4/29/2020
E-Library - Information At Your Fingertips: Printer Friendly
equivalent to the unexpired portion of his contract, or four months, plus 10% thereof as
attorney’s fees.
Respondents’ Arguments
In seeking affirmance of the assailed CA issuances, respondents basically submit that
the CA committed no reversible error in excluding petitioner’s claims for vacation leave
pay, tonnage bonus, and attorney’s fees. They support and agree with the CA’s
reliance upon Skippers Pacific, Inc. v. Skippers Maritime Services, Ltd.,[22] and
emphasize that in the absence of bad faith on their part, petitioner may not recover
attorney’s fees.
Our Ruling
The Court grants the Petition.
There remains no issue regarding illegal dismissal. In spite of the consistent finding
below that petitioner was illegally dismissed, respondents did not take issue, which
thus renders all pronouncements on the matter final.
In resolving petitioner’s monetary claims, the CA utterly misinterpreted the Court’s
ruling in Skippers Pacific, Inc. v. Skippers Maritime Services, Ltd.,[23] using it to
support a view which the latter case precisely ventured to strike down. In that case,
the employee was hired as the vessel’s Master on a six-months employment contract,
but was able to work for only two months, as he was later on illegally dismissed. The
Labor Arbiter, NLRC, and the CA all took the view that the complaining employee was
entitled to his salary for the unexpired portion of his contract, but limited to only three
months pursuant to Section 10[24] of RA 8042. The Court did not agree and hence
modified the judgment in said case. It held that, following the wording of Section 10
and its ruling in Marsaman Manning Agency, Inc. v. National Labor Relations
Commission,[25] when the illegally dismissed employee’s employment contract has a
term of less than one year, he/she shall be entitled to recovery of salaries representing
the unexpired portion of his/her employment contract. Indeed, there was nothing even
vaguely confusing in the Court’s citation therein of Marsaman:
In Marsaman Manning Agency, Inc. vs. NLRC, involving Section 10 of
Republic Act No. 8042, we held:
[W]e cannot subscribe to the view that private respondent is
entitled to three (3) months salary only. A plain reading of Sec.
10 clearly reveals that the choice of which amount to award an
illegally dismissed overseas contract worker, i.e., whether his
salaries for the unexpired portion of his employment contract or
three (3) months salary for every year of the unexpired term,
whichever is less, comes into play only when the
employment contract concerned has a term of at least one
(1) year or more. This is evident from the [wording] “for every
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/55699
7/12