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Herein petitioner was first employed for fourteen years with Department of Health after his
resignation on November 2 1977. Afterwhich he was hired as accompany dentist by Luzon
Stevedoring Corporation (LUSTEVECO), a private domestic corporation which was
subsequently taken over by herein respondent PNOC Shipping and Transport Corporation.
Petitioner was among those who opted to be absorbed by the Respondent and continued to work
as company dentist.
Respondent implemented a Manpower Reduction Program wherein retrenched employees
shall receive a two-month pay for every year of service. Petitioner resigned from PNOC upon
reaching 60 years old wherein he received a retirement pay equivalent to one month pay for
every year of service and other benefits. Later, the president of said company was replaced by
Dr. Nemesio E. Prudente who implemented significant cost-saving measures and later two
employees were retrenched and were paid a 2-month separation pay for every year of service
under Respondents Manpower Reduction Program. Due to this, petitioner filed a complaint at the
National Labor Relations Commission (NLRC) for the full payment of his retirement benefits
wherein he argued that his service with the DOH should have been included in the computation
of his years of service. The Labor Arbiters dismissed his complaint however, NLRC reversed the
decision of the Labor Arbiter. Respondent dismayed, filed with the Court of Appeals a special
civil action for certiorari, and was granted. Hence, this petition.
ISSUE:
1) Whether or not petitioners years of service with the DOH must be considered as
creditable service for the purpose of computing his retirement pay.
HELD:
No. The Supreme Court did not uphold petitioners contention that his fourteen years of
service with the DOH should be considered because his last two employers were governmentowned and controlled corporations, and fall under the Civil Service Law. Article IX(B), Section
2 paragraph 1 of the 1987 Constitution states that--