4/29/2020 E-Library - Information At Your Fingertips: Printer Friendly of dismissal was issued against [Tangga-an]. He arrived in the Philippines on April 4, 2002.[5] Tangga-an filed a Complaint[6] for illegal dismissal with prayer for payment of salaries for the unexpired portion of his contract, leave pay, exemplary and moral damages, attorney’s fees and interest. On January 27, 2004, Labor Arbiter Jose G. Gutierrez rendered a Decision[7] finding petitioner to have been illegally dismissed. The Labor Arbiter noted that in petitioner’s letter to respondent Universe Tankship Delaware, LLC dated April 1, 2002[8] he categorically denied any negligence on his part relative to the delay in the discharge of the cargo while the vessel was berthed in Japan. In view thereof, the Labor Arbiter opined that an investigation should have been conducted in order to ferret out the truth instead of dismissing petitioner outright. Consequently, petitioner’s dismissal was illegal for lack of just cause and for failure to comply with the twin requirements of notice and hearing.[9] As regards petitioner’s claim for back salaries, the Labor Arbiter found petitioner entitled not to four months which is equivalent to the unexpired portion of his contract, but only to three months, inclusive of vacation leave pay and tonnage bonus (or US$8,200 x 3 months = US$24,600) pursuant to Section 10 of Republic Act (RA) No. 8042 or The Migrant Workers and Overseas Filipinos Act of 2005. Regarding petitioner’s claim for damages, the same was denied for failure to prove bad faith on the part of the respondents. However, attorney’s fees equivalent to 10% of the total back salaries was awarded because petitioner was constrained to litigate. The dispositive portion of the Labor Arbiter’s Decision, reads: WHEREFORE, the foregoing premises considered, judgment is hereby rendered finding [Tangga-an] illegally dismissed from his employment and directing the respondent Phil. Transmarine Carriers, Inc. to pay [Tangga-an] the amount of US$24,600.00 PLUS US$2,460.00 attorney’s fees or a total aggregate amount of US Dollars: TWENTY SEVEN THOUSAND SIXTY (US$27,060.00) or its peso equivalent at the exchange rate prevailing at the time of payment. SO ORDERED.[10] Ruling of the National Labor Relations Commission Respondents appealed to the National Labor Relations Commission (NLRC). They claimed that the Labor Arbiter committed grave abuse of discretion in finding that petitioner was illegally dismissed; in awarding unearned vacation leave pay and tonnage bonus when the law and jurisprudence limit recovery to the employee’s basic elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/55699 3/12