TOPIC Recruitment and Placement, Termination of Contract Migrant Worker TITLE Yap v. Thenamaris Ship’s Management G.R. No. 179532, (May 30,2011) DOCTRINE As previously held, the clause “or for three months for every year of the unexpired term, whichever is less” provided in the 5th paragraph of Section 10 of R.A. No. 8042 is unconstitutional for being violative of the rights of Overseas Filipino Workers (OFWs) to equal protection of the laws PETITION for review on certiorari of the decision and resolution of the Court of Appeals NATURE OF CASE FACTS LA NLRC CA ISSUE/S (Primary) Claudio Yap was hired as an electrician for vessel M/T SEASCOUT by Intermare Maritime Agencies, Inc. in behalf of its principal, Vulture Shipping Limited for 12 months as stipulated in employment contract. However, 3 months upon boarding, the vessel was sold which POEA was informed. Yap and other crew members were also informed of the same. Yap was paid his seniority bonus, vacation bonus and extra bonus but refused to accept the payment of one-month basic wage insisting that he is entitled to the payment of unexpired portion of his contract since he was illegally dismissed. Respondent however averred otherwise and that he was validly terminated and entitled only to the payment of the corresponding months he worked (3 months). Stand/Contention Rationale Yap was constructively and illegally dismissed and entitled to salaries for the unexpired portion of his contract for 9 mos Stand/Contention Rationale Affirmed LA findings however There can be no choice to grant only 3 entitled only to 3 mos of salary mos salary for every year of the under Sec. 10 RA 8042. Upon unexpired term because there is no full review, it modified 3 mos to year of unexpired term which this can entitlement to the whole months be applied of the unexpired portion Stand/Contention Rationale Affirmed LA and NLRC findings Employment contract has term of 1 on illegal dismissal but reversed year but was pre-terminated without NLRC finding to entitlement to valid cause to which Yap was paid payment of unexpired portion correspondingly to the months he worked. Hence, Sec. 10 RA 8042 is applicable WON Sec. 10 of RA 8042 is unconstitutional RULING Yes, Sec. 10 of RA 8042 is unconstitutional. As held in Serrano v Gallant Maritime Services Inc, the clause “or for three months for every year of the unexpired term, whichever is less” provided in the 5th paragraph of Section 10 of R.A. No. 8042 is unconstitutional for being violative of the rights of Overseas Filipino Workers (OFWs) to equal protection of the laws. The Court concludes that the subject clause contains a suspect classification in that, in the computation of the monetary benefits of fixedterm employees who are illegally discharged, it imposes a 3-month cap on the claim of OFWs with an unexpired portion of one year or more in their contracts, but none on the claims of other OFWs or local workers with fixedterm employment. The subject clause singles out one classification of OFWs and burdens it with a peculiar disadvantage. NOTES Sec. 10, RA 8042 MONEY CLAIMS.x x x - In case of termination of overseas employment without just, valid or authorized cause as defined by Legal Basis/Provisions 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 Related 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.