University of the Philippines College of Law
BGC Evening Block 1 Batch 2025
OVERVIEW
Subject LABOR LAW 1
Topic Introduction to Labor Law - Legal Bases; Sources of Rights and Benefits
Case Name International School Alliance of Educations vs. Quisumbing
Docket No. G.R. No. 128845. June 1, 2000
Ponente KAPUNAN, J.
Provision
Summary Petitioner “a legitimate labor union and the collective bargaining representative of all
faculty members" of the respondent school, contested the difference in salary rates
between foreign and local-hires. SC held that the point of hire classification which
resulted in difference in salary rates was discriminatory.
There was no evidence that foreign-hires perform 25% more efficiently or effectively
than the local-hires. Both groups have similar functions and responsibilities, which
they perform under similar working conditions.
Doctrine International law, which springs from general principles of law, likewise
proscribes discrimination.
1. General principles of law include principles of equity , i.e., the general
principles of fairness and justice, based on the test of what is reasonable.
The Universal Declaration of Human Rights, the International Covenant on
Economic, Social and Cultural Rights, the International Convention on the
Elimination of All Forms of Racial Discrimination, the Convention against
Discrimination in Education, the Convention (No. 111) Concerning
Discrimination in Respect of Employment and Occupation— all embody the
general principle against discrimination, the very antithesis of fairness and
justice.
2. The Philippines, through its Constitution, has incorporated this principle as
part of its national laws.
RELEVANT FACTS
● Private respondent International School, Inc. is a domestic educational institution established
primarily for dependents of foreign diplomatic personnel and other temporary residents.
● It hires both foreign and local teachers as members of its faculty classifying them as foreign-
hires and local-hires. It grants foreign-hires certain benefits as housing, transportation, shipping
costs, taxes and home leave travel allowance which are not accorded to local-hires.
● The school employs four tests to determine whether a faculty member should be classified as a
foreign-hire or a local hire (Point of hire classification)
HIZON, MICHAEL LABOOOOOOR | 1
University of the Philippines College of Law
BGC Evening Block 1 Batch 2025
○ What is one's domicile?
○ Where is one's home economy?
○ To which country does one owe economic allegiance?
○ Was the individual hired abroad specifically to work in the School and was the School responsible
for bringing that individual to the Philippines?
● The school grants foreign-hires certain benefits not accorded local-hires . These include
housing, transportation, shipping costs, taxes, and home leave travel allowance. Foreign-hires
are also paid a salary rate twenty-five percent (25%) more than local-hires.
● When negotiations for a new collective bargaining agreement were held on June 1995, petitioner
“a legitimate labor union and the collective bargaining representative of all faculty
members" of the school, contested the difference in salary rates between foreign and local-
hires.
● On September 7, 1995, petitioner filed a notice of strike. The failure of the National Conciliation
and Mediation Board to bring the parties to a compromise prompted the Department of Labor and
Employment (DOLE) to assume jurisdiction over the dispute
● Petitioner claims that the point-of-hire classification employed by the School is discriminatory to
Filipinos and that the grant of higher salaries to foreign-hires constitutes racial discrimination.
● The Acting Secretary of Labor found that these non-Filipino local-hires received the same
benefits as the Filipino local-hires
PROCEDURAL POSTURE
ISSUE and RATIO DECIDENDI
WHETHER or NOT the point of hire classification is discriminatory to Filipinos
YES. The point of hire classification is discriminatory to Filipinos
Public policy abhors inequality and discrimination
1. The Constitution in the Article on Social Justice and Human Rights exhorts Congress to "give
highest priority to the enactment of measures that protect and enhance the right of all people to
human dignity, reduce social, economic, and political inequalities."
2. The very broad Article 19 of the Civil Code requires every person, "in the exercise of his rights
and in the performance of his duties, [to] act with justice, give everyone his due, and observe
honesty and good faith."
International law, which springs from general principles of law, likewise proscribes
discrimination.
3. General principles of law include principles of equity , i.e., the general principles of fairness
and justice, based on the test of what is reasonable. The Universal Declaration of Human
Rights, the International Covenant on Economic, Social and Cultural Rights, the International
HIZON, MICHAEL LABOOOOOOR | 2
University of the Philippines College of Law
BGC Evening Block 1 Batch 2025
Convention on the Elimination of All Forms of Racial Discrimination, the Convention against
Discrimination in Education, the Convention (No. 111) Concerning Discrimination in Respect of
Employment and Occupation— all embody the general principle against discrimination, the
very antithesis of fairness and justice.
4. The Philippines, through its Constitution, has incorporated this principle as part of its national
laws.
a. The Constitution specifically provides that labor is entitled to "humane conditions of
work."
These conditions are not restricted to the physical workplace — the factory, the office
or the field — but include as well the manner by which employers treat their
employees.
b. Discrimination, particularly in terms of wages, is frowned upon by the Labor
Code.
Article 135, for example, prohibits and penalizes the payment of lesser compensation
to a female employee as against a male employee for work of equal value.
Article 248 declares it an unfair labor practice for an employer to discriminate in regard
to wages in order to encourage or discourage membership in any labor organization.
5. Article 7 of the International Covenant on Economic, Social, and Cultural Rights, supra, in
thereof, institutionalize in this jurisdiction the long honored legal truism of "equal pay for equal
work."
Persons who work with substantially equal qualifications, skill, effort and responsibility,
under similar conditions, should be paid similar salaries. This rule applies to the School,
its "international character" notwithstanding
If an employer accords employees the same position and rank, the presumption is that these
employees perform equal work.
1. Hence, if the employer pays one employee less than the rest, it is not for that employee to
explain why he receives less or why the others receive more.
2. It is for the employer to explain why the employee is treated unfairly.
There was no evidence that foreign-hires perform 25% more efficiently or effectively than the
local-hires. Both groups have similar functions and responsibilities, which they perform under similar
working conditions.
While the court recognized the need of the school to attract foreign-hires, salaries should not be used
as an enticement to the prejudice of local-hires.
1. "Salary" is defined in Black's Law Dictionary (5th ed.) as "a reward or recompense for services
performed." Similarly, the Philippine Legal Encyclopedia states that "salary" is the
"[c]onsideration paid at regular intervals for the rendering of services."
2. The local-hires perform the same services as foreign-hires and they ought to be paid the
same salaries as the latter.
3. There is no reasonable distinction between the services rendered by foreign-hires and
HIZON, MICHAEL LABOOOOOOR | 3
University of the Philippines College of Law
BGC Evening Block 1 Batch 2025
local-hires.
However, foreign-hires do not belong to the same bargaining unit as the local-hires. [NOT
RELEVANT]
1. Foreign-hires have limited tenure; local-hires enjoy security of tenure.
2. Although foreign-hires perform similar functions under the same working conditions as the
local-hires, foreign-hires are accorded certain benefits not granted to local-hires.
These benefits, such as housing, transportation, shipping costs, taxes, and home leave travel
allowance, are reasonably related to their status as foreign-hires, and justify the exclusion of
the former from the latter.
3. To include foreign-hires in a bargaining unit with local-hires would not assure either group the
exercise of their respective collective bargaining rights.
DISPOSITION
WHEREFORE, the petition is GIVEN DUE COURSE. The petition is hereby GRANTED IN PART. The
Orders of the Secretary of Labor and Employment dated June 10, 1996 and March 19, 1997, are hereby
REVERSED and SET ASIDE insofar as they uphold the practice of respondent School of according
foreign- hires higher salaries than local hires.
SO ORDERED.
SEPARATE OPINIONS
HIZON, MICHAEL LABOOOOOOR | 4
