4 G.R. No. 152642 November 13, 2012 G.R. Nos.
184298-99
HON. PATRICIA A. STO.TOMAS, ROSALINDA BALDOZ and LUCITA LAZO, Petitioners, SPOUSES SIMPLICIO AND MILA CUARESMA (for and in behalf of deceased daughter,
vs. Jasmin G. Cuaresma), Petitioners,
REY SALAC, WILLIE D. ESPIRITU, MARIO MONTENEGRO, DODGIE BELONIO, LOLIT vs.
SALINEL and BUDDY BONNEVIE, Respondents. WHITE FALCON SERVICES, INC. and BECMEN SERVICES EXPORTER AND PROMOTION,
INC., Respondents.
x-----------------------x
____________________________________________________________________________
G.R. No. 152710
HON. PATRICIA A. STO. TOMAS, in her capacity as Secretary of Department of Labor and These consolidated cases pertain to the constitutionality of certain provisions
Employment (DOLE), HON. ROSALINDA D. BALDOZ, in her capacity as Administrator, of Republic Act 8042, otherwise known as the Migrant Workers and
Philippine Overseas Employment Administration (POEA), and the PHILIPPINE OVERSEAS Overseas Filipinos Act of 1995.
EMPLOYMENT ADMINISTRATION GOVERNING BOARD, Petitioners,
vs.
HON. JOSE G. PANEDA, in his capacity as the Presiding Judge of Branch 220, Quezon On June 7, 1995, Congress enacted Republic Act R.A. 8042 for among other
City, ASIAN RECRUITMENT COUNCIL PHILIPPINE CHAPTER, INC. (ARCOPHIL), for itself purposes, sets the Government’s policies on overseas employment and
and in behalf of its members: WORLDCARE PHILIPPINES SERVIZO INTERNATIONALE, establishes a higher standard of protection and promotion of the welfare of
INC., STEADFAST INTERNATIONAL RECRUITMENT CORP., VERDANT MANPOWER migrant workers, their families, and overseas Filipinos in distress.
MOBILIZATION CORP., BRENT OVERSEAS PERSONNEL, INC., ARL MANPOWER
SERVICES, INC., DAHLZEN INTERNATIONAL SERVICES, INC., INTERWORLD
PLACEMENT CENTER, INC., LAKAS TAO CONTRACT SERVICES LTD. CO., SSC MULTI- _____________________________________________________________
SERVICES, DMJ INTERNATIONAL, and MIP INTERNATIONAL MANPOWER SERVICES,
represented by its proprietress, MARCELINA I. PAGSIBIGAN, Respondents.
G.R. 152642 and G.R. 152710
(Constitutionality of Sections 29 and 30, R.A. 8042)
x-----------------------x
FACTS:
G.R. No. 167590
Sections 29 and 30 of the Act commanded the Department of Labor
REPUBLIC OF THE PHILIPPINES, represented by the HONORABLE EXECUTIVE
SECRETARY, the HONORABLE SECRETARY OF LABOR AND EMPLOYMENT (DOLE), the
and Employment (DOLE) to begin deregulating within one year of
PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION (POEA), the OVERSEAS its passage the business of handling the recruitment and
WORKERS WELFARE ADMINISTRATION (OWWA), the LABOR ARBITERS OF THE migration of overseas Filipino workers and phase out within five
NATIONAL LABOR RELATIONS COMMISSION (NLRC), the HONORABLE SECRETARY OF years the regulatory functions of the Philippine Overseas
JUSTICE, the HONORABLE SECRETARY OF FOREIGN AFFAIRS and the COMMISSION
ON AUDIT (COA), Petitioners,
Employment Administration (POEA).
vs.
PHILIPPINE ASSOCIATION OF SERVICE EXPORTERS, INC. (P ASEI), Respondent. On January 8, 2002 respondents Salac, et al filed a petition for
certiorari, prohibition and mandamus with application TRO and
x-----------------------x preliminary injunction against petitioners, the DOLE Secretary, the
POEA Administrator, and the TESDA Secretary-General before the
G.R. Nos. 182978-79 RTC of Quezon City. Salac, et al. sought to:
BECMEN SERVICE EXPORTER AND PROMOTION, INC., Petitioner, 1. Nullify DOLE Department Order 10 (DOLE DO 10) and POEA
vs. Memorandum Circular 15 (POEA MC 15);
SPOUSES SIMPLICIO AND MILA CUARESMA (for and in behalf of daughter, Jasmin G.
Cuaresma), WHITE FALCON SERVICES, INC., and JAIME ORTIZ (President of White
Falcon Services, Inc.), Respondents. 2. Prohibit the DOLE, POEA, and TESDA from implementing the
same and from further issuing rules and regulations that would
x-----------------------x regulate the recruitment and placement of overseas Filipino
workers (OFWs); and
3. Enjoin them to comply with the policy of deregulation mandated Whether or not Sections 29 and 30, of R.A. 8042 are unconstitutional.
under Sections 29 and 30 of Republic Act 8042.
RULING:
On March 20, 2002, the Quezon City RTC granted the petition and
ordered the government agencies mentioned to deregulate the The repeal of Sections 29 and 30 of R.A. 8042 renders the issues they raised
recruitment and placement of OFWs and also annulled DOLE DO by their action moot and academic.
10, POEA MC 15, and all other orders, circulars and issuances that
are inconsistent with the policy of deregulation under R.A. 8042. On December 4, 2008, however, the Republic informed7 the Court that on
April 10, 2007 former President Gloria Macapagal-Arroyo signed into
Prompted by the RTC’s above actions, the government officials law R.A. 9422 which expressly repealed Sections 29 and 30 of R.A. 8042
concerned filed the present petition in G.R. 152642 seeking to and adopted the policy of close government regulation of the
annul the RTC’s decision and have the same enjoined pending recruitment and deployment of OFWs. R.A. 9422 pertinently provides:
action on the petition.
xxxx
On April 17, 2002 the Philippine Association of Service Exporters,
Inc. intervened in the case before the Court, claiming that the RTC SEC. 1. Section 23, paragraph (b.1) of Republic Act No. 8042, otherwise
Decision gravely affected them since it paralyzed the known as the "Migrant Workers and Overseas Filipinos Act of 1995" is
deployment abroad of OFWs and performing artists. The hereby amended to read as follows:
Confederated Association of Licensed Entertainment Agencies,
Incorporated (CALEA) intervened for the same purpose. (b.1) Philippine Overseas Employment Administration – The Administration
shall regulate private sector participation in the recruitment and overseas
On May 23, 2002 the Court5 issued a TRO in the case, enjoining the placement of workers by setting up a licensing and registration system. It
Quezon City RTC from enforcing its decision. shall also formulate and implement, in coordination with appropriate entities
concerned, when necessary, a system for promoting and monitoring the
overseas employment of Filipino workers taking into consideration their
In a parallel case, on February 12, 2002 respondents Arcophil, et al. welfare and the domestic manpower requirements.
filed a petition for certiorari and prohibition with application for TRO
and preliminary injunction against the DOLE Secretary, the POEA
In addition to its powers and functions, the administration shall inform
Administrator, and the TESDA Director-General, before the RTC of migrant workers not only of their rights as workers but also of their rights as
Quezon City to enjoin the latter from implementing the 2002 human beings, instruct and guide the workers how to assert their rights and
Rules and Regulations Governing the Recruitment and provide the available mechanism to redress violation of their rights.
Employment of Overseas Workers and to cease and desist from
issuing other orders, circulars, and policies that tend to regulate In the recruitment and placement of workers to service the requirements for
the recruitment and placement of OFWs in violation of the trained and competent Filipino workers of foreign governments and their
policy of deregulation provided in Sections 29 and 30 of R.A. instrumentalities, and such other employers as public interests may require,
8042. the administration shall deploy only to countries where the Philippines has
concluded bilateral labor agreements or arrangements: Provided, That such
On March 12, 2002 the Quezon City RTC rendered an Order, countries shall guarantee to protect the rights of Filipino migrant workers;
and: Provided, further, That such countries shall observe and/or comply with
granting the petition and enjoining the government agencies
the international laws and standards for migrant workers.
involved from exercising regulatory functions over the recruitment
and placement of OFWs.
SEC. 2. Section 29 of the same law is hereby repealed.
This prompted the DOLE Secretary, the POEA Administrator, and
SEC. 3. Section 30 of the same law is also hereby repealed.
the TESDA Director-General to file the present action in G.R.
152710.
On August 20, 2009, respondents Salac, et al. told the Court in G.R. 152642
ISSUE: that they agree with the Republic’s view that the repeal of Sections 29 and 30
of R.A. 8042 renders the issues they raised by their action moot and Provided, however, That the maximum penalty shall be imposed if the person illegally
academic. The Court has no reason to disagree. Consequently, the two recruited is less than eighteen (18) years of age or committed by a non-licensee or
cases, G.R. 152642 and 152710, should be dismissed for being moot and non-holder of authority.
academic.
SEC. 9. Venue. – A criminal action arising from illegal recruitment as defined herein
shall be filed with the Regional Trial Court of the province or city where the offense
____________________________________________________________________ was committed or where the offended party actually resides at the time of the
commission of the offense: Provided, That the court where the criminal action is first
G.R. 167590 filed shall acquire jurisdiction to the exclusion of other courts: Provided, however, That
the aforestated provisions shall also apply to those criminal actions that have already
(Constitutionality of Sections 6, 7, and 9 of R.A. 8042) been filed in court at the time of the effectivity of this Act.
FACTS:
The RTC of Manila declared the following unconstitutional:
1. Section 6 - on the ground that its definition of "illegal
On August 21, 1995, respondent Philippine Association of Service
Exporters, Inc. (PASEI) filed a petition for declaratory relief and recruitment" is vague as it fails to distinguish between
prohibition with prayer for issuance of TRO and writ of preliminary licensed and non-licensed recruiters and for that reason
injunction before the RTC of Manila, seeking to annul Sections 6, gives undue advantage to the non-licensed recruiters in
7, and 9 of R.A. 8042 for being unconstitutional. (PASEI also violation of the right to equal protection of those that operate
sought to annul a portion of Section 10 but the Court will take up this with government licenses or authorities.
point later together with a related case.) 2. Section 7 - on the ground that its sweeping application of
the penalties failed to make any distinction as to the
Section 6 defines the crime of "illegal recruitment" and enumerates the acts seriousness of the act committed for the application of
constituting the same. Section 7 provides the penalties for prohibited acts. the penalty imposed on such violation.
Thus: 3. Section 9 - on the ground that allowing the offended parties
to file the criminal case in their place of residence would
SEC. 6. Definition. – For purposes of this Act, illegal recruitment shall negate the general rule on venue of criminal cases which
mean any act of canvassing, enlisting, contracting, transporting, utilizing, is the place where the crime or any of its essential
hiring, procuring workers and includes referring, contract services, promising
elements were committed. Venue, said the RTC, is
or advertising for employment abroad, whether for profit or not, when
undertaken by a non-license or non-holder of authority contemplated under jurisdictional in penal laws and, allowing the filing of criminal
Article 13(f) of Presidential Decree No. 442, as amended, otherwise known actions at the place of residence of the offended parties
as the Labor Code of the Philippines: Provided, That such non-license or violates their right to due process.
non-holder, who, in any manner, offers or promises for a fee employment
abroad to two or more persons shall be deemed so engaged. It shall likewise ISSUE:
include the following acts, whether committed by any person, whether a non-
licensee, non-holder, licensee or holder of authority:
Whether or not Sections 6, 7 and 9 of R.A. 8042 are unconstitutional.
xxxx
SEC. 7. Penalties. – RULING:
(a) Any person found guilty of illegal recruitment shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more No.
than twelve (12) years and a fine not less than two hundred thousand pesos
(₱200,000.00) nor more than five hundred thousand pesos (₱500,000.00). Illegal recruitment as defined in Section 6 is clear and unambiguous and,
contrary to the RTC’s finding, actually makes a distinction between licensed
(b) The penalty of life imprisonment and a fine of not less than five hundred and non-licensed recruiters. By its terms, persons who engage in
thousand pesos (₱500,000.00) nor more than one million pesos
"canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring
(₱1,000,000.00) shall be imposed if illegal recruitment constitutes economic
sabotage as defined herein.
workers" without the appropriate government license or authority are
guilty of illegal recruitment whether or not they commit the wrongful acts
enumerated in that section. On the other hand, recruiters who engage in the Respondent spouses Simplicio and Mila Cuaresma (the Cuaresmas)
canvassing, enlisting, etc. of OFWs, although with the appropriate filed a claim for death and insurance benefits and damages
government license or authority, are guilty of illegal recruitment only if they against petitioners Becmen Service Exporter and Promotion, Inc.
commit any of the wrongful acts enumerated in Section 6. (Becmen) and White Falcon Services, Inc. (White Falcon) for the
death of their daughter Jasmin Cuaresma while working as staff
Apparently, as for Section 7, in fixing uniform penalties for each of the nurse in Riyadh, Saudi Arabia.
enumerated acts under Section 6, Congress was within its prerogative to
determine what individual acts are equally reprehensible, consistent with the Labor Arbiter (LA): dismissed the claim on the ground that the Cuaresmas
State policy of according full protection to labor, and deserving of the same had already received insurance benefits arising from their daughter’s death
penalties. It is not within the power of the Court to question the wisdom of from the Overseas Workers Welfare Administration (OWWA). The LA also
this kind of choice. Notably, this legislative policy has been further stressed in gave due credence to the findings of the Saudi Arabian authorities that
July 2010 with the enactment of R.A. 10022 which increased even more the Jasmin committed suicide.
duration of the penalties of imprisonment and the amounts of fine for the
commission of the acts listed under Section 7. Obviously, in fixing such tough NLRC: found Becmen and White Falcon jointly and severally liable for
penalties, the law considered the unsettling fact that OFWs must work Jasmin’s death and ordered them to pay the Cuaresmas the amount of
outside the country’s borders and beyond its immediate protection. The law US$113,000.00 as actual damages. The NLRC relied on the Cabanatuan
must, therefore, make an effort to somehow protect them from City Health Office’s autopsy finding that Jasmin died of criminal violence
conscienceless individuals within its jurisdiction who, fueled by greed, are and rape.
willing to ship them out without clear assurance that their contracted
principals would treat such OFWs fairly and humanely. CA: held Becmen and White Falcon jointly and severally liable with their
Saudi Arabian employer for actual damages, with Becmen having a right of
As for Section 9, there is nothing arbitrary or unconstitutional in reimbursement from White Falcon. Becmen and White Falcon appealed the
Congress fixing an alternative venue for violations of Section 6 of R.A. CA Decision to this Court.
8042 that differs from the venue established by the Rules on Criminal
Procedure. Indeed, Section 15(a), Rule 110 of the latter Rules allows SC (G.R. Nos. 182978-79, April 7, 2009): The Court found Jasmin’s death
exceptions provided by laws. Thus: not work-related or work-connected since her rape and death did not
occur while she was on duty at the hospital or doing acts incidental to her
SEC. 15. Place where action is to be instituted.— (a) Subject to existing employment. The Court deleted the award of actual damages but ruled
laws, the criminal action shall be instituted and tried in the court of the that Becmen’s corporate directors and officers are solidarily liable with their
municipality or territory where the offense was committed or where any of its company for its failure to investigate the true nature of her death. Becmen
essential ingredients occurred. (Emphasis supplied)
and White Falcon abandoned their legal, moral, and social duty to assist the
Cuaresmas in obtaining justice for their daughter. Consequently, the Court
Section 9 of R.A. 8042, as an exception to the rule on venue of criminal
held the foreign employer Rajab and Silsilah, White Falcon, Becmen, and the
actions is, consistent with that law’s declared policy of providing a criminal
latter’s corporate directors and officers jointly and severally liable to the
justice system that protects and serves the best interests of the victims of
Cuaresmas for moral damages, exemplary damages, attorney’s fees, and
illegal recruitment.
cost of suit.
__________________________________________________________ On July 16, 2009 the corporate directors and officers of Becmen,
Gumabay, et al filed a motion for leave to Intervene. They
G.R. 167590, G.R. 182978-79, and G.R. 184298-99 questioned the constitutionality of the last sentence of the
(Constitutionality of Section 10, last sentence of 2nd paragraph) second paragraph of Section 10, R.A. 8042 which holds the
Becmen Service Exporter and Promotion, Inc. v. Spouses Cuaresma corporate directors, officers and partners jointly and solidarily
liable with their company for money claims filed by OFWs
FACTS: against their employers and the recruitment firms. The Court
allowed the intervention and admitted Gumabay, et al.’s motion for
reconsideration.
In the case of Becmen and White Falcon, while there is evidence that
ISSUE: these companies were at fault in not investigating the cause of
Jasmin’s death, there is no mention of any evidence in the case against
Whether or not the 2nd paragraph of Section 10, R.A. 8042, which holds the them that intervenors Gumabay, et al., Becmen’s corporate officers and
corporate directors, officers, and partners of recruitment and placement directors, were personally involved in their company’s particular
agencies jointly and solidarily liable for money claims and damages that may actions or omissions in Jasmin’s case.
be adjudged against the latter agencies, is unconstitutional.
As a final note, R.A. 8042 is a police power measure intended to regulate the
RULING: recruitment and deployment of OFWs. It aims to curb, if not eliminate, the
injustices and abuses suffered by numerous OFWs seeking to work abroad.
No. The rule is settled that every statute has in its favor the presumption of
constitutionality. The Court cannot inquire into the wisdom or expediency of
In G.R. 167590 (the PASEI case), the Quezon City RTC held as the laws enacted by the Legislative Department. Hence, in the absence of a
unconstitutional the last sentence of the 2nd paragraph of Section 10 of R.A. clear and unmistakable case that the statute is unconstitutional, the Court
8042. It pointed out that, absent sufficient proof that the corporate officers must uphold its validity.
and directors of the erring company had knowledge of and allowed the illegal
recruitment, making them automatically liable would violate their right to due The Court RECONSIDERS and SETS ASIDE the portion of its Decision in
process of law. G.R. 182978-79 and G.R. 184298-99 that held intervenors Eufrocina
Gumabay, Elvira Taguiam, Lourdes Bonifacio, and Eddie De Guzman jointly
The pertinent portion of Section 10 provides: and solidarily liable with respondent Becmen Services Exporter and
Promotion, Inc. to spouses Simplicia and Mila Cuaresma for lack of a
SEC. 10. Money Claims. – x x x finding in those cases that such intervenors had a part in the act or
omission imputed to their corporation.
The liability of the principal/employer and the recruitment/placement
agency for any and all claims under this section shall be joint and
several. This provision shall be incorporated in the contract for
overseas employment and shall be a condition precedent for its
approval. The performance bond to be filed by the
recruitment/placement agency, as provided by law, shall be
answerable for all money claims or damages that may be awarded to
the workers. If the recruitment/placement agency is a juridical being,
the corporate officers and directors and partners as the case may be,
shall themselves be jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages. (Emphasis
supplied)
But the Court has already held, pending adjudication of this case, that the
liability of corporate directors and officers is not automatic. To make them
jointly and solidarily liable with their company, there must be a finding
that they were remiss in directing the affairs of that company, such as
sponsoring or tolerating the conduct of illegal activities.
(Whether or not the corporate directors and officers of Becmen are jointly
and solidarily liable with their company.) – No.
