Propriety of Claim for Gratuity and Terminal Leave Benefits by Heirs of BIR Employee

December 10, 1999 BIR RULING NO. 197-99 E.O. 292-000-00-197-99 Ms . Estelita V . Datu Chief, Personnel Division Bureau of Internal Revenue-NOB BIR Road, Diliman Quezon City M a d a m : This refers to your letter dated November 26, 1999 requesting for opinion from this Office as to whether or not the heirs of the late Carolino Yray can now claim the gratuity and terminal leave benefits due the deceased. It is represented that Carolino Yray is a former Revenue Officer I assigned in Revenue Region No. 19, BIR, Davao City; that he died on February 25, 1996, before he was meted out the penalty of dismissal per Decision dated May 14, 1996 of the Commissioner of Internal Revenue, in DOF Case No. 0002038 and BIR Administrative Case No 00935-96, for Grave Misconduct and Dishonesty; that the said decision has been modified to forced resignation per Resolution dated August 25, 1999 and has been confirmed by the Secretary of Finance, Manila. LibLex In reply, please be informed that Section 10 of Rule XIV of the Omnibus Rules Implementing Book V of E.O. 292, otherwise known as the "Administrative Code of 1987," provides that "Sec. 10 The penalty of forced resignation shall carry with it disqualification for employment in the government service for at least one year. However, it may or may not contain conditions relative to the forfeiture of leave credits and retirement benefits , and the disqualification regarding reemployment in a specific class of position. It is a basic principle of Public Officers Law that retirement laws are always construed liberally in favor of the employee. This is so because the level of retirement compensation is usually below the cost of living requirements of a retiree and it is received at a period in his life when he needs compensation the most. A grateful nation owes the retiree at the very least, a liberal interpretation. (Application for Gratuity Benefits of Associate Justice Efren I . Plana, Adm . Mat . 5460-RET . 24 March 88, En Banc, Minute Resolution) The liberal approach would achieve the humanitarian purposes of the retirement law which seeks to enhance the efficiency, security, and well-being of government employees . . . who after giving all their working years to the government and the people, look forward to receiving the full measure of the nation's gratitude for their dedicated faithful service. (ibid ; Beronilla v . Government Service Insurance System, 36 SCRA 44) In view of the foregoing and applying the above rule of liberality, the heirs of the late Carolino Yray are entitled to claim the gratuity and terminal leave benefits due the deceased since the resolution modifying the decision does not carry with it any condition relative to the forfeiture of leave credits and retirement benefits. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue