The court held that the labor tribunals had the jurisdiction to hear and decide the case.

While the
employment contract between Basso and CMI had references to U.S. laws and was originated from and
returned to the U.S., this did not automatically exclude the jurisdiction of Philippine labor tribunals.

Additionally, jurisdiction over CMI was established through the service of summons, and CMI did not
deny being served with summons. CMI, despite being a foreign corporation, is licensed to do business in
the Philippines and has a local business address, making it subject to the jurisdiction of Philippine courts.

The court pointed out that when foreign elements are involved, it becomes a conflicts-of-laws issue. In
such cases, under the doctrine of forum non conveniens, a Philippine court may assume jurisdiction if
certain conditions are met. These conditions include the convenience of the parties resorting to the
Philippine court, the ability of the Philippine court to make informed decisions regarding law and facts,
and the capacity of the Philippine court to enforce its decisions. In this case, all these conditions were
satisfied, justifying the exercise of jurisdiction by the Philippine labor tribunals.