Key Takeaway: Seafarers’ Rights to Total and Permanent Disability Benefits

Jolly D. Teodoro v. Teekay Shipping Philippines, Inc., G.R. No. 244721, February 05, 2020

Imagine a seafarer, far from home, battling a debilitating illness that permanently alters their life. For Jolly D. Teodoro, this was not just a hypothetical scenario but a harsh reality. His struggle with a work-related eye condition led to a landmark Supreme Court decision that clarified the rights of seafarers to total and permanent disability benefits. This case underscores the importance of understanding the nuances of disability compensation under the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC) and Collective Bargaining Agreements (CBAs).

Teodoro, employed as a chief cook on a vessel, suffered from sudden blindness in his left eye due to extreme temperature changes during his work. This incident led to a series of legal battles that ultimately reached the Supreme Court, questioning whether his condition warranted total and permanent disability benefits.

Legal Framework Governing Disability Benefits for Seafarers

Seafarers’ rights to disability benefits are governed by a complex interplay of statutory provisions, the POEA-SEC, and CBAs. Under the Labor Code of the Philippines, particularly Articles 197 to 199, seafarers are entitled to compensation for work-related injuries or illnesses. The POEA-SEC, a standard set of provisions incorporated into every seafarer’s employment contract, further delineates the conditions under which disability benefits are awarded.

A key term in this context is work-related illness, defined by the POEA-SEC as any sickness resulting from an occupational disease listed in the contract. If an illness is not listed, it is disputably presumed to be work-related, placing the burden on the employer to disprove this presumption. This principle was crucial in Teodoro’s case, as his eye condition was not listed but presumed work-related due to the lack of evidence to the contrary.

Moreover, the POEA-SEC stipulates that the company-designated physician must assess the seafarer’s fitness to work or degree of disability within 120 days from repatriation. If this period is exceeded without a definitive assessment, and the seafarer’s condition remains unresolved, the disability is considered total and permanent.

The Journey of Jolly D. Teodoro: From Illness to Supreme Court Victory

Jolly D. Teodoro’s ordeal began when he experienced sudden blindness in his left eye while working on the M.T. Al Marrouna. Diagnosed with Left Eye Endophthalmitis with Orbital Cellulitis, he was repatriated for treatment. Despite undergoing extensive medical examinations and treatments, his condition did not improve, leading to a permanent loss of vision in one eye.

Teodoro’s employer, Teekay Shipping Philippines, Inc., argued that his condition was not work-related, attributing it to his pre-existing diabetes mellitus. However, the company-designated physician assessed Teodoro with a Grade 7 disability, indicating total blindness in one eye, yet declared him unfit for further sea duties.

The case progressed through various levels of adjudication. Initially, the Panel of Voluntary Arbitrators (PVA) ruled in Teodoro’s favor, awarding him total and permanent disability benefits and attorney’s fees. The Court of Appeals (CA) partially granted the employer’s appeal, modifying the award to partial and permanent disability benefits and deleting the attorney’s fees.

Teodoro appealed to the Supreme Court, which ultimately reversed the CA’s decision. The Court emphasized that despite the Grade 7 disability rating, Teodoro’s inability to perform his usual sea duties due to permanent vision loss warranted a classification of total and permanent disability. The Supreme Court’s decision was grounded in the following reasoning:

“If those injuries or disabilities with a disability grading from 2 to 14, hence, partial and permanent, would incapacitate a seafarer from performing his usual sea duties for a period of more than 120 or 240 days… then he is, under legal contemplation, totally and permanently disabled.”

The Court also highlighted the significance of the CBA, which provided for better benefits than the POEA-SEC, entitling Teodoro to 100% disability compensation due to his unfitness for further sea service.

Practical Implications and Key Lessons

This ruling has significant implications for seafarers and their employers. It reinforces the principle that a seafarer’s disability is not merely a medical assessment but must consider their ability to resume their usual work. Employers must ensure thorough medical assessments and timely declarations of disability to avoid automatic classification as total and permanent.

For seafarers, understanding the provisions of their employment contracts and CBAs is crucial. They should be aware of their rights to dispute medical assessments and seek third-party evaluations if necessary.

Key Lessons:

• Seafarers should document all medical treatments and assessments to support claims for disability benefits.
• Employers must provide clear and timely disability assessments to avoid legal disputes.
• CBAs can offer more favorable terms than the POEA-SEC, so seafarers should review these agreements carefully.

Frequently Asked Questions

What qualifies as a work-related illness for seafarers?

A work-related illness is any sickness resulting from an occupational disease listed in the POEA-SEC or any illness not listed but disputably presumed to be work-related unless proven otherwise by the employer.

How is disability assessed for seafarers?

Disability is assessed by the company-designated physician within 120 days from repatriation. If no definitive assessment is made within this period, the disability may be considered total and permanent.

Can a seafarer dispute a disability assessment?

Yes, if a seafarer disagrees with the company-designated physician’s assessment, they can seek a second opinion and, if necessary, a third doctor’s assessment as per the CBA provisions.

What are the implications of a CBA on disability benefits?

A CBA can provide more favorable terms than the POEA-SEC, including higher compensation for disability, especially if the seafarer is certified as unfit for further sea service.

How can seafarers protect their rights to disability benefits?

Seafarers should keep detailed records of their medical condition and treatments, understand their rights under the POEA-SEC and CBA, and seek legal advice if necessary to ensure they receive the appropriate benefits.

ASG Law specializes in labor and employment law, particularly cases involving seafarers’ rights. Contact us or email hello@asglawpartners.com to schedule a consultation.