Title
OSM Shipping Phil. Inc. vs. National Labor Relations Commission
Case
G.R. No. 138193
Decision Date
Mar 5, 2003
Seafarer Fermin Guerrero claimed unpaid wages after OSM Shipping failed to pay him for seven months. OSM argued contract novation due to vessel ownership change, but the Supreme Court ruled no novation occurred without consent, holding OSM and PC-SASCO jointly liable for unpaid salaries and benefits. Procedural lapses were overlooked to prioritize substantial justice.

Case Summary (G.R. No. 42142)

Case Background and Procedural History

The case originated from a complaint filed by Fermin F. Guerrero against OSM Shipping, where he alleged illegal dismissal and unpaid salaries amounting to US$11,359.65, covering wages, overtime pay, vacation pay, and termination pay. Guerrero had been employed as a Master Mariner on M/V Princess Hoaa under a ten-month contract, but he claimed he was not compensated for nearly seven months of work. OSM Shipping argued that Guerrero's employment contract had become ineffective due to changes in the employment conditions regarding the vessel's operations.

NLRC Decision and Court of Appeals' Resolutions

The Labor Arbiter ruled in favor of Guerrero, affirming he had been constructively dismissed. The NLRC upheld this ruling but modified the compensation amount. Subsequently, OSM Shipping's petition to the Court of Appeals was dismissed on procedural grounds, notably for failing to provide a certified copy of the Labor Arbiter's decision, which led to the current filing with the Supreme Court.

Issues on Procedural Compliance

Petitioner contests the Court of Appeals' requirements regarding attachment of certified copies to the petition for certiorari. Specifically, they argue that the court imposed unnecessary demands that were not stipulated under Section 3 of Rule 46 of the Rules of Court. The Supreme Court held that the requirement for the submission of a certified true copy only applies to the questioned decision, which here was the NLRC decision, not the Labor Arbiter’s original decision.

Substantial Justice and Due Process Considerations

The Supreme Court determined that while procedural correctness is significant, it will also focus on the substantive issues of the case. The failure to adhere strictly to the procedural requirements did not inhibit the interests of justice or fairness. The Court emphasized that courts should consider substantial compliance rather than outright dismissal due to technicalities, particularly in labor disputes where workers face significant hardships.

Analysis of Employment Contract Validity

Petitioner argued that Guerrero's contract became invalid because he was not deployed overseas as initially intended. However, the Supreme Court clarified that employment contracts remain valid despite changes in operational plans, provided they were executed legally. The decision to alter the vessel's operational scope did not constitute a unilateral novation of the contract and Guerrero's agreement was necessary for any such change.

Liability for Unpaid Salaries

The Supreme Cour

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