Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS,
First Regular Session

1568

H. B. No.

Introduced by HONORABLE ROMMEL RICO T. ANGARA

AN ACT
INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

EXPLANATORY NOTE

Out of the 1.6 million seafarers, up to 30 percent of which is Filipino. According to
the 2016 data from the Philippine Overseas Employment Administration (POEA), some
442, 820 Filipino seafarers are deployed. The contribution of the Filipino seafarers in our
economy is reflected by the foreign remittances brought in to our country in 2018
amounting to US$6.14 billion or 19 percent of the total remittances for the said year.

The existing labor laws and social legislation, particularly the Overseas Filipinos
and Migrant Workers’ Act of 1996 (RA 8042), do not adequately address the needs of
seafarers nor do they adhere to internationally recognized instruments, such as those of
the International Labor Organization (ILO) and the International Maritime Organization
(IMO).

In view of these considerations, it is imperative to enact a Magna Carta for
Seafarers that promotes the welfare and protect the rights of Filipino seafarers. As a
measure that aims to comprehensively protect the rights of Filipino seafarers, the
foregoing bill aims to fill the gaps in legislation.

This Magna Carta for Filipino Seafarers seeks to strengthen the protection of rights
and advancement of the welfare of the Filipino seafarers, institute mechanisms for the
enforcement and protection thereof, provide for compulsory benefits, and implement
standards set by the Maritime Labour Convention.

In view of the foregoing, this bill is earnestly sought.

ROMMEL ifeo T. ANGARA
ipresentative

Lone District, Province of Aurora


EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

H.B.No,__ 1568

Introduced by HONORABLE ROMMEL RICO T. ANGARA

AN ACT
INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS.

Be it enacted by the Senate and 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 of Filipino

Seafarers.”

a)

b)

°)

qa)

e)

Sec. 2. Declaration of Policies. - It is hereby declared the policy of the State:

To recognize the rights, contributions, and unique role of Filipino seafarers as
maritime professionals as well as their vulnerabilities, and afford them full
protection before, during and after their employment;

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

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

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

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 work to
uplift the socio-economic well-being of the Filipino seafarers’ families.

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:


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a) Warships and naval auxiliaries;

b) Government ships not engaged in commercial operations;

C) Ships of traditional built, as may be defined under existing rules and regulations;
and

d) Fishing vessels.

Sec. 4. Definition of Terms. — For the purposes of this Act, the following terms
shall be defined as follows:

(a) Cadet refers to the student of maritime educational institutions 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 done for contractual or commercial
purposes.

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

(d) 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, etc. 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 sectors stakeholders, engaged in
the business of owning, managing, chartering and/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;


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(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 meet
the requirements of Philippine laws and regulations;

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

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

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

(j) Philippine National refers to any individual who is a citizen of the PI
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;

(k) Philippine Seafarers’ One Stop Processing Center (PSOC) refers to the facility center
which houses multiple offices/agencies involved in providing services to seafarers
in one roof;

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

(m) Recognized Organizations refer to organizations recognized by the DOLE to carry
out inspections and/or issue the Maritime Labour Certificate in accordance with

pines, or a

the scope of activities covered by their authorizations;

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

(0) Seafarer refers to all persons who are employed or are engaged or work in any
capacity on board a ship to which the Act applies;

(p) 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;

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

(r) Shipowner refers to the owner of the ship hiring 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, on
assuming such responsibilities, has agreed to take over all the attendant duties


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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 — Seafarer’s Rights
Sec. 5. Right to Just Terms and Conditions of Work. — Seafarers shall have the
right to:

a) a safe and secure workplace that complies with safety standards;

b) decent working and living conditions on-board ship;

c) medical care, welfare measures and other forms of heaith 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.

Sec. 6. Right to Self-organization, to Engage in Collective Bargaining and to
Participate in Democratic Exercises. — Seafarers shall enjoy their right to seif-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. Toward this end, relevant government agencies shall:

a) Regulate the operation of ali 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 to new demands in the industry; and

Cc) 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. 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, 2006 and the grievance procedures available on-board.


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Sec. 9. Right to Consultation. - Seafarers, shipowners, and legitimate seafarers’
and shipowners’ organizations, as well as other relevant stakeholders, shail be adequately
consulted before adopting any maritime policy, executive issuance, rule or regulation or
in the enactment of any maritime law that may directly affect them and/or their families
and beneficiaries.

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 femaie 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 off-duty shall have reasonable access to ship-to-shore telephone
communications, and email and internet facilities, where available.

CHAPTER III — Seafarer’s Duties

Sec. 13. Duties of Seafarers. — Seafarers shall have the following duties:

1. To comply with and observe the terms and conditions of his/her employment
contract;

2. To abide by lawful and reasonable company personnel policies;

3. To be obedient to the lawful commands of the Master or any person who shall
lawfully succeed him/her and to comply with the shipowner’s/principal’s policy on
safety and operational procedures and instructions given in connection therewith;

4. To be diligent in his/her duties relating to the ship, its stores, equipment and cargo,
whether on board, in transit or ashore;

5. To conduct himself/herself at all times in an orderly and respectful manner towards
shipmates, passengers, shippers, stevedores, port authorities, and other persons
who have official business with the ship; and

6. To take personal responsibility for his health at all times by practicing a healthy
lifestyle.

CHAPTER IV — Minimum Requirements for Seafarers

Sec. 14. Minimum Age. — No person below eighteen years old (18), 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 those on-board
foreign registered ships.


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Sec. 15. Medical Certificates. - No seafarer shall be employed, engaged, or
otherwise aliowed to work on board a domestic or ocean-going ship unless certified as
medically fit to perform his/her duties.

Seafarer shall hold a valid medical certificate issued by a medical facility duly
accredited by the Department of Health 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 his/her post at sea safely
and effectively during the period of 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 in the recruitment and placement.

Sec. 18. Contracting or Subcontracting of Services. — Contracting or subcontracting
work arrangement involving seafarers on-board domestic ships shall be governed by
existing rules and regulations issued by the department of labor and employment.

CHAPTER V — Cadetship

Sec. 19. Applicability. - The following provisions of this Act shall be applicable in
the shipboard training of cadets: Sec. 8 (Right to Relevant Information); Sec. 10 (Right
Against Discrimination); Sec. 11 (Right to Free Legal Representation); Sec. 12 (Right
to Access to Communication); Sec. 15 (Medical Certificate); Chapter VII (Repatriation);
Chapter IX (Accommodation, Recreational Facilities, Food and Catering); and Sec. 42
(On-board and Onshore Grievance Machinery).

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/school on the other, which shall embody the following terms and conditions:

a) The cadet’s full name, date of birth, age (at least 16 years old) and birthplace;
b) The maritime institution’s/school’s name and address;

c) The shipowner’s name and address, if applicable;

d) The place and date when the cadet’s agreement is entered into;

e) The capacity in which the cadet is to be trained;


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f) The amount of the cadet’s allowance or stipend, if applicable;

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

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

The foregoing agreement shall be 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 Department of
Labor and Empioyment (DOLE) through the Bureau of Working Conditions (BWC). A
signed original shall also be made available on-board the ship.

Maritime Higher Education Institutions (MHEIs) shall demonstrate that over the last three
(3) years, an average of at least seventy percent (70%) of students enrolled in their
Bachelor of Science in Marine Transportation (BSMT) or BSMarE programs are able to
secure cadet berths in connection with their studies. CHED, in coordination with MARINA,
shall ensure that only BSMT or MSMarE programs in MHEIs that meet the above
requirement are conferred approved or accredited status.
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 terms:

a) the seafarer’s full name, date of birth or age, and birthplace;

b) the shipowner’s name and address;

c) the piace where and date when the seafarer’s employment agreement is entered

into;

d) the capacity in which the seafarer is to be employed;

e) the 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 undertakings;

j) separation pay and retirement pay, if applicable;

k) reference to the collective bargaining agreement, if applicable; and

1) _ 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


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shipowner and the seafarer shall each have a signed original of the agreement. A signed
original shali be made availabie on-board the ship.

For seafarers on-board foreign registered ships, the Standard Employment
Contract (SEC) approved by the Department of Labor and Employment shall be observed.

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: Provided, That wages for actual work hours and days shall not be lower than the
applicable minimum wage rates in the head office of the shipowner. Wages shall be paid
at least once every two weeks or twice a month at intervals not exceeding sixteen (16)
days.

Sec. 23. Hours of work and hours of rest. - The normal hours of work of seafarer
shali 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
twenty-four (24)-hour period and seventy-two (72) hours in any seven-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 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 seven-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 rules found in Book Three
Chapter III, on “Holidays’, Service Incentives Leave and Service Charges” of the Labor
Code of the Philippines shall continue to apply and shall be considered as substantially
complying with international standards unless higher annual leave is already provided
under the Collective Bargaining Agreement or by the shipowner as company practice or
policy.


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CHAPTER VII — Repatriation

Sec. 25. Repatriation. - Seafarers shall be entitied to repatriation. Ail costs related
to the repatriation and/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 30
kg of the seafarers’ personal luggage to the repatriation destination. However, in cases
where the termination of employment is due solely to the fault of the seafarer, the
shipowner or manning agency shall not in any manner be responsible for the cost of the
repatriation of the former and/or his/her personal effects.

Sec. 26. Emergency Repatriation for Seafarers On-board Foreign Registered Ships.
— The Overseas Workers Welfare Administration (OWWA), in coordination with the
Department of Foreign Affairs (DFA) and in appropriate situations, with international
agencies, shall undertake the repatriation of seafarers in cases of war, epidemics,
abandonment of ships by shipowners, disasters or calamities, natural or man-made, and
other similar events without prejudice to reimbursement by the responsible shipowner or
manning/recruitment and placement agency within sixty days of notice. In such case, the
POEA shall simultaneously identify and give notice to the shipowner or agency concerned.

DFA shall take lead in the repatriation of the effected seafarers in areas where
there are no Philippine Overseas Labor Offices (POLO) present.

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 shall be entitled to emergency repatriation in cases of war, epidemics,
abandonment of ships by shipowners, disasters or calamities, natural or man-made, and
other similar events.

CHAPTER VIII — Manning Requirement

Sec. 28. Manning Levels. - All ships of Philippine registry shall have 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. - Every member of the crew of a ship of Philippine
Registry shall possess the appropriate certificate of competency setting forth his
competence to serve in the capacity 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.


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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 examinations for the
position held.

Sec. 30. Registry of Seafarers. - The POEA, for ocean-going ships of foreign
registry and MARINA for domestic and ocean-going ships of Philippine registry 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, or allow for further training and education to support skills
development and competencies of seafarers in order to secure or improve employment
opportunities as may be provided in the Implementing Rules and Regulations.

CHAPTER IX — Accommodation, Recreational Facilities, Food and Catering
Sec. 31. 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 came 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, as the case may be, which undertake major or substantial structural
alterations after the entry into force of the Convention unless provided exemption
by the relevant Philippine government agency.

Sec. 32. 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.

Sec. 33. Requirements for Sanitation. — All ships of Philippine registry shall have
sanitation facilities meeting the minimum standards for health and hygiene and 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. 34. Recreational Facilities. — Unless otherwise exempted herein or by
appropriate regulations, all ships of Philippine registry shall have recreational facilities,
amenities, and services appropriate and accessible for seafarers.

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Domestic ships are exempted from this requirement taking into consideration the trading
patterns and length of voyages of such ship which allow the crew to go home or to have
access and make use of comparable facilities on land.

Sec. 35. Food and Catering. - The shipowner shall ensure protection and
promotion of the health of the seafarer. Whenever applicable, shipowners shall ensure
that ships carry on-board and serve 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. The 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.

CHAPTER X — Health Protection and Medical Care

‘Sec. 36. Medical Care On-board Ships and Ashore. - The shipowner shall provide
adequate medical services and medicine chest on-board, and access to shore facilities for
the protection of the health of the seafarers, as well as the corresponding medical and/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 treatment for sickness
or injury, hospitalization and dental treatment.

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

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
be covered by the Social Security System, Employees’ Compensation and State Insurance
Fund, Philhealth, Pag-IBIG Fund, and other applicable laws.

CHAPTER XII — Compliance and Enforcement
Sec. 38. Compliance and Certification. — Ali ships of Philippine registry shall comply
with the provisions of this Act. The shipowner or master shall ensure the compliance of
the ship with 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.

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

Sec. 39. Inspection and Enforcement. — For purposes of this Act, the Secretary of
Labor or his/her 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 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.

Unless directly exercised by the Secretary of Labor and Employment, the duly
authorized representative shall have the power to board ships and carry out any
examination, test or inquiry which they may consider necessary in order to satisfy
themselves that the standards are strictly observed.

‘The Secretary of Labor and Employment or his/her duly authorized representative
shall have the power to order immediate correction of, and impose fine 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,
and/or to the life or limbs of the seafarer, the Secretary of Labor or his/her duly authorized
representative may order the detention of the ship immediately until the violation or
deficiency is corrected.

Sec. 40. Recognized Organization. - Recognized Organizations may be authorized
by the Secretary of Labor to conduct inspection and issue certification in accordance with
the provisions of this Act and its implementing rules and regulations.

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

A recognized organization shali aiso have the necessary and qualified professional,
technical and support expertise to carry out the conduct of inspection and issuance of
certification.

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

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seafarer completes his period of contractual service aboard the ship, signs-off from

the ship and arrives at the point of hire.

It 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: (a) fit for repatriation; or (b) fit to work but the employer
is unable to find employment for the seafarer on-board his former ship or another
ship of the employer;

2, When the seafarer signs-off due to ship's sale, lay-up of ship, discontinuance of
voyage or change of ship principal, as provided for in the POEA Standard
Employment Contract;

3. When the seafarer in writing, voluntarily resigns and signs-off prior to expiration
of contract within a reasonable period as may be prescribed in the IRR 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.
Chapter XIV. Settlement of Disputes

Sec. 42. On-board and Onshore Grievance Machinery. - All ships of Philippine
registry shall have a fair, effective and expeditious on-board and on-shore grievance
machinery 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 the CBA. Without
prejudice to any existing law, any agreements reached by the parties during grievance
machinery 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 No.
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

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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. — For overseas Filipino seafarers, returning or unemployed
seafarers may avail of the livelihood development, training programs and placements
services offered by concerned government agencies, including OWWA and TESDA, TLC,
and the CDA and the NMP and CHED.

These agencies shall formuiate skills upgrading or retraining curricula to meet the
needs of returning or unemployed seafarers. The participation of the maritime industry,
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 a mechanism 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 incentivized or awarded
for their outstanding performance in upholding the rights of seafarers or complying with
this Magna Carta.

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 (DOLE) - The DOLE shall ensure that the
standards set forth under this Act, 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;

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b)

°

dq)

e)

To this end, the DOLE shall establish an effective system for the inspection

and certification to ensure that the working and living conditions of seafarers are
met and continue to be met pursuant to the Maritime Labour Convention 2006.
Department of Foreign Affairs (DFA) - The DFA, through its home offices or foreign
posts, shall take priority action or make representation with the foreign authority
concerned to protect the rights of Filipino seafarers and extend immediate
assistance, including the repatriation of distressed or beleaguered Filipino
seafarers;
Department of Health (DOH) — The Department of Health (DOH) shall regulate the
activities and operations of all clinics which conduct medical, physical, optical,
dental, psychological and other similar examinations, hereinafter referred to as
health examinations, on Filipino seafarers;

The Department of Health shall determine and prescribe the nature of the
medical examination that shall be required of a seafarer, ensuring that such
examination will genuinely determine the seafarer’s state of heaith, considering
the duties that he/she 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.

Philippine Overseas Employment Administration (POEA) — The POEA shall look into
and improve on the working conditions and terms of employment of the officers
and crew of vessels of Philippine registry, and of such officers and crew members
who are Filipino citizens and employed by foreign vessels;

Overseas Workers Welfare Administration (OWWA) — The OWWA through its
welfare officer or in his absence, the coordinating officer, shall provide the Filipino
seafarers and his family all the assistance they may need in the enforcement of
contractual obligations by agencies and/or by 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.
Maritime Industry Authority (MARINA) — The MARINA shall ensure that all maritime
education including the curricula and training programs are structured and
delivered in accordance with the written programs, methods and media of delivery,
procedures and course materials compliant with international standards as
prescribed under the STCW Convention;

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g) Philippine Coast Guard (PCG) — The PCG, in line with its function to assist in the
enforcement of appiicabie 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 department, agency and instrumentality of the government including
government owned and controlled corporation 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, as
established under Administrative Order No. 56, 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:

a) Department of Foreign Affairs (DFA);
b) Overseas Workers Welfare Administration (OWWA);
C) Philippine Overseas Employment Administration (POEA);
d) National Bureau of Investigation (NBI); and
e) Philippine Statistics Authority (PSA);
CHAPTER XVIII — Final Provisions

Sec. 48. Administrative Fines and Penalties. - Any shipowner, master, their
representatives 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, his duly authorized representative or the duly authorized
representative of recognized organization shall be subjected to administrative fines and
penalties in accordance with the IRR.

Sec. 49. Illegal Exercise of Authority. — Any person who, without proper delegation,
exercises the authority granted to the Secretary of Labor under Sections 39 and 40 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 offense provided herein shall prescribe after five (5) years
from its commission.

Sec. 50. Implementing Rules and Regulations. - The DOLE, in coordination with
the DFA, MARINA and other agencies concerned shall formulate the rules and regulations
of this Act within ninety (90) days after its effectivity.

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Sec. 51. 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 after the effectivity of this Act.

Sec. 52. Separability Cause. — 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, or issuance, executive
orders, letters of instruction, rules or regulations inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

Sec. 54. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in at least two (2) newspapers of general circulation,
whichever comes first.

Approved,

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