Phil. Manpower Services v NLRC

G.R. No. 98450 July 21, 1993

Art. 1250 – Extraordinary inflation or deflation

Facts:

·          Respondent Pangan was dismissed without cause by his employer Adawliah Union Electronics and Afisco Insurance Corporation (Adawliah, for short) based in Alkhobar, Saudi Arabia.

·          He entered into a two-year contract of employment with Adawliah, as a data entry clerk technician.

·          He rendered overtime work of 14 hours and another 24 hours without having received any compensation therefor; worse, he has ordered to work as programmer in addition to his work as data entry clerk technician without any offer to correspondingly increase his salary

·          That Pangan's demand for salary adjustment irked Mr. Ahmed Yosul, Administrative Manager of Adawliah, who thus ordered Pangan's termination on grounds of incompetence.

·          Petitioner Philman justified Pangan's termination as a valid exercise by his employer Adawliah, of its management prerogative to fire employees who proved to be incompetent while still under probation.

·          The POEA found Pangan's complaint meritorious and ordered the petitioners to pay in solidum Pangan's salary for the unexpired portion of his contract and attorney's fees, which the conversion rate to be used shall be that prevailing at the time of payment.

·           But the NLRC modified the rate of exchange to be applied in converting the award, i.e. at the rate of exchange prevailing at the time the complainant's cause of action accrued or at the time he was illegally dismissed because of the erratic devaluation of the Philippine Peso with the US Dollars.

Issue:

WoN the rate of exchange to be applied should be that prevailing at the time the complainant's cause of action or at the time he was illegally dismissed because of deflation.

Held:

            No, the Court disagrees with the NLRC that the proper rate of exchange to be applied in converting the award is NOT that prevailing at the time complainant's cause of action accrued, but that at the time of actual payment as ruled by the POEA.

In similar cases decided by the Court in relation to Art. 1250 of the Civil Code or jurisprudence decrees that the rate of exchange to be applied should be that prevailing at the time of payment.

            In the given case, the proper rate of exchange to be applied in converting the award is that prevailing at the time of payment.

            However, the petition is DISMISSED.