G.R. No. 100113 - Cayetano vs. Monsod

This case involves a petition for certiorari seeking to reverse the decision of the National Labor Relations Commission (NLRC) dated December 22, 1988, along with its denial of a motion for reconsideration dated February 21, 1989.
The petitioning party, G & P Manpower Services, is challenging the NLRC ruling which held it jointly and solidarily liable with Shibh Al-Jazira Contracting Establishment for various claims raised by the private respondents, Orlando S. Jimenez and Armando S. Jimenez.

The respondents initially filed two separate complaints before the Philippine Overseas Employment Administration (POEA):

One for breach of contract, reduction and delayed salary payments, and damages (Case No. L-86-05-432-A).
Another for refund of placement fee and reimbursement of plane fare (Case No. L-86-05-432-B).

They alleged that, having been hired as Road Foreman and Paver Operator in December 1985 with respective monthly salaries of U.S. $300.00 and U.S. $240.00, they were later made to sign contracts in Saudi Arabia with reduced salaries in Saudi Rial currency by their foreign employer.
The respondents contended that due to poor working conditions, long working hours, and delays in salary payments at the Qassim Road Project in Saudi Arabia, they could not complete their contracts and had to repatriate at their own expense.

In addition to their Philippine Overseas Employment Administration (POEA) complaint, the respondents filed a formal complaint with the POEA Recruitment Regulation Division alleging violations of Article 34 (a) and (b) of the Labor Code.

The allegations in this complaint mirrored those in the original case (e.g., falsified travel documents, contract substitution, demotion in rank and salary, and overcharging on placement fees).
An order dated February 23, 1987, directed G & P Manpower Services to refund excess placement fees and impose a penalty in the form of either suspension of license or a fine. A motion for reconsideration filed on March 4, 1987, was later dismissed.

On August 3, 1987, the POEA dismissed the breach of contract and related claims for lack of merit, leading the respondents to appeal.
The NLRC reversed the POEA ruling by finding that the petitioner and Shibh Al-Jazira were liable for the breach of contract, short-changing of salary, and refund of repatriation expenses.

The NLRC based its decision partly on the fact that the respondents’ position paper, submitted to the POEA, was unverified, thus allegedly warranting its dismissal as “a mere scrap of paper.”
The NLRC emphasized that, under its own rules (Section 2, Rule VII of the Revised Rules), the submission of verified position papers is mandatory.
Evidence from the petition includes:

Resignation letters from the respondents indicating voluntary resignation due to family problems and a willingness to bear repatriation expenses.
Joint statements by co-workers attesting to satisfactory working conditions and regular salary payments.

The petitioner argued that the NLRC inappropriately applied its rules instead of those of the POEA, particularly noting that the POEA Rules (Sections 2 and 5, Rule III, Book VI) require only the verification of the answer, not the position paper.

Whether the NLRC erroneously applied Section 2, Rule VII of its Revised Rules instead of the applicable POEA Rules and Regulations regarding the requirement of verified position papers.
Whether the determination of joint and solidary liability of G & P Manpower Services and Shibh Al-Jazira for breach of contract, salary short-payments, and repatriation expenses was supported by admissible and substantial evidence.
Whether the evidence presented—including the resignation letters and testimonies of co-workers—adequately refuted the respondents’ claims of forced resignation due to inhuman and unbearable treatment.