4/6/2021
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2014 Labor Arbiter's Decision. In its Decision dated October 30, 2014, the NLRC
affirmed the Labor Arbiter Decision but with modification as to damages. It awarded
petitioner moral damages in the amount of P30,000.00, exemplary damages of
P50,000.00, attorney's fees equivalent to ten percent (10%) of the recoverable
amount, and refund of the cost of the PEME in the amount of P18,000.00. It held that
even without petitioner's actual deployment, the perfected contract already gave rise to
respondents' obligations under the Philippine Overseas Employment AdministrationStandard Employment Contract (POEA-SEC).[7]
Respondents moved for reconsideration but the same was denied in a Resolution dated
December 11, 2014.[8]
On appeal, the CA annulled and set aside the October 30, 2014 Decision and December
11, 2014 Resolution of the NLRC. It declared that the LA did not acquire jurisdiction
over the petitioner's complaint because of the non-existence of an employer-employee
relationship between the parties. It emphasized that the perfected contract of
employment did not commence since petitioner's deployment to his vessel of
assignment did not materialize. It enunciated that petitioner does not fall within the
definition of " migrant worker " or " seafarer " under R . A. No. 8042 because his
services were engaged for local employment[9]
Hence, this petition raising the sole issue:
THE COURT OF APPEALS COMMITTED A SERIOUS ERROR OF LAW IN
HOLDING THAT THE LABOR ARBITER HAS NO JURISDICTION OVER THE
COMPLAINT, AND IN NOT SUSTAINING THE AWARD OF DAMAGES IN FAVOR
OF RESPONDENT.[10]
Petitioner maintains that his claim for damages was well-within the jurisdiction of the
Labor Arbiter because an employer-employee relationship exists between the parties.
He contends that the respondents' failure to deploy him constitutes breach of his
employment contract that warrants his claim for unpaid wages, damages, and
attorney's fees against respondents.
Respondents, on the other hand, argue that the Labor Arbiter has no jurisdiction over
the case because of the absence of an employer-employee relationship between them.
They assert that petitioner's non-deployment was a valid and sound exercise of
management prerogative because of his misrepresentation that he was fit to work
despite the fact that he was suffering from diabetes mellitus and asthma.
Our Ruling
We find merit in the petition.
To reiterate, on February 18, 2013, petitioner and respondents entered into a contract
of employment stipulating that it shall take effect on March 12, 2013. Subsequently,
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