between private respondent and petitioners was executed on April 10,
1996. Hence, it is wrong for petitioners to cite this particular Memorandum
because at the time of petitioners’ and private respondent’s execution of their
contract of employment Memorandum Circular No. 055-96 was not yet effective.
What was in effect at the time private respondent’s Contract of Employment
was executed was POEA Memorandum Circular No. 41, Series of 1989. It is
clearly provided under the second paragraph of private respondent’s Contract of
Employment that the terms and conditions provided under Memorandum Circular
No. 41, Series of 1989 shall be strictly and faithfully observed. Hence, it is
Memorandum Circular No. 41, Series of 1989 which governs private respondent’s
contract of employment.
Section H (6), Part I of Memorandum Circular No. 41, which has almost
identical provisions with Section 19 (C) of Memorandum Circular No. 055-96,
provides as follows:
SECTION H. TERMINATION OF EMPLOYMENT
x x x x
6. If the vessel arrives at a convenient port within a period of three (3)
months before the expiration of the Contract, the master/employer may repatriate
the seaman from such port provided that the seaman shall be paid all his earned
wages. In addition, the seaman shall also be paid his leave pay for the entire
contract period plus a termination pay equivalent to one (1) month of his basic
pay, provided, however, that this mode of termination may only be exercised by
the master/employer if the original contact period of the seaman is at least ten (10)
months; provided, further, that the conditions for this mode of termination shall
not apply to dismissal for cause.
The Court agrees with private respondent’s contention that petitioners’
arguments are misplaced. Petitioners may not use the above-quoted provision as
basis for terminating private respondent’s employment because it is incongruent
with their primary defense that the latter’s dismissal from employment was for
cause. Petitioners may not claim that they ended private respondent’s services
because he is guilty of desertion and at the same time argue that they exercised
their option to prematurely terminate his employment, even without cause, simply
because they have the right to do so under their contract. These grounds for