Title
PERT/CPM Manpower Exponent Co., Inc. vs. Vinuya
Case
G.R. No. 197528
Decision Date
Sep 5, 2012
Workers deployed to Dubai faced contract substitution, poor conditions, and forced resignation; Supreme Court ruled illegal dismissal, upheld *Serrano* ruling for unpaid salaries.

Case Summary (G.R. No. 121039-45)

Applicable Law

The decision primarily invokes the provisions of the Labor Code, the Migrant Workers and Overseas Filipinos Act of 1995 (R.A. 8042), and subsequent amendments. The case also references the ruling in Serrano v. Gallant Maritime Services, Inc. regarding the rights of overseas Filipino workers in cases of illegal dismissal.

Factual Background

The respondents were deployed as aluminum fabricator/installers between March and May 2007, under a two-year POEA-approved employment contract with certain benefits. Shortly after their deployment, they received appointment letters that altered their employment terms, reducing salaries and extending the contract duration. Respondents endured significantly poor working and living conditions which prompted them to express a desire to resign due to unmanageable circumstances. The agency countered that the respondents voluntarily resigned to pursue better job opportunities.

Labor Arbiter and NLRC Rulings

The Labor Arbiter dismissed the illegal dismissal complaint, finding that the respondents had voluntarily resigned. The decision was primarily based on quitclaims and evidence the respondents voluntarily resigned. However, upon appealing to the NLRC, the dismissal was reversed. The NLRC ruled that the respondents were illegally dismissed, emphasizing the agency's illegal alteration of employment contracts and the duress under which the quitclaims were signed.

Court of Appeals Decision

The Court of Appeals upheld the NLRC's decision, dismissing the agency's petition for lack of merit. The appellate court found no evidence of grave abuse of discretion in the NLRC ruling and affirmed the determination that the respondents were not credibly proven to have resigned voluntarily. It further clarified that the execution of the quitclaims and the timing of the resignation letters did not substantiate claims of voluntary termination.

Petitioner's Arguments

In seeking to reverse the CA decision, the agency argued that the respondents voluntarily resigned and claimed that the quitclaim documents should absolve the agency of liability. The petitioner contended that the lower courts had erred in finding illegal dismissal and in interpreting the implications of the Serrano ruling regarding compensation.

Respondents' Position

The respondents maintained that their resignation was due to unbearable working conditions and that the quitclaims were executed under duress, refuting the agency's claims of voluntary termination. They argued that the compromise agreements were solely in relation to recruitment violations and did not settle their claims of illegal dismissal and other employment grievances.

Court's Ruling

The Court found merit in the NLRC and CA's conclusions, stating that the evidence sufficiently demonstrated violations by the agency, including contract substitution and failure to provide basic living conditions. The judgment noted the respondents were constructively dismissed due to the oppressive situation in the workplace. The ruling on the application of the S

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