Placewell International Services Corporation v. Camote

YNARES-SANTIAGO, J.:

This Petition for Review on Certiorari under Rule 45 of the Rules of Court assails the September 27, 2005 Decision1 of the Court of Appeals in CA-G.R. SP No. 77145, which set aside the November 20, 2002 Resolution2 of the National Labor Relations Commission (NLRC) and reinstated with modifications the May 31, 2002 Decision3 of Labor Arbiter Arturo L. Gamolo. The records show that on August 15, 1999, petitioner Placewell International Services Corporation (PISC) deployed respondent Ireneo B. Camote to work as building carpenter for SAAD Trading and Contracting Co. (SAAD) at the Kingdom of Saudi Arabia (KSA) for a contract duration of two years, with a corresponding salary of US$370.00 per month. At the job site, respondent was allegedly found incompetent by his foreign employer; thus the latter decided to terminate his services.

However, respondent pleaded for his retention and consented to accept a lower salary of SR 800.00 per month. Thus, SAAD retained respondent until his return to the Philippines two years after. On November 27, 2001, respondent filed a sworn Complaint4 for monetary claims against petitioner alleging that when he arrived at the job site, he and his fellow Filipino workers were required to sign another employment contract written in Arabic under the constraints of losing their jobs if they refused; that for the entire duration of the new contract, he received only SR 590.00 per month; that he was not given his overtime pay despite rendering nine hours of work everyday; that he and his co-workers sought assistance from the Philippine Embassy but they did not succeed in pursuing their cause of action because of difficulties in communication.

On May 31, 2002, the labor arbiter rendered a decision holding that the modification of respondent's employment contract is not allowed under Section 10 of Republic Act No. 8042 (R.A. No. 8042);5 thus, he should have received the original contracted salary of US$370.00 per month instead of the new rate given by SAAD. It was also noted that respondent did not refute petitioner's allegation regarding the non-payment of placement and other processing fees prior to deployment. The labor arbiter also found that there is no differential as far as respondent's overtime pay is concerned considering that he was given overtime pay based on the new rate of SR 800.00.

Since respondent rendered one hour of overtime work per day for only 18 months, and not the entire 24 months as claimed, the total overtime pay he received is more or less equivalent to the amount he ought to have received if the original contracted rate of US$370.00 was used. Finally, the labor arbiter awarded respondent attorney's fees equivalent to 10% of the total judgment award for being compelled to hire a counsel to protect his rights and interests. The dispositive portion of the Decision reads:

WHEREFORE, premises considered, judgment is hereby rendered ORDERING respondent PLACEWELL INTERNATIONAL SERVICES CORPORATION to pay complainant IRENEO B. CAMOTE the amount of PESOS: TWO HUNDRED FIFTEEN THOUSAND FOUR HUNDRED TWENTY FOUR ONLY (P215,424.00) representing underpayment of wages and attorney's fees. SO ORDERED.6 On appeal by the petitioner, the NLRC set aside the Decision of the Labor Arbiter, to wit: WHEREFORE, premises considered, the appealed decision is Vacated and Set Aside. In lieu thereof, a new judgment is rendered, dismissing the above-entitled case for lack of cause of action. SO ORDERED.7 Aggrieved, respondent filed a Petition for Certiorari under Rule 65 in the Court of Appeals which set aside the Resolution of the NLRC, and reinstated with modifications the Decision of the labor arbiter. The appellate court held that there was a diminution of respondent's salary - from a rate of US$370.00 to SR 800.00 per month in clear violation of Section 10 of R.A. No. 8042. As to the alleged incompetence of respondent, the appellate court noted that said allegation has not been substantiated hence should not be given any credence. Thus, for failure of petitioner to show just cause for the demotion of respondent, the appellate court granted the petition, set aside resolution dated November 24, 2000 of the NLRC, and reinstated the decision of the Labor Arbiter dated May 31, 2002, the dispositive portion of which follows: WHEREFORE , premises considered, the petition is GRANTED. The assailed Resolution dated 24 November 2000 of the NLRC, Fifth Division is SET ASIDE and the Decision of the Labor Arbiter dated 31 May 2002 is REINSTATED and AFFIRMED with modifications. The exchange rate shall be that prevailing at the time of actual payment. Private respondent, PLACEWELL INTERNATIONAL SERVICES CORPORATION is hereby ordered jointly and severally liable to pay petitioner, IRENEO B. CAMOTE the following: Per POEA approved contract or $370.00 x (rate of exchange at the time of actual payment) x 24 months = Total salary in the original contract Less: Salary as Modified or SR 800 x P12.00 x 24 months = P230,400.00 Less: Unauthorized Deductions or SR 4,885 x P12 = P171,780.00