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Sameer Oversees Placement Agency, Inc. v. Joy C. Cabiles, G.R. No. 170139, August 5, 2014
♦ Decision, Leonen [J]
♦ Concurring and Dissenting Opinion, Brion [J]

Republic of the Philippines

SUPREME COURT
Manila

EN BANC

G.R. No. 170139 August 5, 2014

SAMEER OVERSEAS PLACEMENT AGENCY, INC., Petitioner,

vs.
JOY C. CABILES, Respondent.

DECISION

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 RelationsCommission’s resolution dated March 31, 2004,3declaring respondent’s
dismissal illegal, directing petitioner to pay respondent’s three-month salary equivalent to New Taiwan Dollar (NT$) 46,080.00, an
ordering it to reimburse the NT$3,000.00 withheld from respondent, and pay her NT$300.00 attorney’s 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

Joy’s application was accepted.7 Joy was later asked to sign a oneyear 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 ₱70,000.00 when she signed
employment contract.9

Joy was deployed to work for TaiwanWacoal, Co. Ltd. (Wacoal) on June 26, 1997.10 She alleged that in her employment contract,
she agreed to work as quality control for one year.11 In Taiwan, she was asked to work as a cutter.12

Sameer Overseas Placement Agencyclaims that on July 14, 1997, a certain Mr. Huwang from Wacoal informedJoy, without prior
notice, that she was terminated and that "she should immediately report to their office to get her salary and passport."13 She was
asked to "prepare for immediate repatriation."14

Joy claims that she was told that from June 26 to July 14, 1997, she only earned a total of NT$9,000.15 According to her, Wacoal
deducted NT$3,000 to cover her plane ticket to Manila.16

On October 15, 1997, Joy filed a complaint17 with the National Labor Relations Commission against petitioner and Wacoal. She
claimed that she was illegally dismissed.18 She asked for the return of her placement fee, the withheld amount for repatriation cos
payment of her salary for 23 months as well as moral and exemplary damages.19 She identified Wacoal as Sameer Overseas
Placement Agency’s foreign principal.20
Sameer Overseas Placement Agency alleged that respondent's termination was due to her inefficiency, negligence in her duties,
her "failure to comply with the work requirements [of] her foreign [employer]."21 The agency also claimed that it did not ask for a
placement fee of ₱70,000.00.22 As evidence, it showedOfficial Receipt No. 14860 dated June 10, 1997, bearing the amount of
₱20,360.00.23 Petitioner added that Wacoal's accreditation with petitioner had already been transferred to the Pacific Manpower &
Management Services, Inc. (Pacific) as of August 6, 1997.24 Thus, petitioner asserts that it was already substituted by Pacific
Manpower.25

Pacific Manpower moved for the dismissal of petitioner’s claims against it.26 It alleged that there was no employer-employee
relationship between them.27 Therefore, the claims against it were outside the jurisdiction of the Labor Arbiter.28 Pacific Manpower
argued that the employment contract should first be presented so that the employer’s contractual obligations might be identified.29
further denied that it assumed liability for petitioner’s illegal acts.30

On July 29, 1998, the Labor Arbiter dismissed Joy’s complaint.31 Acting Executive Labor Arbiter Pedro C.Ramos ruled that her
complaint was based on mereallegations.32 The Labor Arbiter found that there was no excess payment of placement fees, based
the official receipt presented by petitioner.33 The Labor Arbiter found unnecessary a discussion on petitioner’s transfer of obligatio
to Pacific34 and considered the matter immaterial in view of the dismissal of respondent’s complaint.35

Joy appealed36 to the National Labor Relations Commission.

In a resolution37 dated March 31, 2004, the National Labor Relations Commission declared that Joy was illegally dismissed.38 It
reiterated the doctrine that the burden of proof to show that the dismissal was based on a just or valid cause belongs to the
employer.39 It found that Sameer Overseas Placement Agency failed to prove that there were just causes for termination.40 There w
no sufficient proofto show that respondent was inefficient in her work and that she failed to comply with company
requirements.41 Furthermore, procedural dueprocess was not observed in terminating respondent.42

The National Labor Relations Commission did not rule on the issue of reimbursement of placement fees for lack of jurisdiction.43 It
refused to entertain the issue of the alleged transfer of obligations to Pacific.44 It did not acquire jurisdiction over that issue becaus
Sameer Overseas Placement Agency failed to appeal the Labor Arbiter’s decision not to rule on the matter.45

The National Labor Relations Commission awarded respondent only three (3) months worth of salaryin the amount of NT$46,080
the reimbursement of the NT$3,000 withheld from her, and attorney’s fees of NT$300.46

The Commission denied the agency’s motion for reconsideration47 dated May 12, 2004 through a resolution48 dated July 2, 2004.

Aggrieved by the ruling, Sameer Overseas Placement Agency caused the filing of a petition49 for certiorari with the Court of Appea
assailing the National Labor Relations Commission’s resolutions dated March 31, 2004 and July 2, 2004.

The Court of Appeals50 affirmed the decision of the National Labor Relations Commission with respect to the finding of illegal
dismissal, Joy’s entitlement to the equivalent of three months worth of salary, reimbursement of withheld repatriation expense, an
attorney’s fees.51 The Court of Appeals remanded the case to the National Labor Relations Commission to address the validity of
petitioner's allegations against Pacific.52 The Court of Appeals held, thus: Although the public respondent found the dismissal of th
complainant-respondent illegal, we should point out that the NLRC merely awarded her three (3) months backwages or the amou
of NT$46,080.00, which was based upon its finding that she was dismissed without due process, a finding that we uphold, given
petitioner’s lack of worthwhile discussion upon the same in the proceedings below or before us. Likewise we sustain NLRC’s find
in regard to the reimbursement of her fare, which is squarely based on the law; as well as the award of attorney’s fees.

But we do find it necessary to remand the instant case to the public respondent for further proceedings, for the purpose of
addressing the validity or propriety of petitioner’s third-party complaint against the transferee agent or the Pacific Manpower &
Management Services, Inc. and Lea G. Manabat. We should emphasize that as far as the decision of the NLRC on the claims of
Cabiles, is concerned, the same is hereby affirmed with finality, and we hold petitioner liable thereon, but without prejudice to furth
hearings on its third party complaint against Pacific for reimbursement.

WHEREFORE, premises considered, the assailed Resolutions are hereby partly AFFIRMED in accordance with the foregoing
discussion, but subject to the caveat embodied inthe last sentence. No costs.

SO ORDERED.53

Dissatisfied, Sameer Overseas Placement Agency filed this petition.54

We are asked to determine whether the Court of Appeals erred when it affirmed the ruling of the National Labor Relations
Commission finding respondent illegally dismissed and awarding her three months’ worth of salary, the reimbursement of the cos
ofher repatriation, and attorney’s fees despite the alleged existence of just causes of termination.

Petitioner reiterates that there was just cause for termination because there was a finding of Wacoal that respondent was inefficie
in her work.55

Therefore, it claims that respondent’s dismissal was valid.56

Petitioner also reiterates that since Wacoal’s accreditation was validly transferred to Pacific at the time respondent filed her
complaint, it should be Pacific that should now assume responsibility for Wacoal’s contractual obligations to the workers originally
recruited by petitioner.57

Sameer Overseas Placement Agency’spetition is without merit. We find for respondent.

Sameer Overseas Placement Agency failed to show that there was just cause for causing Joy’s dismissal. The employer, Wacoa
also failed to accord her due process of law.

Indeed, employers have the prerogative to impose productivity and quality standards at work.58 They may also impose reasonable
rules to ensure that the employees comply with these standards.59 Failure to comply may be a just cause for their
dismissal.60 Certainly, employers cannot be compelled to retain the services of anemployee who is guilty of acts that are inimical t
the interest of the employer.61 While the law acknowledges the plight and vulnerability of workers, it does not "authorize the
oppression or self-destruction of the employer."62 Management prerogative is recognized in law and in our jurisprudence.

This prerogative, however, should not be abused. It is "tempered with the employee’s right to security of tenure."63Workers are
entitled to substantive and procedural due process before termination. They may not be removed from employment without a vali
just cause as determined by law and without going through the proper procedure.

Security of tenure for labor is guaranteed by our Constitution.64

Employees are not stripped of their security of tenure when they move to work in a different jurisdiction. With respect to the rights
overseas Filipino workers, we follow the principle of lex loci contractus.Thus, in Triple Eight Integrated Services, Inc. v. NLRC,65 th
court noted:

Petitioner likewise attempts to sidestep the medical certificate requirement by contending that since Osdana was working in Saud
Arabia, her employment was subject to the laws of the host country. Apparently, petitioner hopes tomake it appear that the labor
laws of Saudi Arabia do not require any certification by a competent public health authority in the dismissal of employees due to
illness.

Again, petitioner’s argument is without merit.

First, established is the rule that lex loci contractus (the law of the place where the contract is made) governs in this jurisdiction.
There is no question that the contract of employment in this case was perfected here in the Philippines. Therefore, the Labor Cod
its implementing rules and regulations, and other laws affecting labor apply in this case.Furthermore, settled is the rule that the
courts of the forum will not enforce any foreign claim obnoxious to the forum’s public policy. Herein the Philippines, employment
agreements are more than contractual in nature. The Constitution itself, in Article XIII, Section 3, guarantees the special protectio
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 selforganization, 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 wo
and a living wage. Theyshall 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 preterminatio
of employment contracts.66 (Emphasis supplied, citation omitted)

Even with respect to fundamental procedural rights, this court emphasized in PCL Shipping Philippines, Inc. v. NLRC,67 to wit:

Petitioners admit that they did notinform private respondent in writing of the charges against him and that they failed to conduct a
formal investigation to give him opportunity to air his side. However, petitioners contend that the twin requirements ofnotice and
hearing applies strictly only when the employment is within the Philippines and that these need not be strictly observed in cases o
international maritime or overseas employment.

The Court does not agree. The provisions of the Constitution as well as the Labor Code which afford protection to labor apply to
Filipino employees whether working within the Philippines or abroad. Moreover, the principle of lex loci contractus (the law of the
place where the contract is made) governs in this jurisdiction. In the present case, it is not disputed that the Contract of Employm
entered into by and between petitioners and private respondent was executed here in the Philippines with the approval of the
Philippine Overseas Employment Administration (POEA). Hence, the Labor Code together with its implementing rules and
regulations and other laws affecting labor apply in this case.68 (Emphasis supplied, citations omitted)

By our laws, overseas Filipino workers (OFWs) may only be terminated for a just or authorized cause and after compliance with
procedural due process requirements.

Article 282 of the Labor Code enumerates the just causes of termination by the employer. Thus:

Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:

(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representat
in connection with his work;

(b) Gross and habitual neglect by the employee of his duties;

(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized
representative;

(d) Commission of a crime or offense by the employee against the person of his employer or any immediate mem
of his family or his duly authorized representatives; and

(e) Other causes analogous to the foregoing.

Petitioner’s allegation that respondentwas inefficient in her work and negligent in her duties69 may, therefore, constitute a just caus
for termination under Article 282(b), but only if petitioner was able to prove it.

The burden of proving that there is just cause for termination is on the employer. "The employer must affirmatively show rationally
adequate evidence that the dismissal was for a justifiable cause."70 Failure to show that there was valid or just cause for terminatio
would necessarily mean that the dismissal was illegal.71

To show that dismissal resulting from inefficiency in work is valid, it must be shown that: 1) the employer has set standards of
conduct and workmanship against which the employee will be judged; 2) the standards of conduct and workmanship must have b
communicated tothe employee; and 3) the communication was made at a reasonable time prior to the employee’s performance
assessment.

This is similar to the law and jurisprudence on probationary employees, which allow termination ofthe employee only when there
"just cause or when [the probationary employee] fails to qualify as a regular employee in accordance with reasonable standards
made known by the employer to the employee at the time of his [or her] engagement."72

However, we do not see why the application of that ruling should be limited to probationary employment. That rule is basic to the
idea of security of tenure and due process, which are guaranteed to all employees, whether their employment is probationary or
regular.

The pre-determined standards that the employer sets are the bases for determining the probationary employee’s fitness, propriety
efficiency, and qualifications as a regular employee. Due process requires that the probationary employee be informed of such
standards at the time of his or her engagement so he or she can adjusthis or her character or workmanship accordingly. Proper
adjustment to fit the standards upon which the employee’s qualifications will be evaluated will increase one’s chances of being
positively assessed for regularization by his or her employer.

Assessing an employee’s work performance does not stop after regularization. The employer, on a regular basis, determines if an
employee is still qualified and efficient, based on work standards. Based on that determination, and after complying with the due
process requirements of notice and hearing, the employer may exercise its management prerogative of terminating the employee
found unqualified.

The regular employee must constantlyattempt to prove to his or her employer that he or she meets all the standards for employm
This time, however, the standards to be met are set for the purpose of retaining employment or promotion. The employee cannot
expected to meet any standard of character or workmanship if such standards were not communicated to him or her. Courts shou
remain vigilant on allegations of the employer’s failure to communicatework standards that would govern one’s employment "if [th
are] to discharge in good faith [their] duty to adjudicate."73

In this case, petitioner merely alleged that respondent failed to comply with her foreign employer’s work requirements and was
inefficient in her work.74 No evidence was shown to support such allegations. Petitioner did not even bother to specify what
requirements were not met, what efficiency standards were violated, or what particular acts of respondent constituted inefficiency

There was also no showing that respondent was sufficiently informed of the standards against which her work efficiency and
performance were judged. The parties’ conflict as to the position held by respondent showed that even the matter as basic as the
title was not clear.

The bare allegations of petitioner are not sufficient to support a claim that there is just cause for termination. There is no proof tha
respondent was legally terminated.

Petitioner failed to comply with

the due process requirements

Respondent’s dismissal less than one year from hiring and her repatriation on the same day show not onlyfailure on the partof
petitioner to comply with the requirement of the existence of just cause for termination. They patently show that the employersdid
comply with the due process requirement.

A valid dismissal requires both a valid cause and adherence to the valid procedure of dismissal.75 The employer is required to give
the charged employee at least two written notices before termination.76 One of the written notices must inform the employee of the
particular acts that may cause his or her dismissal.77 The other notice must "[inform] the employee of the employer’s
decision."78 Aside from the notice requirement, the employee must also be given "an opportunity to be heard."79

Petitioner failed to comply with the twin notices and hearing requirements. Respondent started working on June 26, 1997. She wa
told that she was terminated on July 14, 1997 effective on the same day and barely a month from her first workday. She was also
repatriated on the same day that she was informed of her termination. The abruptness of the termination negated any finding that
she was properly notified and given the opportunity to be heard. Her constitutional right to due process of law was violated.

II

Respondent Joy Cabiles, having been illegally dismissed, is entitled to her salary for the unexpired portion ofthe employment
contract that was violated together with attorney’s fees and reimbursement of amounts withheld from her salary.

Section 10 of Republic Act No. 8042,otherwise known as the Migrant Workers and Overseas Filipinos Act of1995, states
thatoverseas workers who were terminated without just, valid, or authorized cause "shall be entitled to the full reimbursement of h
placement fee with interest of twelve (12%) per annum, plus his salaries for the unexpired portion of his employment contract or f
three (3) months for every year of the unexpired term, whichever is less."

Sec. 10. MONEY CLAIMS. – Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relatio
Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after fil
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 join
and several. This provisions [sic] shall be incorporated in the contract for overseas employment and shall be a condition preceden
for its approval. The performance bond to be filed by the recruitment/placementagency, as provided by law, shall be answerable f
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 corpora
orpartnership 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 p
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 s
be entitled to the full reimbursement of his placement fee with interest of twelve (12%) per annum, plus his salaries for the unexpi
portion of his employment contract or for three (3) months for every year of the unexpired term, whichever is less.

....

(Emphasis supplied)

Section 15 of Republic Act No. 8042 states that "repatriation of the worker and the transport of his [or her] personal belongings sh
be the primary responsibility of the agency which recruited or deployed the worker overseas." The exception is when "termination
employment is due solely to the fault of the worker,"80 which as we have established, is not the case. It reads: SEC. 15.
REPATRIATION OF WORKERS; EMERGENCY REPATRIATION FUND. – The repatriation of the worker and the transport of his
personal belongings shall be the primary responsibility of the agency which recruited or deployed the worker overseas. All costs
attendant to repatriation shall be borne by or charged to the agency concerned and/or its principal. Likewise, the repatriation of
remains and transport of the personal belongings of a deceased worker and all costs attendant thereto shall be borne by the
principal and/or local agency. However, in cases where the termination of employment is due solely to the fault of the worker, the
principal/employer or agency shall not in any manner be responsible for the repatriation of the former and/or his belongings.

....

The Labor Code81 also entitles the employee to 10% of the amount of withheld wages as attorney’s feeswhen the withholding is
unlawful.

The Court of Appeals affirmedthe National Labor Relations Commission’s decision to award respondent NT$46,080.00 or the
threemonth equivalent of her salary, attorney’s fees of NT$300.00, and the reimbursement of the withheld NT$3,000.00 salary, w
answered for her repatriation.

We uphold the finding that respondent is entitled to all of these awards. The award of the three-month equivalent of respondent’s
salary should, however, be increased to the amount equivalent to the unexpired term of the employment contract.

In Serrano v. Gallant Maritime Services, Inc. and Marlow Navigation Co., Inc.,82 this court ruled that the clause "or for three (3)
months for every year of the unexpired term, whichever is less"83 is unconstitutional for violating the equal protection clause and
substantive due process.84

A statute or provision which was declared unconstitutional is not a law. It "confers no rights; it imposes no duties; it affords no
protection; it creates no office; it is inoperative as if it has not been passed at all."85

We are aware that the clause "or for three (3) months for every year of the unexpired term, whichever is less"was reinstated in
Republic Act No. 8042 upon promulgation of Republic Act No. 10022 in 2010. Section 7 of Republic Act No. 10022 provides:

Section 7.Section 10 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

SEC. 10. Money Claims.– Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after th
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 damage. Consistent wi
this mandate, the NLRC shall endeavor to update and keep abreast with the developments in the global services industry.

The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be join
and several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for i
approval. The performance bond to de [sic] filed by the recruitment/placement agency, as provided by law, shall be answerable fo
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 corpora
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 p
within thirty (30) days from 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, or any
unauthorized deductions from the migrant worker’s salary, the worker shall be entitled to the full reimbursement if [sic] his placem
fee and the deductions made 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.

In case of a final and executory judgement against a foreign employer/principal, it shall be automatically disqualified, without furth
proceedings, from participating in the Philippine Overseas Employment Program and from recruiting and hiring Filipino workers u
and unless it fully satisfies the judgement award.

Noncompliance with the mandatory periods for resolutions of case providedunder this section shall subject the responsible officia
any or all of the following penalties:

(a) The salary of any such official who fails to render his decision or resolution within the prescribed period shall b
or caused to be, withheld until the said official complies therewith;

(b) Suspension for not more than ninety (90) days; or

(c) Dismissal from the service with disqualification to hold any appointive public office for five (5) years.

Provided, however,That the penalties herein provided shall be without prejudice to any liability which any such official may have
incured [sic] under other existing laws or rules and regulations as a consequence of violating the provisions of this paragraph.
(Emphasis supplied)

Republic Act No. 10022 was promulgated on March 8, 2010. This means that the reinstatement of the clause in Republic Act No.
8042 was not yet in effect at the time of respondent’s termination from work in 1997.86 Republic Act No. 8042 before it was amend
byRepublic Act No. 10022 governs this case.

When a law is passed, this court awaits an actual case that clearly raises adversarial positions in their proper context before
considering a prayer to declare it as unconstitutional.

However, we are confronted with a unique situation. The law passed incorporates the exact clause already declared as
unconstitutional, without any perceived substantial change in the circumstances.

This may cause confusion on the part of the National Labor Relations Commission and the Court of Appeals.At minimum, the
existence of Republic Act No. 10022 may delay the execution of the judgment in this case, further frustrating remedies to assuage
the wrong done to petitioner.

Hence, there is a necessity to decide this constitutional issue.

Moreover, this court is possessed with the constitutional duty to "[p]romulgate rules concerning the protection and enforcement of
constitutional rights."87 When cases become mootand academic, we do not hesitate to provide for guidance to bench and bar in
situations where the same violations are capable of repetition but will evade review. This is analogous to cases where there are
millions of Filipinos working abroad who are bound to suffer from the lack of protection because of the restoration of an identical
clause in a provision previously declared as unconstitutional.

In the hierarchy of laws, the Constitution is supreme. No branch or office of the government may exercise its powers in any mann
inconsistent with the Constitution, regardless of the existence of any law that supports such exercise. The Constitution cannot be
trumped by any other law. All laws must be read in light of the Constitution. Any law that is inconsistent with it is a nullity.
Thus, when a law or a provision of law is null because it is inconsistent with the Constitution,the nullity cannot be cured by
reincorporation or reenactment of the same or a similar law or provision. A law or provision of law that was already declared
unconstitutional remains as such unless circumstances have sochanged as to warrant a reverse conclusion.

We are not convinced by the pleadings submitted by the parties that the situation has so changed so as to cause us to reverse
binding precedent.

Likewise, there are special reasons of judicial efficiency and economy that attend to these cases. The new law puts our overseas
workers in the same vulnerable position as they were prior to Serrano. Failure to reiterate the very ratio decidendi of that case wil
result in the same untold economic hardships that our reading of the Constitution intended to avoid. Obviously, we cannot
countenance added expenses for further litigation thatwill reduce their hardearned wages as well as add to the indignity of having
been deprived of the protection of our laws simply because our precedents have not been followed. There is no constitutional
doctrine that causes injustice in the face of empty procedural niceties. Constitutional interpretation is complex, but it is never
unreasonable.

Thus, in a resolution88 dated October 22, 2013, we ordered the parties and the Office of the Solicitor General to comment on the
constitutionality of the reinstated clause in Republic Act No. 10022.

In its comment,89 petitioner argued that the clause was constitutional.90 The legislators intended a balance between the employers
and the employees’ rights by not unduly burdening the local recruitment agency.91 Petitioner is also of the view that the clause wa
already declared as constitutional in Serrano.92

The Office of the Solicitor General also argued that the clause was valid and constitutional.93 However, since the parties never rais
the issue of the constitutionality of the clause asreinstated in Republic Act No. 10022, its contention is that it is beyond judicial
review.94

On the other hand, respondentargued that the clause was unconstitutional because it infringed on workers’ right to contract.95

We observe that the reinstated clause, this time as provided in Republic Act. No. 10022, violates the constitutional rights to equal
protection and due process.96 Petitioner as well as the Solicitor General have failed to show any compelling changein the
circumstances that would warrant us to revisit the precedent.

We reiterate our finding in Serrano v. Gallant Maritime that limiting wages that should be recovered by anillegally dismissed overs
worker to three months is both a violation of due process and the equal protection clauses of the Constitution.

Equal protection of the law is a guarantee that persons under like circumstances and falling within the same class are treated alik
in terms of "privileges conferred and liabilities enforced."97 It is a guarantee against "undue favor and individual or class privilege,
well as hostile discrimination or the oppression of inequality."98

In creating laws, the legislature has the power "to make distinctions and classifications."99

In exercising such power, it has a wide discretion.100

The equal protection clause does not infringe on this legislative power.101 A law is void on this basis, only if classifications are mad
arbitrarily.102 There is no violation of the equal protection clause if the law applies equally to persons within the same class and if
there are reasonable grounds for distinguishing between those falling within the class and those who do not fall within the class.10
law that does not violate the equal protection clause prescribesa reasonable classification.104

A reasonable classification "(1) must rest on substantial distinctions; (2) must be germane to the purposes of the law; (3) must no
limited to existing conditions only; and (4) must apply equally to all members of the same class."105

The reinstated clause does not satisfy the requirement of reasonable classification.

In Serrano, we identified the classifications made by the reinstated clause. It distinguished between fixed-period overseas worker
and fixedperiod local workers.106 It also distinguished between overseas workers with employment contracts of less than one year
and overseas workers with employment contracts of at least one year.107 Within the class of overseas workers with at least one-ye
employment contracts, there was a distinction between those with at least a year left in their contracts and those with less than a
year left in their contracts when they were illegally dismissed.108
The Congress’ classification may be subjected to judicial review. In Serrano, there is a "legislative classification which impermiss
interferes with the exercise of a fundamental right or operates to the peculiar disadvantage of a suspect class."109

Under the Constitution, labor is afforded special protection.110 Thus, this court in Serrano, "[i]mbued with the same sense of
‘obligation to afford protection to labor,’ . . . employ[ed] the standard of strict judicial scrutiny, for it perceive[d] in the subject claus
suspect classification prejudicial to OFWs."111

We also noted in Serranothat before the passage of Republic Act No. 8042, the money claims of illegally terminated overseas an
local workers with fixed-term employment werecomputed in the same manner.112 Their money claims were computed based onthe
"unexpired portions of their contracts."113 The adoption of the reinstated clause in Republic Act No. 8042 subjected the money clai
of illegally dismissed overseas workers with an unexpired term of at least a year to a cap of three months worth of their
salary.114 There was no such limitation on the money claims of illegally terminated local workers with fixed-term employment.115

We observed that illegally dismissed overseas workers whose employment contracts had a term of less than one year were gran
the amount equivalent to the unexpired portion of their employment contracts.116 Meanwhile, illegally dismissed overseas workers
with employment terms of at least a year were granted a cap equivalent to three months of their salary for the unexpired portions
their contracts.117

Observing the terminologies used inthe clause, we also found that "the subject clause creates a sub-layer of discrimination amon
OFWs whose contract periods are for more than 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.

Overseas workers regardless of their classifications are entitled to security of tenure, at least for the period agreed upon in their
contracts. This means that they cannot be dismissed before the end of their contract terms without due process. If they were illeg
dismissed, the workers’ right to security of tenure is violated.

The rights violated when, say, a fixed-period local worker is illegally terminated are neither greater than norless than the rights
violated when a fixed-period overseas worker is illegally terminated. It is state policy to protect the rights of workers
withoutqualification as to the place of employment.119 In both cases, the workers are deprived of their expected salary, which they
could have earned had they not been illegally dismissed. For both workers, this deprivation translates to economic insecurity and
disparity.120 The same is true for the distinctions between overseas workers with an employment contract of less than one year an
overseas workers with at least one year of employment contract, and between overseas workers with at least a year left in their
contracts and overseas workers with less than a year left in their contracts when they were illegally dismissed.

For this reason, we cannot subscribe to the argument that "[overseas workers] are contractual employeeswho can never acquire
regular employment status, unlike local workers"121 because it already justifies differentiated treatment in terms ofthe computation
money claims.122

Likewise, the jurisdictional and enforcement issues on overseas workers’ money claims do not justify a differentiated treatment in
computation of their money claims.123 If anything, these issues justify an equal, if not greater protection and assistance to oversea
workers who generally are more prone to exploitation given their physical distance from our government.

We also find that the classificationsare not relevant to the purpose of the law, which is to "establish a higher standard of protectio
and promotion of the welfare of migrant workers, their families and overseas Filipinos in distress, and for other purposes."124 Furth
we find specious the argument that reducing the liability of placement agencies "redounds to the benefit of the [overseas] workers

Putting a cap on the money claims of certain overseas workers does not increase the standard of protection afforded to them. On
other hand, foreign employers are more incentivizedby the reinstated clause to enter into contracts of at least a year because it g
them more flexibility to violate our overseas workers’ rights. Their liability for arbitrarily terminating overseas workers is decreased
the expense of the workers whose rights they violated. Meanwhile, these overseas workers who are impressed with an expectatio
of a stable job overseas for the longer contract period disregard other opportunities only to be terminated earlier. They are left wit
claims that are less than what others in the same situation would receive. The reinstated clause, therefore, creates a situation wh
the law meant to protect them makes violation of rights easier and simply benign to the violator.

As Justice Brion said in his concurring opinion in Serrano:

Section 10 of R.A. No. 8042 affects these well-laid rules and measures, and in fact provides a hidden twist affecting the
principal/employer’s liability. While intended as an incentive accruing to recruitment/manning agencies, the law, as worded, simpl
limits the OFWs’ recovery in wrongfuldismissal situations. Thus, it redounds to the benefit of whoever may be liable, including the
principal/employer – the direct employer primarily liable for the wrongful dismissal. In this sense, Section 10 – read as a grant of
incentives to recruitment/manning agencies – oversteps what it aims to do by effectively limiting what is otherwise the full liability
the foreign principals/employers. Section 10, in short, really operates to benefit the wrong party and allows that party, without
justifiable reason, to mitigate its liability for wrongful dismissals. Because of this hidden twist, the limitation ofliability under Section
cannot be an "appropriate" incentive, to borrow the term that R.A. No. 8042 itself uses to describe the incentive it envisions under
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 law’s inte
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. . . .

The so-called incentive is rendered particularly odious by its effect on the OFWs — the benefits accruing to the recruitment/mann
agencies and their principals are takenfrom the pockets of the OFWs to whom the full salaries for the unexpired portion of the
contract rightfully belong. Thus, the principals/employers and the recruitment/manning agencies even profit from their violation of
security of tenure that an employment contract embodies. Conversely, lesser protection is afforded the OFW, not only because o
lessened recovery afforded him or her by operation of law, but also because this same lessened recovery renders a wrongful
dismissal easier and less onerous to undertake; the lesser cost of dismissing a Filipino will always bea consideration a foreign
employer will take into account in termination of employment decisions. . . .126

Further, "[t]here can never be a justification for any form of government action that alleviates the burden of one sector, but impose
the same burden on another sector, especially when the favored sector is composed of private businesses suchas placement
agencies, while the disadvantaged sector is composed ofOFWs whose protection no less than the Constitution commands. The i
thatprivate business interest can be elevated to the level of a compelling state interest is odious."127

Along the same line, we held that the reinstated clause violates due process rights. It is arbitrary as it deprives overseas workers
their monetary claims without any discernable valid purpose.128

Respondent Joy Cabiles is entitled to her salary for the unexpired portion of her contract, in accordance with Section 10 of Repub
Act No. 8042. The award of the three-month equivalence of respondent’s salary must be modified accordingly. Since she started
working on June 26, 1997 and was terminated on July 14, 1997, respondent is entitled to her salary from July 15, 1997 to June 25
1998. "To rule otherwise would be iniquitous to petitioner and other OFWs, and would,in effect, send a wrong signal that
principals/employers and recruitment/manning agencies may violate an OFW’s security of tenure which an employment contract
embodies and actually profit from such violation based on an unconstitutional provision of law."129

III

On the interest rate, the Bangko Sentral ng Pilipinas Circular No. 799 of 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 o
2013, read: The Monetary Board, in its Resolution No. 796 dated 16 May 2013, approved the following revisions governing the ra
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 th
absence of an express contract as to such rateof 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.

Through the able ponencia of Justice Diosdado Peralta, we laid down the guidelines in computing legal interest in Nacar v. Galler
Frames:130

II. With regard particularly to an award of interest in the concept of actual and compensatory damages, the rate of interest, as we
the accrual thereof, is imposed, as follows:

1. When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance o
money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due s
 itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest sh
be 6% per annum to be computed from default, i.e., from judicial or extrajudicial demand under and subject to the
provisions of Article 1169 of the Civil Code.

2. When an obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of
damages awarded may be imposed at the discretion of the court at the rate of 6% per annum. No interest, howev
shall be adjudged on unliquidated claims or damages, except when or until the demand can be established with
reasonable certainty. Accordingly, where the demand is established with reasonable certainty, the interest shall be
to run from the time the claim is made judicially or extrajudicially (Art. 1169, Civil Code), but when such certainty
cannot be so reasonably established at the time the demand is made, the interest shall begin to run only from the
date the judgment of the court is made (at which time the quantification of damages may be deemed to have been
reasonably ascertained). The actual base for the computation of legal interest shall, in any case, be on the amoun
finally adjudged. 3. When the judgment of the court awarding a sum of money becomes final and executory, the ra
of legal interest, whether the case falls under paragraph 1 or paragraph 2, above, shall be 6% per annum from su
finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credi

And, in addition to the above, judgments that have become final and executory prior to July 1, 2013, shall not be disturbed and sh
continue to be implemented applying the rate of interest fixed therein.131

Circular No. 799 is applicable only in loans and forbearance of money, goods, or credits, and in judgments when there is no
stipulation on the applicable interest rate. Further, it is only applicable if the judgment did not become final and executory before J
1, 2013.132

We add that Circular No. 799 is not applicable when there is a law that states otherwise. While the Bangko Sentral ng Pilipinas ha
the power to set or limit interest rates,133 these interest rates do not apply when the law provides that a different interest rate shall
applied. "[A] Central Bank Circular cannot repeal a law. Only a law can repeal another law."134

For example, Section 10 of Republic Act No. 8042 provides that unlawfully terminated overseas workers are entitled to the
reimbursement of his or her placement fee with an interest of 12% per annum. Since Bangko Sentral ng Pilipinas circulars
cannotrepeal Republic Act No. 8042, the issuance of Circular No. 799 does not have the effect of changing the interest on award
reimbursement of placement fees from 12% to 6%. This is despite Section 1 of Circular No. 799, which provides that the 6% inter
rate applies even to judgments.

Moreover, laws are deemed incorporated in contracts. "The contracting parties need not repeat them. They do not even have to b
referred to. Every contract, thus, contains not only what has been explicitly stipulated, but the statutory provisions that have any
bearing on the matter."135 There is, therefore, an implied stipulation in contracts between the placement agency and the
overseasworker that in case the overseas worker is adjudged as entitled to reimbursement of his or her placement fees, the amo
shall be subject to a 12% interest per annum. This implied stipulation has the effect of removing awards for reimbursement of
placement fees from Circular No. 799’s coverage.

The same cannot be said for awardsof salary for the unexpired portion of the employment contract under Republic Act No. 8042.
These awards are covered by Circular No. 799 because the law does not provide for a specific interest rate that should apply.

In sum, if judgment did not become final and executory before July 1, 2013 and there was no stipulation in the contract providing
a different interest rate, other money claims under Section 10 of Republic Act No. 8042 shall be subject to the 6% interest per ann
in accordance with Circular No. 799.

This means that respondent is also entitled to an interest of 6% per annum on her money claims from the finality of this judgment

IV

Finally, we clarify the liabilities ofWacoal as principal and petitioner as the employment agency that facilitated respondent’s overs
employment.

Section 10 of the Migrant Workers and Overseas Filipinos Act of 1995 provides that the foreign employer and the local employme
agency are jointly and severally liable for money claims including claims arising out of an employer-employee relationship and/or
damages. This section also provides that the performance bond filed by the local agency shall be answerable for such money cla
or damages if they were awarded to the employee.

This provision is in line with the state’s policy of affording protection to labor and alleviating workers’ plight.136
In overseas employment, the filing of money claims against the foreign employer is attended by practical and legal
complications. The distance of the foreign employer alonemakes it difficult for an overseas worker to reach it and make it liable fo
1âwphi1

violations of the Labor Code. There are also possible conflict of laws, jurisdictional issues, and procedural rules that may be raise
frustrate an overseas worker’sattempt to advance his or her claims.

It may be argued, for instance, that the foreign employer must be impleaded in the complaint as an indispensable party without w
no final determination can be had of an action.137

The provision on joint and several liability in the Migrant Workers and Overseas Filipinos Act of 1995 assures overseas workers th
their rights will not be frustrated with these complications. The fundamental effect of joint and several liability is that "each of the
debtors is liable for the entire obligation."138 A final determination may, therefore, be achieved even if only oneof the joint and seve
debtors are impleaded in an action. Hence, in the case of overseas employment, either the local agency or the foreign employer m
be sued for all claims arising from the foreign employer’s labor law violations. This way, the overseas workers are assured that
someone — the foreign employer’s local agent — may be made to answer for violationsthat the foreign employer may have
committed.

The Migrant Workers and Overseas Filipinos Act of 1995 ensures that overseas workers have recourse in law despite the
circumstances of their employment. By providing that the liability of the foreign employer may be "enforced to the full
extent"139 against the local agent,the overseas worker is assured of immediate and sufficientpayment of what is due them.140

Corollary to the assurance of immediate recourse in law, the provision on joint and several liability in the Migrant Workers and
Overseas Filipinos Act of 1995 shifts the burden of going after the foreign employer from the overseas worker to the local
employment agency. However, it must be emphasized that the local agency that is held to answer for the overseas worker’s mon
claims is not leftwithout remedy. The law does not preclude it from going after the foreign employer for reimbursement of whateve
payment it has made to the employee to answer for the money claims against the foreign employer.

A further implication of making localagencies jointly and severally liable with the foreign employer is thatan additional layer of
protection is afforded to overseas workers. Local agencies, which are businesses by nature, are inoculated with interest in being
always on the lookout against foreign employers that tend to violate labor law. Lest they risk their reputation or finances, local
agenciesmust already have mechanisms for guarding against unscrupulous foreign employers even at the level prior to overseas
employment applications.

With the present state of the pleadings, it is not possible to determine whether there was indeed a transfer of obligations from
petitioner to Pacific. This should not be an obstacle for the respondent overseas worker to proceed with the enforcement of this
judgment. Petitioner is possessed with the resources to determine the proper legal remedies to enforce its rights against Pacific,
any.

Many times, this court has spoken on what Filipinos may encounter as they travel into the farthest and mostdifficult reaches of ou
planet to provide for their families. In Prieto v. NLRC:141

The Court is not unaware of the many abuses suffered by our overseas workers in the foreign land where they have ventured,
usually with heavy hearts, in pursuit of a more fulfilling future. Breach of contract, maltreatment, rape, insufficient nourishment, su
human lodgings, insults and other forms of debasement, are only a few of the inhumane acts towhich they are subjected by their
foreign employers, who probably feel they can do as they please in their own country. Whilethese workers may indeed have
relatively little defense against exploitation while they are abroad, that disadvantage must not continue to burden them when they
return to their own territory to voice their muted complaint. There is no reason why, in their very own land, the protection of our ow
laws cannot be extended to them in full measure for the redress of their grievances.142

But it seems that we have not said enough.

We face a diaspora of Filipinos. Their travails and their heroism can be told a million times over; each of their stories as real as an
other. Overseas Filipino workers brave alien cultures and the heartbreak of families left behind daily. They would count the minute
hours, days, months, and years yearning to see their sons and daughters. We all know of the joy and sadness when they come
home to see them all grown up and, being so, they remember what their work has cost them. Twitter accounts, Facetime, and ma
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 t
should be paid to our workers when their contracts are breached by the foreign employers. While we sit, this court will ensure tha
our laws will reward our overseas workers with what they deserve: their dignity.

Inevitably, their dignity is ours as weil.

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 unexpire
portion of her employment contract at an interest of 6% per annum from the finality of this judgment. Petitioner is also ORDERED
reimburse respondent the withheld NT$3,000.00 salary and pay respondent attorney's fees of NT$300.00 at an interest of 6% pe
annum from the finality of this judgment.

The clause, "or for three (3) months for every year of the unexpired term, whichever is less" in Section 7 of Republic Act No. 1002
amending Section 10 of Republic Act No. 8042 is declared unconstitutional and, therefore, null and void.

SO ORDERED.

MARVIC MARIO VICTOR F. LEONEN

Associate Justice

WE CONCUR:

(On Leave)
MARIA LOURDES P. A. SERENO*
Chief Justice

ANTONIO T. CARPIO PRESBITERO J. VELASCO, JR.

Acting Chief Justice Associate Justice

See: Concur/Dissenting Opn.

TERESITA J. LEONARDO-DE CASTRO
ARTURO D. BRION
Associate Justice
Associate Justice

DIOSDADO M. PERALTA LUCAS P. BERSAMIN

Associate Justice Associate Justice

MARIANO C. DEL CASTILLO MARTIN S. VILLARAMA, JR.

Associate Justice Associate Justice

JOSE PORTUGAL PEREZ JOSE CATRAL MENDOZA

Associate Justice Associate Justice

BIENVENIDO L. REYES ESTELA M. PERLAS-BERNABE

Associate Justice Associate Justice

CERTIFICATION

I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer o
the opinion of the court.

ANTONIO T. CARPIO
Acting Chief Justice

Footnotes
* On Leave.

1
Rollo, pp. 3–29.

2
Id. at 32–44.

3
Id. at 125–131.

4
Id. at 131.

5
Id. at 3.

6
Id. at 126.

7
Id. at 102.

8
Id.

9
Id.

10
Id. at 54 and 102.

11
Id. at 6–7 and 195–196.

12
Id. at 36.

13
Id.

14
Id.

15
Id. at 127.

16
Id.

17
Id. at 53.

18
Id.

19
Id. at 33, 53, and 54.

20
Id.

21
Id. at 11.

22
Id. at 56.

23
Id. at 56 and 62.

24
Id. at 57.

25
Id.

26
Id. at 107.

27
Id.

28
Id.
29
Id. at 108.

30
Id.

31
Id. at 101–112.

32
Id. at 108–110.

33
Id. at 110.

34
Id. at 111–112.

35
Id.

36
Id. at 113–123.

37
Id. at 125–131.

38
Id. at 131.

39
Id. at 129.

40
Id.

41
Id.

42
Id at 130.

43
Id.

44
Id. at 131.

45
Id.

46
Id.

47
Id. at 132–137.

48
Id. at 139–141.

49
Id. at 142–153.

Thirteenth Division, decision penned by Associate Justice Renato C.Dacudao with Associate Justices Edgardo F
50

Sundiam and Japar B. Dimaampao concurring.

51
Rollo, pp. 43–44.

52
Id.

53
Id.

54
Id. at 3–29.

55
Id. at 11.

56
Id.

57
Id. at 9–11.
 Leonardo v. National Labor Relations Commission, 389 Phil. 118, 126–127 (2000) [Per J. De Leon, Jr., Second
58

Division].

59
Id.

60
Id.

San Miguel Corporation v. Ubaldo, G.R. No. 92859, February 1, 1993, 218 SCRA 293, 301 [Per J. Campos, Jr.,
61

Second Division].

62
Id.

63
Bascon v. Court of Appeals, 466 Phil. 719, 732 (2004) [Per J. Quisumbing, Second Division].

64
CONST., art. XIII, sec. 3.

65
359 Phil. 955 (1998) [Per J. Romero, Third Division].

66
Id. at 968–969.

67
540 Phil. 65 (2006) [Per J. Austria-Martinez, First Division].

68
Id. at 80–81.

69
Rollo, p. 11.

Hilton Heavy Equipment Corporation v. Dy, G.R. No. 164860, February 2, 2010, 611 SCRA 329, 338 [Per J. Car
70

Second Division], citing Dizon v. NLRC, 259 Phil. 523, 529 (1989) [Per J. Feliciano, Third Division].

Skippers United Pacific, Inc. v. National Labor Relations Commission, 527 Phil. 248, 257 (2006) [Per J. Austria-
71

Martinez, First Division].

LABOR CODE, art. 281; See also Tamson’s Enterprises, Inc. v. Court of Appeals, G.R. No. 192881, November
72

2011, 660 SCRA 374, 383 [Per J. Mendoza, Third Division].

Seedissenting opinion of J. Brion in Abbott Laboratories Philippines v. Alcaraz, G.R. No. 192571, July 23, 2013,
73

701 SCRA 682, 752 [Per J. Perlas-Bernabe, En Banc]. This ponencia joined J. Brion.

74
Rollo, p. 129.

Skippers United Pacific, Inc. v. Doza, et al., G.R. No. 175558, February 8, 2012, 665 SCRA 412, 426 [Per J.
75

Carpio, Second Division].

76
Id.

77
Id.

78
Id.

79
Id.

80
Rep. Act. No. 8042 (1995), sec. 15.

81
Article 111. Attorney’s Fees – (a) In cases of unlawful withholding of wages, the culpable party may be assessed
attorney’s fees equivalent to ten percent of the amount of wages recovered.

82
601 Phil. 245 (2009) [Per J. Austria-Martinez, En Banc].

83
Rep. Act. No. 8042 (1995), sec. 10, par. 5.
84
Serrano v. Gallant Maritime Services, Inc., 601 Phil. 245, 302 and 304 (2009) [Per J. Austria-Martinez, En Banc

Yap v. Thenamaris Ship’s Management, G.R. No. 179532, May 30, 2011, 649 SCRA 369, 380 [Per J. Nachura,
85

Second Division].

See also Skippers United Pacific, Inc. v. Doza, et al., G.R. No. 175558, February 8, 2012, 665 SCRA 430 [Per J
86

Carpio, Second Division].

87
CONST., art. VIII, sec. 5(5).

88
Rollo, pp. 266–267.

89
Id. at 309–328.

90
Id. at 311.

91
Id.

92
Id.

93
Id. at 364–371.

94
Id. at 371.

95
Id. at 304.

CONST., art. III, sec. 1. No person shall be deprived of life, liberty, or property without due process of law, nor s
96

any person be denied the equal protection of the laws.

97
Ichong v. Hernandez, 101 Phil. 1155, 1164 (1957) [Per J. Labrador, En Banc].

98
Id. at 1164.

99
Id. at 1177.

100
Id.

101
Id. at 1164 and 1177.

102
Id. at 1165 and 1177.

103
Id. at 1164.

104
People v. Cayat, 68 Phil. 12, 18 (1939) [Per J. Moran, En Banc].

105
Id. at 18.

106
Serrano v. Gallant Maritime Services, Inc., 601 Phil. 245, 294–298 (2009) [Per J. Austria-Martinez, En Banc].

107
Id. at 287–292.

108
Id. at 292–294.

109
Id. at 282.

110
CONST., art. XIII, sec. 3.

111
Serrano v. Gallant Maritime Services, Inc., 601 Phil. 245, 286 (2009) [Per J. Austria-Martinez, En Banc].
112
Id. at 297–298.

113
Id. at 298.

114
Id.

115
Id.

116
Id. at 287–292.

117
Id.

118
Id. at 293.

119
Id. at 281.

120
Id.

121
Id. at 277.

122
Id.

123
Id. at 276–277.

124
Rep. Act. No. 8042 (1995); See alsoRep. Act No. 10022 (2010).

125
Serrano v. Gallant Maritime Services, Inc., 601 Phil. 245, 277 (2009) [Per J. Austria-Martinez, En Banc].

126
Seeconcurring opinion of J. Brion in Serrano v. Gallant Maritime Services, Inc., 601 Phil. 245, 319–321 (2009) [
J. Austria-Martinez, En Banc].

127
Id. at 301.

128
Id. at 304.

Yap v. Thenamaris Ship’s Management, G.R. No. 179532, May 30, 2011, 649 SCRA 369, 381 [Per J. Nachura,
129

Second Division].

130
G.R. No. 189871, August 13, 2013, 703 SCRA 439 [Per J. Peralta, En Banc].

Id. at 457–458. This court modified the guidelines laid down in Eastern Shipping Lines v. Court of Appeals, G.R
131

No. 97412, July 12, 1994, 234 SCRA 78, 97[Per J. Vitug, En Banc] to embody Bangko Sentral ng Pilipinas Circula
No. 799.

132
Nacar v. Gallery Frames, G.R. No. 189871, August 13, 2013, 703 SCRA 439, 457 [Per J. Peralta, En Banc].

133
Id.

134
Palanca v. Court of Appeals, G.R. No. 106685, December 2, 1994,238 SCRA 593, 601 [Per J. Quiason, En Ban

Maritime Company of the Philippines v. Reparations Commission, 148-B Phil. 65, 70 (1971) [Per J. Fernando, E
135

Banc].

ATCI Overseas Corporation v. Echin,G.R. No. 178551, October 11, 2010, 632 SCRA 528, 533 [Per J. Carpio-
136

Morales, Third Division], citing Datuman v. First Cosmopolitan Manpower and Promotion Services, Inc., 591 Phil.
662, 673 (2008) [Per J. Leonardo-De Castro, First Division]; Migrant Workers and Overseas Filipinos Act of 1995,
sec. 2(b).

137
RULES OF COURT, Rule 3, sec. 7.
 138
PH Credit Corporation v. Court of Appeals, 421 Phil. 821, 832 (2001) [Per J. Panganiban, Third Division].

139
See alsoC. A. AZUCENA, JR., EVERYONE’S LABOR CODE29 (5th ed., 2007).

140
Id.

141
G..R. No. 93699, September 10, 1993, 226 SCRA 232 [Per J. Cruz, First Division].

Id. at 239–240, also cited in Triple Eight Integrated Services v. NLRC, 359 Phil. 955, 968 (1998) [Per J. Romero
142

Third Division].

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