G.R. No. 207828 - SRL International Manpower Agency vs. Yarza, Jr.

Pedro S. Yarza, Jr. (Yarza) was hired as a Project Manager by petitioners SRL International Manpower Agency (SRL) and Akkila Co., Ltd. UAE (Akkila), with SRL as the local recruitment agency and Akkila as foreign principal.
Yarza’s employment contract specified a two-year term with a monthly basic salary of AED 8,000 plus allowances.
Yarza departed for the UAE on October 14, 2010, to work under the “Offer of Employment,” but under a visit visa, not the required employment visa.

Yarza was repatriated to the Philippines on March 24, 2011, instructed to renew his visa and return within 10 days.
Although Yarza complied, petitioners terminated his employment without prior notice or due process, sending him a termination letter dated May 22, 2011.
Yarza asserted security of tenure due to the fixed two-year contract and claimed illegal dismissal since no just or authorized cause was proven.

SRL stated Akkila and Al Salmeen Trading Est. (both owned by Mr. Haytham Akkila) were its foreign principals, and that it posted the job opening for Akkila’s Qatar project.
SRL initially processed Yarza’s documents but ceased cooperation when it learned a visit visa, rather than an employment visa, was issued for Yarza’s deployment, which violated POEA rules.
Yarza handled deployment with the visit visa directly with Akkila, while SRL denied responsibility for this undocumented deployment.
When Akkila informed SRL that Yarza was to be redeployed under an employment visa, SRL attempted to process Yarza’s documents anew. During medical examination at Seamed Medical Clinic, Yarza was declared unfit for work due to uncontrolled Diabetes Mellitus Type II.
Akkila declined to hire Yarza after the medical finding, and subsequently terminated his employment.

Labor Arbiter dismissed Yarza’s complaint for illegal dismissal, finding no employer-employee relationship with SRL and no proof of illegal dismissal.
The NLRC reversed the Labor Arbiter’s decision, finding SRL actively participated in Yarza’s recruitment and deployment and that termination was illegal due to failure to prove just cause.
NLRC awarded Yarza backwages corresponding to six months (three months pay for every year of the unexpired term under RA 10022), and attorney’s fees.
On reconsideration, NLRC partially granted petitioners’ motion, ruling the termination was valid due to Yarza’s medical unfitness and only awarded separation pay equivalent to one month’s salary plus attorney’s fees.
CA reversed the NLRC’s reconsideration resolution, reinstating the NLRC’s initial Decision ordering payment of backwages for unexpired contract and attorney’s fees, finding illegal dismissal.

SRL filed this petition for review on certiorari, challenging the findings on employer-employee relationship, illegal dismissal, and award of attorney’s fees.
Yarza countered, emphasizing the established employer-employee relationship and illegal dismissal without due process and just cause.

Whether or not there existed an employer-employee relationship between Yarza and the petitioners, particularly SRL, in his deployment abroad.
Whether the dismissal of Yarza by the petitioners was illegal due to lack of just or authorized cause and absence of due process.
Whether Yarza is entitled to reinstatement or payment of salaries for the unexpired portion of the contract, moral and exemplary damages, and attorney’s fees.