8/18/2017 G.R. No.

178551

TodayisFriday,August18,2017

RepublicofthePhilippines
SUPREMECOURT
Manila

THIRDDIVISION

G.R.No.178551October11,2010

ATCIOVERSEASCORPORATION,AMALIAG.IKDALandMINISTRYOFPUBLICHEALTHKUWAIT
Petitioners,
vs.
MA.JOSEFAECHIN,Respondent.

DECISION

CARPIOMORALES,J.:

Josefina Echin (respondent) was hired by petitioner ATCI Overseas Corporation in behalf of its principalco
petitioner,theMinistryofPublicHealthofKuwait(theMinistry),forthepositionofmedicaltechnologistunderatwo
yearcontract,denominatedasaMemorandumofAgreement(MOA),withamonthlysalaryofUS$1,200.00.

Under the MOA,1 all newlyhired employees undergo a probationary period of one (1) year and are covered by
KuwaitsCivilServiceBoardEmploymentContractNo.2.

RespondentwasdeployedonFebruary17,2000butwasterminatedfromemploymentonFebruary11,2001,she
nothavingallegedlypassedtheprobationaryperiod.

AstheMinistrydeniedrespondentsrequestforreconsideration,shereturnedtothePhilippinesonMarch17,2001,
shoulderingherownairfare.

On July 27, 2001, respondent filed with the National Labor Relations Commission (NLRC) a complaint2 for illegal
dismissalagainstpetitionerATCIasthelocalrecruitmentagency,representedbypetitioner,AmaliaIkdal(Ikdal),and
theMinistry,astheforeignprincipal.

ByDecision3 of November 29, 2002, the Labor Arbiter, finding that petitioners neither showed that there was just
causetowarrantrespondentsdismissalnorthatshefailedtoqualifyasaregularemployee,heldthatrespondent
wasillegallydismissedandaccordinglyorderedpetitionerstopayherUS$3,600.00,representinghersalaryforthe
threemonthsunexpiredportionofhercontract.

OnappealofpetitionersATCIandIkdal,theNLRCaffirmedtheLaborArbitersdecisionbyResolution4ofJanuary
26, 2004. Petitioners motion for reconsideration having been denied by Resolution5 of April 22, 2004, they
appealedtotheCourtofAppeals,contendingthattheirprincipal,theMinistry,beingaforeigngovernmentagency,is
immunefromsuitand,assuch,theimmunityextendedtothemandthatrespondentwasvalidlydismissedforher
failure to meet the performance rating within the oneyear period as required under Kuwaits Civil Service Laws.
PetitionersfurthercontendedthatIkdalshouldnotbeliableasanofficerofpetitionerATCI.

ByDecision6ofMarch30,2007,theappellatecourtaffirmedtheNLRCResolution.

InbrushingasidepetitionerscontentionthattheyonlyactedasagentoftheMinistryandthattheycannotbeheld
jointlyandsolidarilyliablewithit,theappellatecourtnotedthatunderthelaw,aprivateemploymentagencyshall
assume all responsibilities for the implementation of the contract of employment of an overseas worker, hence, it
canbesuedjointlyandseverallywiththeforeignprincipalforanyviolationoftherecruitmentagreementorcontract
ofemployment.

As to Ikdals liability, the appellate court held that under Sec. 10 of Republic Act No. 8042, the "Migrant and
OverseasFilipinosActof1995,"corporateofficers,directorsandpartnersofarecruitmentagencymaythemselves
be jointly and solidarily liable with the recruitment agency for money claims and damages awarded to overseas
workers.

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PetitionersmotionforreconsiderationhavingbeendeniedbytheappellatecourtbyResolution7ofJune27,2007,
thepresentpetitionforreviewoncertiorariwasfiled.

Petitioners maintain that they should not be held liable because respondents employment contract specifically
stipulates that her employment shall be governed by the Civil Service Law and Regulations of Kuwait. They thus
concludethatitwaspatenterrorforthelabortribunalsandtheappellatecourttoapplytheLaborCodeprovisions
governingprobationaryemploymentindecidingthepresentcase.

Further, petitioners argue that even the Philippine Overseas Employment Act (POEA) Rules relative to master
employment contracts (Part III, Sec. 2 of the POEA Rules and Regulations) accord respect to the "customs,
practices,companypoliciesandlaborlawsandlegislationofthehostcountry."

Finally, petitioners posit that assuming arguendo that Philippine labor laws are applicable, given that the foreign
principalisagovernmentagencywhichisimmunefromsuit,asinfactitdidnotsignanydocumentagreeingtobe
heldjointlyandsolidarilyliable,petitionerATCIcannotlikewisebeheldliable,moresosincetheMinistrysliability
hadnotbeenjudiciallydeterminedasjurisdictionwasnotacquiredoverit.

Thepetitionfails.

Petitioner ATCI, as a private recruitment agency, cannot evade responsibility for the money claims of Overseas
Filipinoworkers(OFWs)whichitdeploysabroadbythemereexpediencyofclaimingthatitsforeignprincipalisa
governmentagencyclothedwithimmunityfromsuit,orthatsuchforeignprincipalsliabilitymustfirstbeestablished
beforeit,asagent,canbeheldjointlyandsolidarilyliable.

Inprovidingforthejointandsolidaryliabilityofprivaterecruitmentagencieswiththeirforeignprincipals,Republic
ActNo.8042preciselyaffordstheOFWswitharecourseandassuresthemofimmediateandsufficientpaymentof
whatisduethem.SkippersUnitedPacificv.Maguad8explains:

...[T]heobligationscovenantedintherecruitmentagreemententeredintobyandbetweenthelocalagent
anditsforeignprincipalarenotcoterminouswiththetermofsuchagreementsothatifeitherorbothofthe
partiesdecideto endthe agreement,the responsibilitiesofsuchpartiestowardsthe contractedemployeesunder
theagreementdonotatallend,butthesameextendsuptoanduntiltheexpirationoftheemploymentcontractsof
the employees recruited and employed pursuant to the said recruitment agreement. Otherwise, this will render
nugatorytheverypurposeforwhichthelawgoverningtheemploymentofworkersforforeignjobsabroad
wasenacted.(emphasissupplied)

Theimpositionofjointandsolidaryliabilityisinlinewiththepolicyofthestatetoprotectandalleviatetheplightof
theworkingclass.9Verily,toallowpetitionerstosimplyinvoketheimmunityfromsuitofitsforeignprincipalortowait
forthejudicialdeterminationoftheforeignprincipalsliabilitybeforepetitionercanbeheldliablerendersthelawon
jointandsolidaryliabilityinutile.

AstopetitionerscontentionsthatPhilippinelaborlawsonprobationaryemploymentarenotapplicablesinceitwas
expressly provided in respondents employment contract, which she voluntarily entered into, that the terms of her
engagement shall be governed by prevailing Kuwaiti Civil Service Laws and Regulations as in fact POEA Rules
accordrespecttosuchrules,customsandpracticesofthehostcountry,thesamewasnotsubstantiated.

Indeed, a contract freely entered into is considered the law between the parties who can establish stipulations,
clauses, terms and conditions as they may deem convenient, including the laws which they wish to govern their
respectiveobligations,aslongastheyarenotcontrarytolaw,morals,goodcustoms,publicorderorpublicpolicy.

Itishornbookprinciple,however,thatthepartyinvokingtheapplicationofaforeignlawhastheburdenofproving
thelaw,underthedoctrineofprocessualpresumptionwhich,inthiscase,petitionersfailedtodischarge.TheCourts
rulinginEDIStaffbuildersIntl.,v.NLRC10illuminates:

Inthepresentcase,theemploymentcontractsignedbyGranspecificallystatesthatSaudiLaborLawswillgovern
mattersnotprovidedforinthecontract(e.g.specificcausesfortermination,terminationprocedures,etc.).Beingthe
lawintendedbytheparties(lexlociintentiones)toapplytothecontract,SaudiLaborLawsshouldgovernallmatters
relatingtotheterminationoftheemploymentofGran.

Ininternationallaw,thepartywhowantstohaveaforeignlawappliedtoadisputeorcasehastheburdenofproving
theforeignlaw.Theforeignlawistreatedasaquestionoffacttobeproperlypleadedandprovedasthejudgeor
laborarbitercannottakejudicialnoticeofaforeignlaw.Heispresumedtoknowonlydomesticorforumlaw.

Unfortunately for petitioner, it did not prove the pertinent Saudi laws on the matter thus, the International Law
doctrine of presumedidentity approach or processual presumption comes into play. Where a foreign law is not
pleadedor,evenifpleaded,isnotproved,thepresumptionisthatforeignlawisthesameasours.Thus,weapply
Philippinelaborlawsindeterminingtheissuespresentedbeforeus.(emphasisandunderscoringsupplied)
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The Philippines does not take judicial notice of foreign laws, hence, they must not only be alleged they must be
proven.Toproveaforeignlaw,thepartyinvokingitmustpresentacopythereofandcomplywithSections24and
25ofRule132oftheRevisedRulesofCourtwhichreads:

SEC.24.Proofofofficialrecord.Therecordofpublicdocumentsreferredtoinparagraph(a)ofSection19,when
admissibleforanypurpose,maybeevidencedbyanofficialpublicationthereoforbyacopyattestedbytheofficer
havingthelegalcustodyoftherecord,orbyhisdeputy,andaccompanied,iftherecordisnotkeptinthePhilippines,
withacertificatethatsuchofficerhasthecustody.Iftheofficeinwhichtherecordiskeptisinaforeigncountry,the
certificatemaybemadebyasecretaryoftheembassyorlegation,consulgeneral,consul,viceconsul,orconsular
agentorbyanyofficerintheforeignserviceofthePhilippinesstationedintheforeigncountryinwhichtherecordis
kept,andauthenticatedbythesealofhisoffice.(emphasissupplied)

SEC. 25. What attestation of copy must state. Whenever a copy of a document or record is attested for the
purposeoftheevidence,theattestationmuststate,insubstance,thatthecopyisacorrectcopyoftheoriginal,ora
specificpartthereof,asthecasemaybe.Theattestationmustbeundertheofficialsealoftheattestingofficer,if
therebeany,orifhebetheclerkofacourthavingaseal,underthesealofsuchcourt.

To prove the Kuwaiti law, petitioners submitted the following: MOA between respondent and the Ministry, as
representedbyATCI,whichprovidesthattheemployeeissubjecttoaprobationaryperiodofone(1)yearandthat
the host countrys Civil Service Laws and Regulations apply a translated copy11 (Arabic to English) of the
termination letter to respondent stating that she did not pass the probation terms, without specifying the grounds
therefor, and a translated copy of the certificate of termination,12 both of which documents were certified by Mr.
Mustapha Alawi, Head of the Department of Foreign AffairsOffice of Consular Affairs Inslamic Certification and
TranslationUnitandrespondentsletter13ofreconsiderationtotheMinistry,whereinshenotedthatinherfirsteight
(8)monthsofemployment,shewasgivenaratingof"Excellent"albeititchangedduetochangesinhershiftofwork
schedule.

These documents, whether taken singly or as a whole, do not sufficiently prove that respondent was validly
terminated as a probationary employee under Kuwaiti civil service laws. Instead of submitting a copy of the
pertinent Kuwaiti labor laws duly authenticated and translated by Embassy officials thereat, as required
undertheRules,whatpetitionerssubmittedweremerecertificationsattestingonlytothecorrectnessofthe
translationsoftheMOAandtheterminationletterwhichdoesnotproveatallthatKuwaiticivilservicelaws
differfromPhilippinelawsandthatundersuchKuwaitilaws,respondentwasvalidlyterminated.Thusthe
subjectcertificationsread:

xxxx

This is to certify that the herein attached translation/s from Arabic to English/Tagalog and or vice versa was/were
presented to this Office for review and certification and the same was/were found to be in order. This Office,
however,assumesnoresponsibilityastothecontentsofthedocument/s.

This certification is being issued upon request of the interested party for whatever legal purpose it may serve.
(emphasissupplied)1avvphi1

Respecting Ikdals joint and solidary liability as a corporate officer, the same is in order too following the express
provisionofR.A.8042onmoneyclaims,viz:

SEC.10.MoneyClaims.Notwithstandinganyprovisionoflawtothecontrary,theLaborArbitersoftheNational
Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within
ninety (90) calendar days after the filing of the complaint, the claims arising out of an employeremployee
relationshiporbyvirtueofanylaworcontractinvolvingFilipinoworkersforoverseasdeploymentincludingclaims
foractualmoral,exemplaryandotherformsofdamages.

Theliabilityoftheprincipal/employerandtherecruitment/placementagencyforanyandallclaimsunderthissection
shallbejointandseveral.Thisprovisionshallbeincorporatedinthecontractforoverseasemploymentandshallbe
aconditionprecedentforitsapproval.Theperformancebondtobefiledbytherecruitment/placementagency,as
providedbylaw,shallbeanswerableforallmoneyclaimsordamagesthatmaybeawardedtotheworkers.Ifthe
recruitment/placementagencyisajuridicalbeing,thecorporateofficersanddirectorsandpartnersasthecasemay
be,shallthemselvesbejointlyandsolidarilyliablewiththecorporationorpartnershipfortheaforesaidclaimsand
damages.(emphasisandunderscoringsupplied)

WHEREFORE,thepetitionisDENIED.

SOORDERED.

CONCHITACARPIOMORALES
AssociateJustice
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WECONCUR:

ARTUROD.BRION
AssociateJustice

LUCASP.BERSAMIN MARTINS.VILLARAMA,JR.
AssociateJustice AssociateJustice

MARIALOURDESP.A.SERENO
AssociateJustice

ATTESTATION

IattestthattheconclusionsintheaboveDecisionhadbeenreachedinconsultationbeforethecasewasassigned
tothewriteroftheopinionoftheCourtsDivision.

CONCHITACARPIOMORALES
AssociateJustice
Chairperson

CERTIFICATION

PursuanttoSection13,ArticleVIIIoftheConstitution,andtheDivisionChairpersonsAttestation,Icertifythatthe
conclusionsintheabovedecisionhadbeenreachedinconsultationbeforethecasewasassignedtothewriterof
theopinionoftheCourtsDivision.

RENATOC.CORONA
ChiefJustice

Footnotes
1Annex"C"ofthepetition,rollo,pp.5960.

2CArollo,p.197.

3Idat.3236.PennedbyLaborArbiterFatimaJambaroFranco.

4Id.at2629.PennedbyCommissioner(nowCAAssociateJustice)AngelitaA.Gacutanandconcurredinby
PresidingCommissionerRaulT.AquinoandCommissionerVictorianoR.Calaycay.

5Id.at3031.

6 Id. at 95104. Penned by Associate Justice Fernanda Lampas Peralta and concurred in by Associate
JusticesEdgardoP.CruzandNormandieB.Pizarro.
7Id.at137.Ibid.

8G.R.No.166363,August15,2006,498SCRA639,645citingCatanv.NLRC,160SCRA691.

9Datumanv.FirstCosmopolitanManpowerAndPromotionServices,Inc.,G.R.No.156029,November14,
2008,571SCRA41,42.

10G.R.No.145587,October26,2007,537SCRA409,430.

11AnnexD"ofthepetition,rollo,pp.6163.

12Annex"D1"ofthepetition,id.at6466

13Annex"E"ofthepetition,id.at67.

TheLawphilProjectArellanoLawFoundation

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