Entitlements Under the Employment Contract and the CBA (Philippine Context)

1) Why “sickness allowance” matters in seafaring injury cases

When a Filipino seafarer suffers a work-related injury (or illness) on board, the immediate legal concern is not only medical care and repatriation, but also income continuity while the seafarer is temporarily unable to work. In Philippine maritime labor practice, that income replacement is commonly called sickness allowance (sometimes referred to as “sick wages,” “sick pay,” or “maintenance”).

Sickness allowance is distinct from:

reimbursement of medical expenses (or the company’s direct payment of treatment),
disability compensation (permanent disability benefits),
death benefits (for heirs), and
other wage items such as overtime, leave pay, bonus, or contractual allowances (unless the governing instrument expressly includes them).

Sickness allowance is primarily a contract-based entitlement, shaped by:

the seafarer’s employment contract (often governed by the applicable standard terms for Filipino seafarers deployed overseas), and
the Collective Bargaining Agreement (CBA), if any, which may improve the minimum benefits.

2) Governing legal framework in the Philippines

A seafarer’s sickness allowance claim after a work-related injury is typically analyzed through overlapping sources:

Contractual/standard terms for Filipino seafarers Filipino seafarers are usually hired under an overseas employment contract that incorporates standard employment terms for sea-based workers. Courts and labor tribunals frequently treat these standard terms as the “floor” of protection, subject to improvement by contract or CBA.
Collective Bargaining Agreement (CBA) A CBA may:
- provide higher sick pay (e.g., full wages rather than basic wage only),
- extend the period of payment,
- define which wage components are included, and/or
- streamline documentary or reporting requirements.
Labor Code principles and labor standards (suppletory) While the relationship is specialized, general labor-law doctrines still influence interpretation (e.g., construing ambiguous provisions in favor of labor, but still requiring proof and compliance with contractual procedures).
Philippine jurisprudence Supreme Court rulings are crucial because many disputes revolve around:
- what counts as “work-related,”
- compliance with post-employment medical examination rules,
- who controls medical assessment (company-designated physician vs. seafarer’s doctor), and
- when temporary disability becomes permanent disability (often discussed through the 120/240-day treatment framework in disability cases, which also affects the sickness allowance period).

3) What sickness allowance is (and what it is not)

Sickness allowance is the amount paid to a seafarer during the period of medical treatment and/or convalescence when the seafarer is unfit for sea duty due to a work-related injury/illness, from repatriation (or from the time the seafarer is declared unfit) until:

the seafarer is declared fit to work, or
the seafarer’s disability is assessed/graded (i.e., the condition is determined to be permanent with a corresponding disability rating), or
the maximum compensable period is reached under the governing contract/CBA (whichever comes first, subject to valid extensions recognized in practice).

It is not automatically the same as “salary continuation” in domestic employment because seafaring wages often consist of multiple components, and the payable base may be limited (e.g., basic wage only), unless the CBA expressly broadens it.

4) Who is entitled to sickness allowance?

A seafarer is generally entitled when these elements are present:

Valid employment relationship under the contract The injury/illness must occur during the term of the contract (or be causally connected to employment, if symptoms manifest during employment and are medically linked).
Work-related injury/illness Many standard maritime employment terms apply a work-relatedness concept that does not always require the seafarer to prove that the work was the sole cause. In practice:
- An injury from an onboard accident is typically straightforward.
- For illnesses, the dispute often centers on whether the risk was increased by working conditions, whether symptoms appeared during the contract, and whether the seafarer complied with reporting and medical procedures.
Medical management under the proper process The company typically controls medical management through a company-designated physician after repatriation, subject to second/third doctor mechanisms in many contracts.
Temporary incapacity to work Sickness allowance is tied to unfitness during treatment or recovery, not simply the existence of a diagnosis.

5) The key procedural requirements that often decide cases

In Philippine maritime disputes, a seafarer can have a serious injury yet still lose or reduce a claim if procedural requirements are not met. Common recurring requirements include:

A. Prompt reporting onboard and documentation

Report the injury/incident to the ship’s officers.
Ensure entry in the ship’s logbook or accident report.
Obtain onboard medical records, if treatment was given.

B. Repatriation for medical reasons

If the seafarer is repatriated due to medical reasons, documentation like:

medical repatriation report,
discharge documents, and
referral papers often become critical.

C. Post-employment medical examination (often within a short window)

Many standard terms require the seafarer to report to the company-designated physician within a specified period (commonly “within three working days” from repatriation) for post-employment medical examination. In disputes, this requirement is frequently litigated:

Non-compliance can jeopardize claims, unless the seafarer shows a valid reason (e.g., incapacitation, hospitalization, force majeure) and timely notice to the employer/agency.
Partial compliance (e.g., late reporting but with good reason) is assessed case-by-case.

D. Following the company-designated physician’s treatment plan

As a general rule in maritime contracts, the company is responsible for medical treatment through its designated provider. Refusal to undergo reasonable treatment without justification can be argued as a defense.

E. Handling conflicting medical opinions (second/third doctor)

A frequent flashpoint:

The company doctor issues a fit-to-work declaration or a low disability grade.
The seafarer’s chosen physician issues a different assessment.

Many standard maritime contracts recognize a referral to a third doctor (mutually agreed) to resolve conflict. Failure to use this mechanism when required can affect which medical opinion is given more legal weight.

6) How much is the sickness allowance?

A. The “base” amount: basic wage vs. full wages

The default floor in standard maritime terms is typically phrased as a percentage of the seafarer’s wage—often 100% of basic wage—during the allowable period.

However, the CBA may improve this by:

paying full wages (basic wage plus other guaranteed components),
defining the base to include fixed overtime, leave pay, or contractual allowances, or
providing a fixed daily “sick pay” rate.

Practical rule: The payable base is whatever is expressly provided by the governing contract/CBA, with the standard terms operating as the minimum if the CBA is silent.

B. Wage components that commonly become disputed

Depending on wording, disputes may arise over inclusion of:

overtime (especially if variable),
leave pay,
bonuses,
“guaranteed overtime,”
allotment arrangements,
service charges or other ship-specific pay items.

Labor tribunals typically look to the exact language in the contract/CBA and payslips to decide what is included.

7) For how long is sickness allowance paid?

A. The general maximum period under standard terms

Standard maritime employment terms commonly impose a ceiling (often expressed as up to 120 days) for sickness allowance, tied to temporary disability treatment.

B. Extensions and the 120/240-day medical management framework

In Philippine maritime jurisprudence, many disputes about disability benefits use the idea that:

temporary total disability is generally up to 120 days, but
can extend (commonly up to 240 days) when further medical treatment is required and the company-designated physician justifies continued care.

This framework matters because, in practice, sickness allowance is usually linked to the period the seafarer remains under treatment and is declared unfit. Where the applicable contract/CBA allows or where jurisprudential principles are applied, sickness allowance may be argued to continue during a valid extended treatment period—subject to the governing text and the medical documentation.

C. Event that cuts off sickness allowance

Sickness allowance typically stops when any of these occurs:

Fit-to-work declaration by the proper medical authority under the contract process.
Final disability grading/assessment (i.e., the condition is considered permanent and rated).
Maximum number of days allowed under the governing contract/CBA is reached.
Unjustified refusal to undergo treatment/assessment that is contractually required (raised as a defense).

8) Relationship between sickness allowance and disability benefits

Sickness allowance is a temporary benefit. Disability compensation is a lump-sum (or scheduled) benefit if the injury results in permanent disability.

Key interactions:

A seafarer may receive sickness allowance while the disability is being assessed.
Once a final disability assessment is issued in accordance with the governing process, the case usually shifts from temporary maintenance to permanent disability compensation (if any).
In many disputes, the pivotal question is whether the company doctor issued a timely and valid final assessment, and whether the seafarer properly invoked the third-doctor procedure when there is medical disagreement.

9) Work-related injury: proof issues and typical defenses

For onboard injuries, employers/agents commonly raise defenses such as:

no timely report onboard,
no accident report/logbook entry,
injury occurred off-duty or due to willful misconduct,
intoxication or violation of safety procedures,
failure to comply with post-employment medical examination deadlines,
refusal of treatment or missed appointments.

For the seafarer, best proof patterns usually include:

contemporaneous incident reports,
witness statements (shipmates),
ship medical log entries,
repatriation paperwork,
post-repatriation consultation records with the company doctor,
disability assessment timeline.

10) CBA superiority and how to read it in a claim

A CBA can be outcome-determinative. Typical CBA upgrades include:

Higher rate Example pattern: “full wages” instead of “basic wage.”
Longer payment period Some CBAs provide sick pay beyond the standard minimum, sometimes aligned with longer medical treatment windows.
Clear inclusion/exclusion of wage components A well-drafted CBA specifies whether guaranteed overtime/leave pay is included.
Simplified procedures Some CBAs reduce friction in reimbursement, documentation, or medical referrals.

Interpretation approach used in disputes:

If the CBA benefit is more favorable, it generally prevails over the minimum standard terms for that particular item.
If the CBA is silent, the standard terms or the individual contract fill the gap.
If there is ambiguity, labor-law interpretive principles may favor the seafarer, but tribunals still anchor on the text and established procedures.

11) Computation illustrations (conceptual)

These are simplified illustrations; actual computation depends on the exact wage definition in the governing contract/CBA.

A. Basic wage basis

Basic wage: USD 800/month
Sickness allowance: 100% basic wage during medically certified unfitness
If paid monthly: USD 800/month for the covered months (pro-rated for partial months)

B. Full-wage basis under CBA

Basic wage: USD 800/month
Guaranteed overtime: USD 400/month
Fixed allowances deemed part of “wages” by CBA: USD 100/month
Total wage base (if CBA says “full wages” and defines inclusions): USD 1,300/month
Sickness allowance: USD 1,300/month during covered period (pro-rated as applicable)

Where disputes arise, tribunals examine:

payslips,
the allotment/wage schedule,
the CBA’s wage definition clause,
whether overtime was guaranteed or variable.

12) Practical litigation posture in Philippine forums

Sickness allowance claims are commonly litigated together with:

disability compensation,
medical expense reimbursement,
damages and attorney’s fees (depending on findings).

Common determinative questions include:

Did the seafarer comply with the post-employment medical exam requirement (or have a valid excuse)?
Was there continuous treatment under the company-designated physician?
Was a final medical assessment issued within a legally acceptable timeframe?
Was the third-doctor mechanism invoked properly when there was a conflict?
What does the CBA actually say about “sick pay” and what wage components it includes?

13) Special considerations and recurring traps

Late company-doctor assessment Delays in issuing a final assessment can affect entitlement narratives (temporary vs. permanent disability) and may be argued to justify continued sickness allowance or support a claim of permanent disability, depending on circumstances and governing rules.
Fit-to-work vs. actual ability Disputes arise when a fit-to-work certification is issued but the seafarer claims continuing incapacity. Documentation and the contract’s conflict-resolution process become central.
Self-procured treatment too early Consulting a personal doctor is not inherently prohibited, but bypassing contractual processes (especially third-doctor referral mechanisms) can weaken the evidentiary value of a personal doctor’s findings in some cases.
CBA not pleaded or not proven A seafarer invoking CBA benefits must generally present and prove the applicable CBA provisions (and applicability to the vessel/company and period of employment). Missing this can reduce the claim to the minimum standard.
Mismatched terminology Some CBAs use “sick wages,” “maintenance,” or “medical leave pay.” The entitlement is interpreted by substance, but precision helps.

14) Compliance checklist (what typically strengthens a claim)

Onboard injury report + logbook entry (or credible explanation if unavailable)
Medical repatriation documents
Timely post-employment medical exam with company-designated physician
Attendance at follow-up appointments; keep medical certificates of unfitness
Preserve payslips and wage schedules (to prove the correct base)
Secure and present the CBA provisions (if claiming enhanced benefits)
If conflicting medical opinions arise, document steps taken to trigger the contract’s third-doctor mechanism

15) Bottom line rules

Sickness allowance is a temporary income benefit payable during medically certified unfitness after a work-related injury/illness, governed primarily by the contract’s standard terms and improved by the CBA where applicable.
Amount and duration hinge on the exact wording of the governing contract/CBA and compliance with medical-reporting procedures, especially post-repatriation examination and conflict-resolution mechanisms for medical opinions.
In contested cases, outcomes frequently turn less on the existence of an injury and more on documentation, timelines, and process compliance, plus whether the CBA clearly upgrades the minimum standard benefits.