RETIREMENT PAY FROM GOV’T CORPORATION

PETITIONER Antonio P. Salenga was head executive assistant of respondent Clark Development Corp. (CDC). His position was declared redundant by the board of directors of the CDC.

Petitioner filed a complaint for illegal dismissal with money claims against CDC and its president/ chief executive officer (CEO) Rufo Calayco. During the pendency of the case, CDC offered a retirement plan, which Salenga availed of. He insisted that since CDC was a government-owned and controlled corporation, his previous government service totaling 40 years must also be credited in the computation of his retirement pay. Does the claim find merit?

Ruling: No.

Respondent CDC owes its existence to Executive Order No. 80 issued by then President Fidel V. Ramos. It was meant to be the implementing and operating arm of the Bases Conversion and Development Authority (BCDA) tasked to manage the Clark Special Economic Zone (CSEZ). Expressly, respondent was formed in accordance with Philippine corporation laws and existing rules and regulations promulgated by the SEC pursuant to Section 16 of Republic Act (R.A.) 7227. CDC, a government-owned or -controlled corporation without an original charter, was incorporated under the Corporation Code. Pursuant to Article IX-B, Sec. 2(1), the civil service embraces only those government-owned or -controlled corporations with original charter. As such, respondent CDC and its employees are covered by the Labor Code and not by the Civil Service Law.

Hence, petitioner Salenga is entitled to receive only his retirement benefits based only on the number of years he was employed with the corporation under the conditions provided under its retirement plan, as well as other benefits given to him by existing laws. (Antonio P. Salenga and NLRC vs. Court of Appeals and Clark Development Corp., G.R. No. 174941, Feb. 1, 2012).