If a collective bargaining agreement contains retirement benefits, which standard should apply to the retiring employee?
When an employee reaches the established retirement age, they are entitled to the benefits defined in their specific contracts or laws. If a collective bargaining agreement exists, the employee shall receive the retirement benefits earned under that agreement. However, the law provides a safety net to ensure workers are not shortchanged by their contracts. The retirement benefits granted under any collective bargaining or other agreements shall never be less than the minimum amounts provided by the law itself. This protective standard is stipulated in Article 302 Labor Code of the Philippines. “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.” 02-Jun-26About Nicolas and De Vega Law Offices
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