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The Labor Arbiter and NLRC upheld the claims of Henrichsen, finding that PPI was his employer based on the control test. The CA reversed, also finding PPI was the employer. While the parties agreed to arbitration in London, this was not an exclusive agreement and did not prevent filing in another forum. The SC upheld jurisdiction of the Labor Arbiter, as the contractual arbitration clause did not clearly express an intent for exclusive jurisdiction there, and Philippine labor law could apply if PPI was the employer.
The Labor Arbiter and NLRC upheld the claims of Henrichsen, finding that PPI was his employer based on the control test. The CA reversed, also finding PPI was the employer. While the parties agreed to arbitration in London, this was not an exclusive agreement and did not prevent filing in another forum. The SC upheld jurisdiction of the Labor Arbiter, as the contractual arbitration clause did not clearly express an intent for exclusive jurisdiction there, and Philippine labor law could apply if PPI was the employer.
The Labor Arbiter and NLRC upheld the claims of Henrichsen, finding that PPI was his employer based on the control test. The CA reversed, also finding PPI was the employer. While the parties agreed to arbitration in London, this was not an exclusive agreement and did not prevent filing in another forum. The SC upheld jurisdiction of the Labor Arbiter, as the contractual arbitration clause did not clearly express an intent for exclusive jurisdiction there, and Philippine labor law could apply if PPI was the employer.
PACIFIC CONSULTANTS vs SCHONFELD o Upheld the claims of Henrichsen.
o Since the parties had agreed that any differences PETITIONERS: Pacific Consultants International regarding employer-employee relationship should be Asia, Inc. and Jens Peter Henrichsen submitted to the jurisdiction of the court of arbitration in RESPONDENTS: Klaus K. Schonfeld London, this agreement is controlling. DOCKET NO.: GR No. 166920 DATE: February 19, 2007 • CA DECISION: PONENTE: CALLEJO, SR., J. o Reversed. Under control test to determine employer and TOPIC: Assumption of Jurisdiction vs Forum Non- employee relationship, CA declared that respondent was Conveniens an employee of PPI. o Venue in Sec. 12 is not exclusive, since there is no FACTS: stipulation that the complaint cannot be filed in any other • Respondent Schonfeld is a Canadian citizen and was a forum other than in the Philippines. resident of Canada. • Pacicon Philippines, Inc. (PPI) is a corporation duly ISSUE #1: W/N the respondent is an employee of PPI. (irrelevant established and incorporated in accordance with the laws of sa topic, baka lang itanong) the Philippines. The primary purpose of PPI was to engage HELD: Yes. in the business of providing specialty and technical services • Petitioner PPI applied for the issuance of an AEP to both in and out of the Philippines. It is a subsidiary of Pacific respondent before the DOLE. In said application, PPI Consultants International of Japan (PCIJ). averred that respondent is its employee. Otherwise, DOLE • The president of PPI, Jens Peter Henrichsen, who was also will not grant the issuance of said permit. the director of PCIJ, was based in Tokyo, Japan. • DOLE may issue an alien employment permit based only • In 1997, PCIJ decided to engage in consultancy services for on the following: water and sanitation in the Philippines. Respondent was (a) Compliance by the applicant and his employer with the employed by PCIJ as consultant, through Henrichsen, as requirements of Section 2 hereof; Sector Manager of PPI in its Water and Sanitation (b) Report of the Bureau Director as to the availability or non- Department. However, PCIJ assigned him as PPI sector availability of any person in the Philippines who is competent manager in the Philippines. His salary was to be paid partly and willing to do the job for which the services of the applicant by PPI and PCIJ. are desired; • Section 21 of the General Conditions of Employment (c) His assessment as to whether or not the employment of the appended to the letter of employment provides that any applicant will redound to the national interest; question of interpretation, understanding or fulfillment (d) Admissibility of the alien as certified by the Commission on of the conditions of employment is to be finally settled Immigration and Deportation; by the Court of Arbitration in London. (e) The recommendation of the Board of Investments or other • Schonfeld arrived in the philippines and attained the status appropriate government agencies if the applicant will be of a Resident Alien. PPI applied for an Alien Employment employed in preferred areas of investments or in accordance Permit (Permit) for respondent before DOLE and such with the imperative of economic development. was granted. • There was an employer-employee relationship between • Schonfeld received a letter from Henrichsen informing him petitioner PPI and respondent using the four-fold test. that his employment had been terminated effective August 4, 1999 for the reason that PCIJ and PPI had not been ISSUE #2: W/N the Labor Arbiter has Jurisdiction to try and successful in the water and sanitation sector in the decide on the merits of the case at bar. Philippines. However, Henrichsen, by electronic mail, HELD: Yes. requested respondent to stay put in his job. Respondent • The settled rule on stipulations regarding venue is that continued his work with PPI until the end of business hours while they are considered valid and enforceable, venue on October 1, 1999. stipulations in a contract do not, as a rule, supersede the • Respondent filed with PPI several money claims but later general rule set forth in Rule 4 of the Revised Rules of refused to pay a portion. Respondent filed a Complaint for Court in the absence of qualifying or restrictive words. Illegal Dismissal against petitioners PPI and Henrichsen with • They should be considered merely as an agreement or the Labor Arbiter additional forum, not as limiting venue to the specified place. They are not exclusive but, rather permissive. If the PETITIONERS’ ANSWER: Petitioners filed a Motion to Dismiss intention of the parties were to restrict venue, there must be the complaint on the following grounds: accompanying language clearly and categorically • the Labor Arbiter had no jurisdiction over the subject matter; expressing their purpose and design that actions between • and venue was improperly laid. them be litigated only at the place named by them. It averred that respondent was a Canadian citizen, a transient • In the instant case, no restrictive words like only, solely, expatriate who had left the Philippines. He was employed and exclusively in this court, in no other court save , particularly, dismissed by PCIJ, a foreign corporation with principal office in nowhere else but/except , or words of equal import were Tokyo, Japan. Since respondents cause of action was based on stated in the contract. It cannot be said that the court of his letter of employment executed in Tokyo, Japan, the arbitration in London is an exclusive venue to bring forth complaint should have been filed in Tokyo, Japan. any complaint arising out of the employment contract. Under Section 12 of General Conditions of Employment, • Petitioners insistence on the application of the principle of complainant and PCIJ had agreed that any employment-related forum non conveniens must be rejected. The bare fact dispute should be brought before the London Court of that respondent is a Canadian citizen and was a repatriate Arbitration. does not warrant the application of the principle for the following reasons: RESPONDENT’S CLAIMS: Respondent contends that he was First. The Labor Code of the Philippines does not include forum employed by PPI to work in the Philippines under contract non conveniens as a ground for the dismissal of the complaint. separate from his contract of employment with PCIJ. He insisted Second. The propriety of dismissing a case based on this that his employer was PPI, a Philippine-registered corporation; it principle requires a factual determination; hence, it is properly is inconsequential that PPI is a wholly-owned subsidiary of PCIJ considered as defense. because the two corporations have separate and distinct Third. Philippine Court may assume jurisdiction over the case if personalities; and he received orders and instructions from it chooses to do so; provided, that the following requisites are Henrichsen who was the president of PPI. He further insisted met: that the principles of forum non conveniens and lex loci (1) that the Philippine Court is one to which the parties may contractus do not apply, and that although he is a Canadian conveniently resort to; citizen, Philippine Labor Laws apply in this case. Also, Section (2) that the Philippine Court is in a position to make an 21 of the Arbitration Clause in the General Conditions of intelligent decision as to the law and the facts; and Employment does not provide for an exclusive venue where the (3) that the Philippine Court has or is likely to have power to complaint against PPI for violation of the Philippine Labor Laws enforce its decision. may be filed. Admittedly, all the foregoing requisites are present in this case.