6/7/2020
E-Library - Information At Your Fingertips: Printer Friendly
employee's right to security of tenure under Articles 280 and 281 of the Labor Code.
In EDI-Staffbuilders, the case heavily relied on by the petitioners, it was reiterated
that, "[i]n formulating the contract, the parties may establish such stipulations,
clauses, terms and conditions as they may deem convenient, provided they are not
contrary to law, morals, good customs, public order, or public policy."[33] In that case,
the overseas contract specifically stated that Saudi Labor Laws would govern matters
not provided for in the contract. The employer, however, failed to prove the said foreign
law, hence, the doctrine of processual presumption came into play and the Philippine
labor laws were applied. Consequently, the Court did not discuss any longer whether
the Saudi labor laws were contrary to Philippine labor laws.
The case of Becmen Service Exporter and Promotion, Inc. v. Spouses Cuaresma,[34]
though not an illegal termination case, elucidated on the effect of foreign laws on
employment. It involved a complaint for insurance benefits and damages arising from
the death of a Filipina nurse from Saudi Arabia. It was initially found therein that there
was no law in Saudi Arabia that provided for insurance arising from labor accidents.
Nevertheless, the Court concluded that the employer and the recruiter in that case
abandoned their legal, moral and social obligation to assist the victim's family in
obtaining justice for her death, and so her family was awarded P5,000,000.00 for moral
and exemplary damages.
In ATCI Overseas Corporation v. Echin[35] (ATCI Overseas), the private recruitment
agency invoked the defense that the foreign employer was immune from suit and that
it did not sign any document agreeing to be held jointly and solidarily liable. Such
defense, however, was rejected because R.A. No. 8042 precisely afforded the OFWs
with a recourse against the local agency and the foreign employer to assure them of an
immediate and sufficient payment of what was due. Similar to EDI-Staffbuilders, the
local agency therein failed to prove the Kuwaiti law specified in the labor contract,
pursuant to Sections 24 and 25 of Rule 132 of the Revised Rules of Court.
Also, in the recent case of Sameer Overseas Placement Agency, Inc. v. Cabiles[36]
(Sameer Overseas), it was declared that the security of tenure for labor was
guaranteed by our Constitution and employees were not stripped of the same when
they moved to work in other jurisdictions. Citing PCL Shipping Phils., Inc. v. NLRC[37]
(PCL Shipping), the Court held that the principle of lex loci contractus (the law of the
place where the contract is made) governed in this jurisdiction. As it was established
therein that the overseas labor contract was executed in the Philippines, the Labor
Code and the fundamental procedural rights were observed. It must be noted that no
foreign law was specified in the employment contracts in both cases.
Lastly, in Saudi Arabian Airlines (Saudia) v. Rebesencio[38], the employer therein
asserted the doctrine of forum non conveniens because the overseas employment
contracts required the application of the laws of Saudi Arabia, and so, the Philippine
courts were not in a position to hear the case. In striking down such argument, the
Court held that while a Philippine tribunal was called upon to respect the parties' choice
of governing law, such respect must not be so permissive as to lose sight of
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/61749
8/16