GR 130339; (December, 1998) (Digest)
G.R. No. 130339 December 22, 1998
OMANFIL INTERNATIONAL MANPOWER DEVELOPMENT CORPORATION, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (THIRD DIVISION) and LORA FELIPE, respondents.
FACTS
Eduardo O. Felipe, husband of private respondent Lora Felipe, was hired by Hyundai Engineering through its local agent, petitioner Omanfil International, as an Offshore Rigger in Malaysia. On June 7, 1993, the ferry boat he was on met an accident, and Eduardo was declared dead, with his body never recovered. The Melaka Labor Office in Malaysia issued a certification calculating death benefits under Section 8 of the Malaysian Workmen’s Compensation Act, 1952. The certification presented an ambiguity, stating the computation as “RM1,655 x 45 months = RM74,498.40 (or RM14,400 whichever less) = US$27,902.02.” Hyundai subsequently deposited RM14,400 with the Melaka Labor Office. Lora Felipe claimed she was entitled to the higher amount of US$27,902.02 and that the deposit did not constitute valid payment to her.
ISSUE
The primary issue is the correct amount of death benefits due under Malaysian law and whether the deposit made with the Malaysian labor office validly extinguished the employer’s liability.
RULING
The Supreme Court granted the petition, annulling the NLRC resolutions. The Court clarified the ambiguity in the Melaka Labor Office’s initial certification by relying on a subsequent, authenticated certification from the Director General of Labour of Peninsular Malaysia. This official certification explicitly stated that under Section 8(a) of the Malaysian Workmen’s Compensation Act, the compensation for death is a lump sum equal to forty-five months’ earnings or 14,400 Ringgit, “whichever is the less.” Since Eduardo’s monthly earnings (RM1,655) multiplied by 45 exceeded RM14,400, the mandated amount was conclusively RM14,400, not US$27,902.02. Furthermore, the Court upheld the validity of the payment. Section 10(1) of the same Malaysian law expressly requires that compensation for death “shall be made otherwise than by deposit with the Commissioner,” and a receipt from the Commissioner is a sufficient discharge. Therefore, Hyundai’s compliance with this mandatory procedure by depositing the correct sum with the Melaka Labor Office constituted valid payment that extinguished the employer’s and agency’s obligation. The NLRC’s decision to award a higher amount was based on a misinterpretation and was reversed.