Pacta Privata Juri Publico Derogare Non Possunt

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General Concepts

PEFTOK V. NLRC G.R. No. 124841 | July 31, 1998 Pacta privata juri publico derogare non possunt. (Private agreements cannot derogate from public rights) FACTS: The Labor Arbiter rendered a decision in favor of private respondents. PEFTOK and TIPI are jointly and solidarily liable in said decision. TIPI complied with its share of the obligation which is 50%. Subsequently, private respondents executed a waiver barring all claims they may have against PEFTOK. However, private respondents eventually executed affidavits stating that the waiver was prepared by PEFTOK and was readied for their signatures. They also claimed that they signed the waivers for fear that they will not be given their salaries. ISSUE: Whether or not the waiver is valid. HELD: No. It is decisively clear that they (guards) affixed their signatures to subject waivers and/or quitclaims for fear that they would not be paid their salaries on pay day or worse, still, their services would be terminated if they did not sign those papers. In short, there was no voluntariness in the execution of the quitclaim or waivers in question. It should be borne in mind that in this jurisdiction, quitclaims, waivers or releases are looked upon with disfavor."Necessitous men are not free men." "They are commonly frowned upon as contrary to public policy and ineffective to bar claims for the full measure of the workers' legal rights." With respect to the posting of cash or surety bond, the requirement therefor is mandatory. The bond is sine qua non to the perfection of appeal from the labor arbiter's monetary award. The posting of cash or surety bond is unconditional" and cannot therefore be trifled with. It is the intendment of the law that employees be assured that if they finally prevail in the case, they will receive the monetary award granted them. The bond also serves to discourage employers from using the appeal as a ploy to delay or evade payment of monetary obligations to their employees.

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