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Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)

The case of Pakistan International Airlines v. Ople addresses the conflict between contractual freedom and public policy in employment contracts. The court ruled that provisions allowing unilateral termination and fixed contract duration violated Philippine labor laws aimed at protecting employee security. Consequently, the court invalidated the contract terms that undermined labor protections, emphasizing the need to balance party autonomy with public interest.

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67 views1 page

Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)

The case of Pakistan International Airlines v. Ople addresses the conflict between contractual freedom and public policy in employment contracts. The court ruled that provisions allowing unilateral termination and fixed contract duration violated Philippine labor laws aimed at protecting employee security. Consequently, the court invalidated the contract terms that undermined labor protections, emphasizing the need to balance party autonomy with public interest.

Uploaded by

Anne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

TOPIC: Contractual freedom and public policy.

CASE: Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)

FACTS:

Pakistan International Airlines Corporation (PIA) executed two separate contracts of


employment with private respondents Ethelynne B. Farrales and Ma. M.C. Mamasig on
December 2, 1978. The contracts, which became effective on January 9, 1979, provided for a
three-year term and allowed PIA to terminate the agreement at any time by giving one
month's notice or paying one month's salary. The contracts also specified that Pakistani law
would govern the agreement and that the courts of Karachi, Pakistan would have jurisdiction
over any disputes. After completing their training, Farrales and Mamasig began working as
flight attendants with base station in Manila and flying assignments to different parts of the
Middle East and Europe. On August 1, 1980, PIA sent separate letters to Farrales and
Mamasig informing them that their services would be terminated effective September 1,
1980. Farrales and Mamasig filed a complaint for illegal dismissal and non-payment of
company benefits and bonuses with the Ministry of Labor and Employment (MOLE).

ISSUE:

The issue in this case relates to the balance between contractual freedom and public policy
as outlined in the New Civil Code of the Philippines.

RULING:

While Pakistan International Airlines Corporation (PIA) sought to enforce the terms of the
employment contracts, including a fixed three-year duration and unilateral termination
rights, the court determined that these provisions violated public policy and the security of
tenure mandated by Philippine labor laws. The court highlighted that contractual
agreements cannot contravene laws designed to protect employees, emphasizing that the
principle of party autonomy must be tempered by the need to uphold public interest and
labor protections. Thus, the court ruled that the provisions in the employment contract that
undermined employee security were invalid.

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