EASTERN SHIPPING LINES, INC., petitioner vs.

PHILIPPINE OVERSEAS
EMPLOYMENT ADMINISTRATION (POEA), MINISTER OF LABOR AND
EMPLOYMENT, HEARING OFFICER ABDUL BASAR and KATHLEEN D. SACO,
respondents.
G.R. No. 76633 October 18, 1988

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 petitioners 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.