On 6 March 1978, Esso International Shipping (Bahamas) Co., Ltd.,
(“Esso”) through Trans-Global Maritime Agency, Inc. (“Trans-Global”)
hired Florello W. Tanchico (“Tanchico”)
as
First
Assistant
Engineer. In 1981, Tanchico became
Chief
Engineer. On 13
October
1992, Tanchico returned to the Philippines for a two-month vacation after
completing his eight-month deployment.
On 8 December 1992, Tanchico underwent the required standard medical
examination prior to boarding the vessel. The medical examination revealed
that Tanchico was suffering from “Ischemic Heart Disease, Hypertensive CardioMuscular Disease and Diabetes Mellitus.” Tanchico took medications for two
months and a subsequent stress test showed a negative result. However, Esso no
longer deployed Tanchico. Instead, Esso offered to pay him benefits under the
Career Employment Incentive Plan. Tanchico accepted the offer.
On 26 April 1993, Tanchico filed a complaint against Esso, Trans-Global and
Malayan Insurance Co., Inc. (“Malayan”) before the Philippine Overseas
Employment Administration (POEA) for illegal dismissal with claims
for backwages, separation pay, disability and medical benefits and 13th month
pay. In view of the enactment of Republic Act No. 8042 (“RA 8042”)
[4]
transferring to the National Labor Relations Commission (NLRC) the
jurisdiction over money claims of overseas workers, the case was indorsed to the
Arbitration Branch of the National Capital Region. In a Decision[5] dated 16
October 1996, Labor Arbiter Jose G. De Vera (“Labor Arbiter De Vera”)
dismissed the complaint for lack of merit. Tanchico appealed to the NLRC.
The Ruling of the NLRC
In its Resolution[6] of 3 September 1998, the NLRC affirmed the Decision of
Labor Arbiter De Vera. Tanchico filed a motion for reconsideration. In a
Resolution[7] promulgated on 29 March 1999, the NLRC reconsidered its 3
September 1998 Resolution, as follows:
On the claim of illegal dismissal, the same is unavailing as complainant
had been declared as one with partial permanent disability. Thus, he should be
entitled to disability benefit of 18 days for every year of credited service of