bank, Philippines: Social Protection Review and Assessment, available at

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Philippines-Social-Protection-Review-and-Assessment-October-8-2018.pdf (last
accessed January 22, 2023).

C. Internet Sources

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2019, available at https://www.britannica.com/topic/loyalty (last accessed March
31, 2023).

Department of Labor and Employment – Bureau of Working Conditions, Handbook on

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2023).

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_OSH_COVID_rev_Feb_2022.pdf (last accessed March 31, 2023).

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(last accessed January 22, 2023).

D. Founding Documents

1. UN Charter and League of Nations Covenant.

United Nations Declarations of Human Rights, art. 23(1)(2)(3).

International Covenant on Economic, Social and Cultural Rights, art. 6(1).

International Covenant on Economic, Social and Cultural Rights, art. 7(a)(ii).

International Covenant on Economic, Social and Cultural Rights, art. 9.

International Covenant on Economic, Social and Cultural Rights, art. 11(1).

International Covenant on Economic, Social and Cultural Rights, art. 22.

UN Committee on Economic, Social and Cultural Rights (CESCR), General Comment

No. 19: The right to social security (Art. 9 of the Covenant), 4 February

2008, E/C.12/GC/19.
 CURRICULUM VITAE

RALPH PRADO PANIMDIM

Home Address: Block 58 Lot 44, Citadel Residences 2, Brgy. Uwisan, Calamba City, Laguna

Mobile No.: 0916-568-8605

Email Address: ralphpanimdim@gmail.com

------------------------------------------------------------------------

EDUCATION

Graduate School: University of Batangas – Juris Doctor – 2018 up to present

Tertiary: Bohol Island State University – Calape Campus – 2008-2012

Secondary: Inabanga High School – 2004-2008

Elementary: Baogo Elementary School – 1998-2004

WORK EXPERIENCE

Sr. Safety Supervisor / Safety Officer | 2020 – 2023 | Epson Precision (Philippines), Inc.

Safety Supervisor / Safety Officer | 2016 – 2020 | Epson Precision (Philippines), Inc.

Safety Staff / Safety Officer | 2012 – 2016 | Epson Precision (Philippines), Inc.

SKILLS

Occupational Health and Safety: Inspection, Audit, Safety Programming and Evaluation, Accident

Investigation and Evaluation

Security Management
 PROFESSIONAL AFFILIATIONS / CERTIFICATIONS

Accredited Occupational Safety and Health Practitioner by Department of Labor and Employment

Occupational First Aider

IRCA OHSMS ISO 45001:2018 Lead Auditor

BFP Fire Brigade

Civil Service Exam Professional

Certified Security Management Specialist