G.R. 175558
G.R. 175558
Doza,
G.R. No. 175558, February 8, 2012
Carpio, j.:
Facts:
Petitioner deployed De Gracia, Lata and Aprosta to work on board the vessel MV Wisdom Star.
On December 3 1998, Skippers alleges that De Garcia smelling strongly of alcohol, went to the cabin of
Gabriel Oleszek, MV Wisdom Stars’ Master. Skippers claims that he was rude and shouted noisily to the
master. De Gracia left the master’s cabin after a few minutes and was heard shouting very loudly
somewhere down the corridors. The incident was evidenced by the Captain’s Report sent on said date.
Furthermore, Skippers also claim that on January 22, 1999, Aprosta, De Gracia, Lata and Daza
arrived in the master’s cabin and demanded immediate repatriation because they were not satisfied
with the ship. De Gracia, et al. threatened that they may become crazy any moment and demanded for
all outstanding payments due to them. The incident is evidenced by a telex of Cosmoship MV Wisdom to
skippers but had conflicting dates. De Gracia claims that Skippers failed to remit their respective
allotments, compelling them to vent their grievances with the Romanian Seafarers Union. On January
28, 1999, the Filipino seafarers were unceremoniously discharged and immediately repatriated. Upon
arrival in the Philippines, they filed a complaint for illegal dismissal with the LA.
Issue:
Whether or not the seafarer’s demand for immediate repatriation can be considered an act of
voluntary resignation.
Held/Ratio:
For a worker's dismissal to be considered valid, it must comply with both procedural and
substantive due process. The legality of the manner of dismissal constitutes procedural due process,
while the legality of the act of dismissal constitutes substantive due process. Procedural due process in
dismissal cases consists of the twin requirements of notice and hearing. The employer must furnish the
employee with two written notices before the termination of employment can be effected: (1) the first
notice apprises the employee of the particular acts or omissions for which his dismissal is sought; and (2)
the second notice informs the employee of the employer's decision to dismiss him. Before the issuance
of the second notice, the requirement of a hearing must be complied with by giving the worker an
opportunity to be heard. It is not necessary that an actual hearing be conducted. Substantive due
process, on the other hand, requires that dismissal by the employer be made under a just or authorized
cause under Articles 282 to 284 of the Labor Code. In this case, there was no written notice furnished to
De Gracia, et al., regarding the cause of their dismissal. Cosmoship furnished a written notice (telex)
to Skippers, the local manning agency, claiming that De Gracia, et al., were repatriated because the
latter voluntarily pre-terminated their contracts. This telex was given credibility and weight by the
Labor Arbiter and NLRC in deciding that there was pre-termination of the employment contract "akin
to resignation" and no illegal dismissal. However, as correctly ruled by the CA, the telex message is "a
biased and self-serving document that does not satisfy the requirement of substantial evidence." If,
indeed, De Gracia, et al., voluntarily pre-terminated their contracts, then De Gracia, et al., should have
submitted their written resignations.
SECOND DIVISION
INC., LTD., Present:
Petitioners, ,
BRION,
- versus - SERENO, and
NATHANIEL DOZA,
NAPOLEON DE GRACIA,
CHARLIE APROSTA, Promulgated:
Respondents. February 8, 2012
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x
DECISION
CARPIO, J.:
The Case
This is a Petition for Review under Rule 45 assailing the 5 July 2006 Decision1 and 7
November 2006 Resolution2 of the Court of Appeals in CA-G.R. SP No. 88148.3
The CA granted the petition, reversed the Labor Arbiter and NLRC Decisions, and
awarded to De Gracia, Lata and Aprosta their unremitted home allotment,
three monthssalary each representing the unexpired portion of their employment
contracts and attorneys fees.11 No award was given to Doza for lack of factual
basis.12 The CA denied Skippers Motion for Partial Reconsideration.13 Hence, this
Petition.
The Facts
Position: 3rd Engineer
Contract Duration: 10 months
Position: 4th Engineer
Paragraph 2 of all the employment contracts stated that: The terms and conditions of
the Revised Employment Contract Governing the Employment of All Seafarers
approved per Department Order No. 33 and Memorandum Circular No. 55, both
series of 1996 shall be strictly and faithfully observed.17 No employment contract was
submitted for Nathaniel Doza.
De Gracia, et al. claimed that Skippers failed to remit their respective allotments for
almost five months, compelling them to air their grievances with the Romanian
Seafarers Free Union.18 On 16 December 1998, ITF Inspector Adrian Mihalcioiu of
the Romanian Seafarers Union sent Captain Savvas of Cosmos Shipping a fax letter,
relaying the complaints of his crew, namely: home allotment delay, unpaid salaries
(only advances), late provisions, lack of laundry services (only one washing machine),
and lack of maintenance of the vessel (perforated and unrepaired deck).19 To date,
however, Skippers only failed to remit the home allotment for the month of December
1998.20 On 28 January 1999, De Gracia, et al. were unceremoniously discharged from
MV Wisdom Stars and immediately repatriated.21 Upon arrival in the Philippines,
De Gracia, et al. filed a complaint for illegal dismissal with the Labor Arbiter on 4
April 1999 and prayed for payment of their home allotment for the month of
December 1998, salaries for the unexpired portion of their contracts, moral damages,
exemplary damages, and attorneys fees.22
Skippers, on the other hand, claims that at around 2:00 a.m. on 3 December 1998,
De Gracia, smelling strongly of alcohol, went to the cabin of Gabriel Oleszek, Master
of MV Wisdom Stars, and was rude, shouting noisily to the master.23 De Gracia left
the masters cabin after a few minutes and was heard shouting very loudly somewhere
down the corridors.24 This incident was evidenced by the Captains Report sent via
telex to Skippers on said date.25
Skippers also claims that at 12:00 noon on 22 January 1999, four Filipino seafarers,
namely Aprosta, De Gracia, Lata and Doza, arrived in the masters cabin and
demanded immediate repatriation because they were not satisfied with the
ship.26 De Gracia, et al. threatened that they may become crazy any moment and
demanded for all outstanding payments due to them.27 This is evidenced by a telex
of Cosmoship MV Wisdom to Skippers, which however bears conflicting dates of 22
January 1998 and 22 January 1999.28
Skippers also claims that, due to the disembarkation of De Gracia, et al., 17 other
seafarers disembarked under abnormal circumstsances.29 For this reason, it was
suggested that Polish seafarers be utilized instead of Filipino seamen.30 This is again
evidenced by a fax of Cosmoship MV Wisdom to Skippers, which bears conflicting
dates of 24 January 1998 and 24 January 1999.31
Skippers, in its Position Paper, admitted non-payment of home allotment for the
month of December 1998, but prayed for the offsetting of such amount with the
repatriation expenses in the following manner:32
Since De Gracia, et al. pre-terminated their contracts, Skippers claims they are liable
for their repatriation expenses33 in accordance with Section 19(G) of Philippine
Overseas Employment Administration (POEA) Memorandum Circular No. 55, series
of 1996 which states:
G. A seaman who requests for early termination of his contract shall be liable
for his repatriation cost as well as the transportation cost of his replacement.
The employer may, in case of compassionate grounds, assume the
transportation cost of the seafarers replacement.
Skippers also prayed for payment of moral damages and attorneys fees.34
WHEREFORE, judgment is hereby rendered dismissing herein action for lack
of merit. Respondents claim for reimbursement of the expenses they incurred in
the repatriation of complainant Nathaniel Doza is likewise dismissed.
SO ORDERED.35
The Labor Arbiter also dismissed De Gracia et al.s claim for home allotment for
December 1998.40 The Labor Arbiter explained that payment for home allotment is in
the nature of extraordinary money where the burden of proof is shifted to the worker
who must prove he is entitled to such monetary benefit.41 Since De Gracia, et al. were
not able to prove their entitlement to home allotment, such claim was dismissed.42
The NLRC, on 28 October 2002, dismissed De Gracia, et al.s appeal for lack of merit
and affirmed the Labor Arbiters decision.44 The NLRC considered De Gracia, et al.s
claim for home allotment for December 1998 unsubstantiated, since home allotment is
a benefit which De Gracia, et al. must prove their entitlement to.45 The NLRC also
denied the claim for illegal dismissal because De Gracia, et al. were not able to refute
the telex received by Skippers from the vessels master that De Gracia, et al.
voluntarily pre-terminated their contracts and demanded immediate repatriation due to
their dissatisfaction with the ships operations.46
The CA, on 5 July 2006, granted De Gracia, et al.s petition and reversed the decisions
of the Labor Arbiter and NLRC, its dispositive portion reading as follows:
1. Unremitted home allotment pay for the month of December, 1998 or the
equivalent thereof in Philippine pesos:
a. De Gracia = US$900.00
b. Lata = US$600.00
c. Aprosta = US$600.00
2. Salary for the unexpired portion of the employment contract or for 3 months
for every year of the unexpired term, whichever is less, or the equivalent
thereof in Philippine pesos:
a. De Gracia = US$2,400.00
b. Lata = US$1,800.00
c. Aprosta = US$1,800.00
3. Attorneys fees and litigation expenses equivalent to 10% of the total claims.
SO ORDERED.47
In addition, the failure to remit home allotment pay was effectively admitted by
Skippers, and prayed to be offset from the repatriation expenses.51 Since there is no
proof that De Gracia, et al. voluntarily pre-terminated their contracts, the repatriation
expenses are for the account of Skippers, and cannot be offset with the home
allotment pay for December 1998.52
The Issues
Skippers, in its Petition for Review on Certiorari, assigned the following errors in the
CA Decision:
a) The Court of Appeals seriously erred in not giving due credence to the
masters telex message showing that the respondents voluntarily requested to be
repatriated.
We deny the petition and affirm the CA Decision, but modify the award.
For a workers dismissal to be considered valid, it must comply with both procedural
and substantive due process. The legality of the manner of dismissal constitutes
procedural due process, while the legality of the act of dismissal constitutes
substantive due process.56
Procedural due process in dismissal cases consists of the twin requirements of notice
and hearing. The employer must furnish the employee with two written notices before
the termination of employment can be effected: (1) the first notice apprises the
employee of the particular acts or omissions for which his dismissal is sought; and (2)
the second notice informs the employee of the employers decision to dismiss him.
Before the issuance of the second notice, the requirement of a hearing must be
complied with by giving the worker an opportunity to be heard. It is not necessary that
an actual hearing be conducted.57
Substantive due process, on the other hand, requires that dismissal by the employer be
made under a just or authorized cause under Articles 282 to 284 of the Labor Code.
In this case, there was no written notice furnished to De Gracia, et al. regarding the
cause of their dismissal. Cosmoship furnished a written notice (telex) to Skippers, the
local manning agency, claiming that De Gracia, et al. were repatriated because the
latter voluntarily pre-terminated their contracts. This telex was given credibility and
weight by the Labor Arbiter and NLRC in deciding that there was pre-termination of
the employment contract akin to resignation and no illegal dismissal. However, as
correctly ruled by the CA, the telex message is a biased and self-serving document
that does not satisfy the requirement of substantial evidence. If, indeed, De Gracia, et
al. voluntarily pre-terminated their contracts, then De Gracia, et al. should have
submitted their written resignations.
Contrary to the claim of the Labor Arbiter and NLRC that the home allotment pay is
in the nature of extraordinary money where the burden of proof is shifted to the
worker who must prove he is entitled to such monetary benefit, Section 8 of POEA
Memorandum Circular No. 55, series of 1996, states that the allotment actually
constitutes at least eighty percent (80%) of the seafarers salary:
Damages
As admitted by Skippers in its Position Paper, the home allotment pay for December
1998 due to De Gracia, Lata and Aprosta is:
Section 10 of Republic Act No. 8042 (Migrant Workers Act) provides for money
claims in cases of unjust termination of employment contracts:
The Migrant Workers Act provides that salaries for the unexpired portion of
the employent contract or three (3) months for every year of the unexpired term,
whichever is less, shall be awarded to the overseas Filipino worker, in cases of illegal
dismissal. However, in 24 March 2009, Serrano v. Gallant Maritime Services and
Marlow Navigation Co. Inc.,58 the Court, in an En Banc Decision, declared
unconstitutional the clause or for three months for every year of the unexpired term,
whichever is less and awarded the entire unexpired portion of the employment
contract to the overseas Filipino worker.
On 8 March 2010, however, Section 7 of Republic Act No. 10022 (RA 10022)
amended Section 10 of the Migrant Workers Act, and once again reiterated the
provision of awarding the unexpired portion of the employent contract or three (3)
months for every year of the unexpired term, whichever is less.
Nevertheless, since the termination occurred on January 1999 before the passage of
the amendatory RA 10022, we shall apply RA 8042, as unamended, without touching
on the constitutionality of Section 7 of RA 10022.
The declaration in March 2009 of the unconstitutionality of the clause or for three
months for every year of the unexpired term, whichever is less in RA 8042 shall be
given retroactive effect to the termination that occurred in January 1999 because an
unconstitutional clause in the law confers no rights, imposes no duties and affords no
protection. The unconstitutional provision is inoperative, as if it was not passed into
law at all.59
Article 2219 of the Civil Code of the Philippines provides for recovery of moral
damages in certain cases:
Art. 2219. Moral damages may be recovered in the following and analogous
cases:
(10) Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and
35.
The spouse, descendants, ascendants, and brothers and sisters may bring the
action mentioned in No. 9 of this article, in the order named.
Article 2229 of the Civil Code, on the other hand, provides for recovery of exemplary
damages:
In this case, we agree with the CA in not awarding moral and exemplary damages for
lack of factual basis.
Lastly, Article 2208 of the Civil Code provides for recovery of attorneys fees and
expenses of litigation:
(2) When the defendants act or omission has compelled the plaintiff to litigate
with third persons or to incur expenses to protect his interest;
(5) Where the defendant acted in gross and evident bad faith in refusing to
satisfy the plaintiffs plainly valid, just and demandable claim;
(6) In actions for legal support;
(9) In a separate civil action to recover civil liability arising from a crime;
(11) In any other case where the court deems it just and equitable that attorneys
fees and expenses of litigation should be recovered.
In all cases, the attorneys fees and expenses of litigation must be reasonable.
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.
b. It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorneys fees which
exceed ten percent of the amount of wages recovered.
Since De Gracia, et al. had to secure the services of the lawyer to recover their unpaid
salaries and protect their interest, we agree with the CAs imposition of attorneys fees
in the amount of ten percent (10%) of the total claims.
1) Unremitted home allotment pay for the month of December 1998 in its equivalent
rate in Philippine Pesos at the time of termination on 28 January 1999:
a. De Gracia = US$900.00
b. Lata = US$600.00
c. Aprosta = US$600.00
2) Salary for the unexpired portion of the employment contract or its current
equivalent in Philippine Pesos:
a. De Gracia = US$2,933.34
b. Lata = US$1,600.00
c. Aprosta = US$1,600.00
3) Attorneys fees and litigation expenses equivalent to 10% of the total claims.
SO ORDERED.
ANTONIO T. CARPIO
Associate Justice
WE CONCUR:
ARTURO D. BRION
Associate Justice
BIENVENIDO L. REYES
Associate Justice
ATTESTATION
I attest that the conclusions in the above Decision had been reached in consultation
before the case was assigned to the writer of the opinion of the Courts Division.
ANTONIO T. CARPIO
Associate Justice
Chairperson
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, and the Division Chairpersons
Attestation, I certify that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the Courts
Division.
RENATO C. CORONA
Chief Justice
1Rollo, pp. 31-40. Penned by Associate Justice Estela M. Perlas-Bernabe (now Supreme Court Justice)
with Associate Justices Andres B. Reyes, Jr. and Hakim S. Abdulwahid concurring.
2 Id. at 41. Penned by Associate Justice Estela M. Perlas-Bernabe (now Supreme Court Justice) with Associate
Justices Andres B. Reyes, Jr. and Hakim S. Abdulwahid concurring.
3 Id. at 11-29.
4 CA rollo, p. 77.
5 Id. at 81.
6 Id.
7 Id. at 82-95.
8 Id. at 126-131.
9 Id. at 132-134.
10 Id. at 1-24.
11 Rollo, pp. 31-40.
12 Id. at 38.
13 Id. at 41.
14 CA rollo, p. 60.
15 Id. at 61.
16 Id. at 62.
17 Id. at 60-62.
18 Id. at 50.
19 Id. at 63.
20 Id. at 48.
21 Id. at 50.
22 Id. at 57.
23 Id. at 65.
24 Id.
25 Id. at 73.
26 Id. at 65.
27 Id. at 74.
28 Id.
29 Id. at 75.
30 Id.
31 Id.
32 Id. at 68.
33 Id.
34 Id. at 70.
35 Id. at 81.
36 Id. at 80.
37 Id. at 79.
38 Id. at 80.
39 Id. at 81.
40 Id.
41 Id. at 80.
42 Id. at 80-81.
43 Id. at 81.
44 Id. at 131.
45 Id. at 130.
46 Id.
47 Rollo, pp. 39-40.
48 Id. at 36.
49 Id.
50 Id. at 37.
51 Id. at 38.
52 Id.
53 Id.
54 Id. at 39.
55 Id. at 19.
57New Puerto Commercial v. Lopez, G.R. No. 169999, 26 July 2010, 625 SCRA 422, citing Solid
Development Corporation Workers Association (SDCWA-UWP) v. Solid Development Corporation, G.R.
No. 165995, 14 August 2007, 530 SCRA 132, 140-141.
59 Yap v. Thenamaris Ships Management and Intermare Maritime Agencies, Inc., G.R. No. 179532, 30 May 2011.