Intertrod Maritime, Inc. v. TROODOS Shipping Co. (1991)

Intertrod Maritime, Inc. v. NLRC, G.R. No. 81087, June 19, 1991, Per Padilla, J.:

1. Background

• On 10 May 1982, private respondent Ernesto de la Cruz signed a shipboard employment contract with petitioner Troodos Shipping Company as principal and petitioner Intertrod Maritime, Inc., as agent to serve as Third Engineer on board the M/T “BREEDEN” for a period of twelve (12) months with a basic monthly salary of US$950.00.1

• Private respondent eventually boarded a sister vessel, M/T “AFAMIS” and proceeded to work as the vessel’s Third Engineer under the same terms and conditions of his employment contract previously referred to.

• On 26 August 1982, while the ship (M/T “Afamis”) was at Port Pylos, Greece, private respondent requested for relief, due to “personal reason.” The Master of the ship approved his request but informed private respondent that repatriation expenses were for his account and that he had to give thirty (30) days notice in view of the Clause 5 of the employment contract so that a replacement for him (private respondent) could be arranged.

• On 30 August 1982, while the vessel was at Port Said in Egypt and despite the fact that it was only four (4) days after private respondent’s request for relief, the Master “signed him off” and paid him in cash all amounts due him less the amount of US$780.00 for his repatriation expenses, as evidenced by the wages account signed by the private respondent.

• On his return to the Philippines, private respondent filed a complaint with the National Seamen Board (NSB)(now POEA) charging petitioners for breach of employment contract and violation of NSB rules and regulations. Private respondent alleged that his request for relief was made in order to take care of a Filipino member of the crew of M/T “AFAMIS” who was hospitalized on 25 August 1982 in Athens, Greece. However, the Master of the ship refused to let him immediately disembark in Greece so that the reason for his request for relief ceased to exist. Hence, when the Master of the ship forced him to step out in Egypt despite his protestations to the contrary, there being no more reason to request for relief, an illegal dismissal occurred and he had no other recourse but to return to the Philippines at his own expense.

• In its Answer to the complaint, petitioners denied the allegations of the complainant and averred that the contract was cut short because of private respondent’s own request for relief so that it was only proper that he should pay for his repatriation expenses in accordance with the provisions of their employment contract.

2. SC Decision / Resolution

• The employer has no control over resignations and so, the notification requirement was devised in order to ensure that no disruption of work would be involved by reason of the resignation. This practice has been recognized because “every business enterprise endeavors to increase its profits by adopting a device or means designed towards that goal.”

• Resignations, once accepted and being the sole act of the employee, may not be withdrawn without the consent of the employer. In the instant case, the Master had already accepted the resignation and, although the private respondent was being required to serve the thirty (30) days notice provided in the contract, his resignation was already approved. Private respondent cannot claim that his resignation ceased to be effective because he was not immediately discharged in Port Pylos, Greece, for he could no longer unilaterally withdraw such resignation. When he later signified his intention of continuing his work, it was already up to the petitioners to accept his withdrawal of his resignation. The mere fact that they did not accept such withdrawal did not constitute illegal dismissal for acceptance of the withdrawal of the resignation was their (petitioners’) sole prerogative.

• Once an employee resigns and his resignation is accepted, he no longer has any right to the job. If the employee later changes his mind, he must ask for approval of the withdrawal of his resignation from his employer, as if he were re-applying for the job.ℒαwρhi৷ It will then be up to the employer to determine whether or not his service would be continued. If the employer accepts said withdrawal, the employee retains his job. If the employer does not, as in this case, the employee cannot claim illegal dismissal for the employer has the right to determine who his employees will be. To say that an employee who has resigned is illegally dismissed, is to encroach upon the right of employers to hire persons who will be of service to them.

• Furthermore, the employment contract also provides as follows:

4. That all terms and conditions agreed herein are for a service period of twelve (12) months provided the vessel is in a convenient port for his repatriation, otherwise at Master’s discretion, on vessel’s arrival at the first port where repatriation is practicable provided that such continued service shall not exceed three months.

• Under the terms of the employment contract, it is the ship’s Master who determines where a seaman requesting relief may be “signed off.” It is, therefore, erroneous for private respondent to claim that his resignation was effective only in Greece and that because he was not immediately allowed to disembark in Greece (as the employer wanted compliance with the contractual conditions for termination on the part of the employee), the resignation was to be deemed automatically withdrawn.

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