GR 221227; (February, 2020) (Digest)
G.R. No. 221227 , February 19, 2020
LOADSTAR INTERNATIONAL SHIPPING, INC. AND TEODORO G. BERNARDINO, PETITIONERS, VS. PABLO P. ERISPE, JR., RESPONDENT.
FACTS
Respondent Pablo P. Erispe, Jr. was hired by petitioner Loadstar International Shipping, Inc. as a cook. His contract expired on May 3, 2008, but he continued working. On January 24, 2010, the vessel arrived in Manila and he was ordered to disembark. That same night, he was hospitalized and diagnosed with prostate enlargement. He was later made to sign a resignation letter and an off-signing clearance. On February 17, 2010, he signed a quitclaim for a small sum before the Labor Arbiter, who declined to ratify it after Erispe stated he signed out of necessity. Erispe filed a complaint for illegal dismissal and monetary claims.
The Labor Arbiter ruled Erispe was illegally dismissed and awarded salaries for the unexpired portion of his contract. The NLRC modified the decision, adding awards for overtime pay, vacation leave pay, and a refund of medical expenses, finding his illness work-related. The Court of Appeals affirmed the illegal dismissal but deleted the overtime pay award and reduced the vacation leave pay, while affirming the refund of medical expenses.
ISSUE
Whether the Court of Appeals erred in: (1) affirming the finding of illegal dismissal; (2) deleting the award for overtime pay; (3) reducing the award for vacation leave pay; and (4) affirming the refund of medical expenses.
RULING
The Supreme Court denied the petition. On illegal dismissal, the Court upheld the findings. Loadstar’s inconsistent reasons for Erispe’s disembarkation—initially claiming a finished contract, then stating it was for document renewal—betrayed a lack of valid cause. His forced signing of a resignation letter and quitclaim under necessity reinforced the illegality. The overtime pay award was correctly deleted. The contract provided a fixed monthly overtime pay, which is permissible under the law and the Philippine Overseas Employment Administration Standard Employment Contract, constituting a package that includes both basic salary and overtime, barring a separate claim.
The reduction of the vacation leave pay was proper. The benefit, stipulated at three days per month, accrues only during the employment period. Since Erispe was illegally dismissed, he is entitled to this benefit only for the unexpired portion of his contract, not for the entire period of his employment as erroneously granted by the NLRC. Finally, the refund of medical expenses was correctly affirmed. The Court agreed with the lower tribunals that Erispe’s prostate enlargement was work-related, considering its manifestation immediately after disembarkation and the strenuous nature of his seafaring work, making the employer liable for the hospitalization costs under the compassionate policy of labor law.