Labor Standards Standard Employment Contract for Entertainers Laches

Chavez is a dancer who was contracted by Centrum Placement & Promotions Corporation
to perform in Japan for 6 months. The contract was for $1.5k a month, which was approved
by POEA. After the approval of said contract, Chavez entered into a side contract reducing
her salary with her Japanese employer through her local manager-agency (Jaz Talents
Promotion). The salary was reduced to $500 and $750 was to go to Jaz Talents. In
February 1991 (two years after the expiration of her contract), Chavez sued Centrum
Placement and Jaz Talents for underpayment of wages before the POEA.
The POEA ruled against her. POEA stated that the side agreement entered into by Chavez
with her Japanese employer superseded the Standard Employment Contract; that POEA
had no knowledge of such side agreement being entered into; that Chavez is barred by
laches for sleeping on her right for two years.
ISSUE: Whether or not Chavez is entitled to relief.
HELD: Yes. The SC ruled that the managerial commission agreement executed by Chavez
to authorize her Japanese Employer to deduct her salary is void because it is against our
existing laws, morals and public policy. 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;
The side agreement which reduced Chavezs basic wage is null and void for violating the
POEAs minimum employment standards, and for not having been approved by the POEA.
Here, both Centrum Placement and Jaz Talents are solidarily liable.
Laches does not apply in the case at bar. In this case, Chavez 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. For this reason, laches is not applicable.