PNB vs Cabansag (Labor Law)

PNB vs Cabansag 

GR No. 157010 

June 21, 2005

Facts:

Florence Cabansag arrived in Singapore as a tourist. She applied for employment with the Singapore Branch of the PNB, organized and existing under the laws of the Philippines. The Branch Office had two types of employees: a) expatriates or the regular employees, hired in Manila and assigned abroad and b) locally (direct) hired. VicePresident of the PNB offered her a temporary appointment as Credit Officer with several conditions which Florence accepted. The Philippine Embassy in Singapore processed the employment contract of Florence and was issued by the POEA an Overseas Employment Certificate certifying she was a bona fide contract worker for Singapore. After 3 months, Florence was asked to resign as a cost-cutting measure of the Bank. She was warned that unless she submitted her letter of resignation, her employment record will be blemished with the notation "DISMISSED". The LA rendered judgment in favor of the complainant finding the Bank guilty of illegal dismissal and devoid of due process. NLRC and CA affirmed this decision and stated that even though respondent secured an employment pass from the Singapore Ministry of Employment, she did not waive Philippine labor laws, or the jurisdiction of the labor arbiter or the NLRC over her complaint for illegal dismissal. 

Issue:

Do the LA and NLRC has jurisdiction over a tourist employee hired in a foreign country but worked for PNB Singapore branch? 

Ruling: 

Yes. Based on the provisions of Art. 217 of the LC, and Sec.10 of RA 8042, labor arbiters clearly have original and exclusive jurisdiction over claims arising from EE, including termination disputes involving all workers, among whom are overseas Filipino workers. Securing the employment pass from the Singaporean Ministry of Manpower does not automatically mean that the non-citizen is thereby bound by local laws only. It does not at all imply a waiver of one's national laws on labor. Noteworthy is the fact that respondent likewise applied for and secured an Overseas Employment Certificate from the POEA through the Phil. Embassy in Singapore. Under our law, this document authorized her working status in a foreign country and entitled her to all benefits and processes under our statutes.