Department of Foreign Affairs vs NLRC : 113191 : September 18, 1996...
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http://sc.judiciary.gov.ph/jurisprudence/1996/sept1996/113191.htm
[Syllabus]
FIRST DIVISION
[G.R. No. 113191. September 18, 1996]
DEPARTMENT OF FOREIGN AFFAIRS, petitioner, vs. NATIONAL LABOR
RELATIONS COMMISSION, HON. LABOR ARBITER NIEVES V. DE
CASTRO and JOSE C. MAGNAYI, respondents.
DECISION
VITUG, J.:
The questions raised in the petition for certiorari are a few coincidental matters relative to the
diplomatic immunity extended to the Asian Development Bank ("ADB").
On 27 January 1993, private respondent initiated NLRC-NCR Case No. 00-01-0690-93 for
his alleged illegal dismissal by ADB and the latter's violation of the "labor-only" contracting law.
Two summonses were served, one sent directly to the ADB and the other through the
Department of Foreign Affairs ("DFA"), both with a copy of the complaint. Forthwith, the ADB and
the DFA notified respondent Labor Arbiter that the ADB, as well as its President and Officers,
were covered by an immunity from legal process except for borrowings, guaranties or the sale of
securities pursuant to Article 50(1) and Article 55 of the Agreement Establishing the Asian
Development Bank (the "Charter") in relation to Section 5 and Section 44 of the Agreement
Between The Bank And The Government Of The Philippines Regarding The Bank's
Headquarters (the "Headquarters Agreement").
The Labor Arbiter took cognizance of the complaint on the impression that the ADB had
waived its diplomatic immunity from suit. In time, the Labor Arbiter rendered his decision, dated
31 August 1993, that concluded:
"WHEREFORE, above premises considered, judgment is hereby rendered declaring the complainant as a
regular employee of respondent ADB, and the termination of his services as illegal. Accordingly,
respondent Bank is hereby ordered:
"1. To immediately reinstate the complainant to his former position effective September 16, 1993;
"2. To pay complainant full backwages from December 1, 1992 to September 15, 1993 in the amount of
P42,750.00 (P4,500.00 x 9 months);
"3. And to pay complainants other benefits and without loss of seniority rights and other privileges and
benefits due a regular employee of Asian Development Bank from the time he was terminated on
December 31, 1992;
"4. To pay 10% attorney's fees of the total entitlements."
[1]
The ADB did not appeal the decision. Instead, on 03 November 1993, the DFA referred the
matter to the National Labor Relations Commission ("NLRC"); in its referral, the DFA sought a
"formal vacation of the void judgment." Replying to the letter, the NLRC Chairman, wrote:
"The undersigned submits that the request for the 'investigation' of Labor Arbiter Nieves de Castro, by the
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