With respect to attorneys fees, suffice it to say that in actions for recovery of wages or where an
employee was forced to litigate and thus incurred expenses to protect his rights and interests, a
maximum award of ten percent (10%) of the monetary award by way of attorneys fees is legally
and morally justifiable under Art. 111 of the Labor Code,xxii[22] Sec. 8, Rule VIII, Book III of
its Implementing Rules,xxiii[23] and par. 7, Art. 2208xxiv[24] of the Civil Code.xxv[25] The
case of Albenson Enterprises Corporation v. Court of Appealsxxvi[26] cited by petitioners in
arguing against the award of attorneys fees is clearly not applicable, being a civil action for
damages which deals with only one of the eleven (11) instances when attorneys fees could be
recovered under Art. 2208 of the Civil Code.
Lastly, on the amount of salaries due private respondent, the rule has always been that an
illegally dismissed worker whose employment is for a fixed period is entitled to payment of his
salaries corresponding to the unexpired portion of his employment.xxvii[27] However on 15 July
1995, RA 8042 otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995
took effect, Sec. 10 of which provides:
Sec. 10. In case of termination of overseas employment without just, valid or authorized cause as
defined by law or contract, the worker shall be entitled to the full reimbursement of his
placement fee with interest at twelve percent (12%) per annum, plus his salaries for the
unexpired portion of the employment contract or for three (3) months for every year of the
unexpired term whichever is less (underscoring ours).
The Labor Arbiter, rationalizing that the aforesaid law did not apply since it became effective
only one (1) month after respondent's overseas employment contract was entered into on 15 June
1995, simply awarded private respondent his salaries corresponding to the unexpired portion of
his employment contract, i.e., for 8.6 months. The NLRC affirmed the award and the Office of
the Solicitor General (OSG) fully agreed. But petitioners now insist that Sec. 10, RA 8042 is
applicable because although private respondents contract of employment was entered into before
the law became effective his alleged cause of action, i.e., his repatriation on 28 September 1995
without just, valid or authorized cause, occurred when the law was already in effect. Petitioners'
purpose in so arguing is to invoke the law in justifying a lesser monetary award to private
respondent, i.e., salaries for three (3) months only pursuant to the last portion of Sec. 10 as
opposed to the salaries for 8.6 months awarded by the Labor Arbiter and affirmed by the NLRC.
We agree with petitioners that Sec. 10, RA 8042, applies in the case of private respondent and to
all overseas contract workers dismissed on or after its effectivity on 15 July 1995 in the same
way that Sec. 34,xxviii[28] RA 6715,xxix[29] is made applicable to locally employed workers
dismissed on or after 21 March 1989.xxx[30] However, we cannot subscribe to the view that
private respondent is entitled to three (3) months salary only. A plain reading of Sec. 10 clearly
reveals that the choice of which amount to award an illegally dismissed overseas contract
worker, i.e., whether his salaries for the unexpired portion of his employment contract or three
(3) months salary for every year of the unexpired term, whichever is less, comes into play only
when the employment contract concerned has a term of at least one (1) year or more. This is
evident from the words for every year of the unexpired term which follows the words salaries x x
x for three months. To follow petitioners thinking that private respondent is entitled to three (3)
months salary only simply because it is the lesser amount is to completely disregard and