Dear PAO,
I was hired by my foreign company through its local manning agency in the Philippines. I was deployed immediately after I signed my contract and had it registered at the Philippine Overseas Employment Administration (POEA). In September 2021, I received a notice of pre-termination of my employment contract without stating any reason therefore. As a result, I was repatriated back to the Philippines and was paid $2,500 based on my foreign employer's labor laws, which do not require any ground for early termination of employment. Upon arrival in the Philippines, I filed a complaint for illegal dismissal and unpaid salaries. My employer told me that my contract is governed by their labor laws, but there was nothing in my contract stating that it is governed by their labor laws and not by Philippine laws.
Libby
Dear Libby,
To address your concern, we shall refer to Article 1306 of the New Civil Code of the Philippines which provides for autonomy in contracts, to wit:
"Article 1306. The contracting 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." (Emphasis supplied)
A contract freely entered into should, of course, be respected, since a contract is the law between the parties. However, parties may not include stipulations and conditions contrary to law, morals, customs and public policy. The Supreme Court, in the case of...
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