Esalyn Chavez, an entertainment dancer, signed a standard employment contract through a Philippine agency for work in Japan paying $1,500 per month. However, she also signed a "side agreement" authorizing her employer to deduct $250 per month from her salary and pay her manager, reducing her pay to $750 per month. Chavez sued for unpaid wages. The Court ruled the side agreement was void and unenforceable as it violated Philippine law and policy. While some time had passed, the doctrine of laches did not prevent her claim since she filed within the three-year statutory limit for wage claims. The Court awarded Chavez the unpaid portion of her $1,500 monthly salary for six months or $
Esalyn Chavez, an entertainment dancer, signed a standard employment contract through a Philippine agency for work in Japan paying $1,500 per month. However, she also signed a "side agreement" authorizing her employer to deduct $250 per month from her salary and pay her manager, reducing her pay to $750 per month. Chavez sued for unpaid wages. The Court ruled the side agreement was void and unenforceable as it violated Philippine law and policy. While some time had passed, the doctrine of laches did not prevent her claim since she filed within the three-year statutory limit for wage claims. The Court awarded Chavez the unpaid portion of her $1,500 monthly salary for six months or $
Esalyn Chavez, an entertainment dancer, signed a standard employment contract through a Philippine agency for work in Japan paying $1,500 per month. However, she also signed a "side agreement" authorizing her employer to deduct $250 per month from her salary and pay her manager, reducing her pay to $750 per month. Chavez sued for unpaid wages. The Court ruled the side agreement was void and unenforceable as it violated Philippine law and policy. While some time had passed, the doctrine of laches did not prevent her claim since she filed within the three-year statutory limit for wage claims. The Court awarded Chavez the unpaid portion of her $1,500 monthly salary for six months or $
Esalyn Chavez, an entertainment dancer, signed a standard employment contract through a Philippine agency for work in Japan paying $1,500 per month. However, she also signed a "side agreement" authorizing her employer to deduct $250 per month from her salary and pay her manager, reducing her pay to $750 per month. Chavez sued for unpaid wages. The Court ruled the side agreement was void and unenforceable as it violated Philippine law and policy. While some time had passed, the doctrine of laches did not prevent her claim since she filed within the three-year statutory limit for wage claims. The Court awarded Chavez the unpaid portion of her $1,500 monthly salary for six months or $
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196. G.R. No.
109808 March 1, 1995
ESALYN CHAVEZ vs. BONTO-PEREZ Facts: Chavez, an entertainment dancer, entered into a standard employment contract for overseas Filipino artists and entertainers through Philippine representative, Centrum Placement & Promotions Corporation and was approved by POEA. The contract had a duration of two (2) to six (6) months, and petitioner was to be paid a monthly compensation of US$1,5000.00. Subsequently, Chavez executed the following side agreement with her Japanese employer through her local manager, Jaz Talents Promotion to wit: I, ESALYN CHAVEZ, DANCER, do hereby with my own free will and voluntarily have the honor to authorize your good office to please deduct the amount of TWO HUNDRED FIFTY DOLLARS ($250) from my contracted monthly salary of SEVEN HUNDRED FIFTY DOLLARS ($750) as monthly commission for my Manager, Mr. Jose A. Azucena, Jr. That, my monthly salary (net) is FIVE HUNDRED DOLLARS ($500) Chavez instituted the case at bench for underpayment of wages with the. She prayed for the payment of Six Thousand U.S. Dollars (US$6,000.00), representing the unpaid portion of her basic salary for six months. Centrum averred Chavez cannot now demand to pay her the salary based on the processed Employment Contract for she is now considered in bad faith and hence, estopped from claiming thereto thru her own act of consenting and agreeing to receive a salary not in accordance with her contract of employment. Moreover, her self-imposed silence for a long period of time worked to her own disadvantage as she allowed laches to prevail. Issue: WON petitioner can claim her upon her allegation of underpayment of wages. Ruling: Yes, the Court ruled that the “side agreement” which authorize her Japanese Employer to deduct US$250.00 from her monthly basic salary is void because it is against our existing laws, morals and public policy. This side agreement is a scheme all too frequently resorted to by unscrupulous employers against our helpless overseas workers who are compelled to agree to satisfy their basic economic needs. It cannot supersede the standard employment contract approved by the POEA with the following stipulation appended thereto: It is understood that the terms and conditions stated in this Employment Contract are in conformance with the Standard Employment Contract for Entertainers prescribed by the POEA under Memorandum Circular No. 2, Series of 1986. Any alterations or changes made in any part of this contract without prior approval by the POEA shall be null and void. Secondly. The doctrine of laches cannot be applied to petitioner. The question of laches is addressed to the sound discretion of the court, and since it is an equitable doctrine, its application is controlled by equitable considerations. It cannot be worked to defeat justice or to perpetrate fraud and injustice. Petitioner filed her claim well within the three-year prescriptive period for the filing of money claims set forth in Article 291 of the Labor Code.