Breach of contract can cost migrant

worker damage suit

Manila Times · 7 Jul 2017 · PERSIDA ACOSTA Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief
Acosta may be sent to dearpao@manilatimes.net

Dear PAO, I am already scheduled to leave the country to work as an accountant in the Middle East but I
suddenly backed out for personal reasons. As a result, the manager of the recruitment agency became fu-
rious and threatened to le a suit against me unless I pay the expenses that the company allegedly in-
curred to process my documents. I know I am at fault but I don’t havemoney to pay myrecruitment
agency. If the manager pushes with his threat to sue me, what case or cases could I possibly face? Cath
Dear Cath, There are two possible cases that your recruitment agency may le against you, to wit: a civil
case for breach of contract and an administrative case for violation of Philippine Overseas Employment
Administration ( POEA) rules.

An overseas employment contract, like any other kind of contract, establishes a legal tie between the
contracting parties. As a contract, it creates obligations that have the force of law between the contracting
parties, and is to be complied with in good faith ( Article 1159, Civil Code). Should one party fail to comply
with his obligation, the other party is entitled to rescind the obligation. “The injured party may choose
between the ful llment
and the rescission of the obligation, with the payment of damages in either case.” ( Article 1191, Id .) This
action is called breach of contract, which is de ned as a “failure without legal reason to comply with the
terms of a contract” ( Cathay Paci c
Airways, Ltd. v.Vasquez, G. R. No. 150843, March 14, 2003; ponente: former Chief Justice Hilario Davide Jr.
citing Webster’s Third New International Dictionary, 270 ( 1986)).
Such civil liability includes payment of the expenses that the agency incurred to process the overseas em-
ployment of the concerned migrant worker. Under the rules issued by the POEA: “If the deployment of the
worker does not materialize due to his fault, the agency may charge the worker for actual expenses in-
curred in connection with
his recruitment, duly supported by o cial receipts”( Section 4, Rule III, Part III, POEA Rules and Regula-
tions Governing the Recruitment and Employment of Land-based Overseas Workers).
In addition, a person who fails to comply with the terms of an overseas employment contract, particularly
on nondeployment, may become administratively liable. Under the rules, a migrant worker can be sub-
jected to disciplinary action for his “unjusti ed refusal to depart for the worksite after all employment
and travel documents have been duly approved by the appropriate government agencies.” ( Section 1(A)(
2), Rule III, Part VII, Id.) Such violation is considered a serious o ense for which the concerned migrant
worker may be penalized with six ( 6) months and one ( 1) day to one ( 1) year suspension from participa-
tion in the overseas employment program for the rst o ense, or permanent disquali cation if commit-
ted for the second time. ( Section 1 ( A) ( 2), Rule IV, Id.)
You mentioned in your narration that you were already scheduled to leave for overseas employment when
you backed out. We interpret this statement to mean that you and your recruitment agency have already
agreed on the terms and conditions of your overseas employment. As such, you are bound to comply with
your contractual obligation to work overseas, and your failure to comply with your obligation will give
your recruitment agency a ground to le a suit for breach of contract and ask for damages. Further, you
may also be subjected to a disciplinary action under the above- mentioned POEA rule unless you can show
that you have a legitimate reason for your refusal to depart, such as exposure to hazardous, demeaning
working and living conditions, war, plague or other calamities at the worksite and violation of labor laws
of the Philippines, the host country or international labor laws. ( Section 4, Rule III, Part VII, Id.)
We hope this opinion su ciently addressed your concern. Please bear in mind that this opinion is based
on the facts you presented and our appreciation of the same. Our opinion may vary if facts are changed or
elaborated.