G.R. No. 112574 October 8, 1998
Mercidar Fishing Corporation represented by its President Domingo B. Naval, petitioner, vs. National Labor Relations Commission and Fermin Agao, Jr., respondents.

FACTS

This case originated from a complaint for illegal dismissal, violation of P.D. No. 851, and non-payment of service incentive leave filed by private respondent Fermin Agao, Jr. against petitioner Mercidar Fishing Corporation. Agao had been employed as a “bodegero” or ship’s quartermaster since February 12, 1988. He alleged constructive dismissal when, after being on a one-month leave without pay due to sickness from April 28, 1990, he reported back to work on May 28, 1990 with a health clearance but was told to return another time and was subsequently refused work assignments. On September 6, 1990, he requested a certificate of employment. When he returned on September 10, petitioner allegedly refused to issue the certificate unless he submitted a resignation letter. Agao refused to resign unless given separation pay and was then prevented from entering the premises.
Petitioner countered that it was Agao who abandoned his work, failing to report after his leave expired and being absent without leave for about three months until August 28, 1990. Petitioner claimed it assigned Agao to another vessel on September 1, 1990, but he was left behind. It further alleged that Agao asked for an employment certificate on September 6 under the pretext of applying to another company and on September 10 refused to accept the certificate and resign unless given separation pay.
The Labor Arbiter ruled in favor of Agao, ordering his reinstatement with backwages, and payment of 13th month pay and incentive leave pay for 1990. The National Labor Relations Commission (NLRC) dismissed petitioner’s appeal, rejecting its claim that fishermen are “field personnel” not entitled to service incentive leave pay and upholding the finding of constructive dismissal.

ISSUE

1. Whether fishing crew members, like Fermin Agao, Jr., are considered “field personnel” under Article 82 of the Labor Code and are thus not entitled to service incentive leave pay.
2. Whether the NLRC acted with grave abuse of discretion in upholding the Labor Arbiter’s finding that petitioner constructively dismissed Fermin Agao, Jr.

RULING

The Supreme Court dismissed the petition, affirming the NLRC’s decision.
1. On the first issue, the Court ruled that fishing crew members are not “field personnel” as defined in Article 82 of the Labor Code. The provision defines “field personnel” as non-agricultural employees who regularly perform duties away from the principal place of business and whose actual hours of work in the field cannot be determined with reasonable certainty. Interpreting this in line with the Implementing Rules and the case of Union of Pilipro Employees (UFE) v. Vicar, the Court clarified that the determinative factor is whether the employee’s time and performance are unsupervised by the employer. Although fishermen perform work away from the business office, they remain on board the vessel throughout the fishing voyage under the effective control and supervision of the vessel’s patron or master. Therefore, their hours of work can be determined with reasonable certainty, and they are entitled to service incentive leave pay.
2. On the second issue, the Court found no grave abuse of discretion in the NLRC’s affirmation of the Labor Arbiter’s finding of constructive dismissal. The Court upheld the factual findings of the quasi-judicial bodies, which are generally binding when supported by substantial evidence. The NLRC correctly noted that the filing of a complaint for reinstatement is inconsistent with a defense of abandonment. The Labor Arbiter’s decision to credit Agao’s version, including his presentation of a medical certificate upon reporting back to work, was within his discretion. The Court also saw no reason to deviate from the order of reinstatement, as petitioner itself continued to reiterate its offer to reinstate Agao.
The petition was dismissed for lack of merit.