6/5/2020
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company-designated physician.
c. Under the POEA-contract, benefits are awarded based solely on
gradings and not by the number of days of treatment.
II. PUBLIC RESPONDENT NLRC COMMITTED GRAVE ABUSE OF DISCRETION
AMOUNTING TO LACK OR EXCESS OF JURISDICTION WHEN IT AWARDED
ATTORNEY'S FEES TO PRIVATE RESPONDENT.[8]
Ruling of the CA
The petitioners maintained that the respondent is not entitled to maximum disability
benefits under the Philippine Overseas Employment Administration Standard
Employment Contract (POEA SEC), the Dutch CBA and this Court’s decisions, in view of
his Grade 11 disability rating as assessed by the company-designated physician. But
the respondent pointed out that, at the time the said rating was issued, he was not
completely healed but had to continue with his physical therapy sessions even beyond
the maximum 240-day period allowed under the Amended Rules on Employee
Compensation (AREC),[9] implying that the company’s disability rating on March 10,
2011 was temporary; that since his treatment exceeded the 240 days permitted, his
disability is now total and permanent.
In its Decision[10] dated April 24, 2014, the CA ruled that the seafarer’s right to
disability benefits is determined not solely by the company’s assessment of his
impediment but also by law, contract and medical findings. Citing Articles 191 to 193
of the Labor Code, Section 2, Rule X of the AREC, the POEA SEC, the parties’ CBA, and
the employment contract between the parties, the appellate concurred that the
respondent was entitled to total permanent disability benefits.[11]
Petition for Review in the Supreme Court
In this petition, the petitioners insist that the CA erred in disregarding the petitioners’
partial permanent disability rating of Grade 11 under the POEA SEC schedule of
disability benefits, even as they pointed out that the respondent failed to refer his
assessment to a neutral third doctor as provided in Paragraph 3, Section 20(B) of the
POEA SEC.
Ruling of the Court
The Court denies the petition.
It is expressly provided in Article 192(c)(1) of the Labor Code that a “temporary total
disability lasting continuously for more than [120] days, except as otherwise provided in
the Rules,” shall be deemed total and permanent. Section 2(b), Rule VII of the AREC,
likewise provides that “a disability is total and permanent if as a result of the injury or
sickness the employee is unable to perform any gainful occupation for a continuous
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