Case Digest by: Salazar
EASTERN ASSURANCE VS. SECRETARY OF LABOR
GR No. L-79436-50 | January 17, 1990
Ponente: Justice Narvasa
DOCTRINE: Implicit in these powers is the award of appropriate relief to the victims of the
offenses committed by the respondent agency or contractor, especially the refund or
reimbursement of such fees as may have been fraudulently or otherwise illegally collected, or
such money, goods or services imposed and accepted in excess of what is licitly prescribed.
FACTS:
J&B Manpower is an overseas employment agency registered with the [Link] entered a
surety bond with Eastern Assurance beginning January 1985.
From June 1983 to December 1985, J&B recruited 33 persons for overseas employment but
none of them were ever deployed. Because of non-deployment, the applicants filed separate
complaints against J&B.
POEA ruled in favor of the 33 workers and ordered J&B to refund them (with Eastern Assurance
being solidarily liable). Secretary of Labor affirmed POEA’s decision.
Hence, this petition.
EASCO assailed the decision claiming that POEA and the Secretary of Labor have no
jurisdiction for the refund over non-employees (since the 33 were never employed, in short, no
employer-employee relationship).
A surety bond was filed by J&B
Manpower to apply for a license to
engage in a recruitment agency. ∙
The
insurance company EASCO,
bound itself jointly and severally
Case Digest by: Salazar
liable with J & B in a penal sum of
Php
150,000.00. It is also stipulated in
the bond that notice to the
Principal is also a notice to the
Surety and that
its liability shall be automatically
ceased 10 days after its expiration
and the surety shall not be liable
for
any claim not discovered and
presented to it in writing.
∙ 33 persons applied for overseas
employment with J &
ISSUES AND RULING:
1. Whether the POEA and Secretary of Justice has jurisdiction over the monetary
claims in question?
-Yes.
Case Digest by: Salazar
In this case, the complaints are for violation of Articles 32 and 34 a) of the Labor
Code.
Art. 32. Fees to be paid by workers.—Any person applying with a private fee-charging employment
agency for employment assistance shall not be charged any fee until he has obtained employment
through its efforts or has actually commenced employment. Such fee shall be always covered with the
approved receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a schedule
of allowable fees.
Art. 34. Prohibited practices.—It shall be unlawful for any individual, entity, licensee, or holder of
authority:
a) To charge or accept, directly or indirectly, any amount greater than that specified in the schedule
of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount
greater than actually received by him as a loan or advance; . ..
The Secretary of Labor has the power under Section 35 of the law to apply sanctions,
as well as the authority, conferred by Section 36, not only, to "restrict and regulate the
recruitment and placement activities of all agencies," but also to "promulgate rules
and regulations to carry out the objectives and implement the provisions" governing
said activities.
Pursuant to this rule-making power thus granted, the Secretary of Labor gave the
POEA "on its own initiative or upon filing of a complaint or report or upon request for
investigation by any aggrieved person, . . . (authority to) conduct the necessary
proceedings for the suspension or cancellation of the license or authority of
any agency or entity" for certain offenses.
Implicit in these powers is the award of appropriate relief to the victims of the
offenses committed by the respondent agency or contractor, especially the refund
or reimbursement of such fees as may have been fraudulently or otherwise
illegally collected, or such money, goods or services imposed and accepted in
excess of what is licitly prescribed. It would be illogical and absurd to limit the
sanction on an offending recruitment agency or contractor to suspension or
cancellation of its license, without the concomitant obligation to repair the injury
caused to its victims.
FALLO:
WHEREFORE, the petition is DISMISSED for lack of merit, and this decision is declared to be
immediately executory. Costs against petitioner.
OTHER NOTES:
