The Supreme Court PARTLY GRANTED the petition of Rodolfo C. Ondevilla, ruling that he was illegally dismissed by Colegio De San Juan De Letran (Laguna) and had mandatorily retired on August 29, 2024 when he turned 65 years old. Because Ondevilla died during the pendency of the case, the Court ordered the monetary award to accrue to his estate.
The Case
CSJL hired Ondevilla on June 16, 2004 as Comptroller for a period of one year, and renewed for another year. He was later appointed as Assistant Vice President (AVP) for Finance and Controller effective May 1, 2006, and concurrently held the position of Acting Internal Auditor effective the same date until further revoked. His appointment as AVP for Finance and Controller was successively renewed every three years thereafter, until it expired on June 30, 2018.
In June 2018, a new management took over CSJL and implemented a new organizational structure. On June 29, 2018, Ondevilla was appointed as Controller effective July 1, 2018 to August 29, 2019, but expressed his reservation, claiming that it is a demotion in rank, which would result in a substantial reduction in his salaries and benefits.
In a letter dated October 8, 2018, CSJL's Vice President for Administration, Johnny Boy S. Tizon, advised Ondevilla that there is no occasion for him to be demoted since he is a consultant of CSJL and not an organic employee or personnel. Ondevilla later sought clarification on his supposed demotion and on the non-application of the Tax Reform for Acceleration and Inclusion (TRAIN) Law to him.
On November 6, 2019, Ondevilla filed a Complaint against CSJL and Dingel for illegal dismissal with prayer for reinstatement, payment of backwages, holiday pay, service incentive leave pay, with claims for moral and exemplary damages, and attorney's fees. He claimed he was a regular employee. CSJL and Dingel countered that Ondevilla was an independent contractor and not a regular employee.
The Issue
The case turned on whether Ondevilla was a regular employee who was illegally dismissed, and, in connection with his retirement, when he was considered to have retired. A further question was whether the alleged outstanding loans of Ondevilla could be declared due and demandable.
The Ruling
The Court found that Ondevilla complied with the requirements of age and tenure for retirement under Article 302 [287] of the Labor Code, as amended, noting that at the time he was illegally dismissed on August 29, 2019, he had been employed with CSJL for 15 years already, and that he turned 65 years old on August 29, 2024.
The dispositive portion states: "FOR THESE REASONS, the Petition is PARTLY GRANTED." The Court annulled the Court of Appeals rulings "only insofar as the Court of Appeals ruled that petitioner has optionally retired on July 31, 2020. Instead, petitioner Rodolfo C. Ondevilla is DECLARED to have mandatorily retired on August 29, 2024 when he turned 65 years old."
The Court ordered Colegio De San Juan De Letran (Laguna) to pay to the estate of the late petitioner: full backwages computed from August 29, 2019 up to August 29, 2024; separation pay, in lieu of reinstatement, from June 16, 2004 up to August 29, 2024, equivalent to one month pay for every year of service; retirement benefits under Article 302 [287] of the Labor Code reckoned from June 16, 2004 up to August 29, 2024; and attorney's fees equivalent to 10% of the total monetary award. The total monetary award shall earn legal interest at the rate of 6% per annum from August 29, 2019 until fully paid. The case was REMANDED to the arbitration branch a quo for the computation of the total monetary award.
By the Numbers
- Hired as Comptroller: June 16, 2004
- Appointed AVP for Finance and Controller: effective May 1, 2006
- Illegally dismissed: August 29, 2019
- Turned 65 / mandatorily retired: August 29, 2024
- Complaint filed: November 6, 2019
- Died: May 24, 2025
- Legal interest: 6% per annum
- Attorney's fees: 10% of the total monetary award
- G.R. No. 278615
The Court's Reasoning
The Court held there was a need to remand the case to the labor arbiter for the computation of the total monetary award and retirement benefits due petitioner.
The Court rejected respondents' prayer to declare the alleged outstanding loans of petitioner immediately due and demandable, finding the issue belatedly raised on appeal. The records revealed that the personal loans were invoked only to support the claim that petitioner was not a regular employee, and the matter was not even included in the prayer in respondents' Memorandum of Appeal before the NLRC. Citing Regala v. Manila Hotel Corporation, the Court reiterated that points of law, theories, issues and arguments not brought to the attention of the lower court cannot be raised for the first time at that late stage.
The Court was informed of petitioner's untimely demise on May 24, 2025 through a Manifestation with Motion for Substitution dated September 23, 2025. Applying the NLRC Rules of Procedure on death of parties, and considering that petitioner died during the pendency of the present petition, the Court ruled that the monetary award shall accrue to his estate.
Source: Supreme Court Decision, G.R. No. 278615, penned by Associate Justice Ramon-Paul L. Hernando.
This report summarizes a public Supreme Court decision and is not legal advice.