Philippine Shipping Update – Manning Industry[Download]

By:  Ruben Del Rosario, President, Del Rosario Pandiphil Inc., August 12, 2013  (Issue 2013/14)

Supreme Court rules inability to return to customary work is considered as permanent and total disability

Seafarer suffered back problems when he figured in a work-related accident while on-board the vessel.  He was repatriated and was referred to the company-designated physicians for a series of medical examinations. Eventually, the company-designated physicians declared petitioner’s disability as Grade 8 although the specialist noted that fitness to work is not guaranteed. Seafarer filed a complaint for payment of permanent disability benefits and sickness allowance with claims for damages and attorney’s fees claiming that he is entitled to full disability compensation. During the proceedings, the seafarer presented the medical report of his own doctor who diagnosed him to be permanently unfit as a seafarer.

The Labor Arbiter ruled in favor of the seafarer and awarded full disability benefits.  Said ruling was affirmed by the NLRC. 

The Court of Appeals modified the decision of the NLRC and awarded the sum of US$16,795.00 based on the grade “8” disability assessment of the company-designated doctor.

When the case reached the Supreme Court, it was ruled that the seafarer’s disability should be classified as a permanent and total disability which would entitle the seafarer to full disability benefits. 

The Supreme Court noted that both the company-designated doctor and the seafarer’s doctor were one in declaring that the seafarer is permanently unfit for sea duty. Seafarer’s doctor categorically pronounced the same in his certification while the import of the company-designated doctor’s report conveyed a similar conclusion when he stated: “Further treatment would probably be of some benefit but will not guarantee fitness to work.” The uncertain effect of further treatment would mean nothing more but that the injury sustained by the seafarer bars him from performing his customary and strenuous work as a seafarer/fitter. As such, he is considered permanently and totally disabled.

The Supreme Court went further to state that permanent and total disability means “disablement of an employee to earn wages in the same kind of work or work of a similar nature that he was trained for or accustomed to perform, or any kind of work which a person of his mentality and attainment can do.”

Author’s Note:  In this case, the company presented evidence showing the seafarer to be driving a motorcycle which would show that he is not permanently disabled as claimed.  However, the Supreme Court brushed aside this evidence and held that: “It is inconsequential whether the petitioner was actually recorded by the respondents to be driving a motorcycle. It does not preclude an award for disability because, in labor laws, disability need not render the seafarer absolutely helpless or feeble to be compensable; it is enough that it incapacitates to perform his customary work.”

Camilo Esguerra vs. United Philippines Lines.,Inc., Belships Management (Singapore) Pte., Ltd., and/or Fernando T. Lising; G.R. No. 199932; First Division; July 3, 2013; Associate Justice Bienvenido Reyes, Ponente


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“Del Rosario & Del Rosario has an excellent reputation for both contentious and non-contentious maritime work.”  Asia-Pacific, the Legal 500, 2013, p. 413

“Few will dispute Del Rosario & Del Rosario’s position as the Philippines’ leading maritime law firm.” from Asia-Pacific, The Legal 500, 2012, p. 388

“This unparalleled shipping firm remains at the forefront of the market.” “They are in a league of their own.” “They are the runaway leaders in shipping.” Chambers Asia Pacific, 2012 p. 832

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