The Court ruled in favor of Dagasdas. It found that prior to his deployment, Dagasdas was made to sign a POEA-approved contract with GPGS, on behalf of ITM. However, upon arrival in Saudi Arabia, ITM made him sign a new employment contract (which became the basis for his dismissal).
ITM failed to show that it set and communicated work standards for Dagasdas to follow, and on which his efficiency (or lack thereof) would be determined.
The Court also ruled that the new contract was void and in clear violation of Dagasdas' right to security of tenure.
The new contract was not shown to have been processed through the POEA. It breached Dagasdas' original contract as it was entered into even before the expiration of the original contract approved by the POEA. The Court declared that its terms and conditions, including reserving in favor of the employer the right to terminate an employee without notice during the probationary period, were void.
Dagasdas was likewise not afforded procedural due process when he was dismissed from work. There was no prior notice of the purported infraction. He was not given any opportunity to explain on any accusation made against him. He was simply given a notice of termination. The twin-notice requirement was not complied with.
Lastly, although Dagasdas executed a quitclaim, the same did not preclude him from filing the suit. GPGS and ITM failed to show that Dagasdas had indeed voluntarily waived his claims against the employer.