Difference between resignation and retirement

Difference between resignation and retirement "I have been working with my employer as office staff for almost 20 years, and will retire in the next two years. On one occasion, the manager talked to me and suggested that I sign a resignation letter so that they can process my retirement benefits. Starting from that day, the manager has kept on asking me for the submission of my resignation letter. Please guide me on this matter. JonasDear Jonas, Retirement and resignation are two different things. Retirement is governed by Article 302 of Presidential Decree 442 (Labor Code of the Philippines, as amended) and it states that:“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. x x x”Resignation must be voluntary on the part of the employee. This is in consonance with the statement of Associate Justice Diosdado Peralta in the case of Grande vs Philippine Nautical Training College (GR 213137, March 1, 2017): “Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and has no other choice but to dissociate from employment. Resignation is a formal pronouncement or relinquishment of an office, and must be made with the intention of relinquishing the office accompanied by the act of relinquishment. A resignation must be unconditional and with the intent to operate as such.”Please be guided also by the decision of the case entitled Barroga vs Quezon Colleges of the North et al. (GR 235572, Dec. 5, 2018), where the Supreme Court through Associate Justice Estela Perlas Bernabe stated that:“While retirement from service is similar to termination of employment insofar as they are common modes of ending employment, they are mutually exclusive, with varying juridical bases and resulting benefits. Retirement from service is contractual, while termination of employment is statutory. Verily, the main feature of retirement is that it is the result of a bilateral act of both the employer and the employee based on their voluntary agreement that upon reaching a certain age, the employee agrees to sever his employment. Since the core premise of retirement is that it is a voluntary agreement, it necessarily follows that if the intent to retire is not clearly established or if the retirement is involuntary, it is to be treated as a discharge.“The line between ‘voluntary’ and ‘involuntary’ retirement is thin, but it is one which case law had already drawn. On the one hand, voluntary retirement cuts the employment ties leaving no residual employer liability on the other, involuntary retirement amounts to a discharge, rendering the employer liable for termination without cause. The employee’s intent is decisive. In determining such intent, the relevant parameters to consider are the fairness of the process governing the retirement decision, the payment of stipulated benefits, and the absence of badges of intimidation or coercion.” Applying the above-quoted decision in your situation, you will not receive any retirement benefit if you will follow the advice of the manager, who is asking you to submit your resignation letter. Resignation must be a voluntary act of the employee to terminate the employer-employee relationship. On the other hand, retirement is contractual in nature, which is either pursuant to a collective bargaining agreement or employment contract, where upon the employee’s reaching a retirement age, he will be paid his retirement benefits. If you are being forced to retire, the same will be treated as discharge, which would make the employer liable for termination without cause.This opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or further elaborated. We hope that we were able to enlighten you on the matter.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to ." - https://www.affordablecebu.com/