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Dacut vs. CA, 2008

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Labor Law I |X.B.K.

Bataan

Case: 172. Lazaro Dacut vs. Court of Appeals, 2008


Topic: Rationale for Prohibition

DOCTRINE: It could not have been the purpose of our law to require their employers
to give them overtime pay or night shift differential, even when they are not actually
working.

PLAINTIFFS DEFENDANTS

Lazaro Dacut, Cesario Cajote and others. Sta. Clara International Transport &
Equipment Corporation (Sta. Clara).

ACTION SEQUENCE: Plaintiffs sued for ID, underpayment, and non–payment of


night shift differentials before the LA; LA dismissed; NLRC Affirmed; CA Affirmed;
hence, this petition before the High Court.

FACTS: Dacut, Cajote and others were crew members of LCT “Basilisa” owned by
Sta. Clara. Dacut discovered a hole in the vessel’s engine room. The company had
the hole patched up with a piece of iron and cement. Despite the repair, Dacut and
Tungala resigned in July 1999 due to the vessel’s alleged un–seaworthiness. Cajote
went on leave to undergo eye treatment. Since then, he has incurred several
unauthorized absences. Fearing that he will be charged as Absent Without Leave
(AWOL), Cajote resigned in June 1999.

Dacut and Cajote filed a complaint before the LA for constructive dismissal
amounting to ID, underpayment, and non–payment of night shift differentials
claiming that they resigned after Secretary of Personnel Manager told them that they
will be paid their separation pay if they voluntarily resigned. They also resigned
because the vessel has become unseaworthy after the company refused to have it
repaired properly. LA dismissed the complaint reasoning that there was sufficient
evidence to prove that the vessel was seaworthy. NLRC and CA affirmed the decision
of LA. Hence, this petition before the SC claiming that the court aquo erred in
holding that Dacut and others voluntarily resigned and thus not constructively
dismissed and holding that they are not entitled to monetary claims.

ISSUE: Whether Dacut, Cajote and others are entitled to monetary claims (overtime
pay and night differentials).

RULING: No, they are not entitled to monetary claims. The High Court reasoned that
as crew members, petitioners were required to stay on board the vessel by the very
nature of their duties, and it is for this reason that, in addition to their regular
compensation, they are given free living quarters and subsistence allowances when
required to be on board. It could not have been the purpose of our law to require
their employers to give them overtime pay or night shift differential, even when they
are not actually working. Thus, the correct criterion in determining whether they are

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Labor Law I |X.B.K. Bataan

entitled to overtime pay or night shift differential is not whether they were on board
and cannot leave ship beyond the regular eight working hours a day, but whether
they actually rendered service in excess of said number of hours.

In this case, petitioners failed to submit sufficient proof that overtime and night shift
work were actually performed to entitle them to the corresponding pay. Hence,
Dacut, Cajote and others are not entitled to monetary claims.

DISPOSITIVE PORTION: WHEREFORE, the instant petition is DENIED. The


Decision dated June 21, 2005 and the Resolution dated August 22, 2005 of the
Court of Appeals in CA-G.R. SP No. 76096 are AFFIRMED. SO ORDERED.

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