Sto. Tomas vs. Salac Facts 1. Migrant workers and Overseas Filipinos Act of 1995 (RA 8042) a.

Enacted June 7, 1995 2. Constitutionality of Sections 29 & 30 a. DOLE commanded to begin deregulating within 1 year the business of handling the recruitment & migration of OFW & phase out within 5 years the regulatory function of POEA b. Petitions i. Nullify DO 10 & POEA Memorandum Circular 15 ii. Prohibit DOLE, POEA & TESDA from implementing them & from further issuing rules & regulations regarding regulation of recruitment & placement of OFW iii. Enjoin them to comply with Secs. 29 & 30 iv. Same petitions also filed by Asian Recruitment Council Philippine Chapter inc (Arcophil) additional prayer to enjoin implementation of 2002 POEA Rules c. RTC decision i. Annulled DO 10, POEA MC 15 & other orders ii. Ordered government agencies to deregulate the recruitment & placement of OFW d. Present petition from government officials (DOLE, POEA, TESDA) i. To annul RTC decision ii. Philippine Association of Service exporters, Inc. & CALEA Confederated Association of Licensed Entertainment Agencies, Incorporated 1. intervene 2. RTC gravely affected them paralyzed the deployment abroad of OFW & performing artists e. RA 9422 signed into law by President GMA i. Pending the case April 10, 2007 ii. Repealed Secs 29 & 30 iii. Adopted the policy of close government regulation of the recruitment and deployment of OFWs iv. Cases against sec. 29 & 30 moot & academic 3. Constitutionality of Secs. 6,7, & 9 a. Filed by Philippine Association of Service exporters, Inc (PASEI) b. Sec 6 i. RTC Manila - unconstitutional 1. Definition of illegal recruitment vague a. Fails to distinguish between licensed & non-licensed recruiters gives undue advantage to non-licensed recruiters in violation of equal protection caluse

ii. SC ruling on Sec 6 definition is clear & unambiguous 1. Distinction defined 2. Guilty of illegal recruitment WON they commit the wrongful acts enumerated a. canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers without appropriate government license or authority 3. Recruiters who engage in canvassing, etc of OFW even if with government license/authority only if they commit any of the wrongful acts in Sec. 6 a. Guilty of illegal recruitment c. Sec. 7 i. RTC Manila unconstitutional 1. Sweeping application of penalties 2. No distinction on seriousness of acts 3. Ex: failure to submit report or obstruction of inspection imprisonment of 6 years & 1 day plus a min. fine of Php 200,000.00 BUT can be life imprisonment if committed by 3 or more persons ii. SC 1. Congress has power to enact such laws wisdom cannot be questioned by the court a. Under police power 2. Ration of tough penalties: to protect OFWs from being shipped out of the country without clear assurance that their contracted principals would treat them fairly & humanely a. OFW must work outside the country & beyond its immediate protection d. Sec. 9 i. RTC Manila unconstitutional 1. Allowing offended parties to file criminal case in their place of residence negates the general rule on venue on criminal cases a. Must be the place where the crime or any of its elements were committed 2. Violates due process ii. SC 1. Nothing arbitrary or unconstitutional just because the rules are different from the venue established by the Rules on Criminal Procedure 2. Sec. 15 9a), Rule 110 allows exceptions provided by laws (subject to existing laws) 4. Constitutionality of Sec. 10, last sentence of 2nd paragraph a. Cases on claim of benefits

i. Spouses Cuaresma claim against Becman service Exporter and Promotion Inc 1. For death of their daughter while working as staff nurse in Saudi Arabia 2. LA dismissed the claim a. They already received insurance benefits from OWWA b. Daughter committed suicide 3. NLRC Becmen & White falcon jointly & severally liable a. Autopsy: criminal violence & rape cause of death 4. CA affirmed NLRC a. Becmen & white Falcon jointly & severally liable with their Saudi Arabian employer for actual damages b. Becmen right of reimbursement from White Falcon 5. SC a. Death not work-connected because rape & death did not occur while she was on duty or doing acts incidental to employment b. Deleted award of actual damages c. Becmens officers solidarily liable with the company for failure to investigate the true nature of death d. Foreign employers jointly & severally liable 6. Constitutionality questioned a. Filed by corporate directors of Becmen b. Issue: WON the 2nd paragraph of Sec. 10, RA 8042, which holds the corporate directors, officers, and partners of recruitment and placement agencies jointly and solidarily liable for money claims and damages that may be adjudged against the latter agencies, is unconstitutional i. RTC QC unconstitutional 1. Absent sufficient proof that officers & directors of the erring company had knowledge of and allowed the illegal recruitment, making them automatically liable against due process ii. SC 1. Liability of corporate directors and officers is not automatic 2. There must be finding that they were remiss in directing the affairs of their company a. Ex: sponsoring or tolerating the conduct of illegal activities 3. Company at fault for not investigating but no evidence against officers that they were personally involved in the companys action/omission in Cuaresmas case 4. RA 8042 a. Police measure to regulate recruitment & deployment of OFW b. Presumption of constitutionality

c. Cannot inquire the wisdom or expediency of law