Case Summary (G.R. No. 93666)
Employment Contract and Immigration Status Change
On December 27, 1989, GMC and Cone formalized their relationship through a written employment contract. On January 15, 1990, the Board of Special Inquiry of the Commission on Immigration and Deportation approved Cone’s application to change his admission status from a temporary visitor to a prearranged employee.
Renewal Request and Permit Grant
On February 9, 1990, GMC applied to renew Cone’s alien employment permit and sought authorization for Cone to assume full coaching duties. DOLE Regional Director Luna Piezas granted this request on February 15, 1990. Consequently, Alien Employment Permit No. M-0290-3-881 was issued on February 18, 1990, extending validity until December 25, 1990.
Appeal by BCAP and Permit Cancellation
The Basketball Coaches Association of the Philippines appealed the renewal before the Secretary of Labor. On April 23, 1990, Secretary Torres, finding no evidence that qualified Filipino coaches were unavailable or that Cone’s employment would serve the national interest, revoked the permit.
Denial of Motions for Reconsideration
GMC filed a Motion for Reconsideration and two Supplemental Motions, all of which Acting Secretary Laguesma denied on June 8, 1990.
Petition for Certiorari and Grounds Alleged
Petitioners filed a Petition for Certiorari on June 14, 1990, alleging:
- Grave abuse of discretion by the Secretary in revoking Cone’s permit.
- Section 6(c), Rule XIV, Book I of the Implementing Rules is void for exceeding the enabling provisions of Article 40 of the Labor Code.
Supreme Court’s Finding on Discretion and Jurisdiction
The Court found no grave abuse or jurisdictional overreach by the Secretary. Any procedural lapse in notifying petitioners of BCAP’s appeal was remedied by granting reconsideration.
Employer’s Prerogative versus Statutory Requirements
GMC’s assertion of an unfettered right to hire a foreign coach was rejected. Under Article 40, employment of non-resident aliens in the Philippines requires a permit demonstrating no qualified Filipino is available. The equal protection argument failed because long-term resident aliens like Norman Black are not governed by Article 40’s “non-resident alien” standard.
Contractual Obligations and Public Policy Considerations
Contractual impairment claims were dismissed: the alien employment permit regime predates the parties’ contract, and statutory conditions affecting public policy are deemed incorporated into private agreements. Private parties cannot contract away mandatory legal requirements.
Authority to Assess National Interest
The Court upheld the validity of Section 6(c) of Rule XIV, which authorizes the Secretary to consider whether an alien’s employment “will redound to the national interest.” The discretionary grant in Article 40’s permissive language and the constitutional objectives in Article 12 of the Labor Code (particularly those promoting employment in accordance with the national interest) fully support this requirement.
...continue readingCase Syllabus (G.R. No. 93666)
Facts
- On May 1, 1989, the National Capital Region of the Department of Labor and Employment issued Alien Employment Permit No. M-0689-3-535 in favor of Earl Timothy Cone, a U.S. citizen, as sports consultant and assistant coach for General Milling Corporation (GMC).
- On December 27, 1989, GMC and Cone executed a contract of employment for Cone to coach GMC’s basketball team.
- On January 15, 1990, the Board of Special Inquiry of the Commission on Immigration and Deportation approved Cone’s change of immigration status from temporary visitor to prearranged employee.
- On February 9, 1990, GMC applied for renewal of Cone’s alien employment permit and sought permission to employ him as a full-fledged coach.
- On February 15, 1990, DOLE Regional Director Luna Piezas granted the request.
- On February 18, 1990, Alien Employment Permit No. M-0290-3-881, valid until December 25, 1990, was issued to Cone.
Procedural History
- The Basketball Coaches Association of the Philippines (BCAP) appealed the issuance of Cone’s renewed permit to the Secretary of Labor.
- On April 23, 1990, Secretary Ruben D. Torres issued a decision cancelling Cone’s permit, finding no proof that no Filipino was competent and willing for the position and no showing that Cone’s hiring would redound to national interest.
- GMC filed a Motion for Reconsideration and two Supplemental Motions, all denied by Acting Secretary Bienvenido E. Laguesma on June 8, 1990.
- On June 14, 1990, GMC and Cone filed a Petition for Certiorari before the Supreme Court, alleging grave abuse of discretion by the Secretary and challenging the validity of Section 6(c), Rule XIV, Book I of the Omnibus Rules Implementing the Labor Code.
Issues
- Whether the Secretary of