The Supreme Court, in WPP Marketing Communications, Inc. v. Galera, emphasized the stringent requirement for aliens seeking employment in the Philippines to secure the necessary work permit before commencing employment. This ruling underscores that failing to obtain a work permit upfront can jeopardize an alien’s claims for employee benefits under Philippine labor laws, even if the dismissal was without just or authorized cause and without due process. The Court held that it cannot sanction the violation of Philippine labor laws by granting relief to an alien who worked without the required permit.

When Ambition Clashes with Regulation: The Case of Jocelyn Galera

This case revolves around Jocelyn M. Galera, an American citizen, who was recruited to work in the Philippines for WPP Marketing Communications, Inc. (WPP). Upon accepting the offer, Galera signed an employment contract and began working on September 1, 1999. However, it was only four months later that WPP filed an application for Galera to receive a working visa. Galera’s employment was terminated on December 14, 2000, leading her to file a complaint for illegal dismissal and other monetary claims. The core legal question is whether Galera, having worked without the necessary employment permit, is entitled to the protections and benefits afforded to employees under Philippine labor laws.

The Labor Arbiter initially ruled in Galera’s favor, finding that her dismissal was illegal and awarding her reinstatement and backwages. The National Labor Relations Commission (NLRC), however, reversed this decision, asserting that Galera was a corporate officer and that the case fell outside the Labor Arbiter’s jurisdiction. The Court of Appeals then reversed the NLRC’s ruling, finding that Galera was indeed an employee and that her dismissal was illegal. The appellate court directed WPP to pay Galera backwages, separation pay, and other benefits. The Supreme Court then took up the case.

The Supreme Court first addressed the issue of whether Galera was an employee or a corporate officer. The Court noted that corporate officers are typically designated either by the Corporation Code or by the corporation’s by-laws. Section 25 of the Corporation Code identifies the president, secretary, and treasurer as corporate officers, along with any others specified in the by-laws. In this case, the Court found that Galera’s appointment as Vice-President was to a non-existent corporate office, as WPP’s by-laws only provided for one Vice-President, a position already held by another individual.

Moreover, the Court scrutinized the employment contract between WPP and Galera, applying the four-fold test to determine the existence of an employer-employee relationship. This test examines (a) the selection and engagement of the employee, (b) the payment of wages, (c) the power of dismissal, and (d) the employer’s power to control the employee. The Court found that the employment contract stipulated where and how Galera was to perform her work, that her wages were controlled by WPP, and that she was subject to the company’s disciplinary procedures. These factors indicated that Galera was indeed an employee, not a corporate officer.

Having established that Galera was an employee, the Court then addressed the issue of whether her dismissal was illegal. The Court found that WPP’s dismissal of Galera lacked both substantive and procedural due process. WPP failed to provide any just or authorized cause for Galera’s dismissal, and it also failed to comply with the two-notice rule. This rule requires the employer to provide the employee with two written notices before termination: one informing the employee of the grounds for dismissal and another informing the employee of the decision to dismiss.

Despite finding that Galera was illegally dismissed, the Supreme Court ultimately denied her monetary claims. The Court emphasized that Galera had worked in the Philippines without a proper work permit, violating Philippine labor laws. Article 40 of the Labor Code explicitly states that any alien seeking employment in the Philippines must obtain an employment permit from the Department of Labor. Similarly, Section 4, Rule XIV, Book 1 of the Implementing Rules and Regulations provides that no alien may enter the Philippines for employment without first securing an employment permit.

The Court reasoned that granting Galera’s claims would essentially sanction the violation of Philippine labor laws. Therefore, the Court held that the status quo must prevail, leaving the parties where they were. This decision underscores the critical importance of complying with all legal requirements before commencing employment in a foreign country. An alien’s failure to secure a work permit can have significant consequences, potentially jeopardizing their ability to claim employee benefits and seek legal recourse under Philippine labor laws. As the Court made clear, it cannot reward a party who comes before it with unclean hands.

FAQs

What was the key issue in this case?	The key issue was whether an alien employee, who worked in the Philippines without securing the required employment permit prior to employment, could claim employee benefits under Philippine labor laws after being illegally dismissed.
What is the two-notice rule?	The two-notice rule requires employers to provide two written notices to an employee before termination: one informing the employee of the grounds for dismissal and another informing the employee of the decision to dismiss. Failure to comply with this rule can render the dismissal illegal.
What is the four-fold test in determining employer-employee relationship?	The four-fold test examines (a) the selection and engagement of the employee, (b) the payment of wages, (c) the power of dismissal, and (d) the employer’s power to control the employee. All elements must be present to confirm employment status.
What does the Labor Code say about alien employment?	Article 40 of the Labor Code mandates that any alien seeking employment in the Philippines, and any employer desiring to engage an alien, must obtain an employment permit from the Department of Labor before the employment commences.
What happens if an alien starts working without a permit?	According to the ruling in this case, the alien may not be able to claim employee benefits under Philippine labor laws if they are illegally dismissed or face other employment issues. The Court may refuse to grant relief, as it would sanction the violation of labor laws.
What is the significance of securing an employment permit *before* starting work?	Securing an employment permit *before* starting work is crucial because it ensures compliance with Philippine labor laws and protects the rights and benefits of the alien employee. Failure to do so can jeopardize their ability to seek legal recourse in case of disputes.
Can an alien who is illegally dismissed still seek remedies?	While the Supreme Court denied Galera’s claims in this specific case, the decision does not bar her from seeking relief from other jurisdictions. This suggests that alternative legal avenues may be available depending on the specific circumstances and applicable laws.
What was the final decision of the Supreme Court in this case?	The Supreme Court partially granted the petitions, setting aside the Court of Appeals’ decision and effectively denying Galera’s monetary claims due to her failure to secure a work permit before commencing employment.

This case serves as a crucial reminder of the importance of adhering to labor laws and regulations, especially concerning the employment of foreign nationals. The Supreme Court’s decision underscores that seeking recourse under Philippine labor law requires strict adherence to its provisions, including the prior acquisition of necessary employment permits.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: WPP Marketing Communications, Inc. v. Galera, G.R. Nos. 169207 & 169239, March 25, 2010