4/14/2021
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Moreover, considering that petitioner's employment contract is covered by a CBA which
provides for better benefits, these terms will override the 2010 POEA-SEC provisions on
disability compensation in favor of petitioner. This is so because a contract of labor is so
impressed with public interest that the more beneficial conditions must be endeavored
in favor of the laborer.[55]
Article 31 of the CBA on Compensation for Disability provides:
Section 1. A seafarer who suffers permanent disability as a result of
work[-]related illness or from an injury as a result of an accident,
regardless of fault but excluding injuries caused by a seafarer's [willful] act,
whilst serving on board, including accidents and work[-]related illness
occurring while travelling to or from the ship, and whose ability to work is
reduced as a result thereof, shall in addition to sick pay, be entitled to
compensation according to the provisions of this Agreement. In
determining work[-]related illness, reference shall be made to the Philippine
Overseas Employment Administration (POEA) Standard Tem1s and
Conditions Governing the Employment of Filipino Seafarers On Board Ocean
Going Vessels.
Section 2. The disability suffered by the seafarer shall be determined by a
doctor appointed by the Company. If a doctor appointed by or on behalf of
the seafarer disagrees with the assessment, a third doctor may be agreed
jointly between the Company and the Seafarer and his Union, and the third
doctor's decision shall be final and binding on both parties.
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Section 4. A seafarer whose disability, in accordance with 25.2 above is
assessed at 50% or more shall, for the purpose of this paragraph, be
regarded as permanently unfit for further sea service in any capacity and be
entitled to 100% compensation. Furthermore, any seafarer assessed at
less than 50% disability but certified as permanently unfit for
further sea service in any capacity by the Company-nominated
doctor, shall also be entitled to 100% compensation. Any
disagreement as to the assessment or entitlement shall be resolved in
accordance with clause 25.2 above.[56] (Emphases supplied)
Based on the above-quoted provisions of the CBA, there are three (3) instances when a
seafarer may be entitled to 1 00% disability compensation, namely: (1) when the
seafarer is declared to have suffered 100% disability, (2) when the seafarer is assessed
with disability of at least 50%; and (3) when the seafarer is assessed at below
50% disability, but he or she is certified as permanently unfit for sea service.
Here, since petitioner was assessed a Grade 7 disability rating by the companydesignated physician, which under the CBA Degree of Disability Rate for Ratings[57] to
which he belongs is equivalent to 37.244[58] or below the 50% disability, and further
declared to be unfit for further sea duties as found by the PVA and reflected in the
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