4/6/2021
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In this regard, the Court stressed in Romero v. Court of Appeals:[14]
We must hasten to add, however, that where the so-called " potestative
condition " is imposed not on the birth of the obligation but on its fulfillment,
only the condition is avoided , leaving unaffected the obligation itself.
(Citation omitted)
Clearly , the condition set forth in the Addendum is one that is imposed not on the birth
of the contract of employment since the contract has already been perfected, but only
on the fulfillment or performance of their respective obligations, i.e., for petitioner to
render services on board the ship and for respondents to pay him the agreed
compensation for such services. A purely potestative imposition, such as the one in the
Addendum, must be obliterated from the face of the contract without affecting the rest
of the stipulations considering that the condition relates to the fulfillment of an already
existing obligation and not to its inception.[15] Moreover, the condition imposed for the
commencement of the employment relations offends the principle of mutuality of
contracts ordained in Article 1308 of the Civil Code which states that contracts must
bind both contracting parties , and its validity or compliance cannot be left to the will of
one of them. The Court is thus constrained to treat the condition as void and of no
effect, and declare the respective obligations of the parties as unconditional.
Consequently , the employer-employee relationship between petitioner and
respondents should be deemed to have arisen as of the agreed effectivity date of the
contract of employment, or on March 12, 2013.
At this point, it is settled that an employer-employee relationship exists between
respondents and petitioner.
We now come to the issue of whether the Labor Arbiter had jurisdiction over
petitioner's claim for damages arising from breach of contract.
Article 224 (now Art. 217) of the Labor Code provides:
ART. 217. Jurisdiction of Labor Arbiters and the Commission. - (a) Except as
otherwise provided under this Code, the Labor Arbiter shall have original and
exclusive jurisdiction to hear and decide, within thirty (30) calendar days
after the submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with acclaim for reinstatement, those cases that workers
may file involving wages, rate[s] of pay, hours of work and other terms and
conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising
from the employer-employee relations;
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