EDI Staff Builders v. NLRC

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EDI-Staf)builders

International, Inc. vs. National Labor Relations Commission



537 SCRA 409

Doctrine:
The party who wants to have a foreign law applied to a dispute or case has the
burden of proving the foreign law.
Facts:

EDI is engaged in recruitment and placement of Overseas Filipino Workers (OFWs)


while ESI is collaborated with EDI to process the documentation and deployment of
private respondent to Saudi Arabia. Gran is an OFW recruited by EDI, and deployed
by ESI to work for OAB, in Riyadh, Kingdom of Saudi Arabia as a “Computer
Specialist”. He subsequently accepted the offer. However, upon arrival Gran
questioned the discrepancy in his monthly salary to which he later on agreed on
upon the assistance of POEA. After Gran has been working for about Oive months for
OAB, his employment was terminated stating non-compliance with contract and pre-
qualiOication requirements and was charged with insubordination and disobedience.
He received his Oinal pay and executed a declaration releasing OAB from any
Oinancial obligation. Upon his arrival in the Philippines, he instituted a complaint
against ESI/EDI, OAB, etc with the NLRC for underpayment of salaries and illegal
dismissal.

Issue/s:

W/N the laws of Saudi Arabia should govern the employment contract?

What law must they use? Can Arab laws apply?

Held:

No, the foreign law must be alleged and proven.

In cases involving OFWs, the rights and obligations among and between the OFW,
the local recruiter/agent, and the foreign employer/principal are governed by the
employment contract. A contract freely entered into is considered law between the
parties; and hence, should be respected.

In formulating the contract, the 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.

In the present case, the employment contract signed by Gran speciOically states that
Saudi Labor Laws will govern matters not provided for in the contract (e.g. speciOic
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.

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