Title
Coyoca vs. National Labor Relations Commission
Case
G.R. No. 113658
Decision Date
Mar 31, 1995
Seafarer discharged due to stroke signed release for disability benefits, waived further claims; SC upheld validity, denied separation pay.

Case Summary (G.R. No. 262941)

Background of the Case

On February 14, 1990, Coyoca was discharged after suffering a stroke. Following his discharge, he received medical benefits amounting to P42,315.00 and signed a Receipt and Release that waived any further claims against Seafarers related to his illness. He later filed a complaint with the Philippine Overseas Employment Administration (POEA) seeking separation and incentive pay, invoking Articles 284 and 95 of the Labor Code.

Legal Provisions Invoked

Article 284 of the Labor Code provides grounds for termination due to illness and stipulates that an employee must be compensated with separation pay equivalent to at least one month's salary or a rate for each year of service. Article 95 pertains to the entitlement of employees to service incentive leave after at least one year of service.

Proceedings in Lower Courts

The POEA dismissed Coyoca's complaint, ruling that the signed Receipt and Release effectively discharged Seafarers from any liabilities. The National Labor Relations Commission (NLRC) affirmed this decision, leading Coyoca to file a petition for certiorari to challenge the NLRC's ruling.

Petitioner’s Claims

Coyoca argued that he did not waive his rights to separation and incentive pay through the Receipt and Release, claiming that he was illegally dismissed and that he signed the document without legal counsel. Additionally, he contended that his long-term service had conferred upon him the status of a regular employee, thus entitling him to separation benefits.

Court's Analysis of Dismissal

The Supreme Court found Coyoca's claims unmeritorious. The evidence indicated that he was indeed discharged due to his illness, denying the claim of illegal dismissal. The signed Receipt and Release unambiguously encompassed all potential claims arising from his discharge, and there was no indication that Coyoca was coerced into signing it. Furthermore, the absence of legal counsel did not render the release void, especially when it was confirmed that he understood the document’s contents.

Employment Contract and Benefits

Coyoca’s employment contract did not provide for separation pay, consistent with the standard contracts for overseas Filipino seamen. The Rules and Regulations governing overseas employment do not stipulate separation pay for seafarers. His contract primarily outlined compensation for permanent partial disability, which Seafarers fulfilled by providing the aforementioned medical benefits.

Distinction from Precedent Cases

Coyoca cited a precedent case (Worth Shipping Services,

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