Title: Eastern Shipping Lines V.

POEA

G.R. No. 76633 Date: October 18, 1988

Subject / Syllabus Topic: ADMIN LAW- Delegation of Power

Petitioner: Eastern Shipping Lines, Inc. Respondent: POEA, Minister of Labor and Employment, Hearing
officer Abdul Kasar and Kathleen D. Saco

Doctrine:

- What can be delegated is the discretion to determine how the law may be enforced, not what the law shall
be.
- Power of subordinate legislation- administrative bodies may implement the broad policies laid down in a
statute by “filling in” the details which the Congress may not have the opportunity or competence to provide.

Recit Summary:

Vitaliano Saco was an officer in a ship and was killed in an accident in Tokyo, Japan. His wife, private respondent,
filed a complaint for damages against the Eastern Shipping Lines with POEA, based on Memorandum Circular No. 2
issued by POEA which stipulated death benefits and burial expenses for the family of an overseas worker. Petitioner
questioned the validity of the circular stating that Vitaliano Saco is not considered an overseas worker. Nevertheless,
POEA assumed jurisdiction and decided the case.

Facts:

- Private respondent filed a complaint for damages against petitioner for death benefits and burial expenses
when her husband who is an employee of the petitioner was accidently killed in Tokyo, Japan.
- POEA assumed jurisdiction over the case and ruled in favor of private respondent. Based on Memorandum
Circular No. 2 which prescribed a contract to be adopted by both foreign and domestic shipping companies
in the hiring of Filipino seamen for overseas employment.
- Petitioner contends that Vitaliano is not considered an overseas worker and that awarding of the benefits
should be with the Social Security System.
- Petitioner contends that POEA has no authority to promulgate such regulation and that the circular is
violative of the principle of non-delegation of legislative power.
- The authority to issue the regulation is in Sec. 4(a), Executive Order No. 797 which states, “… The
governing Board of the Administration (POEA), as hereunder provided, shall promulgate the necessary rules
and regulations to govern the exercise of the adjudicatory functions of the Administration (POEA).”

Issue/s:

Whether or not Memorandum Circular No. 2 violates the principle of non-delegation of legislative power.

Ruling:

The Court ruled that the Circular does not violate the principle of non-delegation of legislative power. Memorandum
Circular No. 2 is an administrative regulation, which has the force and effect of law. The power of the POEA is
requiring the model contract is not unlimited as there is a sufficient standard in guiding the exercise of the said
authority. It is in the executive order itself which created the POEA to protect the rights of overseas Filipino workers
to fair and equitable employment practices.

Notes: Administrative agencies are vested with two powers, the quasi-legislative which enables them to promulgate
implementing rules and regulations; and the quasi-judicial which enables them to interpret and apply such regulations.