For ten (10) separate but consecutive yearly contracts, Cesar has been deployed as an able-bodied seaman by Meritt Shipping, through its local agent, Ace Maritime Services (agency), in accordance with the 2000Philippine Overseas Employment Administration Standard Employment Contract (2000 POEA-SEC). Cesar’s employment was also covered by a CBA between the union, AMOSl.JP, and Meritt Shipping. Both the 2000 POEA-SEC and the CBA commonly provide the same mode and procedures for claiming disability benefits. Cesar’s last contract (for nine months) expired on July 15, 2013.
Cesar disembarked from the vessel M/V Seven Seas on July 16, 2013as a seaman on “finished contract”. He immediately reported to the agency and complained that he had been experiencing spells of dizziness, nausea, general weakness, and difficulty in breathing. The agency referred him to Dr. Sales, a cardio-pulmonary specialist, who examined and treated him; advised him to take a complete rest for a while; gave him medications; and declared him fit to resume work as a seaman.
After a month, Cesar went back to the agency to ask for re-deployment. The agency rejected his application. Cesar responded by demanding total disability benefits based on the ailments that he developed and suffered while on board Meritt Shipping vessels. The claim was based on the certification of his physician (internist Dr. Reyes) that he could no longer undertake sea duties because of the hypertension and diabetes that afflicted him while serving on Meritt Shipping vessels in the last 10 years. Rejected once again, Cesar filed a complaint for illegal dismissal and the payment of total permanent disability benefits against the agency and its principal.
Assume that you are the Labor Arbiter deciding the case. Identify the facts and issues you would consider material in resolving the illegal dismissal and disability complaint. Explain your choices and their materiality, and resolve the case. (8%)
Suggested answer only. Not an official answer and not legal advice.
I will dismiss the complaint for illegal dismissal and deny the claim for total disability benefits. Under jurisprudence, seafarers are contractual employees whose employment ends upon contract expiration. Under the POEA-SEC, disability
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Quick check
What is the legal employment status of seafarers under Philippine labor laws despite continuous re-hiring for consecutive contracts?
Seafarers are contractual employees whose employment relationship automatically terminates upon the expiration of their contract.
What is the mandatory procedure when the company-designated doctor's assessment conflicts with the seafarer's personal physician?
Conflicting medical evaluations must be referred to a mutually agreed third doctor whose assessment is final and binding.
What is the effect if a seafarer fails to initiate the third-doctor referral procedure after receiving a fit-to-work rating from the company doctor?
Failure to initiate the third-doctor referral renders the company-designated physician's fit-to-work assessment binding.
Within what timeframe must a disembarked seafarer report for a post-employment medical examination by the company-designated physician?
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Can a seafarer whose contract naturally expired claim illegal dismissal due to non-renewal or failure to re-deploy?
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Learn more about these topics
1. Seafarer Contractual Employment
Seafarers are contractual employees whose employment relationship is governed strictly by the POEA Standard Employment Contract and individual contracts. Under settled labor jurisprudence, continuous re-hiring over several consecutive yearly contracts does not convert a seafarer into a regular employee. Upon the arrival of the agreed contract expiration date, the employment relationship automatically terminates without any act of dismissal. Consequently, a seafarer whose contract naturally expires and who is not re-deployed by the manning agency cannot validly maintain a complaint for illegal dismissal.
2. Third Doctor Rule
Under Section 20(B) of the POEA Standard Employment Contract, when the medical evaluation of the company-designated physician conflicts with that of the seafarer's personal physician, the parties must jointly select a third doctor whose medical assessment shall be final and binding. The initiation of the third-doctor referral process rests primarily on the seafarer challenging the company doctor's assessment. If the seafarer fails to initiate or comply with the mandatory third-doctor procedure, the medical assessment issued by the company-designated physician finding the seafarer fit for sea duties prevails.
3. Disability Assessment Requisites
To successfully claim disability benefits under the POEA-SEC, the seafarer must establish that the illness or injury was work-related and contracted during the term of employment. Additionally, the seafarer must submit to a mandatory post-employment medical examination by the company-designated physician within three working days upon disembarkation. When the company-designated doctor evaluates the seafarer within the statutory period and certifies him fit to resume work, the seafarer cannot claim permanent disability benefits based solely on a contrary personal medical certificate obtained outside the statutory framework.