PERT/CPM MANPOWER EXPONENT CO., INC., petitioner, vs. ARMANDO A.

VINUYA,
et al, respondents.

G.R. No. 197528. September 5, 2012. BRION, J

FACTS: On March 5, 2008, respondent Vinuya et al. filed a complaint for illegal dismissal
against the petitioner Pert/CPM and its President with labor arbiter alleging among others that the
agency deployed them to work as aluminium fabricator/installer for the agency’s principal,
Modern Metal in Dubai, United Arab Emirates for a two-year employment whose contracts were
approved by the POEA providing for nine-hours working day, salary of 1,350 AED with overtime
pay, food allowance, free and suitable housing (four to a room), free transportation, free laundry
and free medical and dental services. However, on April 2, 2007, Modern Metal gave
respondents, except Era, appointment letters different from that of originally signed, increasing
their employment terms and reducing their salaries and allowances and removing certain
benefits. Further, the working conditions were not as promised and they repeatedly complained
with their agency about their predicament but to no avail. Respondents resigned from their job
citing personal/family problems for their resignation except for Era who mentioned the real
reason which is due to the company policy.

After several weeks, petitioner repatriated the respondent to the Philippines who shouldered their
own airfare except for Ordovez and Enjambre. The agency countered that the respondents were
not illegally dismissed alleging that the respondents voluntarily resigned from their employment
to seek a better paying job. The agency furthered alleged that the respondents even voluntarily
signed affidavits of quitclaim and release.

Labor Arbiter dismissed the complaint finding that the respondent voluntarily resigned from their
job. Respondent appealed to the NLRC which reversed the decision of the Labor Arbiter and
found that the respondents were illegally dismissed. NLRC also pointed out that the signing of a
different employment contract in Dubai is illegal. Consequently NLRC ordered the agency and
the principal to pay, jointly and severally the respondents salary, placement fee, and exemplary
damages. The petitioner filed a motion for reconsideration which was denied by the NLRC but
modified their judgment adjusting the awards particularly the payment of their salaries in the light
of the Court’s ruling in Serrano striking down the clause in Section 10, paragraph 5 of the RA
8042 which limits the entitlement of illegally dismissed OFW. The agency again moved for
reconsideration reiterating its earlier argument and questioned the applicability of the Serrano
ruling because it is not yet final and effective but was denied by the NLRC. Petitioner appealed
with CA which upheld the decision of the NLRC finding the resignation letter as dubious.

ISSUE: Whether or not the Serrano ruling which declared the subject Section 10 of RA
8042 unconstitutional can be given retroactive application in the present case

Whether or not RA 10022, which was enacted on March 8, 2010 restoring the subject clause in
Section 10 of RA 8042 being amendatory in nature can be applied retroactively

RULING: The SC held that the Serrano ruling can be given retroactive application as
resolved in Yap vs. Thenamaris Ship’s Management in the interest of equity and that the Serrano
ruling is an exemption to the doctrine of operative fact.

Moreover, the SC held that the amendment introduced by R.A. 10022 cannot be given retroactive
effect not only because there is no express declaration of retroactivity of the law, but because the
retroactive application will result in an impairment of right that had accrued to the respondents by
virtue of the Serrano Ruling. The SC reiterated that all statutes are to be construed as having
only a prospective application, unless the purpose and intention of the legislature to give them
retrospective effect are expressly declared or are necessarily implied from the language used.

HELD: The petition is DENIED. The assailed decision and resolution were AFFIRMED.