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Thus, pursuant to the Civil Code, there should be no retroactive application of the law
in this case. Moreover, respondents asseverate that petitioner's tanker allowance of
US$130.00 should not be included in the computation of the award as petitioner's basic
salary, as provided under his contract, was only US$1,300.00. Respondents submit that
the CA erred in its computation since it included the said tanker allowance.
Respondents opine that petitioner should be entitled only to US$3,900.00 and not to
US$4,290.00, as granted by the CA. Invoking Serrano, respondents claim that the
tanker allowance should be excluded from the definition of the term "salary." Also,
respondents manifest that the full sum of P878,914.47 in Intermare's bank account
was garnished and subsequently withdrawn and deposited with the NLRC Cashier of
Tacloban City on February 14, 2007. On February 16, 2007, while this case was
pending before the CA, the LA issued an Order releasing the amount of P781,870.03 to
petitioner as his award, together with the sum of P86,744.44 to petitioner's former
lawyer as attorney's fees, and the amount of P3,570.00 as execution and deposit fees.
Thus, respondents pray that the instant petition be denied and that petitioner be
directed to return to Intermare the sum of US$8,970.00 or its peso equivalent.[25]
On this note, petitioner counters that this new issue as to the inclusion of the tanker
allowance in the computation of the award was not raised by respondents before the
LA, the NLRC and the CA, nor was it raised in respondents' pleadings other than in their
Memorandum before this Court, which should not be allowed under the circumstances.
[26]
The petition is impressed with merit.
Prefatorily, it bears emphasis that the unanimous finding of the LA, the NLRC and the
CA that the dismissal of petitioner was illegal is not disputed. Likewise not disputed is
the tribunals' unanimous finding of bad faith on the part of respondents, thus,
warranting the award of moral and exemplary damages and attorney's fees. What
remains in issue, therefore, is the constitutionality of the 5th paragraph of Section 10 of
R.A. No. 8042 and, necessarily, the proper computation of the lump-sum salary to be
awarded to petitioner by reason of his illegal dismissal.
Verily, we have already declared in Serrano that the clause "or for three months for
every year of the unexpired term, whichever is less" provided in the 5th paragraph of
Section 10 of R.A. No. 8042 is unconstitutional for being violative of the rights of
Overseas Filipino Workers (OFWs) to equal protection of the laws. In an exhaustive
discussion of the intricacies and ramifications of the said clause, this Court, in Serrano,
pertinently held:
The Court concludes that the subject clause contains a suspect
classification in that, in the computation of the monetary benefits of
fixed-term employees who are illegally discharged, it imposes a 3month cap on the claim of OFWs with an unexpired portion of one
year or more in their contracts, but none on the claims of other
OFWs or local workers with fixed-term employment. The subject
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