4/9/2020
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SEC 2. COMMENCEMENT/DURATION OF CONTRACT
A. The employment contract between the employer and the
seafarer shall commence upon actual departure of the seafarer
from the airport or seaport in the point of hire and with a POEA
approved contract. It shall be effective until the seafarer's date of
arrival at the point of hire upon termination of his employment
pursuant to Section 18 of this Contract.[19]
Petitioners argue that, as ruled by the NLRC, since respondent did not actually depart
from the Ninoy Aquino International Airport in Manila, no employer-employee
relationship existed between respondent and petitioners' principal, Ranger Marine S.A.,
hence, there is no illegal dismissal to speak of, so that the award of damages must be
set aside.
Petitioners assert that they did not conceal any information from respondent related to
his contract of employment, from his initial application until the release of the result of
his medical examination. They even tried to communicate with respondent for another
shipboard assignment even after his failed deployment, which ruled out bad faith. They
pray that respondent's complaint be dismissed for lack of merit.
Petitioners' argument is partly meritorious.
An employment contract, like any other contract, is perfected at the moment (1) the
parties come to agree upon its terms; and (2) concur in the essential elements thereof:
(a) consent of the contracting parties, (b) object certain which is the subject matter of
the contract, and (c) cause of the obligation.[20] The object of the contract was the
rendition of service by respondent on board the vessel for which service he would be
paid the salary agreed upon.
Hence, in this case, the employment contract was perfected on January 15,
2000 when it was signed by the parties, respondent and petitioners, who entered into
the contract in behalf of their principal, Ranger Marine S.A., thereby signifying their
consent to the terms and conditions of employment embodied in the contract, and the
contract was approved by the POEA on January 17, 2000. However, the employment
contract did not commence, since petitioners did not allow respondent to leave on
January 17, 2000 to embark the vessel M/V AUK in Germany on the ground that he was
not yet declared fit to work on the day of departure, although his Medical Certificate
dated January 17, 2000 proved that respondent was fit to work.
In Santiago v. CF Sharp Crew Management, Inc.,[21] the Court held that the
employment contract did not commence when the petitioner therein, a hired seaman,
was not able to depart from the airport or seaport in the point of hire; thus, no
employer-employee relationship was created between the parties.
Nevertheless, even before the start of any employer-employee relationship,
contemporaneous with the perfection of the employment contract was the birth of
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