Sarmiento, Guillermo, Bautista and Curameng, Jr. could no longer bear the worsening
working conditions. In October 1997, they decided to go home. Their employer agreed
to have them repatriated and to return their respective bonds, but required them to write
letters of resignation. Respondents Sarmiento and Bautista did as they were told and
wrote the said letters.[29] Respondent Curameng, Jr., for his part, signed a
mimeographed form where he agreed to return to the Philippines.[30] On October 10,
1997, the said respondents were repatriated, but were required to pay for their own
plane tickets.[31]
On October 22, 1997, respondents Sarmiento, Guillermo, Curameng, Jr. and
Bautista, together with respondents Paramio and Navarra, filed separate complaints
before the NLRC Arbitration Branch against Bayani Fontanilla for illegal dismissal, nonpayment of overtime pay, refund of placement fee, tax refund, refund of plane fares,
attorneys fees and litigation expenses. The cases were docketed as NLRC-OFW Cases
No. (L) 97-10-4332 to 97-10-4335.[32]
In their position paper, the respondents raised the issue of whether or not the
petitioner PSRI and Bayani Fontanilla were liable for the reimbursement of their
respective placement fees, nightshift differentials, overtime pay and damages, and their
salaries for the unexpired portion of their respective contracts.[33]
The respondents argued that under Section 10, Republic Act No. 8042, otherwise
known as the Migrant Workers and Overseas Filipinos Act of 1995, PSRI was solidarily
liable with Kuan Yuan for their claims. Since they were repatriated prior to the expiration
of their respective contracts for no valid reason, PSRI was liable to pay their salaries for
the unexpired portion of their contracts.
The petitioner denied any liability on the respondents claims and asserted that the
latter were validly dismissed. It averred that respondent Paramio was dismissed
pursuant to Nos. 5 and 6, Article VIII of his employment contract. According to the
petitioner, the said clauses allow the termination of a contract of employment prior to its
expiration when the employee is (a) suffering from HIV positive antibody or other
diseases; (b) heavily wounded or has stool parasite and cannot be cured within one
month; or (c) found to have lost the ability to work. It averred that since complainant
Paramio could no longer do his job because of his thumb injury, the termination of his
contract was valid, and his dismissal proper.[34]
Anent respondent Navarras claim, the petitioner PSRI ratiocinated that the
termination of his services was for a valid cause because of an altercation he had with
his supervisor. The petitioner further averred that respondent Navarra had demanded
that he be paid the amount of P50,000 and after some negotiation, agreed to
receiveP49,000. Respondent Navarra received the said amount and executed on May
23, 1997, a deed of release and quitclaim in favor of the petitioner.[35]
As for the claims of the other respondents, the petitioner alleged that the
respondents Guillermo, Bautista and Curameng, Jr. voluntarily resigned, as evidenced
by their respective letters and agreement with the petitioner.[36] Moreover, the termination
of their employment was legal, and their repatriation based on valid grounds. The