Callado v.

IRRI, 244 SCRA 210 (1995)

FACTS:

Petitioner Erneto Callado was an employee of the Rice Research Institute (IRRI)
who was terminated after he got into an accident while on official business. Upon
investigation of the Human Resource Department Manager of the IRRI, it was found
that petitioner drove the institute vehicle while under the influence of alcohol,
committed serious misconduct and gross neglect of duties. Petitioner filed a
complaint before the Labor Arbiter for illegal dismissal, illegal suspension and
indemnity pay while respondent IRRI contends that the Institute enjoys immunity
from legal process by virtue of Article 3 of Presidential Decree No. 1620 as an
international organization. The Labor Arbiter ruled that the IRRI waived its
immunity in all cases of termination while the NLRC dismissed the case finding that
the IRRI did not waive its immunity.

ISSUE:

Did the International Rice Research Institute (IRRI) waive its immunity from suit in
this dispute which arose from an employer-employee relationship?

RULING:

No, the IRRI did not waive its immunity from suit. In cases involving dismissed
employees, the Institute may waive its immunity, signifying that such waiver is
discretionary on its part. The IRRI, through counsel, wrote the Labor Arbiter
categorically informing him that the Institute will not waive its diplomatic immunity.
The IRRI's letter to the Labor Arbiter declaring that it has no intention of waiving its
immunity supplants any pronouncement of alleged waiver issued in previous cases.