Case Digest (G.R. No. 246989)
Facts:
Respondent German A. Binalla, a registered nurse, filed a complaint with the labor arbiter for money claims against local manning agent CBM Business Management and Manpower Services (CBM) and/or Princess Joy Placement and General Services, Inc. (Princess Joy) and Al Adwani General Hospital for violations arising from his employment in Taif, Saudi Arabia from April 19, 2002 to April 28, 2004. He alleged that although Princess Joy processed his deployment and documents, he was made to work under a four-year contract with inferior terms compared to the two-year POEA-certified contract.The labor arbiter found that Princess Joy and CBM participated in a fraudulent “reprocessing”/contract substitution scheme and held them jointly and severally liable for salary differentials, deductions/bonds, overtime pay, leave credits, reimbursements, and damages. On appeal, the NLRC reversed, but the Court of Appeals (CA) set aside the NLRC and declared the NLRC’s resolution void for grave abuse
Case Digest (G.R. No. 246989)
Facts:
- Nature of the labor dispute and parties
- Respondent German A. Binalla filed a complaint against local manning agent CBM Business Management and Manpower Services (CBM) and/or Princess Joy/Al Adwani General Hospital (Al Adwani) for various money claims arising from his employment with Al Adwani in Taif, Saudi Arabia from April 19, 2002 to April 28, 2004.
- Binalla alleged he was a registered nurse.
- Binalla’s claims involved salary differentials, deductions and refunds, overtime pay, vacation and sick leave credits, and damages with attorneys fees.
- Binalla’s recruitment and deployment to Saudi Arabia
- Binalla alleged that in April 2002, he applied for employment with Princess Joy, which referred him to Reginaldo Paguio and Cynthia Latea for processing of his papers.
- After completing documentary requirements, Binalla alleged he was told that he would be deployed to Al Adwani.
- Binalla alleged that on April 12, 2002, he signed a four-year contract with Al Adwani as staff nurse.
- Binalla alleged he paid Latea P4,500.00 and Paguio P3,000.00, but no receipts were issued to him.
- Binalla alleged that he received a telegram notifying him of his departure on April 19, 2002.
- Binalla alleged that on the day of departure, Paguio met him at the airport and gave him copies of his employment contract, plane ticket, passport, a copy of his Overseas Employment Certificate from the POEA, and other documents.
- Binalla alleged he discovered only after boarding that CBM was his deploying agency.
- Binalla alleged that under the contract certified by POEA, his salary was supposed to be US$550.00 for twenty-four (24) months or two years.
- Binalla alleged that under the four-year contract he signed, his monthly salary was only 1,500 Saudi Riyals (SR) equivalent to $400.
- Binalla alleged he posted a bond of SR 3,000.00 upon his return to the Philippines in April 2004 to guarantee he would come back to finish his contract.
- Binalla alleged that upon return, he verified his employment contract with POEA and learned POEA certified a different contract with CBM as recruiting/deploying agency.
- Binalla alleged he disowned the certified contract, claiming his supposed signature on it was forged.
- Binalla alleged he opted not to return to Saudi Arabia to complete his four-year contract.
- Claimed violations by Al Adwani and the employment scheme described as “reprocessing” or contract substitution
- Binalla alleged that Princess Joy recruited and deployed him, but made it appear that CBM undertook the deployment under a different contract submitted to and certified by POEA.
- Binalla asserted he was made to work under an inferior contract and that Al Adwani violated the four-year contract terms by:
- Withholding his initial salary of SR1,500 as a bond to ensure completion.
- Deducting SR 250 from salary for six months as reimbursement for placement fee of SR1,500.
- Non-payment of overtime pay for his two years of work.
- Refusal to allow 15-day vacation leave and 15-day sick leave equivalent to one month’s salary.
- Deduction of SR 50 a month (total SR 1,200) for board and lodging and food allowance that were supposed to be free.
- Requiring him to post a bond equivalent to three months salary to guarantee he would return to complete the contract when he applied for vacation leave after two years.
- Proceedings before the Labor Arbiter
- Summons were served on both Princess Joy and CBM, but only Princess Joy submitted pleadings to the Labor Arbiter.
- Princess Joy denied recruiting and deploying Binalla for overseas employment.
- Princess Joy repudiated involvement of Paguio and Latea, claiming they were not officers, employees, or registered representatives with POEA.
- Princess Joy claimed it was not Al Adwani’s Philippine agent but CBM was.
- Princess Joy denied participation in the four-year contract presented by Binalla, claiming:
- The document was not even an employment contract because it was only Binalla who signed.
- It did not re-process Binalla.
- If Paguio and Latea committed any repro-scheme, it was a prohibited recruitment practice outside the Labor Arbiters jurisdiction.
- In its decision dated October 28, 2005, Labor Arbiter (LA) Fructuoso T. Aurellano held the complaint to be a money claim within his jurisdiction under the law.
- LA Aurellano found that Princess Joy and CBM jointly undertook Binalla’s recruitment and deployment to Saudi Arabia through reprocessing.
- LA Aurellano found credible Binalla’s contention that Paguio and Latea, who processed his papers, were working for Princess Joy, taking note of the ticket/telegram/advise (with mention of Princess Joy and “Regie [Paguio]”) handed by Paguio to Binalla.
- LA Aurellano declared CBM and Princess Joy jointly and severally liable to pay:
- US$3,500.00 in salary differentials for two years.
- SR 1,500.00 (or $400.00) representing six months salary deduction as bond to ensure completion of the four-year contract.
- $9,900.00 in overtime pay.
- $550.00 in vacation leave and sick leave credits.
- SR 1,200 in reimbursement of monthly deductions for board and lodging.
- SR 3,000.00 in reimbursement of the vacation bond.
- P500,000.00 moral damages.
- P500,000.00 exemplary damages.
- 10% attorneys fees.
- Appeal to the NLRC and bond issues
- Princess Joy appealed LA Aurellano’s decision by filing with the NLRC a Notice of Appeal, Memorandum of Appeal, and Motion to Reduce and Fix Bond, all dated November 24, 2005.
- Princess Joy’s surety bond for LA Aurellano’s monetary award of P800,875.00 (exclusive of damages) was P250,000.00.
- Binalla opposed the motion, contending the appeal was made in violation of NLRC rules.
- On May 12, 2006, the NLRC issued an order allowing Princess Joy to post the balance of the appeal bond so it would equal P800,875.00.
- Binalla moved for reconsideration and opposed the posting of additional bond.
- Princess Joy complied through a Compliance dated July 21, 2006, posting the required additional bond of P550,875.00.
- The NLRC issued a resolution dated July 27, 2007, reversing LA Aurellano’s decision.
- The NLRC ruled that facts and evidence did not establish reprocessing as the means for Binalla’s deployment to Saudi Arabia.
- The NLRC declared substantial evidence pointing to CBM’s sole liability as the recruiting and deploying agent.
- The NLRC refused to give credit to the ticket/telegram/advise because it was an unsigned and unauthenticated printout with no indication of source, purpose, or entity addressed.
- The NLRC noted that while CBM waived presentation of evidence for non-appearance, CBM could be held liable only for causes of action raised in the complaint and duly proven.
- The NLRC held the standard-form complaint mentioned only non-payment of salaries, overtime pay, vacation/sick leave pay, refund of alleged salary deductions including placement fee, and attorneys fees.
- Accordingly, the NLRC deleted the awards for salary differentials, food allowance, and moral and exemplary damages.
- The NLRC awarded Binalla $2,200.00 in unpaid salaries for four months, $550.00 for unused vacation and sick leave credits, plus 10% attorneys fees.
- Binalla moved for reconsideration, but the NLRC denied it on November 26, 2007, prompting Binalla to file a Rule 65 petition for certiorari with the Court of Appeals.
- Court of Appeals decision and reasoning on perfection of appeal
- Binalla asserted grave abuse of discretion in:
- Entertaining Princess Joy’s appeal despite alleged failure to post an appeal bond within the ten-day appeal period.
- Alleged failure to appreciate the r...(Subscriber-Only)