G.R. No. 151303 . April 15, 2005
ATHENNA INTERNATIONAL MANPOWER SERVICES, INC., Petitioner, vs. NONITO VILLANOS, Respondent.

FACTS

Athenna International Manpower Services, Inc. recruited Nonito Villanos for work as a caretaker in Taiwan. Villanos alleged he was initially assessed a placement fee of ₱100,000, later reduced to ₱94,000, with ₱30,000 paid upfront and the ₱64,000 balance to be deducted from his salary. His employment contract specified a monthly salary of NT$15,840. Upon arrival in Taiwan, he was assigned as a hydraulic installer/repairer, a different job, and was terminated after barely one month. He was made to sign a document stating he was unqualified, which he refused. Upon repatriation, he demanded a refund of his ₱30,000 from Athenna, which refused and instead presented him with a summary of alleged expenses.
Villanos filed a complaint for illegal dismissal, violation of contract, and recovery of unpaid salaries. Athenna defended that Villanos was hired for a one-year contract with a 40-day probationary period, was found unfit, and voluntarily resigned. The Labor Arbiter ruled in favor of Villanos, a decision reversed by the NLRC but reinstated by the Court of Appeals.

ISSUE

Whether the termination of Villanos was illegal, and whether he is entitled to monetary claims including reimbursement of an illegal placement fee.

RULING

The Supreme Court affirmed the Court of Appeals with modification, ruling the termination was illegal. The employer’s claim that Villanos was a probationary employee found unfit is untenable. Philippine law limits probationary employment to a maximum of six months; the foreign employer’s 40-day probationary period, while possibly valid in the host country, cannot supersede this mandatory Philippine standard for overseas Filipino workers. The termination was without just cause and due process.
Consequently, under Section 10 of Republic Act No. 8042 (Migrant Workers Act), Villanos is entitled to his salary for the unexpired portion of his contract. The Court computed this as at least six months’ salary (NT$15,840 x 6 = NT$95,040), holding Athenna and the foreign employer solidarily liable. The assessed placement fee of ₱94,000 was illegal. However, Villanos is entitled to a refund only of the ₱30,000 he actually paid, plus 12% annual interest, not the entire assessed amount. Moral and exemplary damages of ₱50,000 each, plus attorney’s fees, were also awarded due to the breach of contract and bad faith.