Every effort will be made to grant earned vacations promptly after eight
(8) months of service; however, the COMPANY shall have the right to advance or
delay vacations to coincide with vessel repairs, for operational reasons or due to
personal requirements. SEAFARER shall receive vacation compensation for each
thirty (30) days of continuous service in accordance with the rates listed in
Addendum No. 1, Column (12), to be paid in Manila. Amounts shall be pro-rated
according to the ranks/ratings and period of time in which the SEAFARER
served. For period of less than thirty (30) days service, vacations and
compensation shall be reduced proportionately.
Time off for illness, injury, vacation, leave of absence or stand-by shall
not be considered service under the provisions of this Article.
It is the COMPANY’s intention that each SEAFARER enjoy his full
vacation period. Because of urgent fleet needs, however, it occasionally may be
necessary to recall a SEAFARER early from vacation.[24]
Since Tanchico received compensation during his vacation, the Contract did
not terminate on the day he returned to Manila. The Contract remained in force
during Tanchico’s vacation period.
However, the Court of Appeals erred when it ruled that Tanchico is entitled
to disability benefits of 18 days for every year of service. The Court of Appeals
ruled that Tanchico’s employment was continuous and that his tenure with
petitioners was for 14 years. Again, the Court of Appeals assumed
that Tanchico was a regular employee. The Court of Appeals failed to consider
thatTanchico’s employment terminated with the end of each contract.
The Contract provides:
Article VIII
SICKNESS-INJURY/DEATH
A. The COMPANY shall provide, during the period of the Contract,
Insurance coverage for the SEAFARER against loss of life, permanent disability,
temporary disability, injury, occupational illness, hospital and medical expense in
such amounts as the COMPANY shall determine but not lower than what the
COMPANY would have to pay under the Philippine Overseas Employment
Administration’s requirements or the vessel’s flag state requirements (whichever is
higher).