Title
Unica vs. Anscor Swire Ship Management Corp.
Case
G.R. No. 184318
Decision Date
Feb 12, 2014
Seafarer claimed implied contract renewal after 20-day post-expiration stay; SC ruled no renewal, entitled only to wages for extended period.

Case Summary (G.R. No. 184318)

Applicable Law

This case is adjudicated under the provisions of the 1987 Philippine Constitution and the labor laws concerning foreign employment, particularly the Standard Terms and Conditions Governing the Employment of Filipino Seafarers On-Board Ocean-Going Vessels.

Employment Contract and Background

Unica's employment with Anscor Swire began in the late 1980s, culminating in a contract for a nine-month assignment from January 29, 2000, to October 25, 2000. He was only repatriated on November 14, 2000, twenty days post-expiration of his contract, a fact he argues implies an extension of his employment.

Initial Rulings

The Labor Arbiter ruled in favor of Unica, stating that his continued onboard service indicated an implied renewal of his contract. The National Labor Relations Commission (NLRC) upheld this position, stating there was an automatic extension of Unica's contract due to his presence on the vessel beyond the expiration date. The NLRC directed the respondent to pay Unica for the unexpired duration of his employment, as well as certain benefits, though it later reduced the awarded medical benefits and attorney's fees.

Court of Appeals Decision

Respondent appealed to the Court of Appeals, which annulled the NLRC's decision, asserting there was no implied renewal of Unica's contract. The CA determined that the extension of Unica's stay was due to the logistics of the vessel being at sea, not a renewal of his employment contract. This ruling led to Unica filing a motion for reconsideration, which was subsequently denied.

Legal Analysis

The Supreme Court examined whether an implied renewal of Unica's contract existed. It recognized that although Unica remained on the vessel beyond his contract's expiration, the context of his presence was essential. The Court underscored that contracts are fixed by nature for stipulated durations and that employment automatically terminates at the end of the contract unless mutually renewed. There was no evidence suggesting an agreement for contract extension, thus supporting the view that his contract had terminated upon expiration.

Final

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