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JACULBE V. SILLIMAN Avg. Rating:

D
Labor Constitutional

F Digest Team
4 months ago
I

D
Summary:
N
This case involves a nurse, Alpha Jaculbe, who was compulsorily retired by Silliman University based on their
retirement plan. Jaculbe filed a complaint for illegal dismissal, arguing that the retirement plan violated her
security of tenure. The Labor Arbiter initially ruled in favor of Jaculbe, but the NLRC reversed the decision. The
Court of Appeals affirmed the NLRC's ruling. The Supreme Court, however, held that the retirement plan was in
violation of Jaculbe's security of tenure and declared her dismissal as illegal. Since Jaculbe was already over the
compulsory retirement age, the Court awarded her separation pay in lieu of reinstatement.

Doctrine:
Retirement plans allowing employers to retire employees who are less than the compulsory retirement age of 65
are not per se repugnant to the constitutional guaranty of security of tenure. However, the retirement plan must
be voluntarily agreed upon by the employee and employer. Compulsory retirement based solely on a retirement
plan that was not freely assented to by the employee constitutes illegal dismissal.

Facts:

Issues Ratio:

Dispositive:

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