ATCI OVERSEAS CORPORATION, respondent was validly dismissed for

AMALIA G. IKDAL and MINISTRY her failure to meet the performance

OF PUBLIC HEALTH-KUWAIT vs. rating within the one-year period as
MA. JOSEFA ECHIN,
required under Kuwaits Civil Service
G.R. No. 178551
Laws. Petitioners further contended
CARPIO MORALES, J.:
that Ikdal should not be liable as an
Facts:
officer of petitioner ATCI but the CA
Josefina Echin was hired byaffirmed the NLRC Resolution.
ATCI Overseas Corporation in behalf of
In brushing aside petitioners
its principal-co-petitioner, the Ministry contention that they only acted as
of Public Health of Kuwait for the agent of the Ministry and that they
position of medical technologist under cannot be held jointly and solidarily
a two-year contract, denominated asliable with it, the appellate court noted
(MOA), with a monthly salary ofthat under the law, a private
US$1,200.00.
employment agency shall assume all
Respondent was deployed onresponsibilities for the implementation
February 17, 2000 but was terminatedof the contract of employment of an
from employment on February 11, overseas worker, hence, it can be sued
2001, she not having allegedly passed jointly and severally with the foreign
the
probationary
period. As
theprincipal for any violation of the
Ministry denied respondents request recruitment agreement or contract of
for reconsideration, she returned toemployment.
the Philippines on March 17, 2001,
As to Ikdals liability, the
shouldering her own air fare.
appellate court held that under Sec.
On July 27, 2001, respondent10 of Republic Act No. 8042, the
filed with the NLRC a complaint for Migrant and Overseas Filipinos Act of
illegal dismissal against petitioner ATCI1995, corporate officers, directors
as the local recruitment agency,and partners of a recruitment agency
represented by petitioner, Amalia Ikdal may themselves be jointly and
(Ikdal), and the Ministry, as the foreign solidarily liable with the recruitment
principal.
agency
for
money
claims
and
The Labor Arbiter, finding thatdamages
awarded
to
overseas
petitioners neither showed that thereworkers.
was
just
cause
to
warrant
respondents dismissal nor that sheIssue:
failed to qualify as a regular employee,
Whether
ATCI
Overseas
held that respondent was illegallyCorporation can be sued jointly and
dismissed and accordingly ordered severally with the foreign principal for
petitioners to pay her US$3,600.00, any violation of the contract of
representing her salary for the threeemployment.
months unexpired portion of her
contract.
Ruling:
On appeal of petitioners ATCI
Petitioner ATCI, as a private
and Ikdal, the NLRC affirmed the Laborrecruitment agency, cannot evade
Arbiters decision. They appealed toresponsibility for the money claims of
the CA, contending that their principal, Overseas Filipino workers (OFWs)
the
Ministry,
being
a
foreignwhich it deploys abroad by the mere
government agency, is immune fromexpediency of claiming that its foreign
suit and, as such, the immunity principal is a government agency
extended
to
them;
and
thatclothed with immunity from suit, or

that such foreign principals liability Respecting Ikdals joint and solidary
must first be established before it, as liability as a corporate officer, the
agent, can be held jointly andsame is in order too following the
solidarily liable.
express provision of R.A. 8042 on
In providing for the joint andmoney claims, viz:
solidary liability of private recruitment
SEC. 10.
Money Claims.
agencies with their foreign principals, Notwithstanding any provision of law
Republic Act No. 8042 precisely affordsto the contrary, the Labor Arbiters of
the OFWs with recourse and assuresthe
National
Labor
Relations
them of immediate and sufficientCommission (NLRC) shall have the
payment of what is due them.original and exclusive jurisdiction to
Skippers
United
Pacific
v. hear and decide, within ninety (90)
Maguadexplains:
calendar days after the filing of the
. . . [T]he obligations covenantedcomplaint, the claims arising out of an
in the recruitment agreementemployer-employee relationship or by
entered into by and between thevirtue of any law or contract involving
local
agent
and
its
foreignFilipino
workers
for
overseas
principal are not coterminous withdeployment including claims for actual
the term of such agreement somoral, exemplary and other forms of
that if either or both of the parties damages.
decide to end the agreement, the
The
liability
of
the
responsibilities of such parties towardsprincipal/employer
and
the
the contracted employees under therecruitment/placement agency for any
agreement do not at all end, but the and all claims under this section shall
same extends up to and until thebe joint and several. This provision
expiration
of
the
employmentshall be incorporated in the contract
contracts of the employees recruitedfor overseas employment and shall be
and employed pursuant to the saida condition precedent for its approval.
recruitment agreement. Otherwise,The performance bond to be filed by
this will render nugatory the very the recruitment/placement agency, as
purpose
for
which
the
lawprovided by law, shall be answerable
governing the employment offor all money claims or damages that
workers for foreign jobs abroadmay be awarded to the workers. If the
was enacted.
recruitment/placement agency is
The imposition of joint anda juridical being, the corporate
solidary liability is in line with the officers
and
directors
and
policy of the state to protect andpartners as the case may be, shall
alleviate the plight of the workingthemselves
be
jointly
and
class. Verily, to allow petitioners to solidarily
liable
with
the
simply invoke the immunity from suit corporation or partnership for the
of its foreign principal or to wait for aforesaid claims and damages.
the judicial determination of the
foreign principals liability beforeWHEREFORE, the petition is DENIED.
petitioner can be held liable renders
the law on joint and solidary liability
inutile.