4/10/2020
E-Library - Information At Your Fingertips: Printer Friendly
for the month of December 1998.
Damages
As admitted by Skippers in its Position Paper, the home allotment pay for December
1998 due to De Gracia, Lata and Aprosta is:
Seafarer
De Gracia
Aprosta
Lata
Home Allotment Pay
US$900.00
US$600.00
US$600.00
The monthly salary of De Gracia, according to his employment contract, is only
US$800.00. However, since Skippers admitted in its Position Paper a higher home
allotment pay for De Gracia, we award the higher amount of home allotment pay for De
Gracia in the amount of US$900.00. Since the home allotment pay can be considered
as unpaid salaries, the peso equivalent of the dollar amount should be computed using
the prevailing rate at the time of termination since it was due and demandable to De
Gracia, et al. on 28 January 1999.
Section 10 of Republic Act No. 8042 (Migrant Workers Act) provides for money claims in
cases of unjust termination of employment contracts:
In case of termination of overseas employment without just, valid or
authorized cause as defined by law or contract, the workers shall be entitled
to the full reimbursement of his placement fee with interest of twelve
percent (12%) per annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the unexpired
term, whichever is less.
The Migrant Workers Act provides that salaries for the unexpired portion of the
employent contract or three (3) months for every year of the unexpired term,
whichever is less, shall be awarded to the overseas Filipino worker, in cases of illegal
dismissal. However, in 24 March 2009, Serrano v. Gallant Maritime Services and Marlow
Navigation Co. Inc.,[58] the Court, in an En Banc Decision, declared unconstitutional the
clause "or for three months for every year of the unexpired term, whichever is less"
and awarded the entire unexpired portion of the employment contract to the overseas
Filipino worker.
On 8 March 2010, however, Section 7 of Republic Act No. 10022 (RA 10022) amended
Section 10 of the Migrant Workers Act, and once again reiterated the provision of
awarding the unexpired portion of the employent contract or three (3) months for every
year of the unexpired term, whichever is less.
Nevertheless, since the termination occurred on January 1999 before the passage of
the amendatory RA 10022, we shall apply RA 8042, as unamended, without touching
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/21678
8/14