Commission on Human Rights

Republic of the Philippines SUPREME COURT THIRD DIVISION G.R. No. 152012 September 30, 2005 LAND AND HOUSING DEVELOPMENT CORPORATION and ABV ROCK GROUP, Petitioners, vs. MARIANITO C. ESQUILLO, Respondent. DECISION PANGANIBAN, J.: uitclaims, releases and other waivers of benefits granted by laws or contracts in favor of workers should be strictly scrutinized to protect the weak and the disadvantaged. The waivers should be carefully examined, in regard not only to the words and terms used, but also the factual circumstances under which they have been executed. The Case Before us is a Petition for Review1 under Rule 45 of the Rules of Court, seeking to set aside the July 27, 2001 Decision2 and the January 29, 2002 Resolution3 of the Court of Appeals (CA) in CA-GR SP No. 50679. The dispositive portion of the Decision reads as follows: "WHEREFORE, premises considered, the decision dated May 30, 1997 of public respondent is herebyANNULLED and SET ASIDE and the decision, dated February 27, 1997 of Labor Arbiter Andres Zavalla isREINSTATED and AFFIRMED in toto. Costs against [herein petitioners]."4 The assailed Resolution denied petitioners’ Motion for Reconsideration. The Facts The antecedents are narrated by the CA as follows: "[Respondent] Marianito C. Esquillo was hired as a structural engineer by [Petitioner] ABV Rock Group (‘ABV’) based in Jeddah, Kingdom of Saudi Arabia. He commenced employment on July 27, 1989, with an initial monthly salary of US$1,000.00 that was gradually increased, on account of his good performance and the annual renewal of his employment contract, until it reached US$1,300.00. Private respondent Land & Housing Development Corporation (‘LHDC’), a local placement agency, facilitated [respondent’s] employment papers. "Although [respondent’s] employment contract was supposed to be valid until July 26, 1995, it was pre-terminated, through an Inter-Office Memo on Notice of Termination, dated November 17, 1994, allegedly, for the reason, ‘reduction of force.’ Petitioner however, claims that the reason adduced was ‘negated by the fact that a lot of transferees from other sites were taken in and promotions as well as re-classifications in the lower ranks were done as shown by the list of fifteen (15) transferees from Riyadh effective November 5, 1994, as well as letters of promotion and re-classification.’ He further claimed that [Petitioner] ABV maliciously confiscated his ‘iqama’ or resident visa despite the fact that it was [respondent’s] previous employer, FEAL IBC., which secured his ‘iqama.’ Consequently, [respondent] was prevented from getting another job in Jeddah. "[Respondent] subsequently received the amount of twenty-three thousand, one hundred fifty-three Saudi Riyals (SR23,153.00) from [Petitioner] ABV, as final settlement of his claims and was issued an exit visa that required him to immediately go back to the Philippines. "As a result of the foregoing, [respondent] filed a complaint for breach of contract and/or illegal dismissal, before the Philippine Overseas Employment Administration which was referred to the National Labor Relations Commission, Sub-Regional Arbitration Branch No. IV, San Pablo City, and docketed as SRAB-IV-4-0053-96-L. The parties were required to file their position papers and responsive pleadings. "In their position paper, [petitioners] maintained that [respondent’s] dismissal was for valid cause, that is, reduction of force. Due to the Gulf War, the projects of [Petitioner] ABV were reduced and it was forced to ‘terminate the contracts of workers whose job were not so immediate and urgent and retain only those workers whose skills were needed just to maintain the projects.’ [Respondent] was informed, one month in advance, of the pretermination of his contract, and he was paid his salary, overtime pay, bonus and other benefits in the total amount of US$6,716.00 or Saudi Riyals SR25,192.00. With respect to the alleged confiscation of [respondent’s] ‘iqama,’ [petitioners] alleged that the law requires its surrender to the Saudi authorities upon the termination of the employee’s contract of employment. "Upon the submission of the case for resolution, the Hon. Labor Arbiter Andres Zavalla issued his Decision, dated February 27, 1997, decreeing, as follows: ‘WHEREFORE, premises considered, judgment is hereby rendered ordering [petitioners] jointly and severally to pay [respondent] his salaries corresponding to the unexpired portion of his contract from December 19, 1994 up to July 26, 1995 in the total amount of NINE THOUSAND FOUR HUNDRED FORTY SEVEN U.S. Dollars (US$9,447.00) and ten percent (10%) of his monetary award as attorney’s fees both in Philippine currency to be computed at the prevailing rate at the time of payment.