The Supreme Court affirmed that a resignation letter signed by an overseas worker under duress, as a condition for the release of her passport and plane ticket, does not bar her claim for illegal dismissal. This ruling underscores the protection afforded to overseas Filipino workers (OFWs) against unscrupulous employment practices and ensures that their rights are not easily waived through coerced agreements. It reinforces the principle that quitclaims are often viewed with skepticism, especially in labor cases where employees are in a weaker bargaining position.

Coerced Consent or Genuine Resignation? The Case of Hazel Viernes’ Overseas Employment

Hazel Viernes, an overseas Filipino worker (OFW), filed a complaint against Al-Masiya Overseas Placement Agency, Inc. and its Manager, Rosalina Aboy, for illegal or constructive dismissal. Viernes was deployed to Kuwait as a domestic helper but faced multiple unsuccessful placements due to disagreements over working conditions and visa issues. After a series of exploitative experiences, she sought assistance from the Philippine Embassy. Upon her return to the Philippines, Viernes claimed she was forced to sign a resignation letter as a precondition for the release of her passport and plane ticket, prompting her to file the complaint. This case hinges on whether Viernes’ resignation was voluntary or coerced, and the legal implications of a quitclaim executed under such circumstances.

The Labor Arbiter (LA) initially ruled in favor of Viernes, finding that the circumstances surrounding her resignation suggested coercion. The National Labor Relations Commission (NLRC) initially dismissed the appeal due to non-perfection but later granted reconsideration, affirming the LA’s decision. The Court of Appeals (CA) also upheld Viernes’ entitlement to her money claims, emphasizing that quitclaims are frowned upon unless proven to be voluntarily executed. Petitioners elevated the case to the Supreme Court, questioning the CA’s decision and the NLRC’s failure to recognize the validity of the resignation letter and quitclaim. However, the Supreme Court found no merit in the petition.

At the heart of the Supreme Court’s decision is the principle that factual findings of the NLRC, when affirmed by the CA, are generally conclusive. The Court reiterated that it is not a trier of facts and will not substitute its judgment for that of the labor tribunals unless there is a showing of grave abuse of discretion or a clear error in the factual findings. The Court observed that the circumstances surrounding the execution of the resignation letter, affidavit of quitclaim, and final settlement were highly suspect, noting discrepancies in the dates and locations of the documents. The NLRC pointed out a glaring irregularity where the affidavit of quitclaim was purportedly executed in Manila while being verified by the Assistant Labor Attaché in Kuwait.

Verily, the presumption of regularity of official acts, without a doubt, does not lie in the issue under consideration as the evidence on record point to the unmistakable conclusion that the circumstances surrounding the execution of [respondent’s] resignation letter, affidavit of quitclaim, and final settlement are highly suspect.

Furthermore, the Supreme Court emphasized the policy against enforcing quitclaims, waivers, or releases that undermine a worker’s legal rights. Citing Phil. Employ Services and Resources, Inc. v. Paramio, the Court reiterated that quitclaims are often viewed with disfavor due to the unequal bargaining positions of employers and employees, often resulting in contracts of adherence rather than genuine agreements. In this case, the LA found that Viernes was compelled to sign the resignation letter to secure the release of her passport and plane ticket, indicating a lack of voluntariness. The Supreme Court found no reason to deviate from these findings.

The Court further addressed the issue of constructive dismissal, noting that Viernes’ situation met the criteria for such a finding. Constructive dismissal occurs when continued employment becomes impossible, unreasonable, or unlikely, leaving the employee with no other option but to terminate their employment. Multiple factors contributed to this conclusion. Viernes was not assigned to a permanent employer for the entire contractual period and was instead subjected to a series of unfulfilled job placements. Saad Mutlaq, her foreign employer, failed to secure a working visa for her, violating POEA requirements. Viernes was underpaid, receiving only a fraction of her stipulated monthly salary. Perhaps the most disturbing factor, her employers had clear intentions to use her as an entertainer in establishments of ill-repute.

Referring to similar cases such as Torreda v. Investment and Capital Corporation of the Philippines, the Court affirmed that employers cannot force employees to resign through improper means. The demand to sign a prepared resignation letter as a condition for the release of essential documents constitutes coercion, rendering the resignation involuntary. In this case, the Court found that it was logical for Viernes to consider herself constructively dismissed, given the unreasonableness and unlikelihood of continued employment. This was because of Mutlaq’s clear intention to use Viernes as an entertainer, as noted by the NLRC.

Under the law, there are no shortcuts in terminating the security of tenure of an employee.

The Court highlighted the importance of protecting OFWs, who often belong to a disadvantaged class vulnerable to exploitation. It emphasized the need for employers to observe good faith and candor in their dealings with employees, particularly in matters involving the waiver of rights. In the words of the Court in Olarte v. Nayona, “The least we can do is to protect them with our laws.” The Supreme Court strongly denounced the employer’s conduct, reiterating that employers are bound to observe fairness in their relationships with their employees.

Ultimately, the Supreme Court upheld the CA’s decision, affirming the monetary awards granted to Viernes by the LA. It modified the ruling to include a legal interest rate of 6% per annum on all monetary awards, accruing from the date the decision becomes final and executory until full satisfaction. This ruling serves as a reminder to employers of their obligations towards OFWs and reinforces the legal protections available to these vulnerable workers.

FAQs

What was the key issue in this case?	The central issue was whether Hazel Viernes was illegally or constructively dismissed and whether the resignation letter she signed was valid, considering it was a precondition for the release of her passport and plane ticket. The court had to determine if her resignation was voluntary or coerced.
What is constructive dismissal?	Constructive dismissal occurs when an employer’s actions make continued employment impossible, unreasonable, or unlikely, forcing the employee to resign. It involves acts of discrimination, insensibility, or disdain that render the working conditions unbearable.
Are quitclaims always valid?	No, quitclaims are not always valid, especially in labor cases where there is a disparity in bargaining power between the employer and employee. Courts often view quitclaims with skepticism and require proof that they were executed voluntarily, with full understanding of the consequences.
What factors did the court consider in determining whether the resignation was coerced?	The court considered that Viernes was required to sign the resignation letter to get her passport and plane ticket back. The court also considered the irregularities in the documentation, such as the conflicting locations of the affidavit’s execution and verification.
What is the significance of the NLRC’s factual findings?	The factual findings of the NLRC, when confirmed by the CA, are generally conclusive and binding on the Supreme Court. The Supreme Court defers to the expertise of the labor tribunals in resolving questions of fact, unless there is a showing of grave abuse of discretion or clear error.
What protection does the law provide to OFWs?	Philippine law provides significant protection to OFWs, recognizing their vulnerability to exploitation. The law aims to ensure fair treatment, safe working conditions, and adequate compensation for OFWs, and to prevent them from being coerced into waiving their rights.
What are the implications of this ruling for employers?	This ruling reminds employers of their obligations to treat employees fairly and in good faith, especially in overseas employment contexts. Employers should ensure that any agreements with employees are voluntary and not obtained through coercion or undue pressure.
What was the final decision of the Supreme Court in this case?	The Supreme Court denied the petition and affirmed the CA’s decision, which upheld the monetary awards granted to Viernes by the LA. It also added a legal interest rate of 6% per annum on the monetary awards from the date the decision becomes final and executory until full satisfaction.

This case reaffirms the judiciary’s commitment to protecting the rights of overseas Filipino workers and ensuring that they are not exploited or coerced into waiving their legal entitlements. It serves as a warning to employers who attempt to circumvent labor laws and a reminder of the importance of fair and ethical employment practices.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: AL-MASIYA OVERSEAS PLACEMENT AGENCY, INC. AND ROSALINA ABOY vs. HAZEL A. VIERNES, G.R. No. 216132, January 22, 2020