POEA Standard Employment Contract; Terms and Conditions; disability benefits

ABANTE v KJGS FLEET MANAGEMENT

Carpio-Morales, ponente
4 December 2009
appeal from a Court of Appeals decision
SHORT VERSION:
A worker is entitled to permanent total disability benefits if it had taken more than six months for the company
physician to issue a Certificate of Fitness to Work; also, when the certification of the company physician would
defeat the respondent's claim for disability benefits, while the opinion of the independent physician would
uphold such claim, the Court adopts the findings favorable to respondent.

FACTS:

Leopoldo Abante (petitioner) was hired by KJGS Fleet Management (respondent) as a seaman aboard
M/T Rathboyne for 9 mos with a $535/month salary
June 2000: Abante slipped and hurt his back while carrying equipment onboard the vessel; he was
brought to a Taiwan hospital where he was diagnosed to be suffering from lower back pain, but was
still declared to be fit for restricted work and advised to see another doctor
19 July 2000: unable to bear the pain, Abante was repatriated to the Philippines on his request
21 July 2000: Abante reported to KJGS and was diagnosed by company physician (Dr Lim) with
foraminal stenosis L3-L14 and central disc protrusion L4-L5; he underwent laminectomy and
discetomy, costs of which were borne by KJGS
Abante was discharged 10 days later; he was advised to continue physical therapy
20 February 2001: he was pronounced fit to resume sea duties but refused to sign his Certificate of
Fitness for Work

Abante sought another doctor's opinion, where he was diagnosed to have "failed back syndrome" and
was given a Grade 6 disability rating--this rating rendered him medically unfit to work again as a
seaman and called for a $25000 disability benefits award

27 April 2001: Abante filed a complaint for disability compensation, moral and exemplary damages and
attorney's fees
The Labor Arbiter dismissed the complaint, saying that under the POEA Memo Circular No 9 series
of 2009, in the event of conflict between the assessment of the ocmpany-designated physician and
the doctor chosen by the seafarer, the opinion of a third doctor agreed upon by both the employer

and seafarer would be sought (complaint was premature)

NLRC remanded the case to the LA for further proceedings
The CA reversed the NLRC ruling and reinstated the LA's decision

ISSUE:
was Abante entitled to the grade 6 disability under the new POEA standard employment contract?

REASONING:

The POEA Standard Employment Contract of 2000 Sec. 20 (B) (3) didn't preclude the seafarer from
getting a second opinion as to his condition for purposes of claiming disability benefits.
NYK-Fil Ship Management v Talavera: while it was the company-deisgnated physician who must
declare that the seaman suffered a permanent disabiliy during employment, it did not deprive the
seafarer of his right to request a second opinion and for this purpose to consult a physician of his
choice.

The POEA Contract was designed primarily for the protection and benefit of Filipino seamen in pursuit
of their employment onboard ocean-going vessels.
Its provisions must be construed and applied fairly, reasonably and liberally in their favor.
HFS Phil v Pilar: when the certification of the company physician would defeat the respondent's
claim while the opinion of the independent physician would uphold such claim, the Court adopted
the findings favorable to respondent.

Abante can claim disability benefits.

Permanent disability: inability of a worker to perform his job for more than 120 days.
It was only on 20 February 2001 that the Certificate of Fitness for Work was issued by Dr Lim, more
than six months from the time he was initially evaluated by the doctor on 24 July 2000 and after he
underwent operations on 18 August 2000.
The failure of Dr Lim to prnounce Abante fit to work within the 120-day period entitled him to
permanent total disability benefits of $60000.

No damages could be awarded since there was no concrete showing of bad faith and malice on KJGS's
part.

RULING: CA decision reversed and set aside