2. Whether Tanchico is entitled to 13th month pay, disability benefits and
attorney’s fees.
The Ruling of This Court
The petition is partly meritorious.
Seafarers are Contractual Employees
The issue on whether seafarers are regular employees is already a settled
matter.
In Ravago v. Esso Eastern Marine, Ltd.,[14] the Court traced its ruling in a
number of cases that seafarers are contractual, not regular, employees. Thus,
in Brent School, Inc. v. Zamora,[15] the Court cited overseas employment contract
as an example of contracts where the concept of regular employment does not
apply, whatever the nature of the engagement and despite the provisions of Article
280 of the Labor Code. In Coyoca v. NLRC,[16] the Court held that the agency is
liable for payment of a seaman’s medical and disability benefits in the event that
the principal fails or refuses to pay the benefits or wages due the seaman although
the seaman may not be a regular employee of the agency.
The Court squarely passed upon the issue in Millares v. NLRC[17] where one
of the issues raised was whether seafarers are regular or contractual employees
whose employment are terminated everytime their contracts of employment
expire. The Court explained:
[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 everytime 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 engagement of the employee or where the work or
services to be performed is seasonal in nature and the employment is for the
duration of the season. We need not depart from the rulings of the Court in the
two aforementioned cases which indeed constitute stare decisis with respect to
the employment status of seafarers.