21/04/2026
The (SC) has reiterated that corporate directors and officers are solidarily liable with the manning agency for the payment of disability benefits to seafarers under Republic Act No. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995, as amended.
In a Decision written by Associate Justice Jhosep Y. Lopez, the SC’s Special First Division granted the motion for partial reconsideration of its earlier Decision, which had held that only Magsaysay Maritime Corporation (Magsaysay) and Princess Cruises Ltd. (Princess Cruises) are liable for the disability benefits of its seafarer. The SC ruled that Magsaysay Fleet Director Sorwin Joy G. Rivera (Rivera) is also solidarily liable, meaning he can be made to pay the full amount due.
Magsaysay, a manning agency, hired Ruthgar T. Parce as an electrical fitter for its foreign principal, Princess Cruises. After he was injured while working on board, he was sent back to Manila, where the company-designated doctor diagnosed him with rotator tendinitis in his shoulder and recommended physical therapy.
Months later, Parce was told he had reached the maximum medical treatment and that his sickness allowance would be discontinued. Based on this, Princess Cruises found him fit to work.
Parce continued to feel pain, so he sought a second medical opinion. The doctor he consulted found him unfit for sea duty. Parce then requested Magsaysay for a referral to a third doctor, as required under the rules, and for copies of his medical records. Magsaysay refused and asked instead for a copy of the second doctor’s report to explore a possible settlement. Parce then filed a complaint before the Labor Arbiter (LA) for disability benefits and reimbursement of medical expenses.
The LA ruled in his favor, ordering Magsaysay and Princess Cruises to pay Parce USD 60,000 in disability benefits. The LA considered the company-designated doctor’s report incomplete because it failed to clearly state that Parce was fit to work. The National Labor Relations Commission upheld the LA and also stated that Rivera was liable alongside Magsaysay and Princess Cruises.
The Court of Appeals reversed the ruling, noting that Parce did not immediately question his medical assessment, which weakened his case.
The SC disagreed. It held Magsaysay and Princess Cruises liable because the company-designated doctor’s report was incomplete, giving Parce nothing to properly contest. The SC affirmed the LA’s ruling that he was already deemed permanently disabled under the law.
Parce filed a motion for partial reconsideration, asking the SC to also declare Rivera solidarily liable with the companies. The SC granted the motion.
Section 10 of Republic Act No. (RA) 8042, or the Migrant Workers and Overseas Filipinos Act of 1995, clearly provides that when a recruitment agency is a corporation or partnership, its officers, directors, or partners are liable with the company for any money claims awarded to overseas Filipino workers.
The SC explained that while corporate officers are generally not personally liable for contracts entered into by their company, an exception applies when a law specifically makes them accountable. In this case, Rivera, a corporate officer of Magsaysay, was held solidarily liable with the company for Parce’s permanent disability benefits. Rivera was named in the complaint as “Owner/President/Manager” and had signed the employment contract on behalf of the company.
The SC added that when Magsaysay applied for its license to operate as a manning agency, its officers and directors were required, under Philippine Overseas Employment Administration (POEA) Rules, to submit a verified undertaking, making them solidarily liable for claims arising from the employer-employee relationship.
The SC emphasized that Section 10 of RA 8042 and the relevant POEA Rules are considered part of every seafarer’s employment contract. “These provisions are in line with the State’s policy of affording protection to labor and alleviating the workers’ plight and are meant to assure overseas Filipino workers immediate and sufficient payment of what is due them,” the SC said.
Read the full text of the press release at https://sc.judiciary.gov.ph/?p=161450
Read the full text of the Decision https://sc.judiciary.gov.ph/?p=161442
Copying of this content is subject to the SC PIO’s Credit Attribution Policy: https://sc.judiciary.gov.ph/credit-attribution
