Ambiguities in contract interpreted AGAINST party causing ambiguity

Moreover, the Employment contract states: "12(a) In the event of either party wishing to terminate this Contract prior to the expiry of this Contract, the initiating party shall give in writing to the other party ONE month's/ months notice or forfeit ONE month's/month wages in lieu of notice. In the case of the former, both the Employer and the Helper shall within seven working days following notice of termination of the Contract inform the Director of Immigration and the Commissioner for Labor of the date of termination. In the case of the latter, the written notification should be made within one working day. In both cases, the Employer shall provide to the Director of Immigration a copy of the written advice or termination or notice of termination of the Contract given to the helper. (b) Notwithstanding the provision of Clause 12(a), the employer may in writing, terminate contract without notice or payment in lieu of notice x x x." Which clearly shows the intention of the contracting parties to provide for a payment or indemnitv in case the employer terminates the services of the employee without notice. And while the amount and nature thereof was not specified in the contract, resort can be had to Article 149 of the Labor Code under the settled principle that laws are deemed incorporated in the contract without need for the parties' expressly making reference to them, especially laws affecting public policy, as in this case. Petitioner's interpretation of the word "payment" under clause 12(b) to refer to the salary for the unexpired portion of the contract is therefore misplaced. The "payment" contemplated by the parties in their contract is more in the concept of a penalty or damages arising from the manner of the dismissal. In any event, ambiguities in a contract are interpreted against the party that caused the ambiguity, which in this case is PHILAC, the party that drafted and caused the inclusion of the subject clause. [G.R. No. 123354. November 19, 1996]