Case Summary (G.R. No. 196883)
Employment Terms and Conditions
The respondents were hired in January 2008 with contracts stipulating monthly salaries of KD 650 (approximately USD 2,303.92) for Abraham and KD 150 (approximately USD 531.87) for Nanette. Their contracts outlined a work schedule of four shows per day, six days a week, yet mistakenly indicated a total working time of 48 hours per month, which was later clarified by the employer to mean 48 hours per week. During their time off from performing, they were required to undertake additional duties as needed by the employer.
Sequence of Events Leading to Dismissal
Respondents arrived in Kuwait on February 22, 2008, and shortly after began working. After petitioners corrected the work hour stipulation, the respondents went on vacation to Thailand on August 26, 2008. They communicated via email about a delay in returning to Kuwait due to political unrest and requested an extension, but ultimately traveled to the Philippines instead. On September 23, 2008, the petitioners terminated their employment, citing absence without cause under Kuwaiti labor law.
Initial Labor Arbiter's Ruling
The Labor Arbiter ruled in favor of the respondents on April 8, 2009, holding that they were constructively dismissed without just cause and ordering petitioners to pay for the unexpired contract term as well as attorney's fees. However, the administrative tribunal found claims for overtime pay were unwarranted due to the contractual error regarding hours worked.
National Labor Relations Commission (NLRC) Review
Upon appeal, the NLRC dismissed the respondents' complaint for constructive dismissal on October 30, 2009, agreeing with petitioners that the respondents had abandoned their work. The NLRC also upheld the notion of typographical error regarding the working hours and supported the petitioners’ claim of abandonment due to respondents' failure to return to work or respond to warnings.
Court of Appeals Decision
The Court of Appeals issued a decision on January 31, 2011, affirming the termination's validity but stating that the petitioners did not observe proper procedural due process. Consequently, they mandated payment of nominal damages and attorney's fees while affirming that respondents were entitled to overtime pay for hours worked exceeding the monthly limit.
Supreme Court's Ruling
The Supreme Court, in its ruling, maintained that the respondents' failure to appeal the Labor Arbiter’s denial of their overtime pay claim did not bar their right to seek remuneration based on equity principles. Nonetheless, the Court acknowledged insufficient evidence for awarding overtime pay, ultimately holding the CA's decision to grant such pay as unfounded.
Just Cause and Procedural Requirements
The Court recognized that, despite the just cause for dismissal due to abandonment, petitioners failed to adhere to the due process mandated by labor laws requiring written notices. As a result, although th
...continue readingCase Syllabus (G.R. No. 196883)
Overview of the Case
- The case involves an appeal regarding the liability of the petitioners, Global Resource for Outsourced Workers, Inc., MS Retail KSC/MS Retail Central Marketing Co., and Mr. Eusebio H. Tanco, for overtime pay, nominal damages, and attorney's fees.
- The decision was rendered by the Third Division of the Supreme Court of the Philippines on August 15, 2012.
- The appeal stemmed from the Court of Appeals' ruling on January 31, 2011, and a subsequent resolution on May 13, 2011.
Factual Background
- Petitioners are engaged in the placement of workers for overseas deployment, with Eusebio Tanco as the President of GROW.
- Respondents Abraham and Nanette Velasco were hired as Circus Performer and Circus Performer-Assistant, respectively, in Kuwait with specific salaries and working hours outlined in their employment contracts.
- Key stipulations included:
- Monthly salaries of KD 650 and KD 150.
- A work schedule of 4 shows per day, 6 days a week, supposedly amounting to 48 hours per month.
- Upon arrival in Kuwait, the respondents were informed by MS Retail that the 48 hours per month stated in their contracts was a typographical error; the actual hours were 48 per week.
- Respondents went on vacation to Thailand and later failed to return to work on the specified date due to political protests, subsequently returning to the Philippines.
- They were terminated via email on September 23, 2008, for alleged abandonment of work after failing to return.
Labor Arbiter's Ruling
- The Labor Arbiter found in favor of the respondents, ruling they were constructively dismissed without just cause.
- The Arbit