Quezon City

NINETEENTH CONGRESS
First Regular Session

ot 3953

HOUSE BILL NO.

Introduced by HON. MICHAEL M. MORDEN

EXPLANATORY NOTE

In 2006, the International Labor Organization (ILO) adopted the Maritime Labor Convention 2006
which provided the international standards for seafarers. Also known as the “Seafarer’s Bill of Rights,” it was
adopted by all nations that sent representatives to the ILO International Labor Conference on February 2006. It
was designed to be applicable internationally and ensure minimum standards for the safe and secure
workplace that complies with safety standards, fair terms of employment, decent working and Ii
on board ship and health protection, medical care, welfare measures and other forms of social protection.

Despite ratifying the said Convention, the Philippines’ existing labor laws and legislation, especially the
Overseas s and Migrant Worker's Act do not adhere to the said Convention. With an estimated 1.5
million Filipino seafarers, manning 100,000 or so ships and whose work are essential to international trade and
tourism, it is important to ensure decent working conditions for Filipino seafarers. With more than 1.5 million
seafarers around the world, up to 25 percent of this seaborne labor force is Filipino. Data for 2015 shows that
Filipino seafarers were reported to have brought in up to USS 5.8 billion or 22.5 percent of the total foreign
remittances to the economy of the Philippines.

In view of these considerations, itis vital to enact a Magna Carta Ng Pilipinong Marino that promotes
the welfare and protect the rights of Filipino seafarers. This bill aims to fill the gaps in legislation and comply
and effectively implement the standards set by the international convention. This bill is a consolidation of all
pending bills in the past Congresses after a series of consultations and technical working group sessions with
various stakeholders and which was finally endorsed by the Maritime Industry Tripartite Council (MITC) in
March 2015.

In view of the importance of this bill, its approval is earnestly sought.

HON. MICHAEL W>MORDEN


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

puto, 3993

HOUSE BILL NO.

Introduced by HON. MICHAEL M. MORDEN

‘AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the “Magna Carta Ng Pilipinong Marino.”
SEC. 2. Declaration of Policies. — It is hereby declared the policy of the State:
(a) To afford Filipino seafarers full protection before, during and after employment by
granting them certain rights as maritime professionals, in recognition of their unique

role and contribution to national development;

(b) To maintain and progressively develop a pool of competent and world-class seafarers,
through a system of education, training, accreditation and licensing;

(c) To establish mechanisms for the enhancement of administrative, adjudicative, social as
well as welfare services for them and their families;

(d) To enact laws that adopt, and implement the standards set by international
conventions and agreements on working and living conditions, and occupational safety
and health, among others, for seafarers particularly the Maritime Labour Convention,
2006; and

(e) To recognize shipowners, manning and recruitment entities as vital partners in
promoting the skills and competencies of Filipino seafarers.

Toward these ends, the State shall endeavor to improve the Filipino seafarers’ working
conditions, terms of employment, career prospects and provide them opportunities to harness their
potentials to the fullest. The State shall further promulgate policies and programs to uplift the socio-
economic well-being of the families of Filipino seafarers.

SEC. 3. Applicability. —This Act shall cover Filipino seafarers engaged, employed, or working in
any capacity on board Philippine registered ships operating domestically or internationally, as well as
those on board foreign registered ships.

This Act shall not cover the following categories of ships:

(a) Warships and naval auxiliaries;

{b) Government ships not engaged in commercial operations;

(c) Ships of traditional build, as may be defined under existing rules and regulations; and


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(d) Fishing vessels.

SEC. 4. Definition of Terms. - As used in this Act:

(a) Cadet refers to a student of a maritime educational institution who is required to
undergo training on-board registered international ships or domestic ships to fulfil a
maritime academic course;

(b) Domestic Shipping refers to the transport of passenger or cargo or both by ships duly
registered and licensed under Philippine law to engage in trade and commerce
between Philippine ports and within Philippine territorial or internal waters for hire or
compensation with general or limited clientele whether permanent, occasional or
incidental, with or without fixed routes and undertaken for contractual or commercial
purposes;

(c) International Maritime Convention or international Convention refers to any written
treaty or agreement, or any protocol or amendment thereto, affecting the maritime
industry which has come into force and effect, including the Maritime Labour
Convention, 2006;

(4) License refers to the document issued by the Department of Labor and Employment
(DOLE) authorizing any person or entity to engage in the recruitment and placement of
seafarers;

(e) Manning/Recruitment and Placement Agency refers to any Filipino person,
corporation, partnership, company, or other entity engaged in the canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring whether for profit or
not, of seafarers whether domestic or international;

(f) Maritime Industry Stakeholders refer to all private sector stakeholders, engaged in the
business of owning, managing, chartering or operating domestic and international
ship(s) of Philippine or foreign registry, manning of ships, management of ports,
stevedoring and arrastre services, ship brokering and chartering, ship-building and ship
repair, providing maritime services such as ship supplies and provisions, maritime
education and training, shipping agency, and other similar activities.

This term shall also include bona fide maritime labor organizations and professional
associations of seafarers;

(g) Master refers to a person having command of a ship;

{h) Maritime Labour Certificate refers to the document that certifies that the working and
living conditions of the seafarers on the ship have been inspected and are compliant
with the requirements of Philippine laws and regulations;

(i) Officer refers to a member of the crew other than the master who has been
designated as such by national law or regulation or, in the absence of such
designation, by collective agreement or custom;

(i) Deck Officer refers to an officer qualified in accordance with Chapter Il of the
International Convention on the Standards of Training, Certification and Watchkeeping
for Seafarers (STCW) 1978, as amended;

(k) Engine Officer refers to an officer qualified in accordance with Chapter III of the
International Convention on the Standards of Training, Certification and Watchkeeping
for Seafarers (STCW) 1978, as amended;


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(I) Philippine National refers to any individual who is a citizen of the Philippines, or a
commercial partnership or corporation organized under the laws of the Philippines, at
least 60% of the capital of which is owned by citizens of the Philippines;

(m) Philippine Seafarers’ One Stop Processing Center (PSOC) refers to the facility created
under DOLE Administrative Order No. 56, series of 2003, which houses multiple offices
or agencies involved in providing services to seafarers, in one place;

(n) Point of Hire refers to the place where the contract of employment was executed;

(0) Recognized Organizations refer to organizations recognized by the DOLE to carry out
inspections or issue the Maritime Labour Certificate in accordance with the scope of
activities covered by their authorizations;

(p) Repatriation refers to the process of returning a seafarer to the point of hire;

(a) Seafarer refers to a person who is employed or is engaged to work in any capacity on
board a ship to which the Act applies;

(r) Ship or Vessel refers to any kind, class or type of craft or artificial contrivance capable
of floating in water, whether publicly or privately owned, ordinarily engaged in
commercial activities and offshore operations, except fixed platform;

(s) Sea Going Ship refers to a ship other than those which navigate exclusively in inland
water or water within or closely adjacent to sheltered water, or areas where port
regulations apply;

(t) Shipowner refers to the owner of the ship employing Filipino seafarers to work on
board domestic ships and ships engaged in international trade, or any other
organization or person, such as the manager, agent or bareboat charterer, who has
assumed the responsibility for operation and management of the ship, and who, in
assuming such responsibilities, has agreed to take over all the attendant duties and
responsibilities of a shipowner under this Act, regardless of whether any other
organization or persons fulfil certain of the duties or responsibilities on behalf of the
shipowner.

CHAPTER II
SEAFARERS’ RIGHTS

SEC. 5. Right to Just Terms and Conditions of Work. — Seafarers shall have the right to:

(a) Safe and secure workplace that complies with safety standards;

(b) Decent working and living conditions on board a shij

(c) Medical care, welfare measures and other forms of health and social protection; and

(d) Fair terms and conditions of employment including salary commensurate to their rank,
hours of work, and other relevant basis for wage computation, minimum number of
working hours, rest period consistent with Philippine laws or international maritime
conventions, when applicable.


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SEC. 6. Right to Self-organization, to Engage in Collective Bargaining and to Participate in
Democratic Exercises. — Seafarers shall enjoy their right to self-organization, to collective bargaining
and to participate in the deliberation of issues and in the formulation of policies that affect them,
including the guarantee of representation in governing boards or appointment in government
instrumentalities.

SEC. 7. Right to Educational Advancement and Training at Reasonable and Affordable Costs.
— Seafarers shall have access to educational advancement and training at reasonable and affordable
costs.

No fee or other charges shall be imposed on cadets, interns, apprentices, on-the-job-trainees
or other persons similarly situated.

Toward this end, relevant government agencies shall:

(a) regulate the operation of all educational and training institutions offering courses
related to seafaring;

(b) pursue grant programs such as scholarships, subsidies, loan assistance and other
measures that will harness the skills of Filipino seafarers toward greater
competitiveness given to new demands in the industry; and

(c) promote quality maritime education and training that respond to the needs of the
industry and in accordance with minimum international maritime standards of
competency.

SEC. 8. Right to Relevant Information. — Shipowners, manning agencies, and other
organizations responsible for the recruitment and placement of Filipino seafarers shall be mandated
to provide seafarers relevant information, including the terms and conditions of employment and
company policies affecting seafarers. This right shall include the right of seafarers organizations to
relevant information affecting the terms and conditions of employment of their members.

All ships covered by this Act shall have a copy of the Maritime Labour Convention of 2006 and
the grievance procedures observed on board.

SEC. 9. Right to Consultation. — Seafarers, shipowners and legitimate seafarers’ and
shipowners’ organizations, as well as other relevant stakeholders, shall be adequately consulted
before adopting any maritime policy, executive issuance, rule or regulation affecting seafarers and
their families is promulgated, or before any maritime law that may directly affect them is enacted.

SEC. 10. Right Against Discrimination. — Upon employment, seafarers shall have the right
against discrimination by sole reason of race, sex, religion and political opinion. Career opportunities
shall be promoted and appropriate working and living conditions shall be guaranteed equally among
male and female seafarers.

SEC. 11. Right to Free Legal Representation. - Seafarers who are victims of violations of the
provisions of this Act and who cannot afford the services of a competent and independent counsel
shall have the right to free legal assistance and protection at government's expense, subject to
existing rules and regulations.

SEC. 12. Right to Access to Communication. — Seafarers, especially during their free time or
when they are not on duty shall have reasonable access to ship-to-shore telephone communications,
and email and internet facilities, where available.


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CHAPTER II
DUTIES OF SEAFARERS

SEC. 13. Seafarers shall have the following duties:

(a) To comply with and observe the terms and conditions of the employment
contract;

(b) To abide by lawful and reasonable company personnel policies;

(c) To be obedient to the lawful commands of the Master or the Master's lawful
successor, and to comply with the shipowner’s/principal’s policy on safety and
operational procedures and instructions given in connection therewith;

(d) To be diligent in the performance of duties relating to the ship, its stores,
equipment and cargo, whether on board, in transit or ashore;

(e) To be, at all times, orderly and respectful to the shipmates, passengers,
shippers, stevedores, port authorities, and other persons who have official
business with the ship; and

(f) To be personally responsible for maintaining a healthy lifestyle.

CHAPTER IV
MINIMUM REQUIREMENTS FOR SEAFARERS

SEC. 14. Minimum Age. - No person below eighteen (18) years old, other than a cadet, shall
be employed, engaged, or otherwise allowed to work on board Philippine registered ships operating
domestically or internationally, as well as on board foreign registered ships.

SEC. 15. Medical Certificates. — No seafarer shall be employed, engaged, or otherwise
allowed to work on board a domestic or ocean-going ship unless a medical certificate has been issued
declaring the seafarer to be fit to work.

The seafarer shall hold a valid medical certificate issued by a medical facility duly accredited
by the Department of Health (DOH) in accordance with its existing rules and regulations.

The medical certificate shall certify that the person is expected to be able to meet the
minimum requirements for performing the duty specific to the person’s post at sea safely and
effectively during the period of the validity of the certificate.

For the purpose of this Section, a medical certificate issued in accordance with the
requirements of STCW shall be accepted.

SEC. 16. Training and Qualifications. — Only seafarers certified by appropriate government
agencies shall work, be employed or be engaged on board a ship.

SEC. 17. Recruitment and Placement. - Only duly licensed manning or placement and
recruitment agency shall be allowed to operate and engage in the recruitment and placement of
seafarers, in accordance with the rules and regulations as may be issued by the Secretary of Labor
and Employment.

No amount or fee shall be charged to the seafarer for their recruitment and placement.


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SEC. 18. Contracting or Subcontracting of Services. — The contracting or sub-contracting of
seafarers for work on board domestic ships shall be governed by existing rules and regulations issued
by the Department of Labor and Employment (DOLE).

CHAPTER V
CADETSHIP

SEC. 19. Applicability. — The shipboard training of cadets shall be governed by Sections
5-12 of Chapter Il; Section 13 of Chapter Ill; Section 15 of Chapter IV; Sections 22 to 23 of Chapter VI;
Sections 25 to 27 of Chapter VII; Sections 31 to 35 of Chapter IX; Section 36 of Chapter X; and Section
42 of Chapter XIV hereof.

SEC. 20. Shipboard Training Agreement for Cadets. - There shall be a written agreement
between the shipowner on one hand, and the cadet and the maritime institution or school on the

other, and which shall include the following information, terms and conditions:

(a) Cadet’s full name, date of birth, birthplace and age, which should be at least 16 years
old;

(b) Name and address of the maritime institution or school;

(c) Name and address of the shipowner, if applicable;

(d) Place and date when the cadet’s agreement is entered into;
(e) Capacity in which the cadet is to be trained;

(f) Amount of the cadet’s allowance or stipend;

(g) Required number of hours of training and rest which would not be less than the
prescribed hours of work and rest in Section 21 of this Act;

(h) Duties and responsibilities of the sponsoring company, Maritime Higher Education
Institutions, and cadets, as may be provided under the Standard Cadet Training
Agreement on Ships Engaged in International Voyage of the Philippine Overseas
Employment Administration (POEA); and

(i) Other benefits in accordance with law, company policy or agreements.

The foregoing agreement shall be written in a working language or in English, executed in
three (3) original copies before the commencement of the shipboard training. The shipowner, cadet
and the maritime institution/school shall each have a signed original of the agreement and an
electronic copy thereof shall be submitted to the DOLE, through the Bureau of Working Conditions
(BWC). A signed original copy shall also be made available on board the ship.

Maritime Higher Education Institutions (MHEls) shall demonstrate that over the last three (3)
years, an average of at least the minimum percentage of the target number of cadets, as per updated
relevant CHED Memorandum Order are able to secure berths in connection with their studies, which
minimum percentage, however, shall not be lower than sixty percent (60%) of students enrolled in
their Bachelor of Science in Marine Transportation (BSMT) or Bachelor of Science in Marine
Engineering (BSMarE) programs. The Commission on Higher Education (CHED), in coordination with
the Maritime Industry Authority (MARINA), shall ensure that only BSMT or MSMarE programs in
MHEls that meet the above requirement are conferred approved or accredited.


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CHAPTER VI
‘TERMS AND CONDITION OF EMPLOYMENT

SEC. 21. Standard Employment Agreement for Seafarers. — There shall be an agreement in
writing between the shipowner and the seafarer, which shall include the following information and
terms:

(a) Seafarer’s full name, date of birth or age, and birthplace;

(b) Shipowner’s name and address;

(c) Place where and date when the seafarer’s employment agreement is entered into;
(d) Capacity in which the seafarer is to be employed;

(e) Amount of the seafarer's salary, and the formula used for calculating the same;

(f) Hours of work and hours of rest;

(g) Wages and wage-related benefits, which include the following: overtime pay, holiday
pay, premium pay, paid leaves, 13th month pay, if applicable;

(h) Social security and welfare benefits;

(i) Stipulation on repatriation or similar undertakin

(i) Separation pay and retirement pay, if applicable;
(k) Reference to the collective bargaining agreement, if applicable,
(I) Other benefits in accordance with law, company policy or agreements.

The foregoing employment agreement shall be in a working language or in English, executed
in three (3) original copies before the commencement of the employment. The shipowner and the
seafarer shall each have a signed original of the agreement. A signed original shall be made available
‘on board the ship.

The Philippine Overseas Employment Administration - Standard Employment Contract (POEA-
SEC) approved by the DOLE shall be observed in the employment of Filipino seafarers on board
foreign registered ships.

When there is a collective bargaining agreement, a copy thereof must be maintained on-
board the ship and readily accessible to the seafarers.

SEC. 22. Wages. — Upon effectivity of this Act, the Regional Tripartite Wages and Productivity
Boards shall set the minimum wage rates of the seafarers on board ships engaged in domestic
shipping, taking into account the peculiarities of the employment arrangement of seafarers and the
criteria as determined pursuant to Republic Act No. 6727, otherwise known as “Wage Rationalization
rovided, that wages for actual work hours and days shall not be lower than the applicable
minimum wage rates in the domicile or head office of the employer. Wages shall be paid at least once
every two (2) weeks or twice (2) a month, at intervals not exceeding sixteen (16) days.



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Trainees, probationary crew members and others similarly situated shall be paid full minimum
wage in accordance with the services rendered.

Cadets, on-the-job trainees, apprentices and other similarly situated persons who are onboard
vessels as part of the completion of their academic or training program, shall be provided with
stipends or allowances, which should not be less than 50% of the existing minimum wage of regular
seafarers.

SEC. 23. Hours of Work and Hours of Rest. — The normal hours of work of seafarer shall not
exceed eight (8) hours a day. If the seafarer is allowed to work beyond eight (8) hours, the maximum
hours of work shall not exceed fourteen (14) hours in any 24-hour period, and seventy-two (72) hours
in any 7-day period.

The minimum hours of rest for every seafarer shall not be less than ten (10) hours. Hours of
rest may be divided into no more than two (2) periods, one of which shall be at least six (6) hours in
length, and the interval between consecutive periods of rest shall not exceed fourteen (14) hours.

In exceptional cases, seafarers in watchkeeping duties may be required to work beyond
fourteen (14) hours provided that the rest period is not less than seventy (70) hours in any 7-day
period. This exception shall not be allowed for more than two (2) consecutive weeks. The intervals
between two (2) periods of exceptions shall not be less than twice the duration of the exception.

‘SEC. 24. Paid Annual Leave. — Whenever applicable, the seafarers shall be paid an annual
leave to be calculated on the basis of a minimum of 2.5 calendar days per month of employment.

For ships licensed to engage in domestic shipping, the provisions on “Holidays, Service
Incentive Leaves and Service Charges” of Presidential Decree No. 442, or the Labor Code of the
Philippines, as amended, shall continue to apply unless higher annual leave is already provided under
the Collective Bargaining Agreement or by the shipowner as company practice or policy.

CHAPTER VII
REPATRIATION

SEC. 25. Seafarers Shall Be Entitled to Repatriation. All costs related to the repatriation or
transport of the personal effects of a seafarer shall be borne by or charged to the shipowner and the
manning agency concerned. The expenses of repatriation shall include the transportation charges,
pay and allowances from the moment the seafarers leave the ship until they reach the repatriation
destination, the accommodation and the food of the seafarer during the journey and transportation
of thirty kilograms (30 kg) of the seafarers’ personal luggage to the repatriation destination. The
primary responsibility to repatriate entails the obligation on the part of the shipowner or agency to
advance the repatriation and other attendant costs, including plane fare, deployment cost of the
principal and immigration fines and penalties, to immediately repatriate the seafarer should the need
for it arise, without a prior determination of the cause of the termination of the seafarer’s
employment. However, after the worker has returned to the country, the shipowner or agency may
recover the cost of repatriation from the seafarer if the termination of the employment was due
solely to the seafarer’s fault.


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SEC. 26. Emergency Repatriation for Seafarers On-board Foreign Registered Ships. —\n cases
of war, epidemics, abandonment of ship by shipowners, disasters, calamities, natural or manmade,
and other similar events, the Department of Foreign Affairs (DFA), in coordination with the POEA and
the OWWA, shall undertake the repatriation of seafarers. The DFA shall draw from the Emergency
Repatriation Fund (ERF) provided under the General Appropriations Act (GAA) to defray the expenses
involved in the repatriation of undocumented seafarers, while the POEA shall require manning
agencies to effect the repatriation of seafarers within forty-eight (48) hours or suffer the penalty of
suspension. In case of failure of the manning agency to provide for the repatriation within the
prescribed time, the POEA shall coordinate with the Overseas Workers Welfare Administration
(OWWA) to advance the cost of repatriation of the seafarer without prejudice to reimbursement
from the concerned manning agency.

The DFA shall take the lead in the repatriation of the affected seafarers in areas where there is
1no Philippine Overseas Labor Office (POLO) in the area.

SEC. 27. Repatriation for Seafarers On-board Domestic Ships. - The provisions on
repatriation shall also apply to seafarers working on domestic ships. Seafarers on board domestic
ships shalll be entitled to emergency repatriation in cases of war, epidemics, abandonment of ship by
shipowners, disasters or calamities, whether natural or man-made, and other similar events.

CHAPTER VIII
MANNING REQUIREMENT

SEC. 28. Manning Levels. — All ships of Philippine registry shall observe the required minimum
manning levels in accordance with the requirements prescribed by MARINA.

Every ship shall be manned by a crew that is adequate in terms of size and qualifications
taking into account the need to operate the vessel safely and efficiently.

SEC. 29. Crew Competence. - The crew members of a ship of Philippine Registry shall possess
the appropriate certificate of competency, which sets forth their competence to serve and perform
the functions involved at the level of responsibility, for the position held, for the type, tonnage,
power, means of propulsion, and trading patterns of the ships concerned.

The certificate of competency shall attest to the fact that the seafarer to whom it is issued
meets the requirements for service, age, qualification, and has successfully passed the examinations
conducted to determine the seafarer’s proficiency and level of expertise for the position.

SEC. 30. Registry of Seafarers. - To better respond to the manning requirements of ocean-
going ships of foreign registry, and domestic and ocean-going ships of Philippine registry, the POEA
and MARINA, respectively, shall maintain a registry of all seafarers in the Philippines. The registry
shall contain the relevant information or data to promote employment opportunities for seafarers
whether on board or ashore, and allow for the appropriate learning for and implementation of
additional training, skills and competency development programs for seafarers.

CHAPTER IX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING

SEC. 31. Accommodation Facilities. - Unless otherwise exempted herein or by appropriate
regulations, all ships of Philippine registry shall have safe, decent and adequate accommodations for
seafarers taking into account the need to protect the health and safety of seafarers working or living
‘on board.


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SEC. 32. Requirements for Sanitation. — All ships of Philippine registry shall have sanitation
facilities that meet the minimum standards for health and hygiene and are accessible to seafarers on
board. The sanitation facilities shall be located at convenient places, allowing for easy access to work
stations. Separate facilities shall be provided for male and female crew.

SEC. 33. Recreational Facilities. - Unless otherwise exempted herein or by appropriate
regulations, all ships of Philippine registry shall have recreational facilities, amenities, and services
that are appropriate and accessible to seafarers.

Domestic ships shall be exempted from this requirement considering that their trading
patterns and length of voyages allow their crew to go home or to make use of comparable facilities
on land

SEC. 34. Food and Catering. - The shipowner shall ensure the protection and promotion of
health of seafarers. Whenever applicable, a shipowner shall ensure that a ship serves free food and
drinking water of appropriate quality, quantity and nutritional value that adequately cover the
requirements of the ship and take into consideration the differing cultural and religious backgrounds
of seafarers. All foods and drinks and the preparation thereof shall be in accordance with the
standards of the Sanitation Code of the Philippines and pertinent laws, rules and regulations.

SEC. 35. Application. - The requirements of this Chapter for crew accommodation and
recreational facilities covering ships of Philippine Registry shall be applicable to the following:

(a) All ocean-going ships and domestic ships constructed on or after the date when the
Maritime Labor Convention of 2006 comes into force;

(b) All second-hand ships, whether ocean-going or domestic, acquired or leased, and
entered in the Philippine Registry after the entry date into force of the said Convention
unless provided exemption by the relevant Philippine government agency; and

(c) All ships constructed prior to the entry into force of the Maritime Labor Convention,
2006 which have undergone major or substantial structural alterations after the entry
into force of the Convention, unless provided exemption by the relevant Philippine
government agency.

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

SEC. 36. Medical Care On-board Ships and Ashore. — The shipowner shall provide adequate
equipment, paraphernalia and medical supplies, including medicines on board, and shall ensure
access to shore facilities for the health of seafarers, as well as the corresponding medical or trained
personnel who shall provide first-aid and medical care pursuant to the Maritime Occupational Safety
and Health Standards and other pertinent laws, rules and regulations.

The shipowner shall ensure that seafarers have access to medical treatment for any illness or
injury, hospitalization and dental treatment.

Aseafarer shall have the right to consult a qualified physician or dentist without delay in ports
of call, where practicable.

A seafarer shall have the right to material assistance and financial support from the shipowner
with respect to the expenses incurred during and as a result of financial medical treatment for
sickness, injury or death occurring while they are serving under a valid employment contract or those
which arise from their employment, without prejudice to any other legal remedies that a seafarer
may seek.


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CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

SEC. 37. Social Welfare Benefits. — Without prejudice to established policy, collective
bargaining agreement or other applicable social agreement, all seafarers shall become members of
the Social Security System, Employees’ Compensation and State Insurance Fund, Philhealth, Home
Development Mutual Fund (or Pag-tBIG Fund) and shall enjoy the benefits afforded pursuant to
membership thereof.

CHAPTER Xil
COMPLIANCE AND ENFORCEMENT

SEC. 38. Compliance and Certification. — All ships of Philippine registry shall comply with the
provisions of this Act. The shipowner or master shall ensure the compliance of the ship with the
provisions of this Act and its implementing rules and regulations.

The shipowner and master, as acting shipowner's representative, shall be made principally
liable for any violation of the provisions of this Act and its implementing rules and regulations.

For this purpose, a Maritime Labour Certificate or a certificate of compliance, as applicable,
shall be issued in accordance with the implementing rules and regulations. The DOLE, DFA and
MARINA, in consultation with shipowners and seafarers’ organizations, shall formulate the said
implementing rules and regulations.

SEC. 39. Inspection and Enforcement. — The Secretary of Labor or a duly authorized
representative, shall have the sole and exclusive authority to inspect all Philippine ships, domestic or
ocean-going to ensure compliance with the provisions of this Act. The duly authorized representative
shall have the power to board ships and carry out any examination, test or inquiry in order to ensure
that the standards established under this Act and its implementing rules and regulations are strictly
observed.

The Secretary of Labor and Employment may authorize other government agencies or duly
recognized organizations to conduct inspection and issue certification in accordance with the
provisions of this Act and its implementing rules and regulations.

The Secretary of Labor and Employment or the duly authorized representative shall have the
power to order immediate restitution of differences, and impose fines for violations of the provisions
of this Act.

If the violation or deficiency constitutes serious breach of the requirement of this Act and its
implementing rules and regulations, or poses imminent danger to the ships or to the life or limb of
the seafarer, the Secretary of Labor or the duly authorized representative may immediately order the
detention of the ship until the violation or deficiency is corrected.


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SEC. 40. Recognized Organization. — Recognized organizations may be authorized by the
Secretary of Labor and Employment to conduct the inspection of ship’s premises and issue the
Maritime Labour Certificate or the Certificate of Compliance with, as appropriate, in accordance with
the provisions of this Act and its implementing rules and regulations.

A recognized organization must have the necessary knowledge of the requirements of this Act
and its implementing rules and regulations, the Maritime Labour Convention of 2006 and other
relevant international treaty or convention.

Likewise, to be recognized and authorized to inspect a ship, it must also have the necessary
and qualified professional and technical expertise to conduct the inspection and certify to the ship's
compliance with established standards.

CHAPTER XIII
TERMINATION OF EMPLOYMENT

SEC. 41. Termination of Employment.

(a) The employment of Filipino seafarers on board Philippine-registered ships operating
internationally as well as those on board foreign-registered ships shall cease when the
seafarers complete their period of contractual service aboard the ship, sign off from
the ship, and arrive at the point of hire.

The employment is also terminated effective upon arrival at the point of hire for any of
the following reasons:

(1) When the seafarer signs off and is disembarked for medical reasons in the event
the seafarer is declared: (1) fit for repatriation; or (2) when after an illness the
seafarer is declared fit to work, but the employer is unable to find employment for
the seafarer on board the ship originally boarded or on another ship of the
employer;

(2) When the seafarer signs off due to the sale of the ship, lay-up of ship,
discontinuance of voyage or change of ship principal;

(3) When the seafarer, voluntarily resigns in writing and signs off prior to the
expiration of contract within a reasonable period as may be prescribed in the
implementing rules and regulations of this Act; or

(4) When the seafarer is discharged for just causes in accordance with the provisions
of the POEA Standard Employment Contract;

(b) The termination of employment of a seafarer on board domestic ships shall be
governed by the provisions of the Labor Code of the Philippines, as amended, on
domestic shipping.

(c) The termination of employment of a seafarer on board a foreign vessel or foreign
registered ships shall be governed by the POEA SEC or applicable collective bargaining
agreement (CBA).


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CHAPTER XIV
‘SETTLEMENT OF DISPUTES

SEC. 42. On-board and Onshore Grievance Machinery. — All ships of Philippine registry shall
prescribe and observe fair, effective and expeditious on-board and on-shore methods and procedures
to handle grievance at no cost to the seafarer, in accordance with the implementing rules and
regulations of this Act.

In cases where a seafarer is a member of a legitimate trade union organization, any grievance
shall, as a condition precedent to conciliation-mediation, undergo the grievance machinery with the
involvement of the union as established in its collective bargaining agreement (CBA). Without
prejudice to any existing law, any agreement reached by the parties during the grievance negotiation
shall be final and binding.

SEC. 43, Mandatory Conciliation-Mediation and Arbitration. — Seafarers, whether engaged,
employed or working on-board ships of Philippine registry or other registries, shall avail of the
conciliation-mediation services of the DOLE pursuant to Republic Act 10396 and its Implementing
Rules and Regulations, by filing a request for assistance before the conciliation-mediation desks at
the Regional/Field/Provincial Offices of the DOLE or its attached agencies.

In case of failure of conciliation-mediation in cases where seafarers are covered by CBA, the
case shall be submitted for Voluntary Arbitration in accordance with Articles 261 and 262 of the Labor
Code, as amended. In cases where seafarers are not covered by the CBA, the seafarer shall have the
option to submit the case to Compulsory Arbitration or Voluntary Arbitration.

CHAPTER XV
REINTEGRATION FOR OVERSEAS FILIPINO SEAFARERS

SEC. 44. Reintegration. — Returning or unemployed overseas Filipino seafarers may avail of
the livelihood development and training programs, placements and other services offered by
concerned government agencies, including Overseas Workers Welfare Administration (OWWA),
Technical Education and Skills Development Authority (TESDA), Technical and Livelihood Resource
Center (TLRC), Cooperative Development Authority (CDA), National Maritime Polytechnic (NMP) and
CHED.

These agencies shall formulate skills upgrading or retraining curricula to meet the needs of
returning or unemployed seafarers. The participation of the maritime sector, in particular, port and
shipping industry, and maritime educational institutions shall be likewise solicited by the DOLE in
devising the appropriate retraining and local job placement programs for unemployed seafarers.

The National Reintegration Center for OFWs (NRCO) shall attend to the needs of returning
seafarers. The Center shall provide mechanisms for their reintegration into the Philippine society,
serve as a promotion house for their local employment, and tap their skills and potentials for national
development.

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

SEC. 45 Incentives and Awards. — There shall be established an incentives and awards system
for the maritime industry stakeholders which shall be developed and administered by the concerned
government agency in consultation with the Maritime Industry Tripartite Council (MITC).

Under such rules and regulations that may be promulgated, deserving shipowners, seafarers,
manning and other organizations or entities shall be commended or awarded for their outstanding
performance in upholding the rights of seafarers and complying with this Act.


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CHAPTER XVII
GOVERNMENT AGENCIES

SEC. 46. Role of Government Agencies. - The following government agencies shall perform

the following functions to promote the welfare and protect the rights of Filipino seafarers:

(a) Department of Labor and Employment - The DOLE shall exercise sole and exclusive
jurisdiction in implementing the provisions of this Act and ensure that the standards set
forth herein, under Presidential Decree No. 442, as amended, and other laws, the
Maritime Labour Convention 2006 and other international treaties and conventions to
which the Philippines is a signatory are faithfully complied with and fairly applied to
Filipino seafarers;

The DOLE shall likewise determine and set appropriate benchmarks consistent with the
MIC 2006, this Act and other applicable laws on employment conditions and other labor
standards and regulations;

(b) Department of Foreign Affairs — The DFA, through its home offices or foreign posts, shall
give paramount importance to the safety and well-being of Filipino seafarers, by providing
adequate and timely intervention and assistance, such as representing their interests with
foreign authorities concerned and facilitating their repatriation when they are distressed
or beleaguered;

(c) Department of Health - The DOH shall regulate the activities and operations of all clinics
which conduct physical, optical, dental, psychological and other similar examinations,
hereinafter referred to as health examinations, on Filipino seafarers;

The DOH shall determine and prescribe the nature of the health examination that shall be
required of a seafarer, ensuring that such examination will genuinely determine the
seafarer’s state of health, considering the duties that the seafarer shall be required to
perform on board. The DOH shall likewise prescribe the contents of the medical certificate
to ensure that such certification will genuinely reflect the seafarer’s state of health.

(d) Philippine Overseas Employment Administration — The POEA shall look into the contracts
of employment and the working conditions of the officers and crew of vessels of Philippine
registry operating internationally, and of such officers and crew members who are Filipino
citizens and employed by foreign vessels to ensure that these comply with the prescribed
standards;

(e) Overseas Workers Welfare Administration - The OWWA, through its welfare officers or
coordinating officers, shall provide the Filipino seafarers and their families all the
assistance they may need in the enforcement of contractual obligations by agencies and
their principals.

The OWWA shall likewise formulate and implement welfare programs for overseas Filipino
seafarers and their families while they are abroad and upon their return. It shall ensure
the awareness by the overseas Filipino workers and their families of these programs and
other related governmental programs.

(f) Maritime Industry Authority - The MARINA shall ensure that all maritime education
including the curricula and training programs are structured and delivered in accordance
with written programs, methods and media of delivery, procedures and course materials,
international standards as prescribed under the STCW Convention and other applicable
laws.


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(g) Philippine Coast Guard — The PCG, in line with its function to assist in the enforcement of
applicable laws within the maritime jurisdiction of the Philippines, shall assist the DOLE in
the enforcement of Department Orders and other issuances implementing the MLC 2006,
including orders to detain vessels found in gross violation of pertinent laws, rules and
regulations.

Unless otherwise provided in this Act, the mandate, power and function of all existing
departments, agencies or instrumentalities of the government, including government-owned and
controlled corporations, shall remain and continue to be recognized in accordance with the law or
order creating them.

SEC. 47. Philippine Seafarer One Stop Processing Center (PSOC). — The PSOC has been tasked
to operationalize and make available to the public, an integrated document processing center for the
seafarers and the general public to conduct official transactions. The agencies that are mandated to
provide services in the PSOC are as follows:

(2) Department of Labor and Employment;

(b) Department of Foreign Affairs;

{c) Commission on Higher Education;

(d) Professional Regulation Commission;

(e) National Telecommunications Commission;

(f) Philippine Overseas Employment Administration;

(g) Overseas Workers Welfare Administration;

(h) Technical Education and Skills Development Authority;

(i) Maritime industry Authority;

(i) National Bureau of Investigation;

(k) Social Security System;

(I) Philippine Health insurance Corporation;

(m) Philippine Statistics Authority;

(n) Home Development Mutual Fund;

(0) Such other government agencies that the Secretary of DOLE may deem appropriate to be
included in the PSOC.


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CHAPTER XVIII
FINAL PROVISIONS

SEC. 48. Administrative Fines and Penalties. - Any shipowner, master, their representative or
other person who fails or refuses to present employment records, such as payrolls, daily time
records, payslip or other documents, when required by the Secretary of Labor, or the duly authorized
representative of the Secretary of Labor, or the duly authorized representative of a recognized
organization, shall be imposed administrative fines and penalties in accordance with the
implementing rules and regulations promulgated to implement this Act.

SEC. 49. Penalties for Violations of Sections 38 and 39. - Any person who, without proper
authorization, exercises the authority granted to the Secretary of Labor under Sections 38 and 39 of
this Act, shall be punished with a fine of not less than One hundred thousand pesos (P100,000.00) nor
more than Four hundred thousand pesos (P400,000.00), or imprisonment of not less than one (1)
year nor more than four (4) years, or both at the discretion of the court. The foregoing offense shall
prescribe after five (5) years from its commission, or upon discovery of the violation by competent
authorities.

SEC. 50. Transitory Provision. — All rights, privileges and benefits previously enjoyed by
Filipino seafarers before the effectivity of this Act, including those set forth in Presidential Decree No.
442, otherwise known as the Labor Code of the Philippines, as amended, and Republic Act No. 8042,
otherwise known as the “Migrant Workers and Overseas Filipinos Act of 1995,” as amended, shall
continue to be recognized and shall not be diminished.

SEC. 51. Implementing Rules and Regulations. - The DOLE, in coordination with the DFA,
MARINA and other concerned agencies, shall formulate the rules and regulations to implement this
Act within ninety (90) days after its effectivity.

SEC. 52. Separability Clause. - If, for any reason, any section, clause or term of this Act is held
to be illegal, invalid, or unconstitutional, such parts not affected by such declaration shall remain in
full force and effect.

SEC. 53. Repealing Clause. — All laws, presidential decrees, issuances, executive orders,
letters of instruction, rules or regulations inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 54. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved.