Skippers United Pacific, Inc. vs. Doza

A seafarer's dismissal is illegal where the employer relies on a self-serving telex to prove voluntary pre-termination, absent the written notice of resignation required by Article 285 of the Labor Code.

Seafarers Napoleon De Gracia, Isidro Lata, and Charlie Aprosta were deployed by local manning agency Skippers United Pacific, Inc. on behalf of its foreign principal, Skippers Maritime Services, Inc., Ltd., to work aboard MV Wisdom Star under POEA-standard contracts. After complaining to a seafarers' union about delayed allotments and unpaid salaries, they were repatriated on 28 January 1999. The employer claimed the seafarers demanded immediate repatriation due to dissatisfaction, while the seafarers claimed illegal dismissal and sought unpaid allotments and salaries.

• Employment Contracts: De Gracia, Lata, and Aprosta were hired under contracts incorporating the terms of POEA Memorandum Circular No. 55, series of 1996. No contract was submitted for Doza.
• Grievances: The seafarers reported delayed home allotments, unpaid salaries, and poor vessel conditions to the Romanian Seafarers Free Union. Only the December 1998 home allotment remained unremitted.
• Repatriation: On 28 January 1999, the seafarers were repatriated to the Philippines.
• Employer's Defense: Skippers presented a telex from the vessel's master claiming De Gracia was intoxicated and disruptive, and a subsequent telex stating the seafarers demanded repatriation due to dissatisfaction. Skippers admitted the unremitted December 1998 allotment but sought to offset it against the seafarers' repatriation expenses, arguing voluntary pre-termination under Section 19(G) of POEA MC 55.

• Credibility of Evidence: The Court of Appeals erred in disregarding the master's telex message, which allegedly proved respondents voluntarily requested repatriation.
• Monetary Claims: The CA erred in awarding backwages and unremitted home allotment, as the Labor Arbiter and NLRC found these claims baseless.
• Attorney’s Fees: The CA erred in awarding attorney's fees despite finding no basis for moral and exemplary damages.

• Illegal Dismissal: Respondents maintained that they were illegally dismissed, arguing the telex was a self-serving document that failed to satisfy the substantial evidence requirement.
• Home Allotment: Respondents asserted entitlement to their unremitted home allotment, which should not be offset by repatriation costs because the dismissal was illegal.

• Validity of Dismissal: Whether respondents were illegally dismissed or voluntarily pre-terminated their contracts.
• Home Allotment: Whether the unremitted home allotment constitutes unpaid salary and whether it can be offset by repatriation expenses.
• Backwages: Whether respondents are entitled to salaries for the unexpired portion of their contracts, notwithstanding the limitation clause in Republic Act No. 8042.
• Attorney's Fees: Whether respondents are entitled to attorney's fees.

• Validity of Dismissal: The dismissal was illegal. The telex presented by the employer was a biased, self-serving document bearing conflicting dates that failed to satisfy the substantial evidence requirement. Article 285 of the Labor Code requires a written notice of resignation; absent such written resignation, the termination is presumed to be employer-initiated.
• Home Allotment: The unremitted home allotment constitutes unpaid salary. Under Section 8 of POEA MC 55, the allotment comprises at least 80% of the seafarer's basic salary. Because the dismissal was illegal, the repatriation expenses cannot be offset against the unremitted allotment.
• Backwages: Respondents are entitled to salaries for the unexpired portion of their contracts. The clause in Section 10 of Republic Act No. 8042 limiting this to "three months for every year of the unexpired term, whichever is less" was declared unconstitutional in Serrano v. Gallant Maritime Services, a ruling given retroactive effect because an unconstitutional clause is inoperative from the outset.
• Attorney's Fees: Attorney's fees of 10% of the total claims were properly awarded under Article 111 of the Labor Code, as the action involved the unlawful withholding of wages.

• Written Notice of Resignation — Article 285 of the Labor Code requires an employee to serve written notice at least one month in advance to terminate an employment contract. Absence of a written resignation creates a presumption that the employer initiated the termination.
• Home Allotment as Salary — Under POEA Memorandum Circular No. 55, the mandatory home allotment (at least 80% of the basic salary) is not an extraordinary money claim but part of the salary owed for services rendered, placing the burden of payment on the employer.
• Retroactivity of Unconstitutional Declarations — A declaration of unconstitutionality applies retroactively to pending cases because an unconstitutional law confers no rights and is inoperative from the outset.

• "In the absence of a written resignation, it is safe to presume that the employer terminated the seafarers."
• "Since said memorandum states that home allotment of seafarers actually constitutes at least eighty percent (80%) of their salary, home allotment pay is not in the nature of an extraordinary money or benefit, but should actually be considered as salary which should be paid for services rendered."
• "The declaration in March 2009 of the unconstitutionality of the clause 'or for three months for every year of the unexpired term, whichever is less' in RA 8042 shall be given retroactive effect to the termination that occurred in January 1999 because an unconstitutional clause in the law confers no rights, imposes no duties and affords no protection."

• Serrano v. Gallant Maritime Services and Marlow Navigation Co. Inc., G.R. No. 167614 (24 March 2009) — Declared unconstitutional the clause in RA 8042 limiting money claims to "three months for every year of the unexpired term, whichever is less," entitling illegally dismissed overseas workers to the full unexpired portion of their contracts. Applied retroactively.
• Yap v. Thenamaris Ship’s Management, G.R. No. 179532 (30 May 2011) — Cited for the proposition that an unconstitutional clause is inoperative and affords no protection, warranting retroactive application.

• Article 285, Labor Code — Requires written notice from the employee at least one month in advance for voluntary resignation; absence of such notice presumes employer-initiated termination.
• Section 8, POEA Memorandum Circular No. 55, series of 1996 — Mandates that the seafarer's allotment shall be at least 80% of the monthly basic salary, classifying it as salary rather than an extraordinary benefit.
• Section 10, Republic Act No. 8042 (Migrant Workers Act) — Provides for money claims in cases of unjust termination; the limiting clause was struck down as unconstitutional.
• Article 111, Labor Code — Authorizes attorney's fees of up to 10% of wages recovered in cases of unlawful withholding.

Brion, Perez, Sereno, and Reyes concurred.