8/26/2020
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This public policy should be borne in mind in this case because to allow
foreign employers to determine for and by themselves whether an overseas
contract worker may be dismissed on the ground of illness would encourage
illegal or arbitrary pre-termination of employment contracts.[44] (Citation
omitted)
Indeed, because petitioners' employment contracts were executed in the Philippines,
Philippine laws govern them. Respondents, then, must answer and be held liable under
our laws.
I
Respondents claim that the Compromise Agreement barred petitioners from holding
them liable for claims. This is outright erroneous.
Waivers and quitclaims executed by employees are generally frowned upon for being
contrary to public policy. This is based on the recognition that employers and
employees do not stand on equal footing.[45]
In Land and Housing Development Corporation v. Esquillo:[46]
We have heretofore explained that the reason why quitclaims are commonly
frowned upon as contrary to public policy, and why they are held to be
ineffective to bar claims for the full measure of the workers' legal rights, is
the fact that the employer and the employee obviously do not stand on the
same footing. The employer drove the employee to the wall. The latter must
have to get hold of money. Because, out of a job, he had to face the harsh
necessities of life. He thus found himself in no position to resist money
proffered. His, then, is a case of adherence, not of choice. One thing sure,
however, is that petitioners did not relent on their claim. They pressed it.
They are deemed not [to] have waived any of their rights. Renuntiatio non
praesumitur.
Along this line, we have more trenchantly declared that quitclaims and/or
complete releases executed by the employees do not estop them from
pursuing their claims arising from unfair labor practices of the employer. The
basic reason for this is that such quitclaims and/or complete releases are
against public policy and, therefore, null and void. The acceptance of
termination does not divest a laborer of the right to prosecute his employer
for unfair labor practice acts.[47] (Emphasis in the original)
Quitclaims do not bar employees from filing labor complaints and demanding benefits
to which they are legally entitled.[48] They are "ineffective in barring recovery of the
full measure of a worker's rights, and the acceptance of benefits therefrom does not
amount to estoppel."[49] The law does not recognize agreements that result in
compensation less than what is mandated by law. These quitclaims do not prevent
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