Query: Does an employee who voluntarily resigns after 24 years of service receive retirement benefits?

In the Philippines, the entitlement to retirement benefits for an employee who voluntarily resigns after long service is guided by the Labor Code of the Philippines and the company's specific retirement policy. According to the Labor Code (specifically Article 287), an employee may retire upon reaching the age of 60 years or more, but not beyond 65 years, and is entitled to retirement pay if they have served at least five years in the company.

Key Considerations for Retirement Benefits:

Eligibility Criteria: To qualify for retirement benefits under Philippine law, an employee must meet specific service requirements, which generally include a minimum of five years of service. The employee must also reach the retirement age defined by law or the company's policy, typically set at 60 years.
Company Retirement Plan: Some companies have specific retirement plans that may offer benefits beyond the statutory minimum. These plans could provide retirement benefits to employees who resign voluntarily after a long period of service, depending on the terms and conditions set forth in the employment contract or company policy.
Calculation of Retirement Pay: If eligible, the retirement pay is generally calculated based on the employee's length of service and their last salary. Typically, this is computed as at least half a month's salary for every year of service, which includes 15 days' salary based on the latest salary rate, cash equivalent of five days of service incentive leave, and 1/12 of the 13th-month pay.

Scenarios Under Company Policies:

Some companies might provide a pro-rata retirement pay even if the employee resigns before the official retirement age, recognizing the long service the employee has provided.
Other companies may require that the employee reach the retirement age to qualify for full benefits under a more traditional interpretation of the retirement provision.

Legal Steps and Advice:

Review of Employment Contract and Company Policy: Employees considering resignation after long service should review their employment contract and company retirement policy. This review will help understand any specific provisions or clauses that might affect their eligibility for retirement benefits.
Consultation with HR Department: Before making a decision, it's advisable for the employee to consult with the Human Resources department to clarify any concerns regarding the retirement benefits and the implications of resigning before reaching the retirement age.

Conclusion: In conclusion, while the standard rule under Philippine labor laws requires reaching the retirement age and a minimum period of service for eligibility to retirement benefits, company policies may vary. Employees who have served long terms and are considering resignation should carefully review their employment terms and seek clarifications from their employer regarding their retirement benefits.