Eastern Overseas Employment Center, Inc., Et. Al. v. Heirs of The Deceased Nomer P.odulio

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Case Title: EASTERN OVERSEAS EMPLOYMENT CENTER, INC., ET. AL. v.

HEIRS OF THE
DECEASED NOMER P.ODULIO, G.R. No. 240950, July 29, 2020 (INTING, J.)

Instruction learned:

1. Whether there is Compulsory Insurance Coverage for Agency-Hired Workers.

The pertinent portion of SEC. 37-A of RA 8042, as amended, provides:

SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired Workers. - In addition to the


performance bond to be filed by the recruitment/manning agency under Section 10,
each migrant worker deployed by a recruitment/manning agency shall be covered by a
compulsory insurance policy which shall be secured at no cost to the said worker. Such
insurance policy shall be effective for the duration of the migrant worker's employment
xxxx

"For migrant workers classified as rehires, name hires or direct hires, they may opt to be
covered by this insurance coverage by requesting their foreign employers to pay for the
cost of the insurance coverage or they may pay for the premium themselves. To protect
the rights of these workers, the POEA shall provide them adequate legal assistance,
including conciliation and mediation services, whether at home or abroad.

As can be gleaned from the foregoing, insurance coverage is compulsory for agency-
hired migrant workers. An Overseas Filipino Worker (OFW) is agency-hired if he/she
has availed himself of the services of a recruitment/manning agency duly authorized by
the Department of Labor and Employment through the POEA.

On the other hand, insurance coverage is not mandatory for direct-hired or name-hired,
and rehired OFWs. An OFW is direct-hired or name-hired if he/she was engaged
directly by foreign employers such as international organizations, diplomatic corps, and
those who were able to get an employment without the assistance or participation of any
recruitment/manning agency. A rehired OFW on the other hand is one who has been re-
engaged by the foreign principal without the participation of an agency. Direct-hired,
name-hired, or rehired OFWs, however, can avail themselves of this insurance by
requesting their foreign employers to pay for the cost of the insurance coverage or they
may pay for the premium themselves.

2. Whether Nomer was covered by a compulsory insurance policy when he went back to
work in Saudi Arabia with Al Awadh Company in June 2011.

Being faced with two interpretations of Nomer's status of employment, the Court is
inclined to rule in favor of Nomer's compulsory insurance policy coverage, in light of
Article 1702 of the Labor Code, which provides that in case of doubt, all labor legislation
and all labor contracts shall be construed in favor of the safety and decent living of the
laborer. While Nomer's OFW Information Sheet indicated that he was a worker-on-
leave, the same document, as earlier discussed, indicated that his redeployment to Al
Awadh Company on June 11, 2011 was by virtue of a new contract. The information
sheet even stated that Eastern Overseas was Nomer's local agent, meaning it was the
agency which processed his new contract with Al Awadh Company in June 2011. This
negates the claim that Nomer was a worker-on-leave when he returned to the
Philippines in April 2011.

To reiterate, insurance coverage is compulsory for agency-hired migrant workers.


Nomer having availed himself of the services of Eastern Overseas in securing his
employment with Al Awadh and deployment to Saudi Arabia in June 2011, the CA aptly
reinstated the findings of facts of the LA and correctly ruled that Nomer was covered by
a compulsory insurance policy.

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