After reading “What is the Theory of Imputed Knowledge?”, read also “What is the Double Indemnity Doctrine?”
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The principal is chargeable with and bound by the knowledge of or notice to his agent received while the agent was acting as such.
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Notice to the agent is notice to the principal.
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But, notice to the principal is not notice to the agent. Thus, notice to the foreign employer is not notice to the local employment agency.
The theory of imputed knowledge is a doctrine in agency stating that the principal is chargeable with and bound by the knowledge of or notice to his agent received while the agent was acting as such. Notice to the agent is notice to the principal.
Jurisprudence says:
The theory of imputed knowledge ascribes the knowledge of the agent, Sunace, to the principal, employer Xiong, not the other way around. The knowledge of the principal-foreign employer cannot, therefore, be imputed to its agent Sunace. (Sunace International Management Services, Inc. vs. National Labor Relations Commission, G.R. No. 161757. January 25, 2006)
In the case at hand, there was no substantial proof that Sunace, the agent, knew and consented to be bound under the extension of the employment contract of Divina, the domestic helper that Sunace deployed under a 12-month contract. Thus, Sunace cannot be solidarily liable for any of Divina’s claim arising from the extension of the contract.
The law says:
Contracts take effect only between the parties, their assigns, and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. (Article 1311, New Civil Code of the Philippines)
Moreover, in the same case of Sunace International Management Services, Inc. vs. National Labor Relations Commission, the termination of the original employment contract is an implied revocation of the agency relationship.
The law says:
The agency is revoked if the principal directly manages the business entrusted to the agent, dealing directly with third persons. (Article 1924, NCC)
A local employment agency is considered the agent of the foreign employer, the principal. Notice to the local employment agency of any violation thereof is notice to the principal foreign employer. But, notice to the principal is not notice to the agent. Thus, notice to the foreign employer is not notice to the local employment agency.
Jurisprudence says:
It is undisputed that Eduardo Santos was present in the March 1, 1976 TTTDC Board meeting wherein the December 29, 1975 Resolution was repealed. We hold that Eduardo Santos, being the President of Rovels, is considered as Rovels’ agent. As such, Santos’ knowledge of the repeal of the December 29, 1975 Resolution, under the theory of imputed knowledge, is ascribed to his principal, Rovels. (Rovels Enterprises, Inc., vs. Emmanuel B. Ocampo, G.R. No. 136821, October 17, 2002)
Knowledge of facts acquired or possessed by an officer or agent of a corporation in the course of his employment, and in relation to matters within the scope of his authority, is notice to the corporation, whether he communicates such knowledge or not. (Trinidad J. Francisco vs. Government Service Insurance System, G.R. No. L-18287, March 30, 1963)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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