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Question Back Pay for Retired Personnel

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6 years 10 months ago #63 by Lilac
Lilac created the topic: Back Pay for Retired Personnel
Hello good afternoon :)

This pertains to a request regarding a retired employee's entitlement to back pay. Although the request did not provide much detail, we were able to gather the following information from the supporting documents attached to it: Said person was suspended for one month from March 7- April 8, 2008 pending the result of an investigation concerning the formal charge filed against him. On April 9, 2008 his regional director (RD) dismissed him from the service having been found guilty of grave misconduct, but on the next day he appealed the decision and filed for a motion for reconsideration (MR) to the Department Secretary. On Sept 13, 2011, the Dept Secretary affirmed the decision of his RD, but on the same day he again filed an MR. On March 2014, said decision was reversed and he was exonerated. On December 1, 2015, he retired from the service. On May 22, 2017, we received the request for his back pay from 2008-2015. Can we still pay for his back salaries and other compensation (including PERA, Bonus, PEI, clothing allowance and cash gift) considering he's already retired from the service in 2015? Was he supposed to report to work starting March 2014? Can we still pay him if he did not? It was also shown in the submitted documents that he reported to work from June 2009 to Sept 2011. I hope you can shed light on this matter.

Thank you very much.

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6 years 10 months ago #64 by Action Officer 6
Action Officer 6 replied the topic: Back Pay for Retired Personnel
Section 53 (d) of the Revise Rules on Administrative Cases in the Civil Service provides:
Section 53. Effects of Exoneration on Certain Penalties:
"d. In case the penalty imposed is dismissal, he/she shall immediately be reinstated without loss of seniority rights with payment of back salaries and all benefits which would have accrued as if he/she has not been illegally dismissed."

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6 years 10 months ago #65 by Action Officer
Action Officer replied the topic: Back Pay for Retired Personnel
With regard to preventive suspension, the Supreme Court ruled in the case of CSC vs Cruz, G.R. No. 187858 dated August 9, 2011 that:

"Our established rulings hold that back salaries may not be awarded for the period of preventive suspension as the law itself authorizes its imposition so that its legality is beyond question."

If we are talking of the period that he was illegally dismissed from the service, meaning he was subsequently exonerated.

The CSC issued Memorandum Circular No. 6, s. 2011 dated March 7, 2011, and stated that an illegally dismissed employee who is later ordered reinstated is considered as not having left his/her office and shall be entitled to payment of back wages and other benefits that should accrue to him/her by virtue of his/her office. Moreover, for purposes of PIB the performance rating of the employee prior to his/her illegal dismissal shall be the basis for the grant.

Corollarily, in the case of Philippine Amusement and Gaming Corporation vs. Angara and Victoria, G.R. No. 142937 dated November 15, 2005, the Supreme Court held, as follows:

“xxx an illegally dismissed employee shall be entitled to reinstatement, full back wages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.” (Emphasis supplied)

Based on the foregoing, an “illegally dismissed employee is entitled to payment of back wages corresponding to the period from his illegal dismissal up to the actual reinstatement. The grant of back wages allows the same employee to recover from the employer that which he lost by way of wages because of his dismissal.

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6 years 10 months ago #66 by Lilac
Lilac replied the topic: Back Pay for Retired Personnel
Thank you for your prompt action on my query. The PALM is very convenient and a great help! Congratulations! :)

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6 years 10 months ago #67 by Lilac
Lilac replied the topic: Back Pay for Retired Personnel
Sorry, just a quick follow up question: Can we still course the payment through his agency even if he's already retired from the service?

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6 years 10 months ago - 6 years 10 months ago #68 by Action Officer
Action Officer replied the topic: Back Pay for Retired Personnel
A budget shall be allocated to the agency and the requesting agency will facilitate the process of giving said back wages and benefits, if any.
Last Edit: 6 years 10 months ago by Action Officer.

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