Professional Documents
Culture Documents
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*EN BANC.
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June 21, 2013, which revised the interest rate for loan or
forbearance from 12% to 6% in the absence of stipulation, applies
in this case. The pertinent portions of Circular No. 799, Series of
2013, read: The Monetary Board, in its Resolution No. 796 dated
16 May 2013, approved the following revisions governing the rate
of interest in the absence of stipulation in loan contracts, thereby
amending Section 2 of Circular No. 905, Series of 1982: Section
1. The rate of interest for the loan or forbearance of any money,
goods or credits and the rate allowed in judgments, in the absence
of an express contract as to such rate of interest, shall be six
percent (6%) per annum. Section 2. In view of the above,
Subsection X305.1 of the Manual of Regulations for Banks and
Sections 4305Q.1, 4305S.3 and 4303P.1 of the Manual of
Regulations for Non-Bank Financial Institutions are hereby
amended accordingly. This Circular shall take effect on 1 July
2013.
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that tend to violate labor law. Lest they risk their reputation or
finances, local agencies must already have mechanisms for
guarding against unscrupulous foreign employers even at the
level prior to overseas employment applications.
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LEONEN, J.:
This case involves an overseas Filipino worker with
shattered dreams. It is our duty, given the facts and the
law, to approximate justice for her.
We are asked to decide a petition for review1 on
certiorari assailing the Court of Appeals decision2 dated
June 27, 2005. This decision partially affirmed the
National Labor Relations Commissions resolution dated
March 31, 2004,3 declaring respondents dismissal illegal,
directing petitioner to pay respondents three-month salary
equivalent to New Taiwan Dollar (NT$) 46,080.00, and
ordering it to reimburse the NT$3,000.00 withheld from
respondent, and pay her NT$300.00 attorneys fees.4
Petitioner, Sameer Overseas Placement Agency, Inc., is
a recruitment and placement agency.5 Responding to an ad
it published, respondent, Joy C. Cabiles, submitted her
application for a quality control job in Taiwan.6
Joys application was accepted.7 Joy was later asked to
sign a one-year employment contract for a monthly salary
of NT$15,360.00.8 She alleged that Sameer Overseas
Agency required her to pay a placement fee of P70,000.00
when she signed the employment contract.9
Joy was deployed to work for Taiwan Wacoal, Co., Ltd.
(Wacoal) on June 26, 1997.10 She alleged that in her
employ-
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1 Rollo, pp. 3-29.
2 Id., at pp. 32-44.
3 Id., at pp. 125-131.
4 Id., at p. 131.
5 Id., at p. 3.
6 Id., at p. 126.
7 Id., at p. 102.
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8 Id.
9 Id.
10Id., at pp. 54 and 102.
36
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11Id., at pp. 6-7 and 195-196.
12Id., at p. 36.
13Id.
14Id.
15Id., at p. 127.
16Id.
17Id., at p. 53.
18Id.
19Id., at pp. 33, 53 and 54.
20Id.
21Id., at p. 11.
37
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22Id., at p. 56.
23Id., at pp. 56 and 62.
24Id., at p. 57.
25Id.
26Id., at p. 107.
27Id.
28Id.
29Id., at p. 108.
30Id.
31Id., at pp. 101-112.
32Id., at pp. 108-110.
33Id., at p. 110.
34Id., at pp. 111-112.
38
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35Id.
36Id., at pp. 113-123.
37Id., at pp. 125-131.
38Id., at p. 131.
39Id., at p. 129.
40Id.
41Id.
42Id., at p. 130.
43Id.
44Id., at p. 131.
45Id.
39
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46Id.
47Id., at pp. 132-137.
48Id., at pp. 139-141.
49Id., at pp. 142-153.
50 Thirteenth Division, decision penned by Associate Justice Renato C.
Dacudao with Associate Justices Edgardo F. Sundiam and Japar B. Dimaampao,
concurring.
51Rollo, pp. 43-44.
52Id.
40
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53Id.
54Id., at pp. 3-29.
55Id., at p. 11.
56Id.
41
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57Id., at pp. 9-11.
58 Leonardo v. National Labor Relations Commission, 389 Phil. 118,
126-127; 333 SCRA 589, 598 (2000) [Per J. De Leon, Jr., Second Division].
59Id.
60Id.
61 San Miguel Corporation v. Ubaldo, G.R. No. 92859, February 1,
1993, 218 SCRA 293, 301 [Per J. Campos, Jr., Second Division].
62Id.
42
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63Bascon v. Court of Appeals, 466 Phil. 719, 732; 422 SCRA 122, 133 (2004)
[Per J. Quisumbing, Second Division].
64Const., Art. XIII, Sec. 3.
65359 Phil. 955; 299 SCRA 608 (1998) [Per J. Romero, Third Division].
43
the forum will not enforce any foreign claim obnoxious to the
forums public policy. Here in the Philippines, employment
agreements are more than contractual in nature. The
Constitution itself, in Article XIII, Section 3, guarantees the
special protection of workers, to wit:
The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision-making processes affecting their rights and
benefits as may be provided by law.
....
This public policy should be borne in mind in this case because to
allow foreign employers to determine for and by themselves
whether an overseas contract worker may be dismissed on the
ground of illness would encourage illegal or arbitrary
pretermination of employment contracts.66 (Emphasis supplied,
citation omitted)
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66Id., at pp. 968-969; pp. 618-619.
67540 Phil. 65; 511 SCRA 44 (2006) [Per J. Austria-Martinez, First Division].
44
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68Id., at pp. 80-81; pp. 60-61.
45
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69Rollo, p. 11.
70 Hilton Heavy Equipment Corporation v. Dy, G.R. No. 164860,
February 2, 2010, 611 SCRA 329, 338 [Per J. Carpio, Second Division],
citing Dizon v. NLRC, 259 Phil. 523, 529; 180 SCRA 52, 57-58 (1989) [Per
J. Feliciano, Third Division].
71 Skippers United Pacific, Inc. v. National Labor Relations
Commission, 527 Phil. 248, 257; 494 SCRA 661, 667 (2006) [Per J.
Austria-Martinez, First Division].
46
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72Labor Code, Art. 281; See also Tamsons Enterprises, Inc. v. Court of
Appeals, G.R. No. 192881, November 16, 2011, 660 SCRA 374, 383 [Per J.
Mendoza, Third Division].
47
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73 See Dissenting Opinion of J. Brion in Abbott Laboratories
Philippines v. Alcaraz, G.R. No. 192571, July 23, 2013, 701 SCRA 682, 752
[Per J. Perlas-Bernabe, En Banc]. This ponencia joined J. Brion.
74Rollo, p. 129.
48
II
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75 Skippers United Pacific, Inc. v. Doza, et al., G.R. No. 175558,
February 8, 2012, 665 SCRA 412, 426 [Per J. Carpio, Second Division].
76Id.
77Id.
78Id.
79Id.
49
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this section shall be paid within four (4) months from the
approval of the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid
or authorized cause as defined by law or contract, the workers
shall be entitled to the full reimbursement of his placement fee
with interest of twelve (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for three (3)
months for every year of the unexpired term, whichever is less.
....
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(Emphasis supplied)
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80Rep. Act. No. 8042 (1995), Sec. 15.
51
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81Article 111. Attorneys Fees.(a) In cases of unlawful withholding
of wages, the culpable party may be assessed attorneys fees equivalent to
ten percent of the amount of wages recovered.
82 601 Phil. 245; 582 SCRA 254 (2009) [Per J. Austria-Martinez, En
Banc].
83Rep. Act. No. 8042 (1995), Sec. 10, par. 5.
84Serrano v. Gallant Maritime Services, Inc., supra at pp. 302 and 304;
p. 302.
85Yap v. Thenamaris Ships Management, G.R. No. 179532, May 30,
2011, 649 SCRA 369, 380 [Per J. Nachura, Second Division].
52
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54
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86Supra note 75 at p. 430.
55
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87Const., Art. VIII, Sec. 5(5).
56
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96Const., Art. III, Sec. 1. No person shall be deprived of life, liberty, or
property without due process of law, nor shall any person be denied the
equal protection of the laws.
97Ichong v. Hernandez, 101 Phil. 1155, 1164 (1957) [Per J. Labrador, En Banc].
98 Id., at p. 1164.
99 Id., at p. 1177.
100Id.
101Id., at pp. 1164 and 1177.
102Id., at pp. 1165 and 1177.
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103Id., at p. 1164.
104People v. Cayat, 68 Phil. 12, 18 (1939) [Per J. Moran, En Banc].
105Id., at p. 18.
106 Serrano v. Gallant Maritime Services, Inc., supra note 82 at pp.
294-298; p. 302.
107Id., at pp. 287-292; p. 283.
108Id., at pp. 292-294; p. 290.
109Id., at p. 282; p. 278.
59
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110Const., Art. XIII, Sec. 3.
111Serrano v. Gallant Maritime Services, Inc., supra note 82 at p. 286;
p. 302.
112Id., at pp. 297-298; p. 294.
113Id., at p. 298; p. 295.
114Id.
115Id.
116Id., at pp. 287-292; p. 292.
117Id.
60
one year: those who are illegally dismissed with less than
one year left in their contracts shall be entitled to their
salaries for the entire unexpired portion thereof, while
those who are illegally dismissed with one year or more
remaining in their contracts shall be covered by the
reinstated clause, and their monetary benefits limited to
their salaries for three months only.118
We do not need strict scrutiny to conclude that these
classifications do not rest on any real or substantial
distinctions that would justify different treatments in
terms of the computation of money claims resulting from
illegal termination.
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118Id., at p. 293; p. 290.
119Id., at p. 281; p. 308.
120Id.
61
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121Id., at p. 277; p. 272.
122Id.
123Id., at pp. 276-277; p. 295.
124Rep. Act. No. 8042 (1995); See also Rep. Act No. 10022 (2010).
125Serrano v. Gallant Maritime Services, Inc., supra note 82 at p. 277;
p. 316.
62
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incentive, to borrow the term that R.A. No. 8042 itself uses to
describe the incentive it envisions under its purpose clause.
What worsens the situation is the chosen mode of granting the
incentive: instead of a grant that, to encourage greater efforts at
recruitment, is directly related to extra efforts undertaken, the
law simply limits their liability for the wrongful dismissals of
already deployed OFWs. This is effectively a legally-imposed
partial condonation of their liability to OFWs, justified solely by
the laws intent to encourage greater deployment efforts. Thus,
the incentive, from a more practical and realistic view, is really
part of a scheme to sell Filipino overseas labor at a bargain for
purposes solely of attracting the market. . . .
63
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129Supra note 85 at p. 381.
65
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130G.R. No. 189871, August 13, 2013, 703 SCRA 439 [Per J. Peralta, En Banc].
66
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131Id., at pp. 457-458. This court modified the guidelines laid down in
Eastern Shipping Lines v. Court of Appeals, G.R. No. 97412, July 12, 1994,
234 SCRA 78, 97 [Per J. Vitug, En Banc] to embody Bangko Sentral ng
Pilipinas Circular No. 799.
132Nacar v. Gallery Frames, supra note 130 at p. 457.
133Id.
67
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Circular No. 799 because the law does not provide for a
specific interest rate that should apply.
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134Palanca v. Court of Appeals, G.R. No. 106685, December 2, 1994,
238 SCRA 593, 601 [Per J. Quiason, En Banc].
135Maritime Company of the Philippines v. Reparations Commission,
148-B Phil. 65, 70; 40 SCRA 70, 74 (1971) [Per J. Fernando, En Banc].
68
IV
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136ATCI Overseas Corporation v. Echin, G.R. No. 178551, October 11,
2010, 632 SCRA 528, 533 [Per J. Carpio-Morales, Third Division], citing
Datuman v. First Cosmopolitan Manpower and Promotion Services, Inc.,
591 Phil. 662, 673; 571 SCRA 41, 52-53 (2008) [Per J. Leonardo-De Castro,
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First Division]; Migrant Workers and Overseas Filipinos Act of 1995, Sec.
2(b).
69
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137Rules of Court, Rule 3, Sec. 7.
138PH Credit Corporation v. Court of Appeals, 421 Phil. 821, 832; 370
SCRA 155, 165 (2001) [Per J. Panganiban, Third Division].
139See also Azucena, Jr., C.A., Everyones Labor Code, p. 29. (5th ed.,
2007).
70
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140Id.
71
V
Many times, this court has spoken on what Filipinos
may encounter as they travel into the farthest and most
difficult reaches of our planet to provide for their families.
In Prieto v. NLRC:141
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141G.R. No. 93699, September 10, 1993, 226 SCRA 232 [Per J. Cruz,
First Division].
142Id., at pp. 239-240, also cited in Triple Eight Integrated Services v.
NLRC, 359 Phil. 955, 968; 299 SCRA 608, 618 (1998) [Per J. Romero,
Third Division].
72
up and, being so, they remember what their work has cost
them. Twitter accounts, Facetime, and many other gadgets
and online applications will never substitute for their lost
physical presence.
Unknown to them, they keep our economy afloat
through the ebb and flow of political and economic crises.
They are our true diplomats, they who show the world the
resilience, patience, and creativity of our people. Indeed, we
are a people who contribute much to the provision of
material creations of this world.
This government loses its soul if we fail to ensure decent
treatment for all Filipinos. We default by limiting the
contractual wages that should be paid to our workers when
their contracts are breached by the foreign employers.
While we sit, this court will ensure that our laws will
reward our overseas workers with what they deserve: their
dignity.
Inevitably, their dignity is ours as well.
WHEREFORE, the petition is DENIED. The decision
of the Court of Appeals is AFFIRMED with modification.
Petitioner Sameer Overseas Placement Agency is
ORDERED to pay respondent Joy C. Cabiles the amount
equivalent to her salary for the unexpired portion of her
employment contract at an interest of 6% per annum from
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1 Enacted on June 7, 1995.
2 Enacted on July 8, 2010.
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74
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3 G.R. No. 167614, 601 Phil. 245; 582 SCRA 254 (2009).
4 Id., at pp. 312-324; pp. 321-324.
75
76
77
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5 Id., at pp. 322-324; pp. 321-324; italics and emphasis supplied, citations
omitted.
78
Article XIII
xxxx
Section 18. The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as
may be provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
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(b) The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
Towards this end, the State shall provide adequate and timely
social, economic and legal services to Filipino migrant workers.
xxxx
(e) Free access to the courts and quasi-judicial bodies and
adequate legal assistance shall not be denied to any person by
reason of poverty. In this regard, it is imperative that an effective
mechanism be instituted to ensure that the rights and interests of
distressed overseas Filipinos, in general, and Filipino migrant
workers, in particular, documented or undocumented, are
adequately protected and safeguarded.
Under these terms, R.A. No. 8042 is discernibly a piece
of social legislation that the State enacted in the exercise of
its police power, precisely to give teeth and arms to the
constitutional provisions on labor under its aim to
establish a higher standard of protection and
promotion of the welfare of migrant worker, their
families and of overseas Filipinos in distress.6
Otherwise stated, it draws power and life from the
constitutional provisions that it seeks to concretize and
implement.
As I pointed out in my Serrano Opinion, the express
policy declarations of R.A. No. 8042 show that its purposes
are reiterations of the very same policies enshrined in the
Constitution x x x [They] patently characterize R.A. No.
8042 as a direct implementation of the constitutional
objectives on Filipino overseas work so that it must be read
and understood in terms
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6 The long title of R.A. No. 8042.
80
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7 Supra note 3 at pp. 313-314; pp. 312-313.
8 Id., at p. 314; p. 313.
9 Id.
10 Id.
11 Id.
12 Section 10 of R.A. No. 8042 pertinently reads:
SECTION 10. Money Claims.Notwithstanding any provision of law to
the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the
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original and exclusive jurisdiction to hear and decide, within ninety
(90) calendar days after the filing of the complaint, the claims arising out
of an employer-employee relationship or by virtue of any law or contract
involving Filipino workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages.
The liability of the principal/employer and the recruitment/placement
agency for any and all claims under this section shall be joint and several.
This provision shall be incorporated in the contract for overseas
employment and shall be a condition precedent for its approval. The
performance bond to be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money claims or damages that
may be awarded to the workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors and partners as the
case may be, shall themselves be jointly and solidarily liable with the
corporation or partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration of
the employment contract and shall not be affected by any substitution,
amendment or modification made locally or in a foreign country of the said
contract.
Any compromise/amicable settlement or voluntary agreement on money
claims inclusive of damages under this section shall be paid within four
(4) months from the approval of the settlement by the appropriate
authority.
In case of termination of overseas employment without just, valid or
authorized cause as defined by law or contract, the worker shall be
entitled to the full reimbursement of his placement fee with interest at
twelve percent (12%) per annum, plus his salaries for the unexpired
portion of his employment contract or for three (3) months for every year
of the unexpired term, whichever is less.
82
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13 Supra note 3 at p. 316; p. 315.
14 Id.
15 Id.
16 Id. at p. 317; p. 317.
17 Id.
83
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18 Id., at p. 319; p. 319.
19 Id., at p. 320; id.
20 Id.
21 Id.
22 Id.
84
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23 Id., at p. 320; pp. 319-320.
24 Id.
25 Id., at p. 320; p. 320.
26 Id., at pp. 320-321; p. 320.
27 Id., at p. 321; p. 320.
28 Id.
85
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8/24/2017 SUPREME COURT REPORTS ANNOTATED VOLUME 732
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