Was a Philippine recruitment agency still solidarily liable for the illegal dismissal of an OFW even if it was not a party to the renewed employment contracts abroad? Questcore, Inc. v. Melody A. Bumanglag G.R. No. 253020, December 7, 2022

TOPIC: RIGHTS OF OFWS - PART 1 OF 10 

Was a Philippine recruitment agency still solidarily liable for the illegal dismissal of an OFW even if it was not a party to the renewed employment contracts abroad?

Questcore, Inc. v. Melody A. Bumanglag

G.R. No. 253020, December 7, 2022

---

FACTS

Petitioner Questcore, Inc. is a licensed recruitment agency that deployed Melody A. Bumanglag, a Filipino overseas worker (OFW), to Cosmo Seafoods Ltd. (Cosmo) in Ghana, West Africa, under a one-year contract starting May 10, 2013. After serving her initial term, she was successively rehired and promoted, ultimately becoming Vice General Manager. Her last employment contract spanned May 1, 2016 to April 30, 2017.

However, on October 25, 2016, months before the end of the contract, Cosmo abruptly terminated her employment without just cause and repatriated her to the Philippines. Melody filed a labor complaint for illegal dismissal and sought claims for unpaid wages, compensation for the unexpired portion of her contract, notice pay, and other monetary benefits.

Questcore denied liability, arguing that it was not a party to the renewed contracts and that its solidary obligation with Cosmo, if any, ended with the first contract. They claimed that the agency relationship had lapsed, and any subsequent dealings were purely between Melody and Cosmo.

The Labor Arbiter found illegal dismissal and declared solidary liability between Cosmo and Questcore based on the Recruitment Agreement and the continuing deployment relationship. This decision awarded Melody USD 53,600, including a performance bonus.

The NLRC modified the award by removing the performance bonus and reducing notice pay, affirming that Questcore remained liable despite not signing the later contracts, resulting in USD 28,000 total.

On appeal, the Court of Appeals (CA) further affirmed the solidary liability and granted full reimbursement of placement fees with 12% interest, citing Section 10 of RA 8042 (Migrant Workers Act), as amended by RA 10022.

Questcore elevated the matter to the Supreme Court via Rule 45, raising a pure question of law: Is a local recruitment agency solidarily liable for the illegal dismissal of an OFW under renewed contracts it did not sign?

---

ISSUE BEFORE THE SUPREME COURT

Is Questcore, Inc. solidarily liable with its foreign principal for the illegal dismissal of Melody A. Bumanglag, despite the renewed contracts being signed only between the OFW and the foreign employer without Questcore's participation?

---

RULING

The Supreme Court DENIED the petition.

The Court held that under Section 10 of R.A. No. 8042, the solidary liability of the local recruitment agency persists throughout the duration of the employment, and is not extinguished by contract renewals—even if the agency was not a party to them. The statute clearly mandates that this liability shall not be affected by any substitution, amendment or modification of the contract.

The Court emphasized that Melody’s repeated rehiring was within the scope of Questcore’s deployment, and the recruitment relationship remained valid. Moreover, under Article 18 of the Labor Code, direct hiring by foreign employers is generally prohibited, reinforcing that local agents are indispensable intermediaries.

The Court further rejected Questcore’s invocation of Sunace v. NLRC, clarifying that such doctrines do not override the clear statutory command in RA 8042.

DISPOSITIVE PORTION

ACCORDINGLY, the Petition is DENIED. The Decision dated October 14, 2019 and Resolution dated July 13, 2020 issued by the Court of Appeals in CA-G.R. SP No. 09062-MIN are AFFIRMED.

Petitioner Questcore, Inc. and Cosmo Seafoods Ltd. are hereby ordered to pay respondent Melody A. Bumanglag the following:

1. Wages for the unexpired portion of the employment contract

2. Unpaid wages

3. Cash payment in lieu of notice of termination in the amount of US$ 28,000.00

4. Full reimbursement of her placement fee, with 12% interest per annum from October 25, 2016 until finality

All monetary awards shall earn legal interest at 6% per annum from finality until full satisfaction.

Should local recruitment agencies continue to be held liable for OFW contract renewals they didn’t sign, or should the law evolve to reflect modern employment realities abroad?

---

IMPORTANT DOCTRINES IN THE CASE

1. Section 10, R.A. No. 8042 (as amended by R.A. No. 10022):

   “The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several... Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification...”

   – Recruitment agency liability persists through the entire employment, regardless of renewals or amendments.

2. Article 18, Labor Code:

   “No employer may hire a Filipino worker for overseas employment except through the Boards and entities authorized by the Secretary of Labor.”

   – Foreign employers cannot bypass Philippine recruitment laws by directly hiring OFWs.

3. Gopio v. Bautista (2014):
   – Illegally dismissed OFWs are entitled to indemnity and statutory remedies regardless of whether the recruitment agency had direct participation in the dismissal.

CLASSIFICATION:

Labor Law – focusing on overseas employment, illegal dismissal, and solidary liability of recruitment agencies.

Looking for a reliable and affordable study companion for the 2025 Bar Exams? The Law Requisites PH offers expertly curated digital case digests designed specifically for bar examinees, law students, and legal professionals. With concise, organized content tailored to support your review and legal practice, you can now access these powerful tools for only ₱499. Start strengthening your preparation today by visiting https://beacons.ai/thelawrequisitesph. Your bar success begins with the right resources—get yours now!

📢DISCLAIMER:

This content is for educational purposes only and does not guarantee the infallibility of the legal content presented. All content was created using premium AI tools and reviewed for accuracy to the best of our abilities. Always consult a qualified legal professional for legal advice.

READ FULL TEXT OF THE CASE HERE! 

Welcome to this legal content breakdown! Today, we’re diving into a Supreme Court ruling that explores the extent of liability of Philippine recruitment agencies in overseas employment contracts. This content is designed specifically to help law students, reviewees, and baristas in recalling critical doctrines for both academic mastery and bar readiness.

 

📌 CASE OVERVIEW

Nature of Case: Labor Law – Overseas Filipino Worker (OFW) illegal dismissal and solidary liability of a recruitment agency.
Case Title: Questcore, Inc. vs. Melody A. Bumanglag
G.R. No.: 253020
Date of Promulgation: December 7, 2022
Petitioner: Questcore, Inc.
Respondent: Melody A. Bumanglag

---

🧠 BRIEF SUMMARY AND ISSUE

Melody, an OFW, was deployed to Ghana by Questcore. Despite successive renewals of her contract, she was illegally dismissed before its expiration. Questcore claimed it was no longer liable since it did not sign her renewed contracts.

The Supreme Court rejected this, holding that recruitment agencies remain solidarily liable throughout the entire employment term, regardless of contract modifications or renewals, under Section 10 of RA 8042, as amended.

 

💡 Should local recruitment agencies continue to be liable even for contracts they were not directly involved in renewing?
👉 Drop your thoughts in the comments and let’s discuss!

---

📚 10 IMPORTANT DOCTRINES FROM THE CASE

(Perfect for social media legal learning)

1. Solidary Liability Survives Contract Renewal

Under Sec. 10 of RA 8042, the local agency remains solidarily liable even if not a party to renewed or modified contracts.
— Supreme Court ruling, Questcore v. Bumanglag

2. Recruitment Agency Liability Is Statutory

Agency liability is not contractual but imposed by law to protect OFWs, even absent consent in subsequent contracts.
— RA 8042, Sec. 10

3. Direct Hiring by Foreign Employers is Prohibited

Art. 18 of the Labor Code bans foreign employers from directly hiring OFWs unless through a licensed local agency.
— Questcore v. Bumanglag; Labor Code

4. OFWs Have Fixed-Term Security of Tenure

Terminating an OFW before the contract expires without just cause constitutes illegal dismissal.
— Sameer Overseas Placement v. Cabiles

5. Liability Not Affected by Contract Substitution

The law states that liability of the agency continues even if the contract is substituted or amended abroad.
— RA 8042, Sec. 10

6. Performance Bonus Not Always Recoverable

Labor tribunals may delete bonus claims unless explicitly agreed upon in the employment contract.
— Modified by NLRC in this case

7. 12% Interest on Placement Fee Reimbursement

Reimbursement of placement fees must earn 12% interest per annum from date of illegal dismissal.
— CA Decision affirmed by SC

8. 6% Legal Interest on Monetary Awards

Final monetary awards earn 6% interest per annum from the date of finality until full payment.
— Supreme Court judgment, 2022

9. Email Communications Show Continuing Agency

Ongoing contact between Questcore and Cosmo proved the continuing agency relationship, per the Court.
— SC factual finding

10. Remedy for Recruitment Agency: Reimbursement from Principal

Recruitment agencies held liable may seek reimbursement from their foreign principals.
— SC ruling to balance equities

 

📝 DISCLAIMER: This video is for educational purposes only. It is not legal advice. While carefully researched, we do not guarantee infallibility. This content is generated using premium AI technology and reviewed by a Philippine law professor.

📌 Case Reference: Questcore, Inc. v. Bumanglag, G.R. No. 253020, Dec. 7, 2022 – Supreme Court, Second Division.

🔔 Like, Save, and Subscribe for more law school & bar review content!