6/7/2020 E-Library - Information At Your Fingertips: Printer Friendly realm of overseas employment. One existing question is posed before the Court -when should an overseas labor contract be governed by a foreign law? To answer this burning query, a review of the relevant laws and jurisprudence is warranted. R.A. No. 8042, or the Migrant Workers Act, was enacted to institute the policies on overseas employment and to establish a higher standard of protection and promotion of the welfare of migrant workers.[28] It emphasized that while recognizing the significant contribution of Filipino migrant workers to the national economy through their foreign exchange remittances, the State does not promote overseas employment as a means to sustain economic growth and achieve national development.[29] Although it acknowledged claims arising out of law or contract involving Filipino workers,[30] it does not categorically provide that foreign laws are absolutely and automatically applicable in overseas employment contracts. The issue of applying foreign laws to labor contracts was initially raised before the Court in Pakistan International. It was stated in the labor contract therein (1) that it would be governed by the laws of Pakistan, (2) that the employer have the right to terminate the employee at any time, and (3) that the one-month advance notice in terminating the employment could be dispensed with by paying the employee an equivalent one-month salary. Therein, the Court elaborated on the parties' right to stipulate in labor contracts, to wit: A contract freely entered into should, of course, be respected, as PIA argues, since a contract is the law between the parties. The principle of party autonomy in contracts is not, however, an absolute principle. The rule in Article 1306, of our Civil Code is that the contracting parties may establish such stipulations as they may deem convenient, "provided they are not contrary to law, morals, good customs, public order or public policy." Thus, counterbalancing the principle of autonomy of contracting parties is the equally general rule that provisions of applicable law, especially provisions relating to matters affected with public policy, are deemed written into the contract. Put a little differently, the governing principle is that parties may not contract away applicable provisions of law especially peremptory provisions dealing with matters heavily impressed with public interest. The law relating to labor and employment is clearly such an area and parties are not at liberty to insulate themselves and their relationships from the impact of labor laws and regulations by simply contracting with each other. x x x[31] [Emphases Supplied] In that case, the Court held that the labor relationship between OFW and the foreign employer is "much affected with public interest and that the otherwise applicable Philippine laws and regulations cannot be rendered illusory by the parties agreeing upon some other law to govern their relationship."[32] Thus, the Court applied the Philippine laws, instead of the Pakistan laws. It was also held that the provision in the employment contract, where the employer could terminate the employee at any time for any ground and it could even disregard the notice of termination, violates the elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/61749 7/16