The basic policy in this jurisdiction is that all Filipino workers, whether employed locally or overseas, enjoy the protective mantle of Philippine labor and social legislations. Philippine Law recognizes retrenchment as a valid cause of dismissal of a migrant or overseas Filipino worker under Article 283 of the Labor Code. The Foreign employer must comply with all requirements for retrenchment, separation pay and notice requirements. Having failed to comply with procedures ( 1 month notice ), termination is merely procedurally infirm in the light of a valid authorized cause.
Employees are not stripped of their security of tenure when they move to work in a different jurisdiction. With respect to the rights of overseas Filipino workers, we follow the principle of lex loci contractus or the law of the place where the contract was made or law of the place where the contract is to be governed (place of performance) which may or may not be the same as that of the place where it was made.