5/28/2020
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effect of removing awards for reimbursement of placement fees from Circular No. 799’s
coverage.
The same cannot be said for awards of salary for the unexpired portion of the
employment contract under Republic Act No. 8042. These awards are covered by
Circular No. 799 because the law does not provide for a specific interest rate that
should apply.
In sum, if judgment did not become final and executory before July 1, 2013 and there
was no stipulation in the contract providing for a different interest rate, other money
claims under Section 10 of Republic Act No. 8042 shall be subject to the 6% interest
per annum in accordance with Circular No. 799.
This means that respondent is also entitled to an interest of 6% per annum on her
money claims from the finality of this judgment.
IV
Finally, we clarify the liabilities of Wacoal as principal and petitioner as the employment
agency that facilitated respondent’s overseas employment.
Section 10 of the Migrant Workers and Overseas Filipinos Act of 1995 provides that the
foreign employer and the local employment agency are jointly and severally liable for
money claims including claims arising out of an employer-employee relationship and/or
damages. This section also provides that the performance bond filed by the local
agency shall be answerable for such money claims or damages if they were awarded to
the employee.
This provision is in line with the state’s policy of affording protection to labor and
alleviating workers’ plight.[136]
In overseas employment, the filing of money claims against the foreign employer is
attended by practical and legal complications. The distance of the foreign employer
alone makes it difficult for an overseas worker to reach it and make it liable for
violations of the Labor Code. There are also possible conflict of laws, jurisdictional
issues, and procedural rules that may be raised to frustrate an overseas worker’s
attempt to advance his or her claims.
It may be argued, for instance, that the foreign employer must be impleaded in the
complaint as an indispensable party without which no final determination can be had of
an action.[137]
The provision on joint and several liability in the Migrant Workers and Overseas Filipinos
Act of 1995 assures overseas workers that their rights will not be frustrated with these
complications.
The fundamental effect of joint and several liability is that “each of the debtors is liable
for the entire obligation.”[138] A final determination may, therefore, be achieved even if
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