Retirement benefit claimed after compulsory retirement age

Dear PAO,

My older sister sought her retirement benefit from the private company she used to work with for more than 15 years but was declined. The company told her that she should have claimed her retirement benefit when she turned 65 years old. According to my sister, it is absurd for her to do that when she was still employed with them until she turned 69 years old, which was just less than a year ago. What happened was, the company kept extending my sister's employment even after she turned 65 years old. She accepted each time and reported working diligently. It was only a month before her 69th birthday when she was informed that they will no longer extend her contract. So, that was when she started demanding for her retirement benefit. But the company is resolute about not giving her what she is asking for. Is my sister really not entitled to such a benefit anymore?

Citas

Dear Citas,

Retirement benefit is one of the statutory benefits granted under the Labor Code of the Philippines. To be certain, Article 302 of the said Code, as amended and renumbered, provides that:

«ART. 302. [287] Retirement. — Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

»In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than those provided therein.

«In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.x x x»

Considering