CASE DIGEST
Dela Cruz v. First
Bukidnon Electric Cooperative, Inc.
G.R. No. 254830, [June 27, 2022]
SECOND, LOPEZ, M.
Dismissal; Retirement
Benefits; Jurisdiction of National Electrification Administration; Labor
tribunal Jurisdiction
Forfeiture of retirement benefits may occur as a consequence of dismissal from service, particularly when such dismissal is based on grave offenses and is accompanied by a finding of guilt.
Jose Dela Cruz started as a line personnel and was eventually promoted to the position of general manager at First Bukidnon Electric Cooperative, Inc. (FIBECO) in 2001. However, in 2007, due to administrative complaints initiated by concerned employees, Dela Cruz was investigated and found guilty of grave offenses including nepotism, insubordination, misuse of FIBECO properties/funds, and gross incompetence. As a result, FIBECO's Board of Directors passed Resolution No. 42, Series of 2007, dismissing Dela Cruz from service effective May 1, 2007. This dismissal was affirmed by the National Electrification Administration (NEA) in Resolution No. 79 dated October 18, 2007. Dela Cruz's subsequent illegal dismissal cases were ruled upon by the courts, culminating in a decision upholding NEA's jurisdiction and the finality of its resolution on May 3, 2017.
Dela Cruz reached the compulsory
retirement age on August 28, 2013. Despite his dismissal, he sought retirement
benefits pursuant to FIBECO Board Resolution No. 05-2014 and NEA Memorandum No.
2005-015, but his application was denied by FIBECO. Dela Cruz then filed a
claim for retirement benefits before the Labor Arbiter (LA), arguing that he was
entitled to such benefits for his long tenure at FIBECO, including his service
as general manager until his retirement.
Whether the labor tribunal has
jurisdiction over Dela Cruz's claim for retirement benefits.
NO. The National Electrification Administration (NEA)
has primary and exclusive jurisdiction over administrative matters involving
officers of electric cooperatives, including retirement benefits claims. Therefore,
FIBECO's denial of Dela Cruz's retirement benefits claim should have been
brought to the NEA's disposal. The labor tribunal does not have jurisdiction
over such claims.
Whether Dela Cruz is entitled to
retirement benefits.
NO. Dela Cruz's dismissal from service entails the
forfeiture of retirement benefits as per NEA rules. In cases where an officer
is found guilty of grave offenses and penalized with removal from service, the
forfeiture of retirement benefits is inherent unless otherwise provided in the
decision. Since NEA Resolution did not provide for Dela Cruz's entitlement to retirement
benefits despite his dismissal, the Court deleted the award for retirement
benefits. The
Court denied Dela Cruz's petition for review on certiorari, upholding the CA's
decision to delete the award of retirement benefits and affirming the validity
of his dismissal from service.
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