Case Summary (G.R. No. 170139)
Procedural History
Respondent filed an illegal-dismissal complaint with the NLRC (Oct. 15, 1997), claiming full refund of placement fee, unpaid wages for 23 months, moral and exemplary damages. The Labor Arbiter dismissed for lack of proof (1998). On appeal, the NLRC (Mar. 31, 2004) found dismissal illegal, awarded three months’ backwages (NT$46,080), reimbursement of NT$3,000, and NT$300 attorney’s fees. The Court of Appeals (June 27, 2005) affirmed those awards, remanding third-party claims against Pacific Manpower. Petitioner challenged these resolutions by certiorari, leading to the Supreme Court review.
Illegal Dismissal and Due Process
Under the 1987 Constitution, overseas Filipino workers enjoy security of tenure and due process, governed by lex loci contractus. Article 282 of the Labor Code allows termination only for just causes (e.g., negligence, inefficiency) after notice and hearing. Sameer failed to prove any standards of efficiency, their communication to respondent, or due-process compliance. Termination within three weeks, without written charges or hearing, violated procedural and substantive due process, rendering dismissal illegal.
Security of Tenure and Money Claims under RA 8042
RA 8042 Sec. 10 grants overseas workers terminated without just cause:
• Full reimbursement of placement fee with 12% interest per annum
• Salary for unexpired contract or three months’ salary for each year of unexpired term, whichever is less
RA 8042 Sec. 15 makes repatriation costs the agency’s responsibility. The SC upheld respondent’s entitlement to salary for the unexpired contract term (June 26, 1997–June 25, 1998), reimbursement of NT$3,000, and attorney’s fees (10% of withheld wages).
Unconstitutional Clause in RA 8042 as Reinstated by RA 10022
The SC declared unconstitutional the “or for three (3) months for every year of the unexpired term, whichever is less” cap in RA 8042 Sec. 10 as amended by RA 10022. That clause was previously invalidated in Serrano v. Gallant Maritime for violating due process and equal protection. Its reincorporation perpetuates arbitrary limits on an OFW’s recovery, contradicting the Constitution’s guarantee of security of tenure and the State’s duty to afford full protection to labor, local and overseas.
Computation of Interest under BSP Circular No. 799 and Nacar v. Gallery Frames
BSP Circular 799 sets default interest at 6% per annum on money claims and judgments absent stipulation, effective July 1, 2013. Under Nacar v. Gallery Frames, claims for actual and compensatory damages and unpaid wages accrue 6% interest from judicial demand or judgment finality. Unlawful deduction of wages also carries 10% attorney’s fees under Article 111, Labor Code. Placement-fee reimbursements, however, remain subject to the 12% statutory rate because a BSP circular cannot repeal a law.
Joint and Several Liability of Agency and Principal
RA 8042 Sec.
Case Syllabus (G.R. No. 170139)
Facts
- Sameer Overseas Placement Agency, Inc. published an advertisement for a quality control position in Taiwan and received Joy C. Cabiles’s application.
- Joy signed a one-year employment contract with a monthly salary of NT$15,360.00 and allegedly paid a placement fee of ₱70,000.00 (the agency produced a receipt for ₱20,360.00).
- She was deployed on June 26, 1997 to Taiwan Wacoal Co. Ltd., where she performed cutting tasks despite an original quality control assignment.
- On July 14, 1997, without prior notice or hearing, she was informed of her immediate termination, repatriated the same day, paid NT$9,000.00, and had NT$3,000.00 withheld for airfare.
- Joy filed a complaint on October 15, 1997 with the NLRC against Sameer and Wacoal, alleging illegal dismissal, demanding return of placement fee, withheld repatriation costs, salary for the unexpired contract term, moral and exemplary damages, and attorney’s fees.
Procedural History
- The Labor Arbiter dismissed Joy’s complaint for lack of competent proof and found no excess placement-fee payment.
- On appeal, the NLRC (March 31, 2004) declared her dismissal illegal, awarded three months’ backwages (NT$46,080.00), reimbursement of NT$3,000.00, and NT$300.00 attorney’s fees, but declined jurisdiction over placement-fee reimbursement and refused to address the agency’s third-party complaint against Pacific Manpower.
- The NLRC denied reconsideration on July 2, 2004.
- The Court of Appeals (June 27, 2005) affirmed the NLRC’s finding of illegal dismissal and monetary awards, and remanded the third-party complaint issue to the NLRC.
- Sameer filed a petition for review on certiorari with the Supreme Court, challenging the absence of just cause, due process, the scope of monetary awards, and the effect of the accreditation transfer to Pacific Manpower.
Issue
- Whether Joy C. Cabiles was illegally dismissed without valid cause and without procedural due process.
- Whether Sameer met