3/5/26, 2:30 PM

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The Supreme Court (SC) has ruled that corporate officers of manning agencies may be held liable, together with the company, for disability benefits awarded to seafarers.

In a Decision written by Associate Justice Jhosep Y. Lopez, the SC’s Special First Division granted the motion for partial reconsideration of seafarer Ruthgar T. Parce and declared Magsaysay Fleet Director Sorwin Joy G. Rivera solidarily liable for his disability benefits. An earlier ruling had held only Magsaysay Maritime Corporation and its foreign principal, Princess Cruises Ltd., liable.

Parce was hired by Magsaysay as an electrical fitter for Princess Cruises. After he was injured on board, he was repatriated to Manila and diagnosed by the company-designated doctor with rotator tendinitis. Months later, he was declared to have reached the maximum medical treatment, and Princess Cruises considered him fit to work.

Still suffering pain, Parce sought a second medical opinion, which found him unfit for sea duty. When Magsaysay refused his request for referral to a third doctor and copies of his medical records, he filed a complaint before the Labor Arbiter.

The Labor Arbiter ordered Magsaysay and Princess Cruises to pay Parce USD 60,000 in disability benefits, ruling that the company doctor’s report was incomplete and failed to clearly declare him fit to work. With the lapse of the 240-day period for a final assessment, his disability was deemed permanent. The National Labor Relations Commission affirmed the ruling.

Although the Court of Appeals reversed the decision, the SC reinstated the ruling and held that Parce was permanently disabled under the law.

The SC also ruled that Rivera is solidarily liable under Section 10 of Republic Act No. 8042, or the Migrant Workers and Overseas Filipinos Act of 1995, which makes officers and directors of recruitment agencies jointly liable with the company for money claims awarded to overseas Filipino workers.

The Court noted that Rivera signed Parce’s employment contract and was named in the complaint as “Owner/President/Manager.” It also stressed that under Philippine Overseas Employment Administration rules, officers of manning agencies must undertake to be solidarily liable for claims arising from the employer-employee relationship.

“These provisions are meant to ensure overseas Filipino workers receive prompt and sufficient payment of what is due them,” the SC said.