2018 Labor Law, Q10

Nonato had been continuously employed and deployed as a seaman who performed services that were necessary and desirable to the business of N-Train Shipping, through its local agent, Narita Maritime Services (Agency), in accordance with the 2010 Philippine Overseas Employment Administration Standard Employment Contract (2010 POEA-SEC). Nonato’s last contract (for five months) expired on November 15, 2016. Nonato was then repatriated due to a “finished contract.” He immediately reported to the Agency and complained that he had been experiencing dizziness, weakness, and difficulty in breathing. The Agency referred him to Dr. Neri, who examined, treated, and prescribed him with medications. After a few months of treatment and consultations, Nonato was declared fit to resume work as a seaman. Nonato went back to the Agency to ask for re-deployment but the Agency rejected his application. Nonato filed an illegal dismissal case against the Agency and its principal, with a claim for total disability benefits based on the ailments that he developed on board N-Train Shipping vessels. The claim was based on the certification of his own physician, Dr. Nunez, that he was unfit for sea duties because of his hypertension and diabetes.
a) Was Nonato a regular employee of N-Train Shipping? (2.5%)
b) Can Nonato successfully claim disability benefits against N-Train Shipping and its agent Narita Maritime Services? (2.5%)

Quick check

What is the legal employment status of Filipino seafarers under Philippine labor law and POEA regulations?

What procedural step is mandatory under the 2010 POEA-SEC when a seafarer's doctor disagrees with the company doctor's medical finding?

What is the legal consequence if a seafarer fails to abide by the mandatory third-doctor referral procedure under the POEA-SEC?

Does a manning agency's refusal to re-deploy a seafarer after the expiration of a five-month POEA contract constitute illegal dismissal?

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When does the employer-employee relationship between a seafarer and a foreign maritime principal officially terminate?

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1. Seafarer Contractual Status
Under Philippine labor jurisprudence, particularly Millares v. NLRC and Industrial Personnel & Management Services, Inc. v. De Vera, seafarers are contractual fixed-term employees whose employment is governed strictly by the POEA Standard Employment Contract. Seafarers do not attain regular employment status regardless of the length of their service, the continuous re-hiring by the same Manning Agency, or the necessary and desirable nature of their work to the principal's maritime business. Employment automatically terminates upon the expiration of the agreed contract term specified in the POEA-SEC.

2. Third Doctor Requirement
Under Section 20(A)(3) of the 2010 POEA-SEC and Philippine Hammonia Ship Agency, Inc. v. Dumadag, if a physician appointed by the seafarer disagrees with the fit-to-work assessment or disability rating issued by the company-designated physician, the parties must jointly agree to refer the evaluation to a neutral third doctor. The third doctor's medical assessment is final and binding on both parties. Failure of the seafarer to initiate or comply with the mandatory third-doctor referral procedure renders the company-designated physician's fit-to-work certification final and conclusive.

3. POEA Contract Expiration
Upon the expiration of a seafarer's POEA Standard Employment Contract, the employer-employee relationship between the seaman and the vessel principal automatically ceases. The refusal of a local manning agency or foreign principal to re-hire or re-deploy a seafarer after contract completion does not constitute illegal dismissal. A seafarer has no vested statutory or contractual right to automatic re-employment or continuous deployment after completing the stipulated contract period, as each deployment constitutes an independent contractual engagement.

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