Can an employer retire an employee at 60 just because the employee has reached that age? According to a recent Supreme Court ruling, not without the employee’s clear and voluntary consent.
In a decision written by Associate Justice Ramon Paul L. Hernando, the Court’s First Division found Colegio de San Juan de Letran in Laguna liable for illegally dismissing its finance executive, Rodolfo C. Ondevilla, whom the school treated as retired when he turned 60. The ruling was reported in late October 2026.
What happened
When Ondevilla turned 60 on August 29, 2019, the school treated his appointment as having expired and considered him retired. Ondevilla disagreed and filed a complaint for illegal dismissal.
- The Labor Arbiter and the National Labor Relations Commission (NLRC) ruled in his favor.
- The Court of Appeals also found that he had been illegally dismissed. However, it concluded that he had agreed to retire effective July 31, 2020, based on a letter he sent to the school.
- The case reached the Supreme Court, which partly granted Ondevilla’s petition.
The Supreme Court’s ruling
The Court held that Ondevilla’s early retirement was not based on a mutual agreement. Because his retirement was involuntary, the Court treated it as illegal dismissal.
Under Philippine law, the compulsory retirement age is 65. An employer may retire an employee earlier, but only if there is a genuine agreement between them. Such an agreement must be clear and voluntary, not imposed unilaterally.
The Court pointed to Ondevilla’s own actions. He objected to the early retirement and then filed an illegal dismissal complaint. Together, these showed that he had no intention of leaving his job before turning 65.
Reliefs awarded: Ondevilla was awarded full backwages, separation pay, and retirement benefits.
Key takeaways for employers
- Reaching 60 is not automatic retirement. Unless there is a valid, voluntary agreement for earlier retirement, an employee may keep working until the compulsory retirement age of 65.
- Early retirement must be truly mutual. Retirement plans, policies, or contracts that set an earlier retirement age should be clearly explained to and accepted by employees. Courts look closely at whether that acceptance was voluntary.
- Treating an appointment as “expired” can backfire. Ending employment on the basis of age alone, without the employee’s agreement, exposes the company to backwages, separation pay, and other liabilities.
- Document everything properly. If an employee agrees to early retirement, the agreement should be clear, in writing, and free from pressure. A letter written under protest or in a different context may not count as consent.
- Review your retirement policies now. Check your company retirement plan, CBA provisions, and employment contracts against current jurisprudence.
Key takeaways for employees
- If you are being “retired” before 65 and you did not agree to it, you may have a claim for illegal dismissal.
- Object in writing if you do not agree with an early retirement, and keep copies of all communications.
- Even if a court finds you were illegally dismissed, the amount you recover can depend on the facts, such as whether reinstatement is still feasible. Get legal advice early.
Related articles
- Supreme Court: Forcing an Employee to Resign Under Threat of Criminal Charges Is Illegal Dismissal
- Supreme Court: Employers Must Remit SSS Contributions for Illegally Dismissed Workers’ Backwage Period
- See all Legal Updates
How Recososa Law Firm can help
Our Labor and Employment Law practice advises both employers and employees. For employers, we review retirement plans and workplace policies for compliance. For employees, we assess possible illegal dismissal claims and represent clients before the NLRC and the courts. Contact us to discuss your situation.
This article is a simplified summary of a reported Supreme Court decision for general information only. It is not legal advice. Read the full text of the decision and consult a lawyer about your specific case.