Case Digest (G.R. No. 82310)
Facts:
The case revolves around the petitioner, Feagle Construction Corporation, and respondents Gavino Gayda, Elpidio Agpalaya, and others, with a notable engagement involving the National Labor Relations Commission. The events took place concerning contracts set in Saudi Arabia with the foreign employer, Algosaibi - Bison Ltd. in Dammam. Petitioner, a recruitment agency, sent Filipino workers, including private respondents, to work for Algosaibi - Bison Ltd. between the years 1983 and 1986. By the latter year, the foreign employer encountered severe financial distress primarily attributed to a plummet in oil prices affecting the Saudi economy, which in turn impeded their ability to pay workers.
As a result of the employer's financial struggles, the remittance of wages to the workers was delayed, creating significant dissatisfaction among employees. During a meeting hosted by the petitioner in July 1984, the dissatisfied Filipino workers—including the private respondents—pleaded
Case Digest (G.R. No. 82310)
Facts:
- Parties Involved
- Petitioner: Feagle Construction Corporation (FCC), a licensed private recruitment agency.
- Respondents:
- Private Filipino workers employed by Algosaibi-Bison, Ltd. in Saudi Arabia (including, inter alia, Gavino Gayda, Elpidio Agpalaya, Miguelito Batoon, and others).
- National Labor Relations Commission (NLRC), as the administrative body involved in the dispute.
- Employment Arrangement and Financial Circumstances
- The Filipino workers were deployed by FCC to work on construction projects in Saudi Arabia, having served between three to five years with the foreign principal employer, Algosaibi-Bison, Ltd.
- In 1983, due to a significant drop in the price of oil, Algosaibi-Bison, Ltd. encountered severe financial difficulties, leading to delayed remittances of workers’ salaries and benefits.
- Although payments for the years 1983 and 1984 were eventually made, they were subject to significant delays.
- FCC advanced mobilization expenses (including passport, medical, and visa fees) out of its own funds and consistently urged the employer to prioritize worker payments.
- The Waiver and Re-deployment of Workers
- In July 1984, about forty Filipino workers, including private respondents, met with FCC management requesting to be sent back to Saudi Arabia despite the known risks.
- Workers were informed by FCC’s president, Florentino B. Aguila, about the financial risks of re-deployment given Algosaibi-Bison, Ltd.’s difficulties.
- The workers insisted on returning to work despite unemployment in the Philippines, and in doing so, they agreed to sign a written waiver (Statement xxx) stating that they would not hold FCC liable for any delay or non-payment of their salaries or benefits by Algosaibi-Bison, Ltd.
- After signing the waiver, the workers were redeployed and, consequently, entered into new contracts directly with Algosaibi-Bison, Ltd.
- When Algosaibi-Bison, Ltd. went into bankruptcy in 1986, the workers filed their claims individually with the liquidator; FCC had no further role in the disbursement process.
- Administrative and Procedural History
- On October 3, 1986, private respondents initiated a complaint with the Philippine Overseas Employment Administration (POEA) concerning unpaid wages/benefits.
- FCC submitted its answer on December 2, 1986, noting that it had not received a copy of at least one of the respondents’ complaints.
- POEA rendered a decision on July 20, 1987, favoring the claims of the private respondents.
- FCC’s appeal was subsequently elevated to the National Labor Relations Commission.
- On January 29, 1988, the NLRC issued a decision affirming the POEA ruling but with a modification exempting FCC’s officials (Florentino and Rene Aguila) from liability while holding FCC jointly and severally liable with Algosaibi-Bison, Ltd.
- FCC filed motions for reconsideration (first on February 11, 1988, and then a supplemental motion on March 8, 1988), which were denied by the NLRC.
- A temporary restraining order had been issued on September 12, 1988, with FCC posting a bond of P50,000.00, which later became a subject of the final disposition.
Issues:
- The Central Legal Issue
- Whether Feagle Construction Corporation may be held jointly and severally liable with the foreign employer, Algosaibi-Bison, Ltd., for the unpaid claims of the private respondents.
- Specific Sub-Issues
- Whether the individual waivers (Statement xxx) executed by the private respondents—agreeing not to hold FCC accountable for any delay or non-payment of salaries—are valid and effective in precluding FCC’s liability.
- Whether the changed circumstances, including the workers entering into new contracts directly with Algosaibi-Bison, Ltd. and filing claims directly with the liquidator, alter FCC’s liability under the general rule imposed on licensed private recruitment agencies.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)