4/10/2020
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local manning agency, claiming that De Gracia, et al. were repatriated because the
latter voluntarily pre-terminated their contracts. This telex was given credibility and
weight by the Labor Arbiter and NLRC in deciding that there was pre-termination of the
employment contract "akin to resignation" and no illegal dismissal. However, as
correctly ruled by the CA, the telex message is "a biased and self-serving document
that does not satisfy the requirement of substantial evidence." If, indeed, De Gracia, et
al. voluntarily pre-terminated their contracts, then De Gracia, et al. should have
submitted their written resignations.
Article 285 of the Labor Code recognizes termination by the employee of the
employment contract by "serving written notice on the employer at least one (1) month
in advance." Given that provision, the law contemplates the requirement of a written
notice of resignation. In the absence of a written resignation, it is safe to presume that
the employer terminated the seafarers. In addition, the telex message relied upon by
the Labor Arbiter and NLRC bore conflicting dates of 22 January 1998 and 22 January
1999, giving doubt to the veracity and authenticity of the document. In 22 January
1998, De Gracia, et al. were not even employed yet by the foreign principal. For these
reasons, the dismissal of De Gracia, et al. was illegal.
On the issue of home allotment pay, Skippers effectively admitted non-remittance of
home allotment pay for the month of December 1998 in its Position Paper. Skippers
sought the repatriation expenses to be offset with the home allotment pay. However,
since De Gracia, et al.'s dismissal was illegal, their repatriation expenses were for the
account of Skippers and could not be offset with the home allotment pay.
Contrary to the claim of the Labor Arbiter and NLRC that the home allotment pay is in
"the nature of extraordinary money where the burden of proof is shifted to the worker
who must prove he is entitled to such monetary benefit," Section 8 of POEA
Memorandum Circular No. 55, series of 1996, states that the allotment actually
constitutes at least eighty percent (80%) of the seafarer's salary:
The seafarer is required to make an allotment which is payable once a
month to his designated allottee in the Philippines through any authorized
Philippine bank. The master/employer/agency shall provide the seafarer with
facilities to do so at no expense to the seafarer. The allotment shall be at
least eighty percent (80%) of the seafarer's monthly basic salary
including backwages, if any. (Emphasis supplied)
Paragraph 2 of the employment contracts of De Gracia, Lata and Aprosta incorporated
the provisions of above Memorandum Circular No. 55, series of 1996, in the
employment contracts. Since said memorandum states that home allotment of
seafarers actually constitutes at least eighty percent (80%) of their salary, home
allotment pay is not in the nature of an extraordinary money or benefit, but should
actually be considered as salary which should be paid for services rendered. For this
reason, such non-remittance of home allotment pay should be considered as unpaid
salaries, and Skippers shall be liable to pay the home allotment pay of De Gracia, et al.
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/21678
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