4/10/2020
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In defense, petitioners claimed that respondents were validly retrenched due to severe
business losses suffered by their foreign principal. They denied the alleged deductions
amounting to NT$7,500.00 from petitioners’ monthly salaries and that, consequently,
petitioners are not entitled to damages and attorney’s fees.
The Labor Arbiter’s Ruling
In its July 12, 2002 Decision,[9] the Labor Arbiter found respondents to have been
illegally dismissed for petitioners’ failure to substantiate their defense of a valid
retrenchment. Hence, the Labor Arbiter granted respondents’ money claims, citing
Section 10 of Republic Act (R.A.) No. 8042[10] as then applicable,[11] which provides:
Section 10. Money claims. – x x x
The
liability
of
the
principal/employer
and
the
recruitment/placement agency for any and all claims under this
section shall be joint and several. This provision shall be
incorporated in the contract for overseas employment and shall
be a condition precedent for its approval. The performance bond
to be filed by the recruitment/placement agency, as provided by
law, shall be answerable for all money claims or damages that
may be awarded to the workers. If the recruitment/placement
agency is a juridical being, the corporate officers and directors
and partners as the case may be, shall themselves be jointly and
solidarily liable with the corporation or partnership for the
aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration
of the employment contract and shall not be affected by any
substitution, amendment or modification made locally or in a
foreign country of the said contract.
Any compromise/amicable settlement or voluntary agreement on
money claims inclusive of damages under this section shall be
paid within four (4) months from the approval of the settlement
by the appropriate authority.
In case of termination of overseas employment without just, valid
or authorized cause as defined by law or contract, the workers
shall be entitled to the full reimbursement of his placement fee
with interest of twelve percent (12%) per annum plus his salaries
for the unexpired portion of his employment contract or for three
(3) months for every year of the unexpired term, whichever is
less. (Emphasis supplied)
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