6/7/2020 E-Library - Information At Your Fingertips: Printer Friendly Arriola, he signed the contract of employment in the Philippines.[8] On June 9, 2008, Arriola started working in Madagascar. After three months, Arriola received a notice of pre-termination of employment,[9] dated September 9, 2009, from SNC-Lavalin. It stated that his employment would be pre-terminated effective September 11, 2009 due to diminishing workload in the area of his expertise and the unavailability of alternative assignments. Consequently, on September 15, 2009, Arriola was repatriated. SNC-Lavalin deposited in Arriola's bank account his pay amounting to Two Thousand Six Hundred Thirty Six Dollars and Eight Centavos (CA$2,636.80), based on Canadian labor law. Aggrieved, Arriola filed a complaint against the petitioners for illegal dismissal and nonpayment of overtime pay, vacation leave and sick leave pay before the Labor Arbiter (LA). He claimed that SNC-Lavalin still owed him unpaid salaries equivalent to the three-month unexpired portion of his contract, amounting to, more or less, One Million Sixty-Two Thousand Nine Hundred Thirty-Six Pesos (P1,062,936.00). He asserted that SNC-Lavalin never offered any valid reason for his early termination and that he was not given sufficient notice regarding the same. Arriola also insisted that the petitioners must prove the applicability of Canadian law before the same could be applied to his employment contract. Employer's Position The petitioners denied the charge of illegal dismissal against them. They claimed that SNC-Lavalin was greatly affected by the global financial crises during the latter part of 2008. The economy of Madagascar, where SNC-Lavalin had business sites, also slowed down. As proof of its looming financial standing, SNC-Lavalin presented a copy of a news item in the Financial Post,[10] dated March 5, 2009, showing the decline of the value of its stocks. Thus, it had no choice but to minimize its expenditures and operational expenses. It re-organized its Health and Safety Department at the Ambatovy Project site and Arriola was one of those affected.[11] The petitioners also invoked EDI-Staffbuilders International, Inc. v. NLRC[12] (EDIStaffbuilders), pointing out that particular labor laws of a foreign country incorporated in a contract freely entered into between an OFW and a foreign employer through the latter's agent was valid. In the present case, as all of Arriola's employment documents were processed in Canada, not to mention that SNC-Lavalin's office was in Ontario, the principle of lex loci celebrationis was applicable. Thus, the petitioners insisted that Canadian laws governed the contract. The petitioners continued that the pre-termination of Arriola's contract was valid for being consistent with the provisions of both the Expatriate Policy and laws of Canada. The said foreign law did not require any ground for early termination of employment, and the only requirement was the written notice of termination. Even assuming that Philippine laws should apply, Arriola would still be validly dismissed because domestic law recognized retrenchment and redundancy as legal grounds for termination. elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/61749 2/16