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  • Eastern Shipping Vs POEA Digest

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    1. The Philippine Overseas Employment Administration (POEA) had jurisdiction over the case involving the death of Vitaliano Saco, a chief officer killed in an accident in Japan, as the POEA has original and exclusive jurisdiction over cases involving employee-employer relations of Filipino workers overseas. 2. The POEA's Memorandum Circular No. 2, which prescribed a standard employment contract and awarded death benefits to Saco's widow, was a valid exercise of delegated legislative power as the POEA was given sufficient guidelines by the executive order that created it to protect overseas Filipino workers' rights. 3. While the legislature cannot delegate its core law-making function, it can delegate authorities

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    Case Digest

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    5. Eastern Shipping vs POEA Digest

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    1. The Philippine Overseas Employment Administration (POEA) had jurisdiction over the case involving the death of Vitaliano Saco, a chief officer killed in an accident in Japan, as the POEA has original and exclusive jurisdiction over cases involving employee-employer relations of Filipino workers overseas. 2. The POEA's Memorandum Circular No. 2, which prescribed a standard employment contract and awarded death benefits to Saco's widow, was a valid exercise of delegated legislative power as the POEA was given sufficient guidelines by the executive order that created it to protect overseas Filipino workers' rights. 3. While the legislature cannot delegate its core law-making function, it can delegate authorities

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    127 views2 pages

    Eastern Shipping Vs POEA Digest

    Uploaded by

    Ara Belle
    1. The Philippine Overseas Employment Administration (POEA) had jurisdiction over the case involving the death of Vitaliano Saco, a chief officer killed in an accident in Japan, as the POEA has original and exclusive jurisdiction over cases involving employee-employer relations of Filipino workers overseas. 2. The POEA's Memorandum Circular No. 2, which prescribed a standard employment contract and awarded death benefits to Saco's widow, was a valid exercise of delegated legislative power as the POEA was given sufficient guidelines by the executive order that created it to protect overseas Filipino workers' rights. 3. While the legislature cannot delegate its core law-making function, it can delegate authorities

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    © All Rights Reserved
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    of 2

    Bea Maria Giselle B.

    Flauta
    LLB 1CWMSU
    EASTERN SHIPPING LINES, INC., vs. PHILIPPINE OVERSEAS
    EMPLOYMENTADMINISTRATION (POEA)166 SCRA 533, G.R. No. 76633, October 18,
    1988Petitioner:
    Eastern Shipping Lines, Inc.
    Respondents:
    1.

    Philippine Overseas Employment Administration (POEA)2.

    Minister of Labor and Employment3.

    Abdul Basar (Hearing Officer)4.

    Kathleen D. Saco
    Ponente:
    Cruz, J.
    Facts:
    Vitaliano Saco was Chief Officer of the M/V Eastern Polaris when he was killed in an accidentin Tokyo,
    Japan on March 15, 1985.His widow sued for damages under Executive Order No. 797 and Memorandum
    Circular No. 2of the POEA.The petitioner, as owner of the vessel, argued that the complaint was cognizable
    not by thePOEA but by the Social Security System and should have been filed against the State
    FundInsurance.The POEA nevertheless assumed jurisdiction and after considering the position papers of
    theparties ruled in favour of the complainant.The petition is DISMISSED, with costs against the petitioner.
    The temporary restraining orderdated December 10, 1986 is hereby LIFTED. It is so ordered.
    Issue:
    1. Whether or not the POEA had jurisdiction over the case as the husband was not an overseasworker.2.
    Whether or not the validity of Memorandum Circular No. 2 itself as violative of the principleof non-delegation
    of legislative power.
    Held:
    1. Yes. The Philippine Overseas Employment Administration was created under Executive OrderNo. 797,
    promulgated on May 1, 1982, to promote and monitor the overseas employment of Filipinos and to protect
    their rights. It replaced the National Seamen Board created earlier underArticle 20 of the Labor Code in 1974.
    Under Section 4(a) of the said executive order, the POEAis vested with "original and exclusive jurisdiction
    over all cases, including money claims,involving employee-employer relations arising out of or by virtue of
    any law or contractinvolving Filipino contract workers, including seamen." These cases, according to the
    1985Rules and Regulations on Over
    seas Employment issued by the POEA, include, “claims for death,disability and other
    benefits” arising out of such employment.
    The award of P180,000.00 for death benefits and P12,000.00 for burial expenses was made bythe POEA
    pursuant to its Memorandum Circular No. 2, which became effective on February 1,1984. This circular
    prescribed a standard contract to be adopted by both foreign and domesticshipping companies in the hiring of
    Filipino seamen for overseas employment.2. No. Memorandum Circular No. 2 is an administrative regulation.
    The model contractprescribed thereby has been applied in a significant number of the cases without challenge
    by theemployer. The power of the POEA (and before it the National Seamen Board) in requiring themodel
    contract is not unlimited as there is a sufficient standard guiding the delegate in theexercise of the said
    authority. That standard is discoverable in the executive order itself which, increating the Philippine Overseas
    Employment Administration, mandated it to protect the rightsof overseas Filipino workers to "fair and
    equitable employment practices."GENERAL RULE: Non-delegation of powers; exceptionIt is true that
    legislative discretion as to the substantive contents of the law cannot be delegated.What can be delegated is the
    discretion to determine how the law may be enforced, not what thelaw shall be. The ascertainment of the latter
    subject is a prerogative of the legislature. Thisprerogative cannot be abdicated or surrendered by the legislature
    to the delegate.Two Tests of Valid Delegation of Legislative PowerThere are two accepted tests to determine
    whether or not there is a valid delegation of legislativepower,
    viz
    , the completeness test and the sufficient standard test. Under the first test, the lawmust be complete in all its
    terms and conditions when it leaves the legislature such that when itreaches the delegate the only thing he will
    have to do is to enforce it. Under the sufficientstandard test, there must be adequate guidelines or stations in the
    law to map out the boundaries
    of the delegate’s authority and prevent the delegation from running riot.
    Both tests are intended to prevent a total transference of legislative authority to the delegate, whois not allowed
    to step into the shoes of the legislature and exercise a power essentially legislative.The delegation of legislative
    power has become the rule and its non-delegation the exception.
    Rationale for Delegation of Legislative PowerThe reason is the increasing complexity of the task of
    government and the growing inability of the legislature to cope directly with the myriad problems demanding
    its attention. The growth of society has ramified its activities and created peculiar and sophisticated problems
    that thelegislature cannot be expected to reasonably comprehend. Specialization even in legislation hasbecome
    necessary. Too many of the problems attendant upon present-day undertakings, thelegislature may not have
    the competence to provide the required direct and efficacious, not tosay, specific solutions. These solutions
    may, however, be expected from its delegates, who aresupposed to be experts in the particular fields.Power of
    Subordinate LegislationThe reasons given above for the delegation of legislative powers in general are
    particularlyapplicable to administrative bodies. With the proliferation of specialized activities and
    theirattendant peculiar problems, the national legislature has found it more and more necessary toentrust to
    administrative agencies the authority to issue rules to carry out the general provisions
    of the statute. This is called the “power of subordinate legislation.”
    With this power, administrative bodies may implement the broad policies laid down in statute by
    “filling in” the details which the Congress may not have the opportunity or competence to
    provide. Memorandum Circular No. 2 is one such administrative regulation.Administrative agencies are
    vested with two basic powers, the quasi-legislative and quasi- judicial. The first enables them to promulgate
    implementing rules and regulations, and thesecond enables them to interpret and apply such regulations.

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