Case Summary (G.R. No. 129584)
Breach of Contractual Terms and Working Conditions
Upon arrival in Riyadh, Osdana was assigned menial tasks—including dishwashing, janitorial work, and cooking—contrary to her waitress designation. She endured 12-hour daily shifts without overtime pay.
Medical Treatment and Unpaid Periods
The arduous work led to numbness and pain. Osdana was confined at GCC’s Ladies Villa from June 18 to August 22, 1993, without salary. She then worked as food server and cook at Hota Bani Tameem Hospital (August 22–October 5, 1993) without compensation. A further confinement (October 6–23, 1993) also went unpaid. She was diagnosed with bilateral Carpal Tunnel Syndrome, underwent surgery in January and April 1994, and received no pay from February to April 22, 1994.
Termination and Repatriation
Discharged on April 29, 1994, allegedly for illness, Osdana received neither separation pay nor back wages. Her appeals to petitioner failed, prompting a complaint to the POEA.
Administrative Proceedings and Awards
Transferred under R.A. 8042 to the NLRC’s arbitration branch, Osdana claimed unpaid and underpaid salaries, moral and exemplary damages, attorney’s fees, and revocation of petitioner’s license. The Labor Arbiter (Aug. 20, 1996) ordered US $2,499 for unexpired contract, US $1,076 unpaid salary/differential, P50,000 moral damages, P20,000 exemplary damages, and 10% attorney’s fees. The NLRC affirmed on March 11 and denied reconsideration on April 28, 1997.
Issues on Certiorari
Triple Eight petitioned for certiorari, alleging (a) lack of factual/legal basis for the awards, and (b) improper sole liability despite joint and several responsibility with Gulf Catering Company.
Standard of Review on Quasi-Judicial Findings
Under Art. VIII § 14 of the 1987 Constitution, decisions must state facts and law. Findings of the NLRC are conclusive if supported by substantial evidence. Doubts are resolved in favor of the employee. Petitioner filed only a general denial, waived its chance to present evidence, and cannot now question the reliance on Osdana’s submissions.
Validity of Dismissal Due to Illness
Labor Code Art. 284 and Omnibus Rules Book VI, Rule 1, Sec. 8 permit dismissal for disease only upon certification by a competent public health authority that the condition is incurable within six months. No such certification—Philippine or Saudi—was presented. The post-operative medical report noted “very good improvement,” and Carpal Tunnel Syndrome is non-contagious. Without proper certification, the dismissal was arbitrary and violated due process.
Constitutional Protection of Labor
The 1987 Constitution (Art. XIII § 3) guarantees workers’ security of tenure, humane conditions, and living wage. Allowing foreign employers to unilaterally dismiss an overseas worker on health grounds without required certification undermines this public policy.
Choice-of-Law and Public Policy
Lex loci contractus dictates that Philippine law governs contracts perfected in the Philippines. Foreign standards contrary to Filipino labor protections are unenforceable as against public policy.
Modification of Monetary Awards
Under R.A. 8042 § 10(5), a worker wrongfully repatriated is entitled to placement-fee reimbursement and salary for the unexpired contract or three months per unexpired year, whichever is less. Osdana’s actual service spanned 19½ months, implying one renewal; thus, the correct award for unexpired salary is four months × US $280 = US $1,120 (not US $2,499). The US $1,076 unpaid salary and differential remains proper given work referrals and unpaid confinement due to work-related injury.
Moral, Exemplary Damages and Attorney
Case Syllabus (G.R. No. 129584)
Facts of the Case
- In August 1992, Erlinda R. Osdana was recruited by Triple Eight Integrated Services, Inc. (petitioner) for deployment in Saudi Arabia under principal Gulf Catering Company (GCC).
- Two successive written agreements:
• A 36-month “Food Server” contract at SR550/month (no POEA approval).
• A 12-month “Waitress” contract at US$280/month approved by POEA. - Osdana paid P11,950 in placement fees without receipts and underwent a “Fit for Employment” medical exam.
- Upon arrival in Riyadh (September 16, 1992), she was assigned menial tasks (dishwashing, janitorial work) beyond her “waitress” designation.
- Worked 12-hour shifts without overtime pay, developed numbness and pain leading to confinement from June 18 to August 22, 1993 (unpaid).
- Resumed work as food server/cook at Hota Bani Tameem Hospital (Aug 22–Oct 5, 1993), still unpaid; re-confined Oct 6–23, 1993, without pay or reason.
- Reassigned Oct 24, 1993, to Oleysha University for menial tasks; long hours aggravated condition, diagnosed with bilateral carpal tunnel syndrome.
- Underwent surgeries in January and April 1994; not assigned even light work between surgeries and unpaid from Feb to Apr 22, 1994.
- Discharged from hospital Apr 25, 1994 with medical report noting “very good improvement” yet terminated Apr 29, 1994 on alleged ground of illness, without separation pay or back wages.
- Returned to the Philippines and filed a POEA complaint against petitioner for back wages, salary differential, salaries for unexpired contract, moral/exemplary damages, attorney’s fees, and sanctions.
Procedural History
- Complaint heard by Labor Arbiter Potenciano S. Canizares, Jr., NLRC arbitration branch.
- August 20, 1996: Labor Arbiter granted:
• US$2,499 as salaries for unexpired contract.
• US$1,076 as unpaid salary/salary differential.
• P50,000 moral damages; P20,000 exemplary damages; 10% attorney’s fees. - Petitioner appealed to NLRC (First Division).
- March 11, 1997: NLRC affirmed the Arbiter’s decision.
- April 28, 1997: NLRC denied petitioner’s motion for reconsideration.
- December 3, 1998: Petitioner filed petition for certiorari before the Supreme Court.
Issues Presented
- Did the Labor Arbiter and NLRC commit grave abuse of discretion by:
• Failing to state facts and law in their decisions?
• Holding petitioner solely liable despite joint and several liability wit