Labor Standards Oct. 20 Lecture.docx

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15 Labor-Only Contractor (LO) vs. Job Contractor (JC) LO - No substantial capitalization (does not refer to money only; may come in the form of tools, machineries, office premises) - Workers perform duties that are usually necessary and desirable to the trade of the principal. - The employer is the direct employer while the LO is only an agent (not considered the employer of the hired employees) - In case of non-payment of wages, the liability of the employer is solidary. But in any event, the hired employees may claim for regularization because of the fact that the employer is the principal. - A contractor who has no equipment of his own cannot be considered an JO;

JC - It has substantial capital and investment; - It carries on a distinct and an independent business, not dependent on the trade or business of the capital; - There must be an agreement between the principal and the contractor that the latter will be paying all the labor standard benefits, right to selforganization, social welfare benefits, etc.; - The principal is the indirect employer; - The liability in case of nonpayment is solidary. - The claims of the employees will only be limited to the work rendered to the principal; - Not all benefits that are accorded by the principal to all its employees will be given to the employees hired by an independent contractor on the simple fact that these are not his/her employees.

Notes:  When there is a contractor, there is a trilateral relationship – the principal (employer), contractor, and the hired employee.  Babas v. Lorenzo – if the principal is the sole client of the contractor, there cannot be any instance of independent contractor arrangement.  Bernarte v. PBA – mga referees na pinapanuod niyo sa PBA, there cannot be an employer-employee relationship because during the game, they cannot be controlled by the principal; whatever fouls

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that will be called by the referees will be up to their discretion and that makes them an independent contractor. Fonterra Brands – in order to prove that an individual is an IC, he may submit all these documents (certificate of business registration, certificate of registration with the BIR, mayor’s permit, certificate of membership with SSS, certificate of registration with DOLE, company profile, certifications issued by its clients) in order to show that his business is independent and separate from that of the principal.

What are the different classifications of employees? 1) Regular Employees - Those employees who perform work that is usually necessary and desirable to the business of the employer. - Art. 280/281: “the provisions of the contract notwithstanding” – what do you mean by this? In order to determine whether the contract should prevail or not, the test is that there should be a reasonable connection between the work performed by the employee in relation to the business/trade of the employer. - Begino v. ABS: the cameramen/editors/reporters perform work, which were necessary to the broadcasting industry that they cannot be said to be independent contractors or mere talents. 2) Project - The employment is fixed/for a specific period or undertaking; the fixed period should be determined at the time of the employees’ engagement; - Take note of the elements! - It would be the duty of the employers to prove that the duration and scope of the undertaking was specified in the contract and was made known to the employee at the time of his/her engagement. - Omni Holdings: the employer should also prove that there was indeed, a project. Kasi baka mamaya sinasabi niya lang na may project pero wala naman talaga… the employer is circumventing the Labor Code by providing a contract simulating a project when there is none. - FVR Skills: the work of janitors, sanitation aides are necessary to the business, kasi yung business niya manpower services to its clients as an independent contractor. The contract of the janitors, sanitation aides, provide that they are not project employees but rather regular employees of FVR because of the necessity of the work that they perform for the manpower services.

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15 o

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There was also an instance in this case when the employees were made to sign a contract, indicating that they were project employees. The SC said that they cannot do that because that’s a circumvention of the Labor Code (LC). The existing Department Order also grants contractual employees all rights and privileges and these would be indicative of independent contractual relationship. Manalo v. TNS: In a contract, which provides as a stipulation, “because we need further time to determine your competence in the job” actually refers to probationary employment. So in project employment diba we said, that one of the indicators is that there is a specified period or undertaking and that should be made known to the employee. Other than those requirements, take note of the stipulations in contract such that… kahit meron stipulation doon for a fixed period but if there is such phrase then that will make the employment probationary. Here kasi, the hired employees were being considered for future employment. Gadia v. Sykes: the call center employees here filed a complaint saying that they were illegally dismissed. The problem now is that these employees had executed a contract with Sykes fixing the specified period and undertaking, which were made known to them at the time of their engagement so they cannot later on say that they have been illegally dismissed at the time of the termination of their contract. There are also conditions to accord validity to a fixed contract: (1) fixed period of employment should be knowingly and voluntarily agreed upon by the parties; (2) the ER and EE dealt with each other in more or less equal terms. Lynvil Fishing: the issue here is whether the fishermen who were hired by Lynvil were project employee or not. The employees here signed that they were acceding to the terms of the contract that they will be paid “por viaje” or “per trip”. So Lynvil argued that such stipulation indicates that the fishermen were project employees because their work was subject to a specified duration. However, the Court held that the work of the fishermen here were necessary and desirable to Lynvil’s business. Moreoever, at the end of the trip, they were repeatedly hired. This was continued for 10 years. Thus, they are regular employees.

3) Seasonal - Work or service to be performed is seasonal in nature.

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Basan v. Coca-Cola: the nature of the job of sales route helpers (mga nagbubuhat ng basyo/pahinante) is seasonal because they will only be hired when there is a need for them. There were previous cases to Basan, which similarly ruled that these sales route helpers were seasonal employees. Kasi ang gagawin nila pipila sila sa labas ng Coca-Cola araw-araw, iintayin nila na tatawagin sila kasi madaming absent for the day so they would be fill in… and seasonally, ganoon yung nangyari. Ngayon on-off yung employment nila with Coca-Cola. Then later on, pinutol ng CocaCola yung employment nila. Question, are they regular/seasonal employees? The SC said the work of sales route helpers are necessary to the business, such that, even if they will be treated as seasonal employees, they should be considered as regular seasonal employees. The fact that seasonal workers have worked for only one season, they cannot be treated as regular employees. One season pa lang eh, so ‘di mo alam if later on i-hihire pa din sila ulit. Hacienda Cataywa: the SC held that regular seasonal employees are temporarily laid off during off-season. So picture this, in an agricultural setting… kunwari in a rice farm. May nag-titill ng soil, may nag-peprepare ng soil, may mag-paplant ng seeds, may maghaharvest later on… and mag-papackage noon. So different employees will be hired for different seasons. Hindi lahat ng pagkakataon after one season, on to the next na sila.. hindi ganoon. Kasi, the one who would prepare the soil, would not necessarily be the one who would plant seeds or sow them or harvest them later on… ang mangyayari, tengga muna sila. But during the time that they are not hired, they are considered offdetail, temporarily lang naman. Such that, the next season, the employer would again hire them. But take note, before a seasonal employee may be considered as regular seasonal employees, they should be repeatedly hired for the same position. So that one who would prepare the soil, and later on, be hired as a reaper… tapos pa-iba iba siya every season, he will not be considered a regular seasonal employee although he will be hired per season. Because regular seasonal employees should only have a connection to one service or position. NFL: the fact that workers who do not work continuously for one whole year, but only during the tobacco season, does not detract these employees from being considered as regular employees.

4) Probationary

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15 -

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Under the Labor Code, the probationary period shall not exceed six (6) months. So the probationary period may be lesser than 6 months. May there be instances when probationary employment will be more than 6 months? The Labor Code would provide for only one exception and that would be the case of apprentices wherein the agreement would provide for a longer probationary period. But jurisprudence will tell you that if there is an agreement between the employer and the probationary employee to extend the probationary period in order for the employee to gain satisfactory performance during evaluation, then that is considered as a valid extension of a probationary period. Probationary periods can also be terminated on grounds of just or authorized causes. Aside from not performing within the standards set by the employer. Take note that the reasonable standards set shall also be made known to the probationary employee at the time of his/her engagement. If you would still recall, in project employment, the fixed period or duration should be made known to the employee at the time of his/her engagement. As regards probationary employees, the qualifications, standards or parameters of evaluation should be made known to the employee at the time of his engagement. May repercussions yan, if the employer is not able to comply with such requirement. However, in the case of private school teachers, the provision on probationary employment in the Labor Code will not apply, but rather, the Manual for Regularization of Private School Teachers. o So for those in the pre-school, primary and secondary education, the probationary period, to gain full employment, he/she must teach for 3 consecutive/academic SY + satisfactory performance for all those years + full academic teaching load. o For college (regular sem): 6 consecutive semesters + satisfactory performance + full load. For college (trisem): 9 consecutive trimesters + satisfactory performance + full load. o The satisfactory performance should be consistent all throughout their stay. For instance, in one academic year within the probationary period, the teacher was not able to receive satisfactory performance; he cannot later on claim for regularization even after 3/9 academic sems.

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Neither regular nor seasonal employees. They do not perform work or services necessary or desirable to the trade/business of the employer. The test here would be the nature of the activity performed in relation to the business of the employer. In some cases, even the length of time is considered. Why? Casual employees will only be hired for not more than 1 year, whether continuous or broken. Repeated hiring for more than 1 year, whether continuous or intermitten would indicate that the work performed is necessary to the business. Therefore, the employee here will then be considered a regular employee. Hacienda Leddy: may mga different types of work na pinapaperform si employer kay employee tulad ng carpenter siya, caretaker siya, etc. In any event , the Court held that since you’ve been hiring the same person for more than 10 years, so this will make him necessary to your business. He is a regular employee.

Notes:  FIRST TYPE OF REGULAR EE: Those employees who perform work that is usually necessary and desirable to the business of the employer.  SECOND TYPE OF REGULAR EE: Project employees whose duration or scope was not made known to him at the time of his hiring. So that would make him a regular employee from the very day he started working.  In cases of probationary employees there are two types of REGULAR EE: (1) those who would be allowed to work beyond the probationary period. Beyond such period, they will be treated as regular employees; (2) those whose performance standards were not made known to them at the time of his/her engagement (Abbot Laboratories). The employee will then be considered a regular employee from the very first day he was hired.  LAST TYPE OF REGULAR EE: Casual employees who are hired for more than 1 year.

5) Casual SECURITY OF TENURE

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15 

All employees may only be dismissed either on account of just or authorized causes. If they are illegally dismissed, they are entitled to the following reliefs:  Reinstatement without loss of seniority;  Full backwages;  Other benefits or equivalent monetary value.

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TERMINATION BY EMPLOYEE 1) Serious Misconduct 2) Insult or Unbearable Treatment 3) Commission of a Crime 4) Other Analogous Causes

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Misconduct must have reasonable relation to the work performed by the employee. It must show that the employee has become unfit to continue being an EE of the ER. Northwest Airlines: yung nagsisigawan lang, hindi yan serious misconduct! A mere verbal tussel is not a fight which can amount to serious misconduct. Examples: sexual harrassment, fighting within company premises, uttering obscene and offensive words against his employer, misrepresenting a student as his nephew para pumasa. Totality of Circumstances Test applies to any causes for terminating an employee. Leus v. St. Scho: engaging in pre-marital sex, without legal impediment, will not necessarily translate to a serious misconduct. Benitez: during a Xmas party, napikon siya. So he went on stage, he uttered invectives against his employers in the presence of their clients and many people. This was considered serious misconduct. Take note, though, that there is also one case… wherein an employee who was drunk at a company party, cussed against a company but not against any particular person. The SC held that this is not serious misconduct. The words he uttered merely out of his frustration because of the incentives withheld by the ER from the EE. The SC also considered his drunkenness as a mitigating circumstance. Coffee Bean: the SC held that the employee’s act of storing a C2 bottle inside Coffee Bean’s premises for her personal consumption is not a serious misconduct. Moreover, the employee was off-duty and when asked for the second time whether the bottle was hers, she admitted.

Notes:  If there is a cause for terminating the ER-EE, the 30-day notice is not required.  If there is no valid cause for the employee to sever the ER-EE relationship, that is a case of resignation.  Remember that resignation is a voluntary act on the part of the employee. Such that, a constructive dismissal, although there is a resignation submitted by the employee, is not considered a voluntary act of the employee. Because in a situation where there is constructive dismissal, the employee is put in a circumstance where he has no other option but to terminate the relationship because of the acts committed by the employer.  A resignation must be accepted by the employer. Such that, if the resignation is later on accepted by the employer, the employee cannot unilaterally withdraw his resignation.

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TERMINATION BY EMPLOYER 1) If the employer will terminate the services of the employee, there are two grounds: (1) Just Causes; (2) Authorized Causes. 2) For dismissing an employee, two things must be present: (1) Substantive Due Process; (2) Procedural Due Process.

2. Willful Disobedience - This should pertain to an unlawful and intentional attitude; wrongful and perverse! There must also be a lawful order coming from the mgmt, which should have been made known to the employee. - St. Luke’s: yung staff nurse na nagpupuslit ng mga tira-tirang syringes, cotton balls, etc. in violation of the rules of the hospital. The SC considered this as willful disobedience.

JUST CAUSES 1. Serious Misconduct - Transgression should be serious and grave; it should pertain to improper or wrongful conduct that transgresses some established rules. - This should not pertain to mere error in judgment.

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3. Gross and Habitual Neglect of Duty - Negligence first has to be grave AND habitual. - Gross negligence refers to want of care in the performance of one’s work or duty.

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Habituality refers to repeated failure to perform one’s duty for a period of time. You cannot penalize an employee by dismissal due to a trivial offense. Totality of Circumstances Test: one should take note ALL the infractions committed by the employee during the period of his employment. The offenses committed by him should not be taken singly and separately. Reyes-Rayel v. PTT: itong si CHR Director napaka-pabaya, inefficient pa, di constantly nakikipagcommunicate sa superiors niya… di siya nakikinig sa co-workers niya. Ang masama, HR Director siya, tapos mali-mali inaadvice niya na labor standards/policies. There was also one case, the employee was a mechanic in a vessel of Sulpicio Lines… nag-away daw sila ng sweetheart siya over the phone habang naka-duty. Paalis na yung barko at that time… eh gusto niya puntahan si sweetheart para makipag-ayos. So he cut the steering cable! And then he left. Pagbalik niya, nakaalis na yung barko. Sulpicio hired another person pala when he left. An investigation led to his dismissal on the basis of gross and habitual neglect. So he was dismissed based on one incident. Eh diba, we said that the ground should be both gross and habitual/repetitive. The Court held that one, cutting the steering cable was a serious misconduct, and two, he went out of the vessel. Considering those two infractions, the Court held that the conduct was repetitive already which makes his dismissal under this ground valid.

4. Fraud and Willful Breach of Trust - This is also known as Loss of Trust and Confidence. - Requisites: (1) Loss of trust and confidence should not be simulated; (2) it should not be used as a subterfuge on the part of the employer; (3) it may not be arbitrarily asserted by the employer; (4) it must be genuine and not a mere afterthought. - This covers cases involving employees occupying positions of trust and confidence: (1) Managerial Employees; (2) Confidential Employees – employees holding company property/funds. These are the two kinds of employees who may only be dismissed on this ground/cause. - Examples of the second type of employees are cashiers, property custodians, etc. Take note that property may be tangible or intangible such that trade secrets may also be considered as property.

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In terminating an employee, the required quantum of evidence is substantial evidence. But in terminating a managerial employee based on willful breach of trust, the employer is given a wider latitude. Even an indication of loss of trust and confidence would be sufficient to terminate the employment of a managerial employee. Because in all instances, a manager must have the trust and confidence of his employer, any breach thereof, the relationship will be strained. Philippine Plaza Holdings: the service attendant would be considered under the second type (confidential employees)… Bakit? Eh hindi naman siya entrusted ng company property… the attendant here is tasked to give/forward the payment of the customers to the cashier, eh ang nangyari, linagyan niya ng discount, wala naman palang discount card yung customer… The Court held that is a valid ground for dismissing an employee based on loss of trust and confidence. PJ Lhuillier: the employee here was a branch cashier and bookkeeper. The fact that the employee hid her overage and failed to report it. Ang masama dito, P540 lang yung amount. The Court held that even if we will consider the amount, that will not be sufficient to mitigate the offense committed by the employee because she was vested with company funds. So if the employer cannot trust you with a mere P540 overage, what more kung thousands or millions na yan.

5. Analogous Causes - The commission of a crime against the employer is a valid cause of dismissal. But what if the crime committed was against a coworker? In Hocheng, the Court held that theft committed against a co-employee is a case analogous to commission of a crime provided under the LC. - Heavylift: Attitude problem is a valid ground for terminating an employee. This is analogous to loss of trust and confidence. - PAL v. Yrasegui case is another example! - Abandonment is another example. But for it to avail: (1) there must be failure to report to work without reasonable/justifiable ground on the part of the employee; (2) there must be a clear intention to sever the ER-EE. Hindi pwedeng sabihin na a simple absence without leave is a sufficient indication of abandonment kung wala namang clear intention si employer to sever the relationship.

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Agabon v. NLRC: Abandonment here was upheld. The overt act committed by the spouses there, was the fact that they were already employed in another company. Heavylift: Absence must be coupled with an overt act. Here, there was no indication that the employee here, was not anymore interested in working for the employer. Another indication that will negate abandoment would be the immediate filing for a case of illegal dismissal. There may be instances when during the period of employment, an employee is found to have committed an infraction. The employer will then conduct an investigation. Now there are also instances that the presence of the employee will have a prejudicial effect on the investigation. So the remedy for the employer is to preventively suspend the employee. Take note that the preventive suspension should not be more than 30 days. May the preventive suspension be extended for more than 30 days? Yes. Provided that the employee will have to be paid for the extended period. Probationary employment will not refer to the period but rather the purpose for hiring the employee. Probationary employees are actually regular employees, only that the employer would want to be assured that his employee would be performing at par with his reasonable standards. The employer wants to test first if he is fit for the job. Probationary employees may be terminated. Canadian Opportunities v. Dalangin: During the period of probation, the employee was terminated due to unsatisfactory performance. Ang sabi ni employee, “you cannot terminate me, because wala kang ground. I can only be terminated based on just/authorized causes. Secondly, you did not observe procedural due process.” But in this case, the SC held that Canadian Opportunities validly terminated the employee. The four-week period is sufficient for the employer to gauge the competence of the employee. In terminating a probationary employee based on unsatisfactory performance, should there be compliance with procedural due process? NO. The twin-notice requirement is only applicable to termination for just causes. For authorized causes, the twin-notice requirement is not to be observed. Moreso, in terminating a probationary employee, the twin-notice requirement should not be complied with. The reasonable standard made known to the employee at the time of his engagement is the notice that the employer should show the employee. So if the employee failed to meet the standards set by

the employer during the probationary period, the employer can immediately terminate the probationary employment. AUTHORIZED CAUSES 1. Retrenchment Termination by the employer through no fault of the employee is resorted to because of these instances: (1) industrial depression; (2) seasonal fluctuation, etc. But these instances would be indicative of the losses incurred by the employer that would make the employer decide to retrench the employees. Retrenchment is a last resort. There should be other remedies that were resorted to first by the employer before resorting to retrenchment such as, cost-saving devices, compression of work schedule to save up electricity, etc. The employer should prove that these were implemented first to save the financial condition of the company. Requirements: (1) it has to be reasonably necessary; (2) it pertains to serious business losses – not merely de minimis currently being experienced by the employed or is in imminent danger of experiencing losses; (3) 30-day notice BOTH to the DOLE and the employee served to them. Notice to either will not fix the deficiency; (4) separation pay should be given; (5) it must be performed in good faith; (5) in selecting employees who will be dismissed/retained, the employer should be guided by a fair and reasonable criteria (ex: LIFO rule, seniority). The criteria if provided in the CBA, should be observed. If there is none, then the employer will still have to set the reasonable criteria for those employees who will be dismissed. 2. Serious Business Losses - Not every loss incurred will mean that the employer is experiencing serious business losses; The losses should be substantial. - What if the closure of business was due to serious business losses, are the employees entitled to separation pay? In North Davao Mining, the Court held that the employees are not entitled to separation pay because the employer shut down his/her operations due to serious business losses. That is not the situation contemplated under the Labor Code. - This was reiterated in the case of Benson. But the difference lies in the fact that in this case, there was a CBA. The Court held that if there is an agreement providing for the payment of

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15

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separation pay in case of serious business losses, the employer is still obliged to pay. The 30-day notice to the DOLE is important so that it can ascertain the veracity of the claim of serious business losses. The 30-day notice to the employees is important so they can look for another job. The losses would mean that the employer operated its business and incurred losses for a period of time. Hindi pwedeng sasabihin niya na in a span of one year, nagkaroon na siya ng serious business losses. There must be a trend.

3. Redundancy - It does not pertain to redundant positions but pertains to the business demands of the company operation. - There can be no redundancy when after terminating the employment, the company started hiring workers for a similar position. 4. Disease - The Labor Code provides that the employee contracted a disease and that his continue employment would be prejudicial not only to himself, but to his co-workers. - Separation pay must be awarded to the dismissed employee. - The Omnibus Rules provide that there must be a certification coming from a competent public health authority that the illness of the employee cannot be treated for a period of 6 months (ex. Physicians working in government hospitals). - Sy v. Villaruel: it was the employee who resigned on account of disease. Is he entitled to separation pay? The SC held that he isn’t. The severance of employment on account of disease should be initiated by the employer and not the employee.  General rule: ER terminates EE on the ground of disease, separation pay should be given by ER.  Exception: CBA providing for payment of separation pay regardless of who initiates. PROCEDURAL DUE PROCESS Twin-notice Requirement a. First Notice/Show-Cause Notice: this should contain 1) the infraction committed by the employee; 2) existing policy violated by the employee or a provision in the LC; 3) penalty imposed to the errant employee; 4) ample opportunity to be heard.

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Ample opportunity to be heard: in the show-cause notice, it is specifically written there that the employee will have to explain within 5 calendar days why he should not be terminated (King of Kings v. Mamac).

b. Notice of Termination: the employee should be apprised of 1) the results of the investigation; 2) policy violated; 3) the penalty to be imposed. Remember that dismissal is not the only penalty… suspension can also be resorted to depending on the gravity of the offense. 

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May the employee insist that he/she be represented by counsel? The LC does not provide any right to counsel to be accorded to the employee. But the Omnibus Rules provide such right. In a case, the SC held that in order to reconcile the provisions of the Labor Code and the Omnibus Rules, if the employee, after service of the first written notice, would request that he/she be represented by counsel, the company must oblige. Otherwise, that would be a denial of procedural due process. If the employee requests for a conference or a trial-type of hearing, the company must also oblige.

Notes:  Agabon v. NLRC: landmark case! o Before Agabon, when the employer fails to observe both substantive and procedural due process, the termination will be considered illegal. Therefore, if the employee is declared to have been illegally dismissed, the reliefs will have to be accorded to the employee. So there are different situations contemplated by the rule before Agabon: (1) the ER fails to observe both procedural and substantive, EE is illegally dismissed; (2) the ER has substantive ground but failed to observe procedural due process, EE is illegally dismissed; (3) there is no substantive ground but the ER observed procedural due process, EE is illegally dismissed. o The abovestated principles do NOT apply anymore. Because of Agabon, when the ER has substantive ground to dismiss an employee but there was failure to comply with procedural due process, the dismissal would have to be upheld. BUT the ER will be meted with a penalty in the form of nominal damages in the amount of P30K. Agabon,

ATTY. CHARISMA NOLASCO’S LECTURE 10/20/15

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here was dismissed due to abandonment – a just cause for dismissing an employee. Jaka Foods: the EE was dismissed due to retrenchment – an authorized cause which was found to be valid. The problem here though, was that the ER failed to comply with the 30-day notice rule. The SC held that pursuant to Agabon, the dismissal will have to be upheld. However, the ER must now pay for P50K for nominal damages. What made the difference? In just causes, the cause for the termination is premised on the fault of the employee. But in authorized causes, it was the employer who initiated the severance of the relationship. As between the two causes, it is under authorized causes, that the employer should be more in observing procedural due process. And on that note, the difference between P30K and P50k for terminating an employee lies. Both notices should be in writing and personally served to the employee. Even if there is a conference held by the employer, the SC held that such will not amount to notice as required by law. Bughaw Treasure: a mere copy of the notice of termination allegedly sent by the respondent to the petitioner (employee) without proof of receipt or at the very least actual service thereof shall not constitute substantial evidence of compliance with the notice requirement. Kasi ang ginawa diyan, linagay lang “refused to receive”. So what will you do nga pala, if the employee refuses to receive the show-cause notice or the second-notice? Aside from noting that the EE refused to receive such notice, note also of the other circumstances such as the date, time, utterances on the part of the EE why he is refusing to receive, and those should be written to the copy to be retained by the employer plus the name of the person who served the notice. Retirement: 60 (optional), 65 (compulsory), 5 years of service. If there is an existing CBA providing for retirement, as between the CBA and the provisions of the LC, the CBA should be followed. o If the CBA provides for a lower age of retirement, let’s say 50 years old is the compulsory retirement age under the CBA, can an employee who reached 50 yrs later on complain that he/she has been illegally dismissed? NO. The parties have validly agreed on the age of retirement. But if the CBA provides for lesser benefits than those provided in the statutes, LC, you have to follow those statutorily prescribed.

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Take note of the retirement package: half month salary (15 days + 1/12 of the 13th month pay + cash equivalent of 5 days SIL).