Title
Gutierrez vs. NAWRAS Manpower Services, Inc.
Case
G.R. No. 234296
Decision Date
Nov 27, 2019
OFW illegally dismissed; awarded unpaid salary, airfare reimbursement, attorney's fees, and legal interest; moral/exemplary damages denied.
A

Case Summary (G.R. No. 234296)

Factual Background

Ernesto P. Gutierrez, an Overseas Filipino Worker, was employed by NAWRAS Manpower Services, Inc. for Al-Adhamain Co. Ltd. as a driver in Saudi Arabia with a contract lasting two years and a monthly salary of SR2,300, along with various allowances. He reported to Saudi Arabia on July 31, 2013. Upon arrival, Gutierrez experienced delays in salary payments, receiving his first salary in November 2013. He was subsequently placed on a floating status and faced challenges regarding operational assignments and transportation costs. His employment was terminated on February 15, 2014, leading to his repatriation and subsequent legal claims against his employer for illegal dismissal and unpaid wages.

Ruling of the Labor Arbiter

The Labor Arbiter ruled on March 30, 2015, in favor of Gutierrez, finding the dismissal illegal due to a lack of substantial evidence on the respondents' part to justify termination. The Arbiter granted Gutierrez a refund of his SR2,300 placement fee and 17.5 months of unpaid salary, rejecting claims for excess airfare and damages due to insufficient evidence.

Ruling of the National Labor Relations Commission

The NLRC upheld the Labor Arbiter's decision on July 30, 2015, affirming Gutierrez's status as illegally dismissed and reiterating that poor performance must be demonstrated as habitual neglect to constitute just cause for dismissal. The NLRC ruled in favor of Gutierrez's claims for salary recovery and the placement fee refund.

Ruling of the Court of Appeals

On March 20, 2017, the Court of Appeals affirmed the NLRC's finding of illegal dismissal but modified the monetary awards based on Republic Act No. 10022. Specifically, the CA re-calibrated Gutierrez's remaining salary to SR13,800, deleted the award for excess airfare reimbursement, and eliminated attorney's fees due to insufficient basis for such an award.

Supreme Court Ruling

The Supreme Court partly granted Gutierrez's petition. It ruled that he is entitled to the full salary for the unexpired portion of his contract, overturning the CA’s reduction to SR13,800 and reinstating the LA's award of SR40,250. Regarding the airfare reimbursement, the Court upheld the validity of Gutierrez's claim for SR1,100, emphasizing the respondents' failure to provide evidence for their counterclaims. The Court also affirmed Gutierrez's entitlement to 10% attorney&#

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