Case Digest: PNB v. Cabansag, G.R. No. 157010, June 21, 2005

Labor Law | NLRC

  • Florence Cabansag, a Filipino, applied for employment at the Singapore branch of the Philippine National Bank (PNB) and was offered a temporary appointment as Credit Officer.
  • She was later terminated by PNB Singapore, allegedly due to a cost-cutting measure and the bank's transformation into a remittance office.

WoN National Labor Relations Commission (NLRC) in the National Capital Region has jurisdiction over the case. YES

The NLRC has jurisdiction over the case. Filipino workers, whether employed locally or overseas, enjoy the protection of Philippine labor laws.

The jurisdiction of labor arbiters and the NLRC is specified in Article 217 of the Labor Code. Based on the foregoing provisions, labor arbiters clearly have original and exclusive jurisdiction over claims arising from employer-employee relations, including termination disputes involving all workers, among whom are overseas Filipino workers (OFW).

Moreover, petitioner admits that it is a Philippine corporation doing business through a branch office in Singapore. Significantly, respondent’s employment by the Singapore branch office had to be approved by Benjamin P. Palma Gil, the president of the bank whose principal offices were in Manila. This circumstance militates against petitioner’s contention that respondent was "locally hired"; and totally "governed by and subject to the laws, common practices and customs" of Singapore, not of the Philippines. Instead, with more reason does this fact reinforce the presumption that respondent falls under the legal definition of migrant worker, in this case one deployed in Singapore. Hence, petitioner cannot escape the application of Philippine laws or the jurisdiction of the NLRC and the labor arbiter.

WoN National Labor Relations Commission (NLRC) in the National Capital Region is the most convenient venue for the dispute. YES

The venue is proper. For overseas Filipino workers (OFWs), the case may be filed either where the complainant resides or where the principal office of the employer is situated.

Under the "Migrant Workers and Overseas Filipinos Act of 1995" (RA 8042), a migrant worker "refers to a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a state of which he or she is not a legal resident; to be used interchangeably with overseas Filipino worker." Undeniably, respondent was employed by petitioner in its branch office in Singapore. Admittedly, she is a Filipino and not a legal resident of that state. She thus falls within the category of "migrant worker" or "overseas Filipino worker."

As such, it is her option to choose the venue of her Complaint against petitioner for illegal dismissal. The law gives her two choices: 

  1. at the Regional Arbitration Branch (RAB) where she resides or 
  2. at the RAB where the principal office of her employer is situated. Since her dismissal by petitioner, respondent has returned to the Philippines -- specifically to her residence at Filinvest II, Quezon City. 

Thus, in filing her Complaint before the RAB office in Quezon City, she has made a valid choice of proper venue.

WoN Florence Cabansag was illegally dismissed, and entitled to recover damages and attorney’s fees. YES

Florence Cabansag was illegally dismissed. The termination lacked valid cause and proper due process. She is entitled to reinstatement, back wages, moral and exemplary damages, and attorney’s fees. The dismissal was capricious, oppressive, and fraudulent, causing mental anguish and affecting her reputation.





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