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court or tribunal cannot act on the matter


D. CHOICE, ASCERTAINMENT
AND APPLICATION OF FOREIGN submitted to it because no law grants it
LAW the power to adjudicate the claims. In the
instant case, petitioners, in their motion
to dismiss, do not claim that the trial
1. HASEGAWA V. KITAMURA court is not properly vested by law with
jurisdiction to hear the subject
 Jurisdiction and choice of law are two controversy for, indeed, the case for
distinct concepts. Jurisdiction considers specific performance and damages is one
whether it is fair to cause a defendant to not capable of pecuniary estimation and
travel to this state; choice of law asks the is properly cognizable by the RTC of
further question whether the application Lipa City. What they rather raise as
of a substantive law which will grounds to question subject matter
determine the merits of the case is fair to jurisdiction are the principles of lex loci
both parties. The power to exercise celebrationis and lexcontractus, and the
jurisdiction does not automatically give "state of the most significant relationship
a state constitutional authority to apply rule."
forum law. While jurisdiction and the  Lex loci celebrationis relates to the "law
choice of the lexfori will often coincide, of the place of the ceremony" or the law
the "minimum contacts" for one do not of the place where a contract is
always provide the necessary made.,The doctrine of lexcontractus or
"significant contacts" for the other. The lex loci contractus means the "law of the
question of whether the law of a state place where a contract is executed or to
can be applied to a transaction is be performed." It controls the nature,
different from the question of whether construction, and validity of the contract
the courts of that state have jurisdiction and it may pertain to the law voluntarily
to enter a judgment. agreed upon by the parties or the law
 Jurisdiction over the subject matter in a intended by them either expressly or
judicial proceeding is conferred by the implicitly. Under the "state of the most
sovereign authority which establishes significant relationship rule," to ascertain
and organizes the court. It is given only what state law to apply to a dispute, the
by law and in the manner prescribed by court should determine which state has
law. It is further determined by the the most substantial connection to the
allegations of the complaint irrespective occurrence and the parties. In a case
of whether the plaintiff is entitled to all involving a contract, the court should
or some of the claims asserted therein. consider where the contract was made,
To succeed in its motion for the was negotiated, was to be performed,
dismissal of an action for lack of and the domicile, place of business, or
jurisdiction over the subject matter of the place of incorporation of the parties.
claim, the movant must show that the This rule takes into account several

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contacts and evaluates them according to petitioners' vessel, whichever is greater.


their relative importance with respect to Since RestitutaAbordo was offered P30k
the particular issue to be resolved. only by the petitioners, Singapore law
 Before determining which law should was properly applied in this case.
apply, first there should exist a conflict  The "Employment Agreement" is
of laws situation requiring the attached to the Supplemental Complaint
application of the conflict of laws rules. of Restituta and, therefore, it forms part
Also, when the law of a foreign country thereof. As it is familiar with Singapore
is invoked to provide the proper rules for Law, the National Seamen Board is
the solution of a case, the existence of justified in taking judicial notice of and
such law must be pleaded and proved. in applying that law.
 It should be noted that when a conflicts  Article 20, Labor Code of the
case, one involving a foreign element, is Philippines, provides that the National
brought before a court or administrative Seamen Board has original and
agency, there are three alternatives open exclusive jurisdiction over all matters or
to the latter in disposing of it: (1) dismiss cases including money claims, involving
the case, either because of lack of er-ee relations, arising out of or by virtue
jurisdiction or refusal to assume of any law or contracts involving
jurisdiction over the case; (2) assume Filipino seamen for overseas
jurisdiction over the case and apply the employment. Thus, it is safe to assume
internal law of the forum; or (3) assume that the Board is familiar with pertinent
jurisdiction over the case and take into Singapore maritime laws relative to
account or apply the law of some other workmen's compensation. Moreover, the
State or States. The court’s power to Board may apply the rule on judicial
hear cases and controversies is derived notice and, "in administrative
from the Constitution and the laws. proceedings, the technical rules of
While it may choose to recognize laws procedure — particularly of evidence —
of foreign nations, the court is not applied in judicial trials, do not strictly
limited by foreign sovereign law short of apply."
treaties or other formal agreements, even  Finally, Article IV of the Labor Code
in matters regarding rights provided by provides that "all doubts in the
foreign sovereigns. implementation and interpretation of the
provisions of this code, including its
2. NORSE MANAGEMENT CO. (PTE) V. implementing rules and resolved in favor
NATIONAL SEAMEN BOARD of labor.

 The "Employment Agreement" between 3. EDI-STAFFBUILDERS INTERNATIONAL,


Norse and the late Abordo states that INC. V. NATIONAL LABOR RELATIONS
compensation shall be paid under COMMISSION
Philippine Law or the law of registry of

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 The "Employment Agreement" between contempt as well as a cause for


Norse and the late Abordo states that administrative sanctions.
compensation shall be paid under  Circular No. 28-91, w/c originally
Philippine Law or the law of registry of required the certification of non-forum
petitioners' vessel, whichever is greater. shopping for petitions filed with the SC
Since RestitutaAbordo was offered P30k and the CA; and SC Administrative
only by the petitioners, Singapore law Circular No. 04-94, w/c extended the
was properly applied in this case. certification requirement for civil
 The "Employment Agreement" is complaints and other initiatory pleadings
attached to the Supplemental Complaint filed in all courts and other agencies.
of Restituta and, therefore, it forms part  However, it is equally settled that
thereof. As it is familiar with Singapore litigation is not merely a game of
Law, the National Seamen Board is technicalities. Rules of procedure should
justified in taking judicial notice of and be viewed as mere tools designed to
in applying that law. facilitate the attainment of justice. Their
 Article 20, Labor Code of the strict and rigid application, which would
Philippines, provides that the National result in technicalities that tend to
Seamen Board has original and frustrate rather than promote substantial
exclusive jurisdiction over all matters or justice, must always be eschewed.
cases including money claims, involving Moreover, the emerging trend in our
er-ee relations, arising out of or by virtue jurisprudence is to afford every party-
of any law or contracts involving litigant the amplest opportunity for the
Filipino seamen for overseas proper and just determination of his
employment. Thus, it is safe to assume cause free from the constraints of
that the Board is familiar with pertinent technicalities.
Singapore maritime laws relative to  In the instant case, the Court finds that
workmen's compensation. Moreover, the the lower courts did not commit any
Board may apply the rule on judicial error in proceeding to decide the case on
notice and, "in administrative the merits, as herein respondent was able
proceedings, the technical rules of to submit a certification of non-forum
procedure — particularly of evidence — shopping. More importantly, the
applied in judicial trials, do not strictly apparent merit of the substantive aspect
apply." of the petition for land registration filed
 Finally, Article IV of the Labor Code by respondent with the MTC coupled
provides that "all doubts in the with the showing that she had no
implementation and interpretation of the intention to violate the Rules with
provisions of this code, including its impunity, as she was the one who invited
implementing rules and resolved in favor the attention of the court to the
of labor. inadvertence committed by her counsel,
 corresponding administrative and should be deemed as special
criminal actions. If the acts of the party circumstances/compelling reasons to
or his counsel clearly constitute willful decide the case on the merits.
and deliberate forum shopping, the same  Section 25, Rule 132, to wit: “Proof of
shall be ground for summary dismissal public or official record – An official
with prejudice and shall constitute direct record or an entry therein, when
admissible for any purpose, may be

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evidenced by an official publication official bodies and tribunals, and public


thereof or by a copy attested by the officers of the Philippines or of a foreign
officer having the legal custody of the country.
record, or by his deputy, and
accompanied, if the record is not kept in
the Philippines, with a certificate that 5. WILDVALLEY SHIPPING CO., LTD. V.
such officer has the custody. If the office COURT OF APPEALS
in which the record is kept is in a foreign
country, the certificate may be made by
a secretary of embassy or legation,  It is well-settled that foreign laws do not
consul general, consul, vice consul, or prove themselves in our jurisdiction and
consular agent or by any officer in the our courts are not authorized to take
foreign service of the Philippines judicial notice of them. Like any other
stationed in the foreign country in which fact, they must be alleged and proved.
the record is kept, and authenticated by  A distinction is to be made as to the
the seal of his office.” manner of proving a written and an
 It cannot be overemphasized that the unwritten law. The former falls under
required certification of an officer in the Section 24, Rule 132 of the Rules of
foreign service under Section 24 refers Court, as amended, the entire provision
only to the documents enumerated in of which is quoted hereunder. Where the
Section 19(a), to wit: written official acts foreign law sought to be proved is
or records of the official acts of the "unwritten," the oral testimony of expert
sovereign authority, official bodies and witnesses is admissible, as are printed
tribunals, and public officers of the and published books of reports of
Philippines or of a foreign country. The decisions of the courts of the country
SC agrees w/ the CA that had the Court concerned if proved to be commonly
intended to include notarial documents admitted in such courts.
as one of the public documents  The two Venezuelan Laws were not duly
contemplated by the provisions of proven as fact before the court. Only
Section 24, it should not have specified mere photocopies of the laws were
only the documents referred to under presented as evidence. For a copy of a
paragraph (a) of Section 19. foreign public document to be
admissible, the following requisites are
mandatory:
4. HEIRS OF THE DECEASED SPOUSES  It must be attested by the officer having
VICENTE S. ARCILLA AND JOSEFA legal custody of the records or by his
ASUNCION ARCILLA V. TEODORO deputy; and
 It must be accompanied by a certificate
by a secretary of the embassy or
 It cannot be overemphasized that the
legation, consul general, consul, vice
required certification of an officer in the consular or consular agent or foreign
foreign service under Rule 132, Section service officer, and with the seal of his
24 refers only to the documents office.
enumerated in Section 19(a), to wit:  And in case of unwritten foreign laws,
written official acts or records of the the oral testimony of expert witnesses is
official acts of the sovereign authority, admissible, as are printed and published

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books of reports of decisions of the performing. Municipal corporations, for


courts of the country concerned if example, like provinces and cities, are
proved to be commonly admitted in such agencies of the State when they are
courts.
engaged in governmental functions and
therefore should enjoy the sovereign
6. DEUTSCHE GESELLSCHAFT FUR immunity from suit.
TECHNISCHE ZUSAMMERNARBEIT (GTZ) V.
 A corporation organized under the
COURT OF APPEALS
Corporation Code but owned by the
Philippine government, or a
 The principle of state immunity from government-owned or controlled
suit, whether a local state or a foreign corporation without original charter.
state, is reflected in Section 9, Article And it bears notice that Section 36 of the
XVI of the Constitution, which states Corporate Code states that "[e]very
that "the State may not be sued without corporation incorporated under this Code
its consent." If the instant suit had been has the power and capacity x xx to sue
brought directly against the Federal and be sued in its corporate name."
Republic of Germany, there would be no  GTZ has failed to establish that under
doubt that it is a suit brought against a German law, it has not consented to be
State, and the only necessary inquiry is sued despite it being owned by the
whether said State had consented to be Federal Republic of Germany. We
sued. However, the present suit was adhere to the rule that in the absence of
brought against GTZ. It is necessary for evidence to the contrary, foreign laws on
us to understand what precisely are the a particular subject are presumed to be
parameters of the legal personality of the same as those of the Philippines, and
GTZ. following the most intelligent
 Where suit is filed not against the assumption we can gather, GTZ is akin
government itself or its officials but to a governmental owned or controlled
against one of its entities, it must be corporation without original charter
ascertained whether or not the State, as which, by virtue of the Corporation
the principal that may ultimately be held Code, has expressly consented to be
liable, has given its consent to be sued. sued.
This ascertainment will depend in the  Had GTZ obtained such certification
first instance on whether the government from the DFA, it would have provided
agency impleaded is incorporated or factual basis for its claim of immunity
unincorporated. that would, at the very least, establish a
 If the agency is incorporated, the test of disputable evidentiary presumption that
its suability is found in its charter. The the foreign party is indeed immune
simple rule is that it is suable if its which the opposing party will have to
charter says so, and this is true overcome with its own factual evidence.
regardless of the functions it is

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foreign law. The said law does not


operate as a statute but as a set of
7. CADALIN V. POEA’S ADMINISTRATOR contractual terms deemed written in the
contract. A basic policy of contract is to
 NLRC applied the Amiri Deere, No. 23 protect the expectation of the parties.
of 1976, which provides for greater Such party expectation is protected by
benefits than those stipulated in the giving effect to the parties’ own choice
overseas-employment contracts of the of the applicable law. The choice of law
claimants. It was of the belief that where must, however, bear some relationship
the laws of the host country are more the parties or their transaction. There is
favorable and beneficial to the workers, no question that the contracts sought to
then the laws of the host country shall be enforced by claimants have a direct
form part of the overseas employment connection with the Bahrain law because
contract. It approved the observation of the services were rendered in that
the POEA Administrator that in labor country.
proceedings, all doubts in the  As a general rule, a foreign procedural
implementation of the provisions of the law will not be applied in the forum
Labor Code and its implementing (local court), Procedural matters, such as
regulations shall be resolved in favor of service of process, joinder of actions,
labor. period and requisites for appeal, and so
 The overseas-employment contracts, forth, are governed by the laws of the
which were prepared by AIBC and BRII forum. This is true even if the action is
themselves, provided that the laws of the based upon a foreign substantive law. A
host country became applicable to said law on prescription of actions is sui
contracts if they offer terms and generis in Conflict of Laws in the sense
conditions more favorable than those that it may be viewed either as
stipulated therein. procedural or substantive, depending on
 Adopting the provisions of the Amiri the characterization given such a law.
Decree No. 23 of 1976 as part and parcel  However the characterization of a statute
thereof. The parties to a contract may into a procedural or substantive law
select the law by which it is to be becomes irrelevant when the country of
governed. In such a case, the foreign law the forum (local Court) has a “borrowing
is adopted as a “system” to regulate the statute.” Said statute has the practical
relations of the parties, including effect of treating the foreign statute of
questions of their capacity to enter into limitation as one of substance. A
the contract, the formalities to be “borrowing statute” directs the state of
observed by them, matters of the forum (local Court) to apply the
performance, and so forth. Instead of foreign statute of limitations to the
adopting the entire mass of the foreign pending claims based on a foreign law.
law, the parties may just agree that While there are several kinds of
specific provisions of a foreign statute “borrowing statutes,” one form provides
shall be deemed incorporated into their that an action barred by the laws of the
contract “as a set of terms.” By such place where it accrued will not be
reference to the provisions of the foreign enforced in the forum even though the
law, the contract does not become a local statute was not run against it.
foreign contract to be governed by the

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 The courts of the forum (local Court) the parties have expressly agreed upon a
will not enforce any foreign claim time limit on their obligation, a statute
obnoxious to the forum’s public policy. which invalidates the agreement and
To enforce the one-year prescriptive directs enforcement of the contract after
period of the Amiri Decree No. 23 of the time has expired increases their
1976 as regards the claims in question obligation and imposes a burden not
would contravene the public policy on contracted for.
the protection to labor.  The Texas statute as here construed and
 In the Declaration of Principles and State applied deprives the garnishees of
Policies, the 1987 Constitution property without due process of law. A
emphasized that:“The state shall state may prohibit and declare invalid
promote social justice in all phases of the making of certain contracts within its
national development” (Sec. 10). borders. It may prohibit performance
 ‘The state affirms labor as a primary within its borders. Even of contracts
social economic force. It shall protect validly made elsewhere, if they are
the rights of workers and promote their required to be performed within the state
welfare” (Sec. 18). and their performance would violate its
 In Article XIII on Social Justice and laws. But, in the case at bar, nothing in
Human Rights, the 1987 Constitution any way relating to the policy sued on,
provides: “Sec. 3. The State shall afford or to the contracts of reinsurance, was
full protection to labor, local and ever done or required to be done in
overseas, organized and unorganized, Texas. All acts relating to the making of
and promote full employment and the policy and contracts of reinsurance
equality of employment opportunities for were done in Mexico or in New York.
all.”
9. ALLSTATE INS. CO. V. HAGUE
8. HOME INS. CO. V. DICK
 The decedent was a member of
 Doubtless a state may prohibit the Minnesota's workforce. The State of
enjoyment by persons within its borders employment has police power
of rights acquired elsewhere which responsibilities towards non-resident
violate its laws or public policy, and, employees that are analogous to those it
under some circumstances, it may refuse has towards residents; as such
to aid in the enforcement of such rights. employees use state services and
But the Mexican corporation never was amenities and may call upon state
in Texas, and neither it nor the facilities in appropriate circumstances.
garnishees invoked the aid of the Texas Also, the State's interest in its
courts or the Texas laws. commuting non-resident employees,
 And, in the absence of a contractual such as respondent's decedent, reflects a
provision, the local statute of limitation state concern for the safety and
may be applied to a right created in wellbeing of its workforce and the
another jurisdiction even where the concomitant effect on Minnesota
remedy in the latter is barred. In such employers. That the decedent was not
cases, the rights and obligations of the killed while commuting to work or while
parties are not varied. When, however, in Minnesota does not dictate a different

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result, since vindication of the rights of absent class members because each class
the estate of a Minnesota employee is an member was provided with notice of the
important state concern. Nor does the action, an opportunity to appear in
decedent's residence in Wisconsin person or through counsel, an
constitutionally mandate application of opportunity to opt out, and adequate
Wisconsin law to the exclusion of forum legal representation. The Supreme
law. Employment status is not a Court's analysis centered on
sufficiently less important status than distinguishing among the different
residence, when combined with the burdens of litigation placed upon class
decedent's daily commute across state action plaintiffs as opposed to those
lines and the other Minnesota contacts placed upon a defendant in a non-class
present, to prohibit the choice of law suit.
result in this case on constitutional  state court may exercise personal
grounds. jurisdiction over the claims of
 Petitioner was at all times present and nonresident class members constituted a
doing business in Minnesota. By virtue vital step in the process of ensuring the
of such presence, petitioner can hardly full and fair litigation of multistate class
claim unfamiliarity with the laws of the actions. A decision otherwise would
host jurisdiction and surprise that the have denied judicial access to multistate
state courts might apply forum law to class action plaintiffs with small
litigation in which the company is monetary claims, thus contradicting the
involved. Moreover, such presence gave explicit purpose of class action
Minnesota an interest in regulating the adjudications. Although precedent
company's insurance obligations insofar supports the Court's conclusion, the
as they affected both a Minnesota Court's analysis in reaching this
resident and court-appointed conclusion was inadequate. Generally,
representative (respondent) and a restrictions are placed upon a state
longstanding member of Minnesota's court's exercise of personal jurisdiction
workforce (respondent's decedent). for two reasons: first, to guarantee
 In addition to the other contacts, protection of the personal liberty
respondent became a Minnesota resident interests of the parties to the
prior to institution of the instant litigation;second, to protect state
sovereignty concerns. The Shutts Court,
litigation. She subsequently
however, based its decision primarily on
matters of convenience,'" rather than
10. PHILLIPS PETROLEUM CO. V. SHUTTS conducting a complete analysis of the
controversial aspects of personal
jurisdiction.
 Although some of the class members  The minimum contacts test is premised
were non-residents who had no contacts on the theory that due process permits
with the forum state, the class members state courts to exercise personal
were plaintiffs, and therefore the jurisdiction over nonresident defendants
traditional minimum contacts test for who have certain contacts with the
personal jurisdiction was not applicable. forum state. Thus, the minimum contacts
The Shutts Court also concluded that due requirement ensures that the
process considerations were afforded to maintenance of the action in a forum

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does not offend the "traditional notions points of contact or connecting factors
of fair play and substantial justice. could be any of the following: (1) The
Included in these notions of fair play and nationality of a person, his domicile, his
substantial justice is the principle of residence, his place of sojourn, or his
interstate federalism embodied in the origin;(2) the seat of a legal or juridical
Constitution." Accordingly, the person, such as a corporation;(3) the
minimum contacts requirement limits a situs of a thing, that is, the place where a
state court's jurisdictional powers in thing is, or is deemed to be situated. In
order to protect the personal liberty particular, the lexsitus is decisive when
interests of nonresident parties in real rights are involved;(4) the place
obtaining a fair adjudication of their where an act has been done, the locus
claims. In addition, the minimum actus, such as the place where a contract
contacts requirement guarantees the has been made, a marriage celebrated, a
concept of state sovereignty" will signed or a tort committed. The lex
loci actus is particularly important in
11. SAUDI ARABIA AIRLINES V. COURT OF contracts and torts;(5) the place where an
APPEALS act is intended to come into effect, e.g.,
the place of performance of contractual
duties, or the place where a power of
 Before a choice can be made, it is attorney is to be exercised;(6) the
necessary for us to determine under what intention of the contracting parties as to
category a certain set of facts or rules the law that should govern their
fall. This process is known as agreement, the lex loci intentionis;(7) the
characterization, or the doctrine of place where judicial or administrative
qualification. It is the process of proceedings are instituted or done. The
deciding whether or not the facts relate lexforithe law of the forumis particularly
to the kind of question specified in a important because, as we have seen
conflicts rule. The purpose of earlier, matters of procedure not going to
characterization is to enable the forum to the substance of the claim involved are
select the proper law. governed by it; and because the lexfori
 Our starting point of analysis here is not applies whenever the content of the
a legal relation, but a factual situation, otherwise applicable foreign law is
event, or operative fact. An essential excluded from application in a given
element of conflict rules is the indication case for the reason that it falls under one
of a test or connecting factor or point of of the exceptions to the applications of
contact. Choice-of-law rules invariably foreign law; and (8) the flag of a ship,
consist of a factual relationship (such as which in many cases is decisive of
property right, contract claim) and a practically all legal relationships of the
connecting factor or point of contact, ship and of its master or owner as such.
such as the situs of the res, the place of It also covers contractual relationships
celebration, the place of performance, or particularly contracts of affreightment.
the place of wrongdoing.  Considering that the complaint in the
 Note that one or more circumstances court a quo is one involving torts, the
may be present to serve as the possible connecting factor or point of contact
test for the determination of the could be the place or places where the
applicable law. These test factors or tortious conduct or lex loci actus

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occurred. And applying the torts Basso, before his death, was residing
principle in a conflicts case, we find that here. Thus, it could be reasonably
the Philippines could be said as a situs of expected that no extraordinary measures
the tort (the place where the alleged
were needed for the parties to make
tortious conduct took place). This is
because it is in the Philippines where arrangements in advocating their
petitioner allegedly deceived private respective cases.
respondent, a Filipina residing and  The choice-of-law issue in a conflict-of-
working here. According to her, she had laws case seeks to answer the following
honestly believed that petitioner would, important questions: (1) What legal
in the exercise of its rights and in the system should control a given situation
performance of its duties, act with
where some of the significant facts
justice, give her her due and observe
honesty and good faith. occurred in two or more states; and (2)
 Considering that it was the petitioner to what extent should the chosen legal
who was invoking the applicability of system regulate the situation. These
the law of Saudi Arabia, thus the burden questions are entirely different from the
was on it [petitioner] to plead and to question of jurisdiction that only seeks to
establish what the law of Saudi Arabia answer whether the courts of a state
is.
where the case is initiated have
jurisdiction to enter a judgment. As such,
12. CONTINENTAK MICRONESIA, INC. VS. the power to exercise jurisdiction does
BASSO not automatically give a state
constitutional authority to apply forum
Under the doctrine of forum non law.
conveniens, a Philippine court in a  The rule is that there is no judicial notice
conflict-of-laws case may assume of any foreign law. As any other fact, it
jurisdiction if it chooses to do so, must be alleged and proved. If the
provided, that the following requisites foreign law is not properly pleaded or
proved, the presumption of identity or
are met: (1) that the Philippine Court is similarity of the foreign law to our own
one to which the parties may laws, otherwise known as processual
conveniently resort to; (2) that the presumption, applies. Here, US law may
Philippine Court is in a position to make have been properly pleaded but it was
an intelligent decision as to the law and not proved in the labor tribunals.
the facts; and (3) that the Philippine
Court has or is likely to have power to 13. INDUSTRIAL PERSONNEL &
enforce its decision. All these requisites MANAGEMENT SERVICES
are present here. Basso may
conveniently resort to our labor tribunals
 The general rule is that Philippine laws
as he and CMI had physical presence in apply even to overseas employment
the Philippines during the duration of the contracts. This rule is rooted in the
trial. CMI has a Philippine branch, while constitutional provision of Section 3,

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Article XIII that the State shall afford


full protection to labor, whether local or
overseas. Hence, even if the OFW has
his employment abroad, it does not strip
him of his rights to security of tenure,
humane conditions of work and a living
wage under our Constitution. As an
exception, the parties may agree that a
foreign law shall govern the employment
contract.
 If no foreign law was expressly
stipulated in the employment contract
which was executed in the Philippines,
then the domestic labor laws shall apply
in accordance with the principle of lex
loci contractus.

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