Compromise Agreement With Quitclaim

The most relevant investigation is whether the consideration for dismissals signed by the workers was reasonable and acceptable. If it is shown that the person who gave up did so voluntarily and with a full understanding of what he or she did and that the review of the right to dismissal is credible, the transaction must be recognized as a valid and binding undertaking. Here, the amount accepted by the petitioners was much smaller than the amount awarded by the labour arbitrator. The consideration of dismissal, a meagre P12,000.00 per employee and the total of P300,000.00 are excessively low and extremely inadequate compared to the P107,380.00 per worker and the total P3,223,261.00 awarded by the worker. Clearly unfair, dismissal is not seen as an obstacle to the continuation of their legitimate claims. The petitioners never accepted the meagre amount they received when they signed the resignation and release. In the Sinumpaang Salaysay, which they executed the next day, they explicitly explained their conscience that the amount they received was unfair and insufficient to answer for their right claims and the distinction of the Arbiter laboratory, but because of the impermeable unemployment, they decided to accept the P12,000.00 in the meantime. The Court also recognizes the “necessity” of workers to accept insufficient amounts of money from their employers. That this compromise agreement/count of any and all Claims constitutes a release, waiver and exit and that no other claim, remedy or procedure of any kind can be filed with a court or government authority against the respondent or any person acting in his or her interest, since all claims relating to the complainant`s previous employment in question have been definitively settled. Clearly, Powertech never intended to pay the P150,000 compromise agreement.

It was only prepared to do so after the NLRC struck down the compromise and reinstated the Labour Arbitrator`s P2.5 million decision.