G.R. No. 61594 September 28, 1990

FACTS:

Pakistan International, a foreign corporation licensed to do business in the Philippines, executed two contracts of employment with private respondents for their services as flight stewardesses. The contract had a term of three years but also with the stipulation that, notwithstanding any provisions to the contrary, the employer reserves the right to pre-terminate it at any time. Before the expiration of the three-year term, Pakistan International sent notices of dismissal to private respondents.  Farrales and Mamasig filed a case for illegal dismissal and recovery of wages and other benefits.

PIA invokes paragraphs 5 and 6 of its contract of employment with private respondents Farrales and Mamasig, arguing that its relationship with them was governed by the provisions of its contract rather than by the general provisions of the Labor Code. PIA had the right to terminate the employment agreement at any time by giving one-month’s notice to the employee or, in lieu of such notice, one-month’s salary.