G.R. No. 108813 - JUSMAG Philippines vs. National Labor Relations Commission

Florencio Sacramento was employed as Security Assistance Support Personnel (SASP) with JUSMAG-Philippines from December 18, 1969 until his dismissal on April 27, 1992. He held the position of Illustrator 2 and served as President of the duly-registered JUSMAG Philippines-Filipino Civilian Employees Association (JPFCEA).
His services were terminated on the ground of position abolition; he was placed on administrative leave until April 27, 1992 without charge against his leave credits.

On March 31, 1992 Sacramento filed a complaint with the Department of Labor and Employment (DOLE) for illegal suspension and dismissal, seeking reinstatement.
JUSMAG moved to dismiss for lack of jurisdiction, invoking its immunity as an agency of the United States Government, denying any employer-employee relationship and asserting no juridical personality to be sued.

Labor Arbiter Daniel C. Cueto, in an Order dated July 30, 1991, dismissed the complaint for want of jurisdiction.
On January 29, 1993, the NLRC Second Division reversed the Labor Arbiter’s decision, holding that JUSMAG waived immunity by hiring Sacramento and was estopped from denying the employer-employee relationship; it remanded the case for further proceedings.

The 1947 Military Assistance Agreement between the Philippines and the United States established JUSMAG to advise and assist on military matters, with the Philippines bearing the cost of locally employed personnel.
In 1991 and 1992, the U.S. Government, via diplomatic notes and a Memorandum of Agreement with the AFP, agreed to fund salaries and benefits of up to 74 SASP while operational control and personnel actions remained with JUSMAG, but appointment, classification, severance and juridical employment status were retained by the AFP.

Whether JUSMAG-Philippines, as an agency performing governmental functions for the United States, is immune from suit in Philippine courts absent U.S. consent.
Whether the NLRC erred in finding that JUSMAG impliedly waived its immunity by employing Sacramento.

Whether a valid employer-employee relationship existed between JUSMAG and Sacramento under the control test.
Whether JUSMAG is estopped from denying such relationship due to its failure to present proof to the contrary.