Back to all articles
News

SC: Employers cannot force employees to retire at 60 without consent

3 min readBy KasKasan Buddies
Published
Last editorial update

The Supreme Court ruled that employees cannot be forced to retire before 65 without clear and voluntary consent, affirming the illegal dismissal of a worker whose employer treated his appointment as expired at age 60.

  • Employees cannot be forced to retire before the compulsory retirement age of 65 without their clear and voluntary consent, the Supreme Court (SC) has ruled.
  • In a 22-page decision, the SC First Division affirmed that employees may choose to retire at 60, but compulsory retirement generally remains at 65 under the Labor Code, unless a lower retirement age has been mutually agreed upon.
  • The ruling came from a case involving Rodolfo C. Ondevilla, whose employer, Colegio de San Juan de Letran-Laguna, treated his appointment as expired after he turned 60.

The Supreme Court ruled that employees cannot be forced to retire before 65 without clear and voluntary consent, affirming the illegal dismissal of a worker whose employer treated his appointment as expired at age 60.

  • Employees cannot be forced to retire before the compulsory retirement age of 65 without their clear and voluntary consent, the Supreme Court (SC) has ruled.
  • In a 22-page decision, the SC First Division affirmed that employees may choose to retire at 60, but compulsory retirement generally remains at 65 under the Labor Code, unless a lower retirement age has been mutually agreed upon.
  • The ruling came from a case involving Rodolfo C. Ondevilla, whose employer, Colegio de San Juan de Letran-Laguna, treated his appointment as expired after he turned 60.

Employees cannot be forced to retire before the compulsory retirement age of 65 without their clear and voluntary consent, the Supreme Court (SC) has ruled.

In a 22-page decision, the SC First Division affirmed that employees may choose to retire at 60, but compulsory retirement generally remains at 65 under the Labor Code, unless a lower retirement age has been mutually agreed upon.

The ruling came from a case involving Rodolfo C. Ondevilla, whose employer, Colegio de San Juan de Letran-Laguna, treated his appointment as expired after he turned 60.

Retirement at 60 is optional, not automatic

Under the Labor Code, employees may opt for retirement upon reaching 60 years old, while the compulsory retirement age is 65, unless a valid agreement provides for an earlier retirement age.

The SC stressed that an optional retirement arrangement must be based on a mutual and voluntary agreement. Employees must expressly agree to the terms without pressure or coercion.

This is important because accepting optional retirement means giving up the right to security of tenure. An employer cannot simply impose early retirement by treating an employee’s appointment as expired upon reaching 60.

In Ondevilla’s case, the school denied his preferred retirement terms despite his letter indicating that he was willing to retire effective July 31, 2020.

The Labor Arbiter, the National Labor Relations Commission, and the Court of Appeals had ruled in his favor. The SC First Division affirmed that he had been illegally dismissed.

School ordered to pay backwages and retirement benefits

The SC ordered Colegio de San Juan de Letran-Laguna to pay Ondevilla full backwages from August 29, 2019, until August 29, 2024.

He was also declared entitled to separation pay instead of reinstatement, along with retirement benefits covering his employment from June 16, 2004, until August 29, 2024, when he reached the compulsory retirement age of 65.

The total monetary award will earn legal interest of 6% per year from August 29, 2019, until fully paid.

The decision was penned by Associate Justice Ramon Paul L. Hernando and promulgated in June 2026. The SC posted the ruling on social media on October 27, 2026.

What the ruling means for employees

The decision clarifies that reaching 60 does not, by itself, give an employer the right to force an employee into retirement.

Employees may choose optional retirement at 60, but an employer must have a valid basis to impose an earlier retirement age. In the absence of a mutual agreement setting a lower age, the compulsory retirement age remains 65.

Workers approaching retirement should review their employment contracts, collective bargaining agreements, and company retirement plans to understand the terms that apply to them.