Case Digest: 115 S.C.R.A. 374: Vir-jen Shipping and Marine Services Vs. NLRC

FACTS: 
Seamen namely Rogelio Bisula, Ruben Arroza, Juan Gacutno, Leonilo Atok, Nilo Cruz, Alvaro Andrada, Nemesio Adug, Simplicio Bautista, Romeo Acosta, and Jose Encabo had breached their contract with the Vir-Jen Shipping and Marine Services Inc. when they demanded a salary increase of 50% and that they connoted a threat in the said cablegram that they sent to the shipping company. The Vir-Jen Shipping and Marine Services Inc. denied, as decided by the Prinicipal, Messrs. Kyoei Tanker Company Limited, the said demand of the seamen and wrote the National Seamen Board (NSB) asking permission to cancel the manning contract of the seamen.
 The National Seamen Board (NSB), through its Executive Director Cresencio C. Dayao, authorized the Vir-Jen Shipping to cancel the manning contracts of the seamen, and that they may disembark the whole compliment/crewmembers of the vessel M/T ‘’Jannu’’. Upon the disembarkation of the seamen in Japan and repartriated to Manila, they filed a complaint against Vir-Jen with the NSB for the illegal dismissal and non-payment of the wages.
The seamen appealed the decision of the NSB to the National Labor Relations Commision (NLRC). The NLRC reversed the decision of the NSB on the ground that the termination of the contract was without valid cause. Also, the NLRC required the Vir-Jen Shipping Inc. to pay the wages and other monetary benefits corresponding to the unexpired portion of the employment contract.

 The Vir-jen Shipping Inc. submitted a petition to the Supreme Court for its resolution on the issue that NLRC acted without or in excess of its jurisdiction and that it acted with the grave abuse of discretion. The petitioner maintains that the Minister of Labor may not, under the guise of issuing implementing rules of law, go beyond the clear and unmistakable language of the law and expand it at his discretion.


ISSUE:
 Whether or not that the respondent NLRC acted with grave abuse of discretion, or in excess of its jurisdiction, or contrary to law, and the evidence when it reversed the decision of the NSB



DECISION: 
the petition herein is granted and the decision of the NLRC complained of hereby set aside; the decision of the NSB should stand.