Title
GBMLT Manpower Services, Inc. vs. Malinao
Case
G.R. No. 189262
Decision Date
Jul 6, 2015
A teacher deployed to Ethiopia faced demotion, salary cuts, and termination after refusing a new post. Courts ruled no illegal dismissal, upheld her quitclaim, and deemed the employer's appeal timely.

Case Digest (G.R. No. 215290)
Expanded Legal Reasoning Model

Facts:

  • Background and Application
    • Respondent Ma. Victoria H. Malinao applied to petitioner GBMLT Manpower Services, Inc. in May 2005 for a teaching job abroad.
    • She underwent the usual application process and was interviewed by the president of an Ethiopian university, who endorsed her for the post of accounting lecturer.
    • Petitioner issued a wage response slip promising a monthly salary of USD 900.
    • Respondent paid petitioner placement and processing fees equivalent to one-month salary and signed a two-year employment contract approved by the Philippine Overseas Employment Administration (POEA).
    • Respondent departed for Ethiopia on 12 December 2005.
  • Employment at Alemaya University and Initial Issues
    • Upon arrival, respondent was informed by the Ethiopian Ministry of Education to have her credentials re-evaluated due to the absence of a master’s degree.
    • She was given a second contract identical to the original one, which she eventually signed.
    • Respondent was assigned to teach at Alemaya University.
    • On 10 January 2006, she discontinued teaching a course (cooperative accounting) citing specialization in auditing, not accounting. Another lecturer took over, leaving her with no teaching load.
  • Re-ranking and Contract Issues
    • On 1 March 2006, a memorandum was issued for evaluating Filipino teaching staff credentials.
    • On 15 March 2006, another memorandum re-ranked most Filipino staff, lowering respondent’s designation from lecturer to assistant lecturer with a reduced salary of USD 600.
    • Respondent refused to sign the new contract and protested with her colleagues at the Ministry of Education on 17 March 2006.
    • During a meeting on 27 March 2006, Vice President Alamirew verbally terminated respondent, later apologizing for the outburst.
    • Respondent requested a formal notice of termination to avoid prolonging her ordeal.
  • Further Developments and Termination
    • Memoranda dated 4 April 2006 detailed students’ petitions against respondent’s teaching and the recommendation to terminate due to incompetence and ineffective handling of courses.
    • Respondent denied allegations and defended her qualifications as a law graduate and certified public accountant.
    • On 6 April 2006, Vice President Alamirew issued a formal three-month notice of termination citing incompetence, insults to students and staff, and general unfitness to continue employment.
    • Respondent responded, denying any insult or misconduct and contending the employer’s accusations lacked substantial evidence.
    • Alemaya University President offered respondent a different post in the Internal Audit Department on 19 April 2006, which she initially accepted but later rejected on 27 April 2006, citing issues of disrespect and communication barriers.
    • Respondent was repatriated on 27 June 2006.
  • Quitclaim and Lawsuit
    • On 5 July 2006, respondent signed a Quitclaim and Release in favor of petitioner, accepting USD 900 and releasing all claims related to her deployment.
    • On 18 July 2006, she filed a complaint before the labor arbiter against petitioner as local agency and Alemaya University as foreign principal, claiming illegal dismissal, unpaid salaries, moral and exemplary damages, and attorney’s fees.
  • Labor Arbiter’s Decision
    • In a Decision dated 29 March 2007, the labor arbiter ruled respondent was constructively dismissed and unduly repatriated.
    • Ordered petitioner and university to pay USD 4,500 as unpaid salary (less the Quitclaim amount), Php 30,000 moral damages, Php 20,000 exemplary damages, plus costs.
    • Found the student petition against respondent questionable due to double signatures and inclusion of non-class students.
    • Held that respondent did not receive procedural due process; no panel reviewed her performance.
    • Declared Quitclaim and Release invalid as consideration was unconscionable under R.A. 8042 for illegal dismissal claims.
  • NLRC Decision and Motion for Reconsideration
    • NLRC Decision dated 30 July 2008 dismissed respondent’s complaint, upholding validity of Quitclaim and Release and finding no illegal dismissal.
    • Ruled termination was not effective upon verbal firing but continuous until three months after notice.
    • NLRC held that acceptance and later rejection of new post operated as continuation and subsequent termination by respondent.
    • Found respondent was capable of understanding and freely signing quitclaim; no evidence of coercion or fraud.
    • Denied motion for reconsideration on 31 October 2008.
  • Court of Appeals Decision and Resolution
    • CA Decision on 29 May 2009 reversed the NLRC, reinstating the labor arbiter’s ruling with modifications.
    • Ordered reimbursement of full placement fee plus 12% interest, airfare from worksite to Addis Ababa, increased moral and exemplary damages to Php 50,000 each, and attorney’s fees.
    • Held that USD 900 quitclaim consideration was unconscionable and invalid; waiver invalidated by distress and economic necessity.
    • Ruled new contracts requiring demotion and lower salary were invalid without POEA approval (substitution of contracts).
    • Found petitioner’s appeal before NLRC imperfectly perfected because bond via check cleared beyond allowed period.
    • Denied petitioner’s motion for reconsideration on 24 August 2009.
  • Petition to the Supreme Court
    • Petitioner filed a petition for review on certiorari under Rule 45 assailing the CA Decision and Resolution.

Issues:

  • Whether respondent Ma. Victoria H. Malinao was illegally dismissed by Alemaya University.
  • Whether the Quitclaim and Release executed by respondent is valid and binding.
  • Whether petitioner GBMLT Manpower Services, Inc.’s appeal before the NLRC was perfected within the reglementary period.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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