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Roel Logarta
FACTS:
Petitioner IMS, a recruitment agency, deployed respondent Logarta to work for
Petrocon Arabia Limited in Saudi Arabia. He was deployed for a period of 2 years, with a
monthly salary of 800 USD. Logarta was to work on the projects of Saudi Aramco.
Saudi Aramco reduced the man-hours formerly allotted to Petrocon. Consequently,
Petrocon reduced its personnel and gave Logarta a written notice informing him that he
was given a 30-day notice of termination.
Logarta and his co-employees requested Petrocon to issue them a letter of intent
stating that a No Objection Certificate will be issued to them once they leave Saudi
Arabia. It was granted.
Upon Logarta’s return to the Philippines, he filed with the NLRC a petition against IMS
for the recovery of his unearned salaries on the ground that he was illegally dismissed.
LA: decided in favor of Logarta.
NLRC 4th Division: affirmed.
CA: affirmed. It held that even if Logarto was given a 30-day notice, the copy of the
same was not sent to the DOLE and the requisites for a valid retrenchment were not
present.
ISSUE: WON the Labor Code is applicable to the case at bar.
HELD: YES.
Retrenchment is the reduction of work personnel usually due to poor financial returns,
aimed to cut down costs for operation particularly on salaries and wages. It is one of the
economic grounds to dismiss employees and is resorted by an employer primarily to
avoid or minimize business losses.
Despite the fact that Logarto was employed by Petrocon is Saudi Arabia, both he and his
employer are subject to the provisions of the Labor Code when applicable. All Filipino
workers, whether employed locally or overseas, enjoy the protective mantle of
Philippine labor and social legislations.
Philippine Law recognizes retrenchment as a valid cause for the dismissal of a migrant or
overseas Filipino worker under Article 283 of the Labor Code.
As for the notice requirement, however, contrary to petitioner’s contention, proper
notice to the DOLE within 30 days prior to the intended date of retrenchment is
necessary and must be complied with despite the fact that respondent is an overseas
Filipino worker.