Princess Joy Placement and

General Services, Inc. vs.

German A. Binalla
G.R. No. : 197005. June 4, 2014
Ponente : Arturo M. Brion
Subject
: LABOR (Employment
Reprocessing
Scheme &
Contract
Substitution)
FACTS:
Respondent German A. Binalla,
signed a four-year contract of
employment with Al Adwani as a
staff
nurse
through
a
representative
of
petitioner
Princess Joy Placement and General
Services, inc. It was only after
boarding
a
plane
that
he
discovered that CBM was his
deploying
agency
under
the
contract certified by the POEA for
only two years with higher salary
than those he already signed.
He worked under his contract for 2
years and returned to the Phils.
after posting a bond to guarantee
that he would come back to finish
his 4 year contract. Binalla then
opted not to return to Saudi Arabia
to complete his 4 year contract and
filed a case against Princess Joy &
CBM
on
the
ground
of
reprocessing
scheme
and
contract substitution and violation
the terms of his 4 year contract as
follows:
1. Withholding his initial salary as
a bond to ensure completion of
the 4 year contract
2. Deduction of Placement fee
from his salary
3. Non-payment of overtime pay
4. Refusal to allow him to avail his
vacation and sick leave
5. Deduction of board and lodging
and food allowance which were
supposed to be free
6. Requiring him to post a bond to
guarantee that he would return

when he applied for a vacation

leave after two years of work.
Princess Joy denied that the alleged
representative
who
process
Binallas employment were among
its employees. Binalla showed as
evidence
the
ticket
telegram/advise handed to him by
the supposed representative and
carried with it the names of
Princess
Joy
and
the
representative.
ISSUE:
Whether or not Princess Joy and
CBM is guilty of reprocessing
scheme and contract substitution.
HELD:
Princess Joy is as liable as CBM and
Al
Adwani
for
the
contract
substitution. Binalla worked under
an employment contract whose
terms were inferior to the terms
certified by the POEA. The ticket
telegram/advise is proof enough
that Princess Joy recruited Binalla.
Evidence submitted by the latter
also showed that Princess Joy
entered into recruitment contracts,
hired and placed Filipino workers
for Al Adwani through its President.
Under Article 34 (i) of the Labor
Code on prohibited practices, it
shall be unlawful for any individual,
entity, licensee, or holder of
authority to substitute or alter
employment contracts approved
and verified by the Department of
Labor and Employment from the
time of actual signing
thereof by the parties up to and
including the periods of expiration
of the same without the approval
of the Secretary of Labor. Further,
contract substitution constitutes
illegal
recruitment
under
Article 38 (I) of the Code.

Princess joy and CBM are ordered

to pay jointly and severally
respondents claims.

Digested by:
Jacqueline A. Llabado
April 17, 2015