Feagle Construction Corp. vs.

Gayda, 186 SCRA 589

Posted by Pius Morados on November 10, 2011

(Labor Standards Recruiter not solidarily liable when workers agreed not to hold the recruiter liable)
Facts: Herein respondents, 40 Filipino workers formerly employed with Algosaibi-Bison, Ltd. Requested petitioner recruiter to return
them to their job site in Saudi Arabia. Petitioner informed the workers that it did not want to send back any workers because of the big
risk due to the financial difficulties of Algosaibi-Bison Ltd..
Respondent workers assured petitioner that they were willing to assume the risk and emphasized that they were willing to sign a written
statement indicating that they would not hold petitioner liable for any delay or non-payment of their salaries and any amounts due them
from Algosaibi-Bison, Ltd. It was under the foregoing circumstances that petitioner reluctantly agreed to send back private respondents
to Saudi Arabia to help them in their dire financial need if they would sign the aforementioned statements.
When Algosaibi-Bison Ltd went into bankruptcy, private respondents filed with the POEA a complaint against petitioner for unpaid
claims with the liquidator of Algosaibi-Bison Ltd.
Issue: WON petitioner may be held solidarily liable with the foreign employer for any unpaid claims of private respondents against their
foreign principal employer even as they have a stipulation to this effect.
Held: No. As a rule, a recruiter is solidarily liable with unpaid wages of workers sent abroad. Case at bar is an exception because it was
the workers who persuaded recruiter to send them back abroad despite knowledge that foreign employer might not pay their wages and
they agreed not to hold recruiter responsible thereof.