CASE DIGEST: Tangga-an v. Philippine Transmarine Carriers, Inc.

 

LORENZO T. TANGGA-AN, petitioner, vs.

PHILIPPINE TRANSMARINE CARRIERS, INC., UNIVERSE TANKSHIP DELAWARE LLC, and CARLOS C. SALINAS, respondents.

G. R. No. 180636               March 13, 2013

FACTS:

Petitioner, Tangga-an, entered into an overseas employment contract with Philippine Transmarine Carriers, Inc. (PTC) for and in behalf of its foreign employer, Universe Tankship Delaware, LLC. He was to be employed for a period of 6 months as a chief engineer of the vessel S. S. “Kure”.

While performing his assigned task, petitioner noticed that while they were loading liquid cargo, the vessel suddenly listed too much at the bow. At that particular time both the master and the chief mate went on shore leave together, which under maritime standard was prohibited. To avoid any conflict, he chose to ignore the unbecoming conduct of the senior officers of the vessel.

While the vessel was still at sea, the master required Tangga-an and the rest of the Filipino Engineer Officers to report to his office where they were informed that they would be repatriated because of the delay in cargo discharging, which was principally a duty belonging to the deck officers. He imputed the delay to the non-readiness of the turbo generator and the inoperation of the boom, since the turbo generator had been prepared and synchronized for 3.5 hours or even before the vessel arrived in Japan. Upon verification, however, it was found out the the boom was operational and that the cargo hold was not immediately opened and the deck officers concerned did not prepare the stock. Moreover, while cargo discharging was ongoing, both the master and the chief mate again went on shore leave together at 4:00 in the afternoon and returned to the vessel only after midnight. To save face, they harped on the Engine Department for their mistake. And Tangga-an and the other Engineering Officers were ordered to disembark from the vessel on April 2, 2002 and thereafter repatriated.

Tanga-an filed for a Complaint for illegal dismissal and prayed for the payment of his salaries for the unexpired portion of his contract.

On January 27, 2004, the LA rendered the petitioner’s dismissal illegal for lack of just cause and for failure to comply with the twin requirements of notice and hearing and that the petitioner is not entitled to 4 months back salaries but only for 3 months pay, inclusive of vacation leave pay and tonnage bonus, pursuant to Sec. 10 of RA NO. 8042.

ISSUES:

Whether Tangga-an is entitled only to receive a 3-month worth of back salaries and not for the salaries for the unexpired portion of his contract.

RULING:

The courts should read and apply labor pronouncements with utmost care and caution, for at the very heart of the judicial system, labor cases occupy a special place. More than the State guarantees of protection of labor and security of tenure, labor disputes involve the fundamental survival of the employees and their families, who depend upon the former all the basic necessities in life.

In a case where an illegally dismissed employee’s employment contract has a term of less than 1 year, the Court stated that the choice whether to award his salaries for the unexpired portion of his employment contract or 3 months salary for every year of the unexpired term, whichever is less, comes into play only when the employment contract concerned has a term of at least 1 year or more. Applying this pronouncement, petitioner should be entitled to recovery of salaries representing the unexpired portion of his contract employment.

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