THE National Electrification Administration (NEA) is not liable for the P3.94 million claim for gratuity pay filed by former employees who were retrenched due to the restructuring of the agency in 2003.
Invoking prescription, the Commission on Audit denied the petition for money claim filed by Carlito Eje, Benjamin Clores, Rodelio Hernandez, Marilou De Jesus, Arceo Mangune, Ricardo Ramos, Marissa Andal, and Edna Rana.
The claimants were legally terminated from the service following the signing of the Electric Power Industry Reform Act of 2001 (EPIRA) into law.
The COA noted that the seven former employees received separation pay under the EPIRA Law and the Government Service Insurance System (GSIS) Retirement Law.
However, in 2018 the claimants demanded payment of gratuity pay under NEA Board Resolution No. 215 which was held by the COA Adjudication and Settlement Board to be a valid corporate act and not in conflict with existing retirement laws.
Asked by the NEA for clarification, the COA’s Legal Services Sector notified the NEA Administrator that former employees who received benefits pursuant to a separation plan under the EPIRA Law are no longer entitled to gratuity pay.
The former employees, however, proceeded to file their petition with the COA Commission Proper.
Chairperson Gamaliel A. Cordoba and commissioners Roland Café Pondoc and Mario G. Lipana held that the petition should be dismissed outright for being filed way beyond the 10 years allowed for such action.
“As emphasized by NEA, …Mr. Eje et al.’s claim for payment of gratuity pay was filed 15 years after their separation from NEA. Clearly, their right of action against NEA has been prescribed,” the Commission declared.
Likewise, it noted that having availed of benefits under the EPIRA Law and the GSIS Retirement Law, the claimants are no longer entitled to gratuity pay.
“The options to avail these benefits are alternative, not cumulative. Thus, those who received benefits under the EPIRA Law can no longer claim the gratuity benefits under NEA Board Resolution No. 215,” the COA added.
