4/14/2021
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go by in silence, he waives it. It becomes a mere concession or act of grace of the
employer.[32] With Erispe's failure to avail of his vacation leave, he is deemed to have
waived entitlement to the unavailed vacation leave benefits from his previous contracts.
The CA, therefore, erred in sustaining its award by the NLRC.
However, in view of the finding of illegal dismissal, Erispe is entitled to the monetary
equivalent of his vacation leave benefits as to the unexpired portion of his contract. The
employer is obliged to pay an illegally dismissed employee or worker the whole amount
of the salaries or wages, plus all other benefits and bonuses and general increases, to
which he would have been normally entitled had he not been illegal1y terminated and
had not stopped working.[33] Thus, Erispe must be awarded his salaries corresponding
to the unexpired portion of his employment contract, or equivalent to 7.36 months[34]
as found by the LA. This includes all his corresponding monthly vacation leave pay
which is expressly provided in the employment contracts, which is three days per
month.
As regards the propriety to refund Erispe's medical expenses, We rule in the negative.
It is basic that the employment of seafarers and its incidents are governed by the
contracts they sign every time they are hired or rehired. These contracts have the force
of law between the parties as long as their stipulations are not contrary to law, morals,
public order or public policy. Every seaman and the vessel owner (directly or
represented by a local manning agency) are required to execute the Philippine
Overseas Employment Administration Standard Employment Contract (POEA-SEC) as a
condition sine qua non to the seafarer's deployment for overseas work. While the
relationship between seafarers and their empl oyers are governed by their mutual
agreements, "the POEA rules and regulations require that the POEA-SEC, which
contains the standard terms and conditions of the seafarers' employment in foreign
ocean-going vessels, be integrated in every seafarer's contract."[35]
In this case, Section 20-B of the 2000 POEA-SEC, the governing POEA-SEC at the time
Erispe was employed in 2007 although extended multiple times until his disembarkation
on January 24, 2010, is applicable. It provides:
SECTION 20. COMPENSATION AND BENEFITS
xxxx
B. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESS
The liabilities of the employer when the seafarer suffers work-related injury
or illness during the term of his contract areas follows:
1. The employer shall continue to pay the seafarer his wages during the time
he is on board the vessel;
2. If the injury or illness requires medical and/or dental treatment in a
foreign port, the employer shall be liable for the full cost of such medical,
serious dental, surgical and hospital treatment as well as board and lodging
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