6/9/2020
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In this respect, the Court of Appeals applied Article 279 of the Labor Code[8] using
principles of statutory construction to supplement the omission in R.A. No. 8042
regarding the unlimited period of employment. It ratiocinated that the Labor Code and
R.A. No. 8042 are statutes in pari materia.
The issue, therefore, is whether the Court of Appeals properly used as basis Article 279
of the Labor Code in its award for backwages to Adelantar.
As early as the case of Coyoca v. NLRC,[9] we held that Filipino seamen are governed
by the Rules and Regulations of the POEA. The Standard Employment Contract
governing the Employment of All Filipino Seamen on Board Ocean-Going Vessels of the
POEA, particularly in Part I, Sec. C specifically provides that the contract of seamen
shall be for a fixed period. In no case should the contract of seamen be longer than 12
months. It reads:
Section C. Duration of Contract.
The period of employment shall be for a fixed period but in no case to
exceed 12 months and shall be stated in the Crew contract. Any extension
of the Contract period shall be subject to the mutual consent of the parties.
Under the circumstances, the Court of Appeals erred in resolving the issue of
backwages based on the first contract which provided for an unlimited period of
employment as this violated the explicit provision of the Rules and Regulations of the
POEA. While we recognize that Adelantar executed a contract with Dubai Ports
Authority of Ali Jebel and might even have applied said contract in his overseas station,
this contract was not sanctioned by the POEA. We agree with the NLRC when it
observed thus:
It should be stressed that whatever status of employment or increased
benefits that the complainant may have gained while under the employ of
Dubai Ports Authority, the undisputed fact remains that prior to his
deployment, he agreed to be hired under a 12-month POEA contract, the
duration of which is the basis for the determination of the extent of the
respondent’s liability.[10]
The Court of Appeals erred when it adjudged the first contract as the basis for
Pentagon’s liability instead of the second contract, which is in conformity with the
POEA’s Standard Employment Contract. As such, there would have been no need to
resort to statutory construction where the rules and jurisprudence are clear.
Besides, in Millares v. NLRC,[11] we held that:
. . . [I]t is clear that seafarers are considered contractual employees. They
can not be considered as regular employees under Article 280 of the 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
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