Key Takeaway: Seafarers can claim disability benefits for work-related illnesses even if not listed in standard employment contracts

Resurreccion v. Southfield Agencies, Inc., et al., G.R. No. 250085, June 14, 2021

The life of a seafarer is fraught with challenges, both physical and emotional. Imagine being far from home, navigating the unpredictable seas, and suddenly facing a health crisis that could end your career. This is the reality that Julie Fuentes Resurreccion faced when he was diagnosed with Liver Cirrhosis while working as a Third Engineer. His case, which reached the Supreme Court of the Philippines, highlights the critical issue of whether non-listed illnesses in seafarer employment contracts are compensable as work-related disabilities. The central question was whether Resurreccion’s liver condition, which developed during his service, qualified him for total and permanent disability benefits.

Legal Context: Understanding Seafarer Disability and Compensation

Seafarer disability claims are governed by the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC), which outlines the rights and obligations of both seafarers and their employers. Under Section 20(A) of the 2010 POEA-SEC, for a disability to be compensable, it must be work-related and occur during the term of the employment contract. Work-related illness is defined as any sickness resulting from an occupational disease listed under Section 32-A of the POEA-SEC, provided the conditions therein are satisfied. For illnesses not listed, Section 20(A)(4) creates a disputable presumption of work-relatedness in favor of the seafarer.

Key legal terms include:

• Work-related illness: An illness resulting from an occupational disease listed under Section 32-A of the POEA-SEC, with the conditions set therein satisfied.
• Compensability: The entitlement to receive compensation and benefits upon a showing that the seafarer’s work conditions caused or at least increased the risk of contracting the disease.

Consider a seafarer who works in the engine room, exposed to harmful chemicals and extreme conditions. If they develop a respiratory condition, the POEA-SEC’s provisions could be crucial in determining whether their illness is compensable. The law states:

“For an occupational disease and the resulting disability or death to be compensable, all of the following conditions must be satisfied: 1. The seafarer’s work must involve the risks described herein; 2. The disease was contracted as a result of the seafarer’s exposure to the described risks; 3. The disease was contracted within a period of exposure and under such other factors necessary to contract it; 4. There was no notorious negligence on the part of the seafarer.”

Case Breakdown: The Journey of Julie Fuentes Resurreccion

Julie Fuentes Resurreccion’s career as a Third Engineer began in 2009 with Southfield Agencies, Inc. and Brightnight Shipping & Investment Ltd. Over nearly seven years, he served on multiple contracts, demonstrating his dedication and skill. However, in March 2015, during his eighth contract, Resurreccion faced his first medical crisis when he was diagnosed with Obstructive Jaundice Secondary to Choledocholithiasis. He underwent treatment and was deemed fit to return to work after eight months.

Resurreccion’s troubles resurfaced in November 2015 when he was redeployed. Just a few months into his new contract, he began experiencing symptoms of jaundice again, leading to his medical repatriation in February 2016. Diagnosed with Liver Cirrhosis, the company-designated physician assessed his condition as not work-related. However, an independent physician, Dr. Radentor R. Viernes, found otherwise, stating that Resurreccion’s illness was work-related and had rendered him permanently unfit for work.

The legal battle began when Resurreccion filed a complaint against his employers for total and permanent disability benefits, sickness allowance, and damages. The case traversed through the Labor Arbiter, the National Labor Relations Commission (NLRC), and the Court of Appeals (CA), each level denying his claim based on the lack of a direct causal link between his work and his illness.

The Supreme Court, however, overturned these decisions, ruling in favor of Resurreccion. The Court emphasized that:

“It is not necessary that the nature of the employment be the sole and only reason for the illness suffered by the seafarer. It is sufficient that there is a reasonable linkage between the disease suffered by the employee and his/her work to lead a rational mind to conclude that his/her work may have contributed to the establishment or, at the very least, aggravation of any pre-existing condition he/she might have had.”

The Court also noted that:

“The company-designated physician failed to give his assessment within the period of 120 days with a sufficient justification, and thus, the seafarer’s disability becomes permanent and total.”

The procedural steps included:

1. Resurreccion filed a complaint with the Labor Arbiter.
2. The Labor Arbiter dismissed the complaint but awarded financial assistance.
3. The NLRC affirmed the Labor Arbiter’s decision.
4. The Court of Appeals upheld the NLRC’s ruling.
5. The Supreme Court granted the petition, reversing the lower courts’ decisions.

Practical Implications: Navigating Future Claims

This ruling sets a precedent that can significantly impact future seafarer disability claims. It underscores the importance of the 120-day assessment period by company-designated physicians and the presumption of work-relatedness for non-listed illnesses. Seafarers and their employers must be aware of these legal nuances to ensure fair treatment and compensation.

For businesses, it’s crucial to:

• Ensure timely and thorough medical assessments by company-designated physicians.
• Understand the legal presumption of work-relatedness for non-listed illnesses.
• Prepare for potential claims by maintaining comprehensive records of seafarers’ health and work conditions.

Key Lessons:

• Seafarers should seek independent medical assessments if they disagree with company-designated physicians.
• Employers must adhere to the 120-day assessment period to avoid automatic permanent disability classification.
• Both parties should be prepared for legal proceedings, as the burden of proof can shift based on the nature of the illness and the timeliness of assessments.

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 under Section 32-A of the POEA-SEC, with the conditions set therein satisfied. For non-listed illnesses, there is a disputable presumption of work-relatedness.

How long does the company-designated physician have to assess a seafarer’s disability?

The company-designated physician must issue a final medical assessment within 120 days from the time the seafarer reported to him. If this period is extended without justifiable reason, the seafarer’s disability may be considered permanent and total.

Can a seafarer claim disability benefits if their illness is not listed in the POEA-SEC?

Yes, under Section 20(A)(4) of the POEA-SEC, there is a disputable presumption of work-relatedness for non-listed illnesses, which the employer must overcome with substantial evidence.

What should seafarers do if they disagree with the company-designated physician’s assessment?

Seafarers should seek an independent medical assessment and present this as evidence in their claim for disability benefits.

How can employers protect themselves from disability claims?

Employers should ensure timely medical assessments, maintain detailed records of seafarers’ health and work conditions, and be prepared to present substantial evidence if they dispute the work-relatedness of an illness.

ASG Law specializes in maritime law and labor disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.