334 Phil. 124; 93 OG No. 50, 8365 (December 15, 1997)
BELLOSILLO, J.:
Prior to private respondent's resignation, there were other managerial employees who resigned and/or retired from petitioner's employ who received their corresponding gratuity benefits and the cash value of their accumulated leave credits pursuant to the provisions of the old CBA of 1971-73 despite its expiration in 1976. Among them were Simplicio Manalo and Miguel Calimbas who resigned on 15 March 1977 and 15 July 1978, respectively. With such a practice and policy, petitioner cannot refuse to pay private respondent his gratuity benefits under the old CBA. Under Section 14(a), Rule 1 of the Rules and Regulations Implementing Book VI of the Labor Code, it is provided:We maintain the same dictum in the case before us. PNB-RB insists on disowning any practice or policy of granting gratuity pay to its retiring officers based on the salary rate of the next higher rank. It admitted however that it granted gratuity pay on the basis of the salary rate of the next higher rank but only in the case of Simplicio Manalo. As to other instances when it granted gratuity pay based on the salary rate of the next higher rank, PNB-RB explains that those were not voluntarily done but were in lawful compliance with court orders.
Sec. 14. Retirement Benefits.- (a) An employee who is retired pursuant to a bonafide retirement plan or in accordance with the applicable individual or collective agreement or established employer policy shall be entitled to all the retirement benefits provided therein x x x."- (Italics supplied)
The foregoing provision explicitly states that a company practice or policy is a labor standard in determining the retirement benefits of its employees.
The petitioner's theory that the computation of the benefits of private respondent should be based on the 1982-85 CBA which was the one enforced at the time of his resignation is untenable. Said CBA was entered into by petitioner with its rank-and-file employees. Private respondent is a managerial employee who, by express provision of law, is excepted from the coverage of the aforesaid contract. Private respondent was not a party thereto and could not be bound thereby.
Since no new CBA had been entered into between the managerial employees and petitioner upon the expiration of the said 1971-73 CBA, private respondent has acquired a vested right to the said established policy of petitioner in applying the 1971-73 CBA to retiring or resigning executives of managerial employees. Such right cannot be curtailed or diminished.[9]
Section 14. The Bank agrees to grant to each regular supervisor employee upon his retirement, resignation or separation without cause after July 1, 1969, the following benefits:Under this section, only the gratuity pay is expressly entitled to be computed based on the salary rate of the rank next higher. This however should not be interpreted in isolation. In this instance, it may be worth to look into the reasons which motivated the parties to enter into the above agreement. The conversion of leave credits into their cash equivalent is aimed primarily to encourage workers to work continuously and with dedication for the company. Companies offer incentives, such as the conversion of the accumulated leave credits into their cash equivalent, to lure employees to stay with the company. Leave credits are normally converted into their cash equivalent based on the last prevailing salary received by the employee. Considering all these, the accumulated leave credits should be converted based on the upgraded salary of the retiree, which is the salary rate of the rank next higher.
a) Gratuity pay equivalent to one (1) month salary plus the corresponding living allowance of the rank next higher than the rank of such supervisor at the time of his retirement, resignation or separation without cause, for every year of service in the Bank, provided that the said supervisor has at least five (5) years of continuous service with the Bank.
b) The cash equivalent of the accumulated sick and vacation leaves since the time of his initial employment with the Bank.[14]
Nothing in the provisions of the 1971 CBA from which emanated the one rank higher policy indicates a minimum or maximum range of the next higher rank. Instead, what is provided is an unqualified one rank higher concept. Petitioner is, therefore, precluded from drawing a distinction where none has been stated in the contract. Besides, assuming that an ambiguity does exist, the same must be resolved in the light of Article 1702 of the Civil Code that: In case of doubt, the labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. Such should be liberally construed in favor of the persons intended to be benefited thereby.Additionally, computing the gratuity pay based on the performance rating of the retiring officer is a practice that is very likely susceptible to abuse as he will be placed at the mercy of the members of the performance appraisal committee.
Moreover, petitioner, by invoking the salary structure and criteria for promotion as basis for determining the amount of gratuity has confused the two distinct concepts of gratuity and salary. Gratuity pay, unlike salary, is paid to the beneficiary for the past services or favor rendered purely out of the generosity of the giver or grantor. Gratuity, therefore, is not intended to pay a worker for actual services rendered or for actual performance. It is a money benefit or bounty given to the worker, the purpose of which is to reward employees who have rendered satisfactory service to the company. Salary, on the other hand, is a part of labor standard law based on the actual amount of work rendered or the number of days worked over the period of years. Hence, petitioner's attempt to apply the salary structure to determine gratuity would eradicate the very essence of a gratuity award, and make it partake of the character of a wage or salary given on the basis of actual work or performance. Such was never the intendment of the law and would run counter to essential social justice.[16]
All money claims arising from employer-employee relations accruing during the effectivity of this Code shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred.Since Santos filed his complaint only on 12 July 1990, his claim for 1985 (mid-year and year-end), 1986 (mid-year and year-end), and 1987 (mid-year) bonuses already prescribed. As regards bonuses for 1987 (year-end), 1988 (mid-year and year-end), 1989 (mid-year and year-end), and 1990 (mid-year), we agree with petitioner that these should be based on the existing salary rate at the time of their accrual. The record shows however that in 1988 Santos was found guilty of an administrative charge. Hence, in consonance with existing company policy, the 1988 (mid-year and year-end) bonus should be forfeited in favor of the Bank.[17]
On the matter of moral and exemplary damages, the same is a must considering that petitioner is guilty of bad faith by its continued refusal to pay his claims despite the final rulings of the Supreme Court in similar other cases earlier cited. By refusing to abide by the doctrinal pronouncements of the Highest Tribunal, petitioner has shown to be anti-labor. This stubborn attitude is not only contemptible but also contrary to morals, good customs and public policy. Regardless of its own thinking on the issues presented vis-à-vis the judicial pronouncements already made, petitioner is duty-bound to respect the Supreme Court decisions which have become part of the law of the land.ACCORDINGLY, the 30 June 1993 Decision of the Labor Arbiter and the 30 August 1994 Resolution of the National Labor Relations Commission are AFFIRMED with the modification that petitioner PNB-REPUBLIC BANK is ordered to pay private respondent Antonio G. Santos the amount of P423,661.00, less the applicable taxes, computed as follows:
Consequently, private respondent had suffered mental anguish and sleepless nights and therefore, should be entitled to moral damages. And to serve as example for the public good so that others similarly inclined could be dissuaded from adopting the same detestable practice, petitioner should also be sanctioned in the form of exemplary damages.
In addition, petitioner had continuously and openly declared that it will continuously deny the existence of said policy as it was based on erroneous assumption of facts, and private respondent is not at all surprised that petitioner has been throwing all kinds of blockade or obstacle, so as to stop a snowball application of the Supreme Court decision. Such act of the petitioner of arrogantly defying a well-laid down jurisprudence on the issue at hand (resulted) to the great prejudice of private respondent's interest. The delay on the part of the petitioner to rectify its error and grant private respondent what is really due him must have certainly caused undue damages on the part of the latter. Such defiant attitude does not really set good example on how one should abide by the decision of the highest tribunal of the land.
x x x x
Private respondent has been dragged into this case because petitioner refuses and arrogantly defies the doctrine of stare decisis that had long set in, compelling private respondent to litigate. In this regard, private respondent's award for attorney's fees is proper.[18]
Basic gratuity pay: | |
---|---|
Applicable monthly rate (P15,840.00) x length of service (31 years and 15 days) | |
P15,840.00 x 31 years | P491,040.00 |
P15,840 x 15/251 days | P 946.00 |
Leave Credits: | |
---|---|
P15,840 x 272 x 12/251 | 205,983.00 |
Accrued Bonuses: | |
---|---|
1987 - year-end only | |
1988- forfeited (due adm. case) | 1,300.00[19] |
1989 - mid-year/year-end | 11,380.00[20] |
1990 - mid-year only | 8,965.00[21] |
21,645.00 | |
Less : Gratuity already received | P434,468.00 |
---|---|
Balance | 285,146.00 |
Add : Moral damages | 50,000.00 |
Exemplary damages | 50,000.00 |
Attorney's Fees | 38,515.00 |
Total | P423,661.00 |