Case Digest: MWSS v. Advincula, et al.
G.R. No. 179217 : February 2, 2011
METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM, Petitioner, v. GABRIEL ADVINCULA, ET AL.,Respondent.
CARPIO, J.:
FACTS:
in 1996, petitioner Metropolitan Waterworks and Sewerage System (MWSS) was reorganized law and because of this, offered separation benefits to its affected official and employees through the Revised Early Retirement Incentive Package (ERIP I). MC No. 26-96, provided, among others, that MWSS will pay separation benefits to its affected permanent officials and employees who have served at least one year.
In 1997, MWSS entered into concession agreements with Maynilad Water Services, Inc. and Manila Water Company, Inc. for the privatization of its waterworks and sewerage systems. On account of the privatization, MWSS again offered a retirement plan called Early Retirement Incentive Package II.
Respondents, who comprise 550 of MWSS’s past and present employees, and who were all qualified to retire at the time ERIP I and ERIP II were issued, filed a petition for mandamus against MWSS with the Regional Trial Court (RTC) for the alleged non-payment of their separation pay. As a result of the ERIPs, they alleged that they did not receive the full separation benefits due them.
The RTC granted the issuance of the writ of mandamus. the CA partially granted the appeal and affirmed with modification the RTC's Order to release the payment of the balance of the ERIP separation pay in the amount equivalent to 0.5 per year times BMP (basic monthly pay) to the employees who retired in 1997 under ERIP II.
ISSUE: Whether or not the Court of Appeals erred in allowing the writ of mandamus against petitioner commanding it to pay the balance of 0.5 month salary for every year of service of unpaid separation benefits to those employees who have served for more than 30 years and retired in 1997 under ERIP II.
HELD:
The petition lacks merit.
LABOR LAW: Separation pay
Respondents, having rendered at least 20 years of service, were all qualified to retire under RA 1616 at the time of the reorganization and privatization of MWSS in 1996 and 1997, respectively. Under said law, they are entitled to receive a retirement gratuity of 1 month salary for every year of service.
Taking into consideration the provisions of both RA 1616 and MC No. 26-96, the separation benefit due to the affected employees should be the balance received in MC No. 26-96 and the retirement benefit received in RA 1616. Hence, those who have rendered at least 20 but less than 30 years of service should receive 1 month salary for every year of service; and those who have rendered more than 30 years should receive 1.5 month salary for every year of service.
In the present case, MWSS already gave the affected employees under ERIP II, regardless of the length of service, a separation benefit equivalent to 1 month salary for every year of service. Thus, those employees who have rendered at least 20 but less than 30 years of service already received the payment due them. However, MWSS is still obligated to pay those affected employees who have rendered more than 30 years for the balance of 0.5 month salary for every year of service.
Petition is DENIED.
METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM, Petitioner, v. GABRIEL ADVINCULA, ET AL.,Respondent.
CARPIO, J.:
FACTS:
in 1996, petitioner Metropolitan Waterworks and Sewerage System (MWSS) was reorganized law and because of this, offered separation benefits to its affected official and employees through the Revised Early Retirement Incentive Package (ERIP I). MC No. 26-96, provided, among others, that MWSS will pay separation benefits to its affected permanent officials and employees who have served at least one year.
In 1997, MWSS entered into concession agreements with Maynilad Water Services, Inc. and Manila Water Company, Inc. for the privatization of its waterworks and sewerage systems. On account of the privatization, MWSS again offered a retirement plan called Early Retirement Incentive Package II.
Respondents, who comprise 550 of MWSS’s past and present employees, and who were all qualified to retire at the time ERIP I and ERIP II were issued, filed a petition for mandamus against MWSS with the Regional Trial Court (RTC) for the alleged non-payment of their separation pay. As a result of the ERIPs, they alleged that they did not receive the full separation benefits due them.
The RTC granted the issuance of the writ of mandamus. the CA partially granted the appeal and affirmed with modification the RTC's Order to release the payment of the balance of the ERIP separation pay in the amount equivalent to 0.5 per year times BMP (basic monthly pay) to the employees who retired in 1997 under ERIP II.
ISSUE: Whether or not the Court of Appeals erred in allowing the writ of mandamus against petitioner commanding it to pay the balance of 0.5 month salary for every year of service of unpaid separation benefits to those employees who have served for more than 30 years and retired in 1997 under ERIP II.
HELD:
The petition lacks merit.
LABOR LAW: Separation pay
Respondents, having rendered at least 20 years of service, were all qualified to retire under RA 1616 at the time of the reorganization and privatization of MWSS in 1996 and 1997, respectively. Under said law, they are entitled to receive a retirement gratuity of 1 month salary for every year of service.
Taking into consideration the provisions of both RA 1616 and MC No. 26-96, the separation benefit due to the affected employees should be the balance received in MC No. 26-96 and the retirement benefit received in RA 1616. Hence, those who have rendered at least 20 but less than 30 years of service should receive 1 month salary for every year of service; and those who have rendered more than 30 years should receive 1.5 month salary for every year of service.
In the present case, MWSS already gave the affected employees under ERIP II, regardless of the length of service, a separation benefit equivalent to 1 month salary for every year of service. Thus, those employees who have rendered at least 20 but less than 30 years of service already received the payment due them. However, MWSS is still obligated to pay those affected employees who have rendered more than 30 years for the balance of 0.5 month salary for every year of service.
Petition is DENIED.
