GR 155146; (January, 2006) (Digest)
G.R. No. 155146; January 24, 2006
DR. PERLA A. POSTIGO, ET AL., Petitioners, vs. PHILIPPINE TUBERCULOSIS SOCIETY, INC., Respondent.
FACTS
Petitioners were regular employees of respondent Philippine Tuberculosis Society, Inc. (PTSI) who retired between 1996 and 1998. As PTSI had no company retirement plan, petitioners claimed retirement benefits under Republic Act No. 7641 (The Retirement Pay Law). Respondent denied their claims, arguing that petitioners who were compulsory GSIS members and received GSIS benefits were excluded from RA 7641’s coverage. The Labor Arbiter ruled in favor of the petitioners, ordering payment of retirement benefits.
Respondent PTSI appealed to the NLRC but failed to post the required appeal bond, filing instead a Motion to Reduce Bond. The NLRC dismissed the appeal for non-perfection. The Court of Appeals reversed the NLRC, holding that the motion to reduce bond constituted substantial compliance, and remanded the case to the NLRC to act on the motion and give due course to the appeal.
ISSUE
1. Did the Court of Appeals err in remanding the case to the NLRC?
2. Are petitioners entitled to retirement benefits under RA 7641?
RULING
On the first issue, the Supreme Court affirmed the Court of Appeals. The posting of an appeal bond is mandatory to perfect an employer’s appeal from a Labor Arbiter’s monetary award. However, jurisprudence allows for substantial compliance. The filing of a motion to reduce bond within the reglementary period, based on a meritorious ground such as a disputable computation of the award, satisfies the requirement. The NLRC’s outright dismissal without acting on the motion was improper. Thus, the remand was correct to allow the NLRC to resolve the motion and, if warranted, decide the appeal on its merits.
On the second issue, the Supreme Court ruled that petitioners are entitled to benefits under RA 7641. The law applies to private sector employees in the absence of a retirement plan. PTSI’s contributions to the GSIS for its employees do not constitute a retirement plan that would exempt it from RA 7641. The GSIS membership was a statutory requirement for PTSI as a non-stock, non-profit corporation, not a voluntary company plan. Therefore, the receipt of GSIS benefits does not bar the separate entitlement to retirement pay under RA 7641. The Court modified the CA decision to definitively declare petitioners’ entitlement and remanded the case to the Labor Arbiter for final computation of benefits.