On October 29, 2008, the CA reversed the decision of the NLRC.19[19] Pertinently, the CA held
that:
We find that the NLRC (Sixth Division) committed grave abuse of discretion in
affirming the Decision of Labor Arbiter Cellan which awarded US$60,000.00
total and permanent disability benefits and US$6,000.00 attorney’s fees in favor
of private respondent, as the findings of both the Labor Arbiter and the NLRC
(Sixth Division) are not anchored on substantial evidence.
It is basic that a contract is the law between the parties. Obligations arising from
contracts have the force of law between the contracting parties and should be
complied with in good faith. Unless the stipulations in a contract are contrary to
law, morals, good customs, public order or public policy, the same are binding as
between the parties.
A seafarer is a contractual, not a regular employee, and his employment is
contractually fixed for a certain period of time. His employment, including claims
for death or illness compensations, is governed by the contract he signs every
time he is hired, and is not rooted from the provisions of the Labor Code.
The Contract of Employment entered into by petitioners and private respondent,
and approved by the POEA on 25 October 2005, provides:
“The herein terms and conditions in accordance with
Department Order No. 4 and Memorandum Circular No. 09,
both Series of 2000, shall be strictly and faithfully observed.
x x x Upon approval, the same shall be deemed an integral
part of the: Standard Terms and Conditions Governing the
Employment of Filipino Seafarers On Board Ocean-Going
Vessels.”
19[19] Rollo, pp. 22-45.