5/28/2020
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At the outset, it is to be emphasized that the Court is not a trier of facts and, thus, its
jurisdiction is limited only to reviewing errors of law. The rule, however, admits of
certain exceptions, one of which is where the findings of fact of the lower tribunals and
the appellate court are contradictory. Such is the case here. Thus, the Court is
constrained to review and resolve the factual issue in order to settle the controversy.
Employment contracts of seafarers on board foreign ocean-going vessels are not
ordinary contracts. They are regulated and an imprimatur by the State is necessary.
While the seafarer and his employer are governed by their mutual agreement, the
POEA Rules and Regulations require that the POEA-SEC be integrated in every
seafarer’s contract.[15] In this case, there is no dispute that Caseñas’ employment
contract was duly approved by the POEA and that it incorporated the provisions of the
POEA-SEC.
As earlier stated, the controversy started when Caseñas claimed sickness and disability
benefits as well as unpaid wages from the petitioners upon his return to the Philippines.
The petitioners, on the other hand, refused to pay, arguing that Caseñas’ sickness was
contracted after his employment contract expired.
Regarding the issue of extension and its corresponding consequences, two cases were
cited by the parties in their pleadings. The first was Sunace International Management
Services, Inc. v. NLRC[16] (Sunace) and the second was Placewell International
Services Corporation v. Camote[17] (Placewell).
In Sunace, the Court ruled that the theory of imputed knowledge ascribed the
knowledge of the agent to the principal, not the other way around. The knowledge of
the principal-foreign employer could not, therefore, be imputed to its agent. As there
was no substantial proof that Sunace knew of, and consented to be bound under, the 2year employment contract extension, it could not be said to be privy thereto. As such,
it and its owner were not held solidarily liable for any of the complainant’s claims
arising from the 2-year employment extension.[18]
In Placewell, the Court concluded that the original POEA-approved employment contract
subsisted and, thus, the solidary liability of the agent with the principal continued. It
ruled that:
R.A. No. 8042 explicitly prohibits the substitution or alteration to the
prejudice of the worker, of employment contracts already approved and
verified by the Department of Labor and Employment (DOLE) from the time
of actual signing thereof by the parties up to and including the period of the
expiration of the same without the approval of the DOLE. Thus, we held in
Chavez v. Bonto-Perez,[19] that the subsequently executed side agreement
of an overseas contract worker with her foreign employer which reduced her
salary below the amount approved by the POEA is void because it is against
our existing laws, morals and public policy. The said side agreement cannot
supersede her standard employment contract approved by the POEA.
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