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Facts: Vitaliano Saco, husband of the respondent was Chief Officer of the M/V Eastern
Polaris when he was killed in an accident in Tokyo Japan, March 15, 1985. His widow sued
for damages under Executive Order No. 797 and Memorandum Circular No. 2 of the POEA.
Thus she was awarded the sum of P192,000 by the POEA.
Issues: 1) Whether or not the POEA has jurisdiction over the case, as the husband was
not an overseas worker as contended by the petitioner?
2) Is Memorandum Circular No.2 of the POEA which prescribed a standard contract to
be adopted by both foreign and domestic shipping companies in hiring of Filipino seamen for
overseas employment violative of the principle of non-delegation of powers?
3) Has the petitioner been denied due process because the same POEA that issued
Memorandum Circular No. 2 has also sustained and applied it?
Rulings: 1) Yes. Saco was an overseas employee of the petitioner at the time he met with
the fatal accident in Japan, for he died while under a contract of employment with the
petitioner and alongside petitioner’s vessel while in a foreign country. Overseas employment
as defined under the 1985 Rules and Regulations on Overseas Employment is employment
of a worker outside the Philippines, including employment in board vessels plying
international water, covered by a valid contract.
2) Memorandum Circular No. 2 is an administrative regulation, which has the force
and effect of law. The power of the POEA in requiring the model contract is not unlimited as
there is a sufficient standard guiding the delegated in the exercise of the said authority. It is
discoverable in the executive order itself which in creating the POEA mandated it to protect
the rights of overseas Filipino workers to fair and equitable employment practices.
3) No. Administrative agencies are vested with two basic powers, the quasi-legislative
and the quasi-judicial. The first enables them to promulgate implementing rules and
regulations, and the second enables them to interpret and apply such regulations. Such an
arrangement has been accepted as a fact of life of modern governments and cannot be
considered violative of due process as long as the cardinal rights laid down by Justice Laurel
in the landmark case of Ang Tibay v. Court of Industrial Relations are observed.
Issue: Whether the instant petition complies with the legal requisites for the Court to
exercise its power of judicial review over the case?