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LWV Construction Corporation

1. LWV Construction Corporation hired Marcelo B. Dupo as a Civil Structural Superintendent to work in Saudi Arabia. Dupo signed six successive one-year employment contracts between 1992 and 1998. 2. In 1999, Dupo informed his employer that he needed to extend his vacation because his son was hospitalized. He also sought a promotion with a salary adjustment. His employer replied that his services were still needed and issued him a return flight ticket, but Dupo resigned on July 6, 1999. 3. Dupo claimed he was entitled to a service award or longevity pay of $12,640.33 under Saudi labor law for his years of service. The court ruled that Dupo's service

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19 views3 pages

LWV Construction Corporation

1. LWV Construction Corporation hired Marcelo B. Dupo as a Civil Structural Superintendent to work in Saudi Arabia. Dupo signed six successive one-year employment contracts between 1992 and 1998. 2. In 1999, Dupo informed his employer that he needed to extend his vacation because his son was hospitalized. He also sought a promotion with a salary adjustment. His employer replied that his services were still needed and issued him a return flight ticket, but Dupo resigned on July 6, 1999. 3. Dupo claimed he was entitled to a service award or longevity pay of $12,640.33 under Saudi labor law for his years of service. The court ruled that Dupo's service

Uploaded by

Christine Bernal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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LWV CONSTRUCTION CORPORATION VS. MARCELO B.

DUPO
G.R. No. 172342, July 13, 2009

FACTS:
Petitioner, a domestic corporation which recruits Filipino workers, hired
respondent as Civil Structural Superintendent to work in Saudi Arabia for its
principal, Mohammad Al-Mojil Group/Establishment (MMG). On February 26,
1992, respondent signed his first overseas employment contract, renewable after
one year. It was renewed five times on the following dates: May 10, 1993,
November 16, 1994, January 22, 1996, April 14, 1997, and March 26, 1998. All
were fixed-period contracts for one year. The sixth and last contract stated that
respondent's employment starts upon reporting to work and ends when he leaves
the work site. Respondent left Saudi Arabia on April 30, 1999 and arrived in the
Philippines on May 1, 1999.
On May 28, 1999, respondent informed MMG, through the petitioner, that he
needs to extend his vacation because his son was hospitalized. He also sought a
promotion with salary adjustment. In reply, MMG informed respondent that his
promotion is subject to management's review; that his services are still needed; that
he was issued a plane ticket for his return flight to Saudi Arabia on May 31, 1999;
and that his decision regarding his employment must be made within seven days,
otherwise, MMG "will be compelled to cancel [his] slot." On July 6, 1999,
respondent resigned.
Under the Law of Saudi Arabia, an employee who rendered at least five (5) years
in a company within the jurisdiction of Saudi Arabia, is entitled to the so-called
long service award which is known to others as longevity pay of at least one half
month pay for every year of service. In excess of five years an employee is entitled
to one month pay for every year of service. In both cases inclusive of all benefits
and allowances.

ISSUE:
1. WON respondent is entitled to a service award or longevity pay of
US$12,640.33 under the provisions of the Saudi Labor Law; and
2. WON prescription barred respondent's claim for service award as the complaint
was filed one year and seven months after the sixth contract ended.
RULING:
1. Respondent's service award under Article 87 of the Saudi Labor Law has
already been paid.
Article 87 clearly grants a service award. It reads:
Article 87

Where the term of a labor contract concluded for a specified period comes to
an end or where the employer cancels a contract of unspecified period, the
employer shall pay to the workman an award for the period of his service to
be computed on the basis of half a month's pay for each of the first five years and
one month's pay for each of the subsequent years. The last rate of pay shall be
taken as basis for the computation of the award. For fractions of a year, the
workman shall be entitled to an award which is proportionate to his service period
during that year. Furthermore, the workman shall be entitled to the service award
provided for at the beginning of this article in the following cases:

A. If he is called to military service.

B. If a workman resigns because of marriage or childbirth.

C. If the workman is leaving the work as a result of a force majeure beyond his
control.(Emphasis supplied.)

2. On the matter of prescription, however, we cannot agree with petitioner that


respondent's action has prescribed under Article 13 of the Saudi Labor Law. What
applies is Article 291 of our Labor Code which reads:
ART. 291. Money claims. -- All money claims arising from employer-employee
relations accruing during the effectivity of this Code shall be filed within three (3)
years from the time the cause of action accrued; otherwise they shall be forever
barred.

xxxx

In Cadalin v. POEA's Administrator,[27] we held that Article 291 covers all money
claims from employer-employee relationship and is broader in scope than claims
arising from a specific law. It is not limited to money claims recoverable under the
Labor Code, but applies also to claims of overseas contract workers.
Thus, in our considered view, respondent's complaint was filed well within the
three-year prescriptive period under Article 291 of our Labor Code. This point,
however, has already been mooted by our finding that respondent's service award
had been paid, albeit the payroll termed such payment as severance pay.

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