Appeal Route Clarified: COSLAP Decisions Go to Court of Appeals, Not Directly to Supreme Court

The Supreme Court recently clarified an important procedural point in labor cases: decisions of the Court of Appeals (CA) in petitions for certiorari from the National Labor Relations Commission (NLRC) should be appealed to the Supreme Court via a petition for review on certiorari under Rule 45, not directly from the NLRC. This ruling, in Ondevilla v. Colegio de San Juan de Letran (Laguna), G.R. No. 278615 (June 29, 2026), also settled substantive issues on constructive dismissal, optional retirement, and CBA benefits for managerial employees.

The Case Background

Rodolfo Ondevilla was hired by Colegio de San Juan de Letran (CSJL) in Laguna in 2004 as Comptroller, later becoming Assistant Vice President for Finance and Controller. His contract was renewed every three years until it expired on June 30, 2018.

When new management took over, Ondevilla was appointed as Controller for a fixed period from July 1, 2018 to August 29, 2019. He claimed this was a demotion that substantially reduced his salary and benefits. CSJL countered that he was an independent contractor, not a regular employee.

The Procedural Issue: Where to Appeal

The Supreme Court emphasized that when the CA rules on a petition for certiorari from the NLRC, the proper remedy is a petition for review on certiorari under Rule 45 of the Rules of Court to the Supreme Court. This is a question of law, not fact.

The Court noted that while Rule 45 generally precludes resolving factual issues, exceptions exist when the NLRC and the CA have conflicting findings. In this case, the Court resolved the merits despite procedural lapses, citing the principle that labor rules should not be applied rigidly where substantial justice is at stake.

Constructive Dismissal and Demotion

The Court held that Ondevilla was indeed constructively dismissed on August 29, 2019, when CSJL treated his contract as expired. Although he was demoted on July 1, 2018, this did not amount to constructive dismissal because he continued receiving the same salary and benefits.

However, the Court found that CSJL's refusal to recognize Ondevilla's employment status and its insistence that he was merely a consultant constituted illegal dismissal.

Optional Retirement Requires Explicit Consent

A key ruling concerned retirement. The CA had concluded that Ondevilla optionally retired on July 31, 2020 based on a letter he wrote. The Supreme Court disagreed.

The Court held that under the Labor Code, the compulsory retirement age is 65 years, while the minimum age for optional retirement is 60 years. The Court emphasized that an employee who did not expressly agree to an early retirement cannot be retired from the service before reaching age 65. The employee's acceptance of an early retirement option must be explicit, voluntary, free, and uncompelled.

The Court found that Ondevilla's letter was merely a response to CSJL's demand for payment of a cash advance, not an express election to retire. His objections to early retirement and his filing of the illegal dismissal complaint negated any intent to retire before age 65. The Court noted that retirement is the result of a bilateral act between employer and employee, and in this case, there was no proposal for a retirement plan—only an illegal dismissal disguised as an expired contract.

CBA Benefits for Managerial Employees

The Court also ruled that managerial employees are generally not entitled to CBA benefits. Under Article 255 of the Labor Code, managerial employees cannot join labor organizations or share in union-negotiated concessions. An exception exists only when the employer extends such benefits as a matter of established company practice, which requires proof of consistent and deliberate giving over a long period. Ondevilla failed to present such evidence.

Practical Takeaways

• Appeal route matters: Decisions of the CA in labor cases are appealed to the Supreme Court via Rule 45 petition, not directly from the NLRC.
• Demotion alone isn't constructive dismissal: If the employee continues receiving the same salary and benefits, a demotion may not constitute illegal dismissal.
• Early retirement needs explicit consent: An employee cannot be retired before age 65 unless they expressly, voluntarily, and freely agree to an earlier retirement.
• Managerial employees and CBA benefits: These are generally not entitled to union-negotiated benefits unless the employer has an established practice of extending them.
• New issues on appeal: Parties cannot raise new theories or issues for the first time on appeal; this violates fair play and due process.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.