Title
Augustin International Center, Inc. vs. Bartolome
Case
G.R. No. 226578
Decision Date
Jan 28, 2019
Overseas workers deployed to Sudan filed for illegal dismissal after termination; recruitment agency held solidarily liable for breach of contract and unpaid wages.

Case Summary (G.R. No. 76788)

Procedural History

In the present case, AICI filed a petition for review questioning the rulings of the Court of Appeals (CA), which upheld the findings of the National Labor Relations Commission (NLRC) that declared Bartolome and Yamat's dismissal from employment as illegal. The NLRC's decision affirmed the Labor Arbiter's (LA) earlier ruling that required AICI and its sister company, Al Mamoun Trading and Investment Company, to compensate the respondents for their unexpired contract period.

Background of the Employment

In 2010, respondents secured employment through AICI with Golden Arrow Company, Ltd., stationed in Sudan, working as a carpenter and tile setter. Their contracts stipulated a service period of no less than 24 months. A particular provision mandated that disputes be settled in adherence to company policies and potentially involving a labor attaché from the Philippine Embassy for amicable resolution.

Termination of Employment

After transferring their employment to Al Mamoun in Sudan, both respondents were notified of their termination on May 2, 2012. Upon returning to the Philippines, they filed a complaint against AICI and Al Mamoun for illegal dismissal, claiming compensation for the remaining contract duration. AICI and Al Mamoun countered by arguing that the respondents abandoned their duties based on an email assertion from Golden Arrow.

Labor Arbiter's Findings

The Labor Arbiter ruled on August 31, 2012, that the respondents were illegally dismissed, ordering compensation. The LA underscored that the petitioners failed to demonstrate just cause for termination or abandonment of duties.

NLRC and CA Rulings

The NLRC upheld the LA's decision on June 27, 2013, reiterating that the employers did not sufficiently prove the legality of the respondents' dismissal. The CA subsequently denied the appeal on November 11, 2015, emphasizing that the petitioners did not adhere to procedural due process in effecting the dismissal.

Issues Presented

The Supreme Court examined whether the LA had proper jurisdiction over the case and whether AICI could be held liable for the illegal dismissal of Bartolome and Yamat.

Supreme Court's Ruling on Jurisdiction

The Court clarified that the jurisdiction of Labor Arbiters is granted by law, specifically under Section 10 of RA 8042, which provides for exclusive jurisdiction over claims involving Filipino workers deployed overseas. The Court rejected AICI's argument regarding the jurisdictional authority of the designated labor attaché, determining that the dispute settlement clause did not strip the LA of jurisdiction.

Findings on Due Process

The Supreme Court held that AICI's late assertion concerning the lack of compliance with the employment contract’s dispute

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