Wednesday, May 24, 2017

ATCI Overseas Corporation v. Echin 632 SCRA 528 (2010)

ACTI v Echin
632 SCRA 528 (2010)

Facts:
1.     Josefina  Echin  (respondent)  was  hired  by  petitioner  ATCI  Overseas  Corporation  in  behalf  of  its  principal co-petitioner,  the  Ministry  of  Public  Health  of  Kuwait  (the  Ministry),  for  the  position  of  medical  technologist  under  a  twoyear  contract,  denominated  as  a  Memorandum  of  Agreement  (MOA),  with  a  monthly  salary  of  US$1,200.00.

2.     Under  the  MOA, all  newly-hired  employees  undergo  a  probationary  period  of  1 year  and  are  covered  by  Kuwaits  Civil  Service Board Employment Contract No. 2.

3.     Respondent  was  deployed  on  February  17,  2000  but  was  terminated  from  employment  on  February  11,  2001,  she  not  having  allegedly passed the probationary period.

4.     As  the  Ministry  denied  respondents  reconsideration,  she  returned  to  the  Philippines  on  March  17,  2001,  shouldering her own air fare.

5.     Respondent  filed  with  the NLRC a  complaint for  illegal  dismissal  against  petitioner  ATCI  as  the  local  recruitment  agency,  represented  by  petitioner,  Amalia  Ikdal  (Ikdal),  and  the  Ministry,  as  the  foreign  principal.

6.     Labor Arbiter: finding  that  petitioners  neither  showed  that  there  was  just  cause  to  warrant respondents dismissal nor that she failed to qualify as a regular  employee,  held  that  respondent  was  illegally  dismissed  and  accordingly  ordered  petitioners  to  pay  her  US$3,600.00,  representing  her  salary  for  the three months unexpired portion of her contract.

7.     On appeal of petitioners ATCI and Ikdal, the NLRC affirmed the Labor Arbiters decision

8.     MR denied. They  appealed  to  the  CA,  contending  that  their  principal,  the  Ministry,  being  a  foreign  government  agency,  is  immune  from  suit  and,  as  such,  the  immunity  extended  to  them;  and  that  respondent  was  validly  dismissed  for  her  failure  to  meet  the  performance  rating  within  the  one year  period  as  required  under  Kuwaits  Civil  Service  Laws.  Petitioners  further  contended  that  Ikdal  should not be liable as an officer of petitioner ATCI.

9.     CA affirmed  the NLRC Resolution and noted that  under  the  law,  a  private  employment  agency  shall  assume  all  responsibilities  for  the  implementation  of  the  contract  of  employment  of  an  overseas  worker,  hence,  it  can  be  sued  jointly  and  severally  with  the  foreign  principal  for  any violation of the recruitment agreement or contract of employment.

10.   As  to  Ikdals  liability,  the  appellate  court  held  that  under  Sec.  10  of  Republic  Act  No.  8042,  the  Migrant  and  Overseas  Filipinos  Act  of  1995,  corporate  officers,  directors  and  partners  of  a  recruitment  agency  may  themselves  be  jointly  and  solidarily  liable  with  the  recruitment  agency for money claims and damages awarded to overseas workers.

11.   MR denied,  the  present  petition for review on certiorari was filed.

12.   Petitioners Contention: 

a.     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  conclude  that  it  was  patent  error  for  the  labor  tribunals  and  the  appellate  court  to  apply  the  Labor  Code  provisions  governing  probationary  employment  in  deciding  the  present  case.

b.     that  even  the POEA Rules relative to master employment contracts accord respect to the customs,  practices,  company  policies  and  labor  laws  and  legislation  of  the host country.

c.      Finally,  petitioners  posit  that  assuming  arguendo  that  Philippine labor laws are applicable, given that the foreign principal is a  government  agency  which  is  immune  from  suit,  as  in  fact  it  did  not  sign  any document agreeing to be held jointly and solidarily liable, petitioner  ATCI cannot likewise be held liable, more so since the Ministrys liability  had not been judicially determined as jurisdiction was not acquired over  it.

Issue:

Held:
The petition fails. Petitioner ATCI, as a private recruitment agency, cannot evade responsibility for the money claims of OFWs  which  it  deploys  abroad  by  the  mere  expediency  of  claiming  that  its  foreign  principal  is  a  government  agency  clothed  with  immunity  from  suit,  or  that  such  foreign  principals  liability  must  first  be  established  before it, as agent, can be held jointly and solidarily liable.

The  imposition  of  joint  and  solidary  liability  is  in  line  with  the  policy  of  the  state  to  protect  and  alleviate  the  plight  of  the  working  class.[9]  Verily, to allow petitioners to simply invoke the immunity from suit of its  foreign  principal  or  to  wait  for  the  judicial  determination  of  the  foreign  principals liability before petitioner can be held liable renders the law on  joint and solidary liability inutile.

   As to petitioners contentions that Philippine labor laws on probationary  employment  are  not  applicable  since  it  was  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 accord  respect  to  such  rules,  customs  and  practices  of  the  host  country,  the  same was not substantiated.
 
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  respective  obligations,  as  long  as  they  are  not  contrary to law, morals, good customs, public order or public policy.

It  is  hornbook  principle,  however,  that  the  party  invoking  the  application of a foreign law has the burden of proving the law, under the  doctrine of processual presumption which, in this case, petitioners failed  to  discharge.  The  Courts  ruling  in  EDI<Staffbuilders  Intl.,  v.  NLRC[10]  illuminates:

In  the  present  case,  the  employment  contract  signed  by  Gran  specifically  states  that  Saudi  Labor Laws will govern matters not provided for  in the contract (e.g. specific causes for termination,  termination  procedures,  etc.).  Being  the  law  intended by the parties (lex loci intentiones) to apply  to  the  contract,  Saudi  Labor  Laws  should  govern  all  matters  relating  to  the  termination  of  the  employment  of  Gran. 

In  international  law,  the  party who wants to have a foreign law applied to  a  dispute  or  case  has  the  burden  of  proving  the  foreign  law.  The  foreign  law  is  treated  as  a  question  of  fact  to  be  properly  pleaded  and  proved as the judge or labor arbiter cannot take judicial notice of a foreign law. He is presumed to  know  only  domestic  or  forum  law.  Unfortunately  for  petitioner,  it  did  not  prove  the  pertinent  Saudi laws on the matter; thus, the International  Law  doctrine  of  presumed*identity  approach  or  processual presumption comes into play. Where  a  foreign  law  is  not  pleaded  or,  even  if  pleaded,  is  not  proved,  the  presumption  is  that  foreign  law  is  the  same  as  ours.  Thus,  we  apply  Philippine  labor  laws  in  determining  the  issues  presented  before  us.

The  Philippines  does  not  take  judicial  notice  of  foreign  laws, hence,  they  must  not  only  be  alleged;  they  must  be  proven.  To  prove  a  foreign  law,  the  party  invoking  it  must  present  a  copy  thereof  and  comply  with  Sections  24  and  25  of  Rule  132  of  the  Revised  Rules  of  Court which reads:
 
SEC.  24.  Proof  of  official  record.  The  record of public documents referred to in paragraph  (a)  of  Section  19,  when  admissible  for  any  purpose,  may  be  evidenced  by  an  official  publication  thereof  or  by  a  copy  attested  by  the  officer  having  the  legal  custody  of  the  record,  or  by  his  deputy,  and  accompanied,  if  the  record  is  not  kept  in  the  Philippines,  with  a  certificate  that  such  officer  has  the  custody.  If  the  office  in  which  the  record  is  kept  is  in  a  foreign  country,  the  certificate  may  be  made  by  a  secretary  of  the  embassy  or  legation,  consul  general,  consul,  vice  consul,  or  consular  agent  or  by  any  officer  in  the  foreign  service  of  the  Philippines  stationed  in  the  foreign  country  in  which  the  record  is  kept,  and  authenticated  by  the  seal  of  his  office.  (emphasis  supplied)
 
 
SEC.  25.  What  attestation  of  copy  must state.  Whenever  a  copy  of  a  document  or  record  is attested  for  the  purpose  of  the  evidence,  the  attestation must state, in substance, that the copy is  a  correct  copy  of  the  original,  or  a  specific  part  thereof, as the case may be. The attestation must be  under the official seal of the attesting officer, if there  be any, or if he be the clerk of a court having a seal,  under the seal of such court.
 
To prove the Kuwaiti law, petitioners submitted the following: 
a.     MOA  between  respondent  and  the  Ministry,  as  represented  by  ATCI,  which  provides  that  the  employee  is  subject  to  a  probationary  period  of  one  year  and  that  the  host  countrys  Civil  Service  Laws  and  Regulations  apply;

b.      a  translated  copy  (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,both  of  which  documents  were  certified  by  Mr.  Mustapha  Alawi,  Head  of  the  Department  of  Foreign  Affairs Office  of  Consular  Affairs  Inslamic  Certification  and  Translation  Unit; 

c.      and respondents letter  of  reconsideration to the Ministry, wherein she noted that in her first eight  (8)  months  of  employment,  she  was  given  a  rating  of  Excellent  albeit  it  changed due to changes in her shift of work 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  under  the  Rules,  what  petitioners  submitted  were  mere  certifications attesting only to the correctness of the translations of  the MOA and the termination letter which does not prove at all that  Kuwaiti  civil  service  laws  differ  from  Philippine  laws  and  that  under such Kuwaiti laws, respondent was validly terminated. Thus  the subject certifications read:

x x x x   
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,  assumes  no  responsibility  as  to  the  contents  of  the document/s.
   This certification is being issued upon request of the  interested  party  for  whatever  legal  purpose  it  may  serve. (emphasis supplied)

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