G.R. No. 197303 ; June 4, 2014
APQ SHIPMANAGEMENT CO., LTD., and APQ CREW MANAGEMENT USA, INC., Petitioners, vs. ANGELITO L. CASEÑAS, Respondent.

FACTS

Respondent Angelito L. Caseñas was hired by petitioner APQ Shipmanagement Co., Ltd., for its principal APQ Crew Management USA, Inc., as Chief Mate for vessel MV Perseverance under an eight-month contract (June 16, 2004 to February 16, 2005). Due to incomplete vessel documents, he was transferred to MV Haitien Pride in Haiti, where he and the crew were left without adequate food, water, or salary. His contract was allegedly extended to 26 months. In August 2006, he experienced shortness of breath, headache, and chest pains, was diagnosed with hypertension in the Bahamas, and was repatriated on August 30, 2006. Upon post-employment medical examination in the Philippines, company-designated physicians diagnosed him with Ischemic Heart Disease and Essential Hypertension, declaring him “unfit for sea service.” He demanded permanent total disability benefits, sickness allowance, medical expenses, and unpaid wages for the extended contract period, but petitioners refused, arguing his contract expired in February 2005 and his illness occurred after expiration. The Labor Arbiter dismissed his complaint, finding no mutual consent to contract extension. The NLRC initially reversed the Labor Arbiter but, upon reconsideration, reinstated the dismissal, ruling the extension lacked petitioner’s consent. The Court of Appeals granted Caseñas’s petition, reinstating the NLRC’s initial ruling and awarding benefits, holding that the POEA-SEC governed until repatriation and that the lack of a fitness declaration within 120 days entitled him to permanent total disability benefits.

ISSUE

Whether the employment contract of Caseñas was extended with the consent of APQ/Crew Management, thereby entitling him to disability benefits and unpaid wages under the POEA-SEC.

RULING

Yes, the employment contract was deemed extended with petitioners’ consent, and Caseñas is entitled to his claims. The Supreme Court affirmed the Court of Appeals decision. The POEA-SEC is integrated into every seafarer’s contract and governs until repatriation. Petitioners failed to repatriate Caseñas upon contract expiration and allowed him to continue working, which constituted implied consent to the extension. The Court cited Placewell International Services Corporation v. Camote, which held that any side agreement without POEA approval cannot supersede the POEA-SEC, and the contract remains effective until repatriation. Caseñas’s illness, Essential Hypertension, is compensable under Section 32-A of the POEA-SEC and occurred during the extended employment period. Moreover, the company-designated physician did not issue a fitness declaration within 120 days from repatriation, rendering Caseñas permanently and totally disabled under the law. Thus, petitioners are liable for permanent total disability benefits, sickness allowance, medical expenses, and unpaid wages for the extended period. The petition was denied.