7. Termination of Migrant Worker Contract (RA 8042, Sec. 10, as amended by RA 10022)

Under the Migrant Workers’ Act

A worker dismissed from overseas employment without just, valid or authorized cause as defined by law or contract, is entitled to:

• Full reimbursement of the placement fee with interest at 12% per annum PLUS
• Salaries for the entire unexpired portion of the employment contract. (R.A. No. 8042, Sec. 10, as amended by R.A. No. 10022; Serrano v. Gallant Maritime Services, Inc., G.R. No. 167614 (2009); Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 170139 (2014))

Rule after Serrano (2009-present): it invalidated the 3-month salary cap clause

• Full reimbursement of the placement fee with interest at 12% per annum. This decision held that Sec. 10 of 8042, which limited recoverable salaries to the salaries for the unexpired term or three months’ salary for every year of the unexpired term, whichever was less, was unconstitutional for violating the equal protection clause. (Serrano v. Gallant, G.R. No. 167614, 2009)
• Despite the fact that the clause “or for three (3) months for every year of the unexpired term, whichever is less” was reinstated in R.A 8042 upon promulgation of R.A. 10022 in 2010, the Supreme Court reiterated its finding in Serrano v. Gallant Maritime that limiting recoverable salaries to three months’ salary for every year of the unexpired term, whichever was less than the salaries for the full unexpired term, is both a violation of due process and the equal protection clauses of the Constitution. (Sameer Overseas Placement Agency v. Cabiles, G.R. 170139, 2014)