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SEALANES MARINE SERVICES v. ARNEL G. DELA TORRE

FACTS:

Arnel Dela Torre (respondent) was hired by Sealanes Marine Services, Inc. (Sealanes) as an able seaman for a period of nine months. He embarked on January 21, 2010, and on August 1, 2010, he got injured during a crew's rescue boat drill. He injured his lower back and was repatriated. Subsequent medical examinations showed degenerative changes and compression fractures in his lumbar spine. The respondent underwent physical therapy sessions but was assessed with a Grade 11 disability for slight rigidity or one-third loss of motion or lifting power of the trunk. He filed a complaint for disability benefits, medical reimbursement, underpaid sick leave, damages, and attorney's fees. The Labor Arbiter awarded him US$80,000 in disability benefits, which was later affirmed by the National Labor Relations Commission (NLRC). The NLRC found that he was entitled to total disability benefits as he continued with his rehabilitation after the company's disability rating was issued. The petitioners appealed to the Court of Appeals (CA), arguing that the respondent's disability benefits should be based on the Grade 11 disability assessment. The CA ruled that the respondent was entitled to total permanent disability benefits based on the Labor Code, the Amended Rules on Employee Compensation, and the employment contract. The petitioners filed a Petition for Review in the Supreme Court, which was denied.

ISSUES:

  1. Whether the seafarer is entitled to sickness allowance beyond 120 days.

RULING:

  1. The Court denies the petition. The seafarer is entitled to sickness allowance beyond 120 days. The seafarer was unable to go back to work as a seafarer despite long treatment and rehabilitation, which entitled him to maximum disability benefits under the Dutch CBA.

PRINCIPLES:

  • A temporary total disability lasting continuously for more than 120 days shall be deemed total and permanent. (Article 192(c)(1) of the Labor Code)

  • Disability is total and permanent if the employee is unable to perform any gainful occupation for a continuous period exceeding 120 days. (Section 2(b), Rule VII of the AREC)

  • The income benefit for temporary total disability shall be paid for a maximum of 120 consecutive days, but may be extended to 240 days if medical attendance is still required. (Section 2(a), Rule X of the AREC)

  • A seafarer is entitled to sickness allowance until he is declared fit to work or the degree of permanent disability has been assessed, but not exceeding 120 days. (Paragraph 3, Section 20(B) of the POEA SEC)

  • Only injuries or disabilities classified as Grade 1 are considered total and permanent. (Section 32 of the POEA SEC)

  • A total and temporary disability becomes permanent when declared by the company-designated physician within 120 or 240 days or upon the expiration of the said periods without a declaration of either fitness to work or permanent disability and the seafarer is still unable to resume his regular seafaring duties. (Kestrel Shipping Co., Inc. v. Munar)

  • A partial disability is characterized not only under the Schedule of Disabilities in the POEA SEC but also under the relevant provisions of the Labor Code and the AREC. If the seafarer's illness or injury prevents him from engaging in gainful employment for more than 120 or 240 days, he shall be deemed totally and permanently disabled. (Kestrel Shipping Co., Inc. v. Munar)

  • Recovery from illness or injury is not a factor in determining total permanent disability. What is important is that the seafarer was unable to perform his customary work for more than 120 days. (Crystal Shipping, Inc. v. Natividad)

  • The law does not require that the illness should be incurable for an employee to be entitled to permanent disability benefits.

  • An employee is considered permanently and totally disabled if he is unable to perform his customary work for more than 120 days.

  • The purpose of the disability benefit is to help the employee make ends meet at the time when he is unable to work.

  • The liabilities of the principal/employer and the recruitment/placement agency are joint and several and extend to the corporate officers, directors, and partners of the agency.

  • The liabilities of the principal/employer and the recruitment/placement agency shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment, or modification made locally or in a foreign country of the said contract.

  • The statutory provisions regarding liabilities of the principal/employer and the recruitment/placement agency are deemed incorporated in employment contracts and need not be explicitly mentioned or referred to.