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admin digest cases
EASTERN SHIPPING LINES, INC., vs. POEA (166 SCRA 533, G.R. No. 76633, October 18, 1988)
FACTS: In this case, there was a certain Vitaliano Saco was Chief Officer of the M/V Eastern Polaris when he was killed in an accident in Tokyo, Japan on March 15, 1985. His widow sued for damages under Executive Order No. 797 and Memorandum Circular No. 2 of the POEA. The petitioner, as owner of the vessel, argued that the complaint was cognizable not by the POEA but by the Social Security System and should have been filed against the State Fund Insurance. The POEA nevertheless assumed jurisdiction and after considering the position papers of the parties ruled in favor of the complainant. The petition is dismissed with costs against the petitioner.
ISSUE: Whether or not the validity of Memorandum Circular No. 2 is violative of the principle of non-delegation of legislative power.
RULING: The Supreme Court ruled in the negative. The High Court ruled that Memorandum Circular No. 2 is an administrative regulation. The model contract prescribed thereby has been applied in a significant number of the cases without challenge by the employer. The power of the POEA (and before it the National Seamen Board) in requiring the model contract is not unlimited as there is a sufficient standard guiding the delegate in the exercise of the said authority. That standard is discoverable in the executive order itself which, in creating the Philippine Overseas Employment Administration, mandated it to protect the rights of overseas Filipino workers to "fair and equitable employment practices." Further, the Court said that it is true that legislative discretion as to the substantive contents of the law cannot be delegated. What can be delegated is the discretion to determine how the law may be enforced, not what the law shall be. The ascertainment of the latter subject is a prerogative of the legislature. This prerogative cannot be abdicated or surrendered by the legislature to the delegate.

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