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pay, invoking our decision in Millares, et al. v. NLRC[12] where it was held that the
repeated re-hiring of a Chief Engineer of a shipping company for 20 years is sufficient
evidence of the necessity and indispensability of the employee’s service to the
employer’s business or trade. Hence, applying the express provision of Article 280 of
the Labor Code,[13] such an employee should be considered as a regular employee.
Petitioner’s argument is not well-taken. The decision of Millares, et al. v. NLRC was
reconsidered and set aside in a Resolution[14] where it was held:
[I]t is clear that seafarers are considered contractual employees. They can
not be considered as regular employees under Article 280 of Labor Code.
Their employment is governed by the contracts they sign every time they
are rehired and their employment is terminated when the contract expires.
Their employment is contractually fixed for a certain period of time. They fall
under the exception of Article 280 whose employment has been fixed for a
specific project or undertaking the completion or termination of which has
been determined at the time of the engagement of the employee or where
the nature of the work or services to be performed is seasonal in nature and
employment is for the duration of the season.
xxx xxx xxx
Moreover, it is an accepted maritime industry practice that employment of
seafarers (is) for a fixed period only. Constrained by the nature of their
employment which is quite peculiar and unique in itself, it is for the mutual
interest of both the seafarer and the employer why employment status must
be contractual only or for a certain period of time. Seafarers spend most of
their time at sea and understandably, they cannot stay for a long and an
indefinite period of time at sea. Limited access to shore society during the
employment will have an adverse impact on the seafarer. The national,
cultural and lingual diversity among the crew during the [Contract of
Enlistment] is a reality that necessitates the limitation of its period.[15]
Clearly, petitioner cannot be considered as a regular employee notwithstanding that the
work he performs is necessary and desirable in the business of respondent company. As
expounded in the above-mentioned Millares Resolution, an exception is made in the
situation of seafarers. The exigencies of their work necessitates that they be employed
on a contractual basis.
Thus, even with the continued re-hiring by respondent company of petitioner to serve
as Radio Officer onboard Bergesen’s different vessels, this should be interpreted not as
a basis for regularization but rather a series of contract renewals sanctioned under the
doctrine set down by the second Millares case. If at all, petitioner was preferred
because of practical considerations—namely, his experience and qualifications.
However, this does not alter the status of his employment from being contractual.
With respect to the claim for backwages and separation pay, it is now well-settled that
the award of backwages and separation pay in lieu of reinstatement are reliefs that are
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