Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House BILL No. 7418

Introduced by CIBAC Party-List Representatives
EDUARDO “BRO. EDDIE” C. VILLANUEVA and DOMINGO C. RIVERA

AN ACT
INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

EXPLANATORY NOTE

Article XIII, Section 3 of the 1987 Philippine Constitution provides that the State
shall afford full protection to labor, local, and overseas. One category of these
overseas workers are the seafarers whose numbers have steadily increased
throughout the years.

In fact, the Philippines is known to be one of the largest supplier of seafarers in
the world,’ and the seafarers’ contribution to the Philippine economy is undeniable
with their remittances. According to the Bangko Sentral ng Pilipinas (BSP), Filipino
seafarers have remitted over USD6.53 billion in 2019? alone. Despite their significant
contributions, however, they are often overshadowed by the country's land-based
overseas workers.

In addition, the country's current laws protecting migrant workers, particularly
Republic Act No. 8042, as amended, also known as the Overseas Filipinos and
Migrant Workers Act, do not adequately address the needs of seafarers, especially
considering the peculiar circumstances that they are facing while working aboard
ocean-going ships. For example, Filipino seafarers face the risk of abuse, exploitation

{Global Supply and Demand for Seafarers. terational Chamber of Shipping
‘Overseas Filpinos’ Cash Remittances. Bangko ng _ Sentral ng Pilipinas. Available at
tap:to bp govptaisticsheystltw2 im (Date last accoase: Jay 2, 2020)

1


and contract violations by their employers in the open seas with limited access to
welfare services from Philippine embassies abroad.

Thus, there is a need to prioritize and promote the welfare and the protection
of the rights of Filipino seafarers. This bill, among others, seeks to establish the rights
of seafarers; enumerate the duties of employers, seafarers and government agencies;
and setting minimum standards for the training, accommodation, work facilities,
education, repatriation, occupational safety and health of seafarers.

This bill also mandates the Philippine Overseas Employment Administration
and the Maritime Industry Authority to maintain a registry of seafarers. On the other
hand, the Department of Labor and Employment is mandated to formulate the
Maritime Occupational Safety and Health Standards (MOSHS) pursuant to the
provisions of Republic Act No. 11058, otherwise known as the “Occupational Safety
and Health Law’ and pertinent maritime conventions and treaties ratified by the
Philippines.

During the celebration of the 2020 Day of the Seafarers in June, the
International Maritime Organization (IMO) called on the Member States “to recognize
seafarers as key workers — and to provide them with the support, assistance and travel
options open to all key workers during the pandemic.”>

This bill is an answer to IMO's call.

In view of the foregoing, the immediate approval of this bill is highly
recommended.

HON, EDUARD@BRO/EDEIE”C. VILLANUEVA

Ho yg: RIVERA

UN Day of the Seafarer highlights sacrifice of key workers at sea during pandemic. International Maritme Organization.
Availabe at htp:/!www imo.org/en/MedisCertre/PressBriefings/Pages/20-DOTS-2020.aspx (date last accessed: July 27, 2020),

2


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _7418

Introduced by CIBAC Party-List Representatives
EDUARDO “BRO. EDDIE” C. VILLANUEVA and DOMINGO C. RIVERA

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!
DECLARATION OF POLICY

SECTION 1. Short Title. — This Act shall be known as the “Magna Carta of Filipino
Seafarers.”

SEC. 2. Declaration of Policies. — It is hereby declared the policy of the State:

(a)

(b)

(c)

(a)

To recognize the rights, contributions and unique role of Filipino seafarers as
essential maritime professionals and 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, and 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

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safety and health, among others, for seafarers particularly the Maritime Labour
Convention, 2006; and

(e) To recognize ship owners, and recruitment and placement entities as vital
partners in promoting the skills, competencies and rights and welfare of Filipino
seafarers,

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

CHAPTER Il
GENERAL PROVISIONS

SEC. 3. Coverage. — This Act shall cover:

(a) All Filipino seafarers engaged, employed, or working in any capacity, on-board
Philippine or foreign-registered ships, except those engaged, employed or
working in the following categories of ships:

(1) Warships and naval auxiliaries;
(2) Government ships not engaged in commercial operations;

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

(4) Fishing vessels as may be defined by appropriate rules and regulations to
be issued by the Department of Labor and Employment (DOLE) in
consultation with relevant stakeholders.

(b) All Filipino seafarers on-board Philippine registered domestic ships shall be
covered primarily by equivalent provisions of the Labor Code of the Philippines,
as amended, and related social and welfare benefits law. For this purpose, the
DOLE shall issue the appropriate rules and regulations to govern the
employment of domestic seafarers.

SEC. 4. Definition of Terms. - As used in this Act, the following terms shall have the
following meaning:

(a) Cadet refers to the student of maritime educational institutions who is required
to undergo training on-board registered international or domestic ships to fulfil a
maritime academic course, maritime degree or certification requirement;

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


(d)

(e)

(9)

(h)

(i)

@

(k)

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 intemal
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;

Engine Officer refers to an officer qualified in accordance with Chapter III of the
International Convention on the STCW, 1978 as amended;

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;

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;

Maritime Labor 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;

Maritime Labour Convention, 2006, or MLC, 2006 refers to the consolidated
Maritime Labor Convention approved by the International Labor Organization
(ILO) in 2006 and ratified by the Philippines on August 20, 2012;

Master refers to a person having command ofa ship and acts as the shipowners’
representative;

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;

One-Stop Service Center for OFWs refers to the one-stop centers in various
parts of the country where government frontline services are made accessible to
Overseas Filipino Workers (OFWs), including seafarers. Agencies at these
centers shall include the Department of Labor and Employment (DOLE),
Department of Foreign Affairs (DFA), Philippine Overseas Employment
Administration (POEA), Overseas Workers Welfare Administration (OWWA),
Technical Education and Skills Development Authority (TESDA), Professional
Regulation Commission (PRC), Maritime Industry Authority (MARINA), Home
Development Mutual Fund (HDMF), Philippine Health Insurance Corporation
(PhilHealth), Social Security System (SSS), Philippine Statistics Authority (PSA),
Bureau of Immigration (BI), National Bureau of Immigration (NBI), Commission

5


0)

(m)

(n)
(0)

(p)

(qa)

0]

(s)

‘on Higher Education (CHED), Philippine National Police (PNP), and Bureau of
Internal Revenue (BIR);

Point of Hire refers to the place indicated in the contract of employment, and
which shalll be the basis in determining the commencement and termination of
the contract;

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;

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

Seafarer refers to any person who is employed or is engaged to work in any
capacity on board a ship covered under this Act;

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

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;

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 duties or responsibilities on behalf
of the shipowner; and

Maritime Accident refers to any unforeseen occurrence or physical event
connected to the navigation, operations, maneuvering or handling of ships, or
the machinery, equipment, material, or cargo on board such ships which may
result in the detention of seafarers.

CHAPTER Ill
SEAFARER’S RIGHTS
SEC. 5. Right to Just Terms and Conditions of Work. — Seafarers shall have the
right to:
(a) Asafe and secure workplace that complies with safety standards;

(b)
(c)

Decent working and living conditions on-board a ship;

Medical care and confirmatory tests, welfare measures and other forms of health
and social protection; and


(4) Fairterms and conditions of employment, including salary commensurate to their
rank, hours of work, paid sick leave or sickness benefits, minimum number of
working hours and rest periods consistent with Philippine laws or international
maritime conventions.

SEC. 6. Right to Self-organization, to engage in Collective Bargaining and to
Participate in Democratic Exercises. — Seafarers shall enjoy the right to self-
organization, to collectively bargain 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 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 the 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.

In addition, any fee or other charges imposed on cadets, interns, apprentices,
on-the-job trainees or other persons similarly situated shall be charged to maritime
institutions.

SEC. 8. Right to Information. — Shipowners, manning agencies, and other
organizations responsible for the recruitment and placement of Filipino seafarers shall
provide seafarers relevant information, including the terms and conditions of
employment, company policies affecting seafarers, obligations of seafarers, conditions
and realities attending to their profession, and laws and regulations of countries
covered by their sojourn. In addition, the seafarers must, at all times, be furnished a
copy of the results of medical examination conducted on him/her. This right shall also
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, the grievance procedures available on-board and when there is a
collective bargaining agreement, a copy of such agreement which shall be readily
accessible to the seafarers.

SEC. 9. Right to Consultation. — Seafarers, shipowners and legitimate seafarers’
and shipowners’ organizations, as well as other maritime stakeholders, shall be

7


adequately consulted before adopting any maritime policy, executive issuance, rules
or regulations or in the enactment of any maritime law that may directly affect the
seafarers and/or their families and beneficiaries.

SEC. 10. Right Against Discrimination. — Upon employment, seafarers shall have
the right to be protected from discrimination on the sole basis of race, age, sex, religion
or 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 whose rights, as
guaranteed under this Act, or whose contracts have been violated, 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, email and internet facilities, where available.

SEC. 13. Right to Record of Employment or Certificate of Employment. — At the
expiration of the employment contract of the seafarer, he/she shall have the right to
be given a record of his/her employment on board the ship, or a certificate of
employment, specifying the length of service, the position the seafarer occupied, and
such other relevant information.

SEC. 14. Right to Fair Treatment in the Event of a Maritime Accident. — In the
event of a maritime accident, seafarers shall be treated fairly and shall be entitled to
all the rights under the ILO/IMO 2006 Guidelines on Fair Treatment of Seafarers in the
Event of a Maritime Accident, Annex to IMO Resolution A. 1056 (27) of November 30,
2011.

CHAPTER IV
SEAFARER’S DUTIES

SEC. 15. Duties of a Seafarer. — Seafarers shall have the following duties:

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

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

(c) Tobe obedient to the lawful commands of the Master or any persons who shall
lawfully succeed him/her, and to comply with the relevant policies on safety and
operational procedures and instructions on board the ship or while ashore;

(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;


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(e) Tobe, atall 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 V
MINIMUM REQUIREMENTS FOR SEAFARERS

SEC. 16. 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
and foreign-registered ships.

SEC. 17. 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.

For this purpose, 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 to perform the duty specific to the person's post at sea
safely and effectively during the validity of the certificate.

During the course of the medical examination, the seafarer shall have the
responsibility of answering truthfully all questions relating to his/her medical condition
and/or medical history, including previous known illness, injury, or medical treatment,
and to make a complete inventory of medication prescribed to himvher by physicians.

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

SEC. 18. Training and Qualifications. - Only seafarers certified by appropriate
government agencies shall work, be employed or be engaged on-board a ship.

SEC. 19. 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 rules and regulations as may be issued by
the Secretary of Labor and Employment.

In all cases, no amount or fee shall be charged to the seafarer in the recruitment
and placement.

CHAPTER VI
TERMS AND CONDITIONS OF EMPLOYMENT

SEC. 20. Standard Employment Contract for Seafarers. — There shall be an
agreement in writing between the shipowner and the seafarer, which shall include, but
not be limited to, the following information and terms:

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(a) Seafarer's full name, date of birth, age, birthplace and address;
(b)  Seafarer's Record Book Number and Seafarer’s Identity Document Number;
(©) Shipowner's name and address;

(d) Place where and date when the seafarer’s employment agreement is entered
into;

(e) Duration of the contract;

() Point of hire;

(g) Capacity in which the seafarer is to be employed;

(h) Amount of the seafarer’s salary, and the formula used for calculating the same;
(i) Hours of work and hours of rest;

() Wages and wage-related benefits, which shall include overtime pay, holiday pay,
vacation leave pay, premium pay, paid leaves, 13th month pay, if applicable;

(k) Social security and welfare benefits;
(Stipulation on repatriation or similar undertakings;

(m) Separation pay and retirement pay, if applicable;

(n) Reference to the collective bargaining agreement, if applicable; and
(0) Other benefits in accordance with law, company policy or agreements.

The employment agreement shall be in a working language or in the English
language, executed in four (4) 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.

For ocean-going Philippine-registered ships or foreign-registered ships, the
POEA shall issue a Standard Employment Contract (SEC), as approved by the DOLE,
containing the minimum standards to be observed in the employment of Filipino
seafarers. The SEC shall be reviewed and updated regularly and must, at all times,
be consistent with the Maritime Labour Convention and other existing treaties and
conventions governing seafarers, which the Philippines has ratified.

SEC. 21. Hours of Work and Hours of Rest. — The normal hours of work of a seafarer
shall not exceed eight (8) hours a day with one (1) rest day per week. If the seafarer
is required 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
seven-day period.

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The minimum hours of rest for every seafarer shalll not be less than ten (10) hours
in a 24-hour period. The hours of rest may be divided into two periods, one of which
shall be at least six (6) hours in length, and the interval between the two 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; Provided further, That such watchkeeping duties
shall not be allowed for more than two (2) consecutive weeks; Provided, finally, That
the intervals between the two (2) periods shall not be less than twice the duration of
the exception.

SEC. 22. Paid Annual Leave. ~ Unless a higher annual leave is already provided in
the employment contract, or under a collective bargaining agreement (CBA) or by the
shipowner as company practice or policy, 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; Provided, That the following shall not be counted as part of the annual
paid leave:

(a) Public and customary holidays of the Philippines, whether or not they fall during
the paid annual leave;

(b) Periods of incapacity for work (i) resulting from illness or injury; (ii) due to
maternity or paternity leave in accordance with law;

(c) Temporary shore leave granted to a seafarer while employed; or
(4) Compensatory leave of any kind.

SEC. 23. Wages. — The minimum wage applicable to Filipino seafarers onboard
ocean-going ships of Philippine or foreign registry shall be as provided in the POEA
SEC, which in no case be lower than the prevailing industry standard on ocean-going
seafaring wage rates for officers and ratings, and regularly paid in full at intervals not
greater than once a month.

SEC. 24. Remittance of Wages. — Shipowners shall provide the appropriate facilities
and assistance to the seafarer to enable the seafarer to remit his/her wages to his/her
designated allottee/s in the Philippines through any authorized Philippine bank or
financial intermediary; Provided, That such allotment shall not be less than eighty
percent (80%) of the seafarer’s monthly basic salary.

SEC. 25. Limitations on Wage Deductions. — A deduction from the seafarer’s wages
shall not be made without his/her written consent, unless the deduction is provided for
in the contract of employment and/or is authorized by law.

SEC. 26. Personal Effects. - A seafarer may bring a reasonable number of articles
for personal use on-board the ship: Provided, That this act shall not inconvenience the
ship or cargo or pose any risk on board the ship. If the seafarers’ personal effects are
lost or damaged as a result of shipwreck, loss or stranding, abandonment of the

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vessel, or as a result of fire, flooding, collision or piracy, the employer shall reimburse
him/her for said loss or damage in accordance with the international standards.

SEC. 27. 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 (SSS), Employees’ Compensation and
State Insurance Fund, PhilHealth, HDMF or Pag-IBIG Fund and other applicable
social protection in accordance with law.

CHAPTER VII
ACCOMMODATION, RECREATION FACILITIES, FOOD
AND CATERING IN SHIPS.

SEC. 28. Application. — The requirements of this Chapter for crew accommodation
and recreation 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 come 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, 2008, which have undergone major or substantial structural
alterations after the entry into force of the Convention unless provided exemption
by the relevant Philippine goverment agency.

SEC. 29. Accommodation Facilities. - Unless otherwise exempted herein or by
appropriate regulations, all ships to which Filipino seafarers are sent on-board to work,
whether Philippine or foreign-registered, 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 the ship.

SEC. 30. Requirements for Sanitation. — All ships to which Filipino seafarers are
deployed to shall have sanitation facilities that meet the minimum standards for health
and hygiene, which shall be accessible to seafarers on board. The sanitation facilities
shall be located at convenient places, allowing for easy access to work stations. As
far as practicable, separate facilities shall be provided for male and female crew.

SEC. 31. Recreation Facilities. — Unless otherwise exempted herein or by
appropriate regulations, all ships to which Filipino seafarers are deployed to shall have
recreation facilities, amenities, and services that are appropriate and accessible for
seafarers; Provided, That 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.

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SEC. 32. Food and Catering. — All ships covered under this Act to which Filipino
seafarers are deployed to shall ensure protection and promotion of the health of the
seafarer. 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 and/or with international standards. In all cases,
the ship's cooks shall be trained and qualified.

CHAPTER VIII
MEDICAL CARE AND
MARITIME OCCUPATIONAL SAFETY AND HEALTH STANDARDS

SEC. 33. Medical Care On-board Ships and Ashore. - The shipowner shall provide
adequate medical facility, 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.

The medicine chest and its contents, the medical equipment, and the medical
guide on board shall be maintained and inspected regularly to ensure that labeling,
expiry dates, and conditions of storage of all medicines, and the directions for their
use are checked, and all equipment are functioning properly.

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

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

SEC. 34. Financial Security System to Assist Seafarers in case of Occupational
Injury and Other Causes. — In accordance with the Maritime Labor Convention, 2006
on Financial Security for vessels, the shipowner shall provide an expeditious and
effective financial security system to assist seafarers in the event of their abandonment
and to assure compensation for contractual claims in the event of death or long-term
disability of seafarers due to an occupational injury, illness or hazard.

CHAPTER IX
TERMINATION OF EMPLOYMENT

SEC. 35. 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, signs-off from the ship and arrive at the point of hire.

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

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(1) When the seafarer signs-off and is disembarked for medical reasons in the
event the seafarer is declared: (i) fit for repatriation; or (ji) 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
another ship of the employer;

(2) When the seafarer signs-off due to 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
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.

CHAPTER X
‘SETTLEMENT OF DISPUTES

SEC. 36. On-board and Onshore Grievance Machinery. ~ All ships of Philippine
registry shall establish a grievance machinery and a fair, effective and expeditious on-
board and on-shore procedures, at no cost to the seafarer, for the resolution of
grievances or complaints.

Any grievance or complaints shall first be referred to the appropriate grievance
mechanism established in accordance with this Act. In cases where a seafarer is a
member of a legitimate trade union organization and covered by a collective
bargaining agreement, he/she shall be assisted by a union designated representative
in the proceedings. Any agreements reached by the parties at the grievance
proceedings shall be final and binding.

SEC. 37. Mandatory Conciliation - Mediation. ~ In the absence of an agreement or
settlement at the grievance machinery level, Filipino seafarers engaged, employed or
working on-board ships of Philippine registry or other registries, shall avail of the
conciliation-mediation services pursuant to Republic Act No. 10396, otherwise known
as “An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute
Settlement for all Labor Cases, Amending for this Purpose Article 228 of Presidential
Decree No. 442, as amended, Otherwise Known as the ‘Labor Code of the
Philippines” and its implementing rules and regulations by filing a request for
conciliation-mediation before the POEA, or at the appropriate Regional Branch of the
National Conolliation and Mediation Board (NCMB) or the National Labor Relations
Commission (NLRC).

SEC. 38. Maritime Industry Labor Arbitration. — The seafarer, whether or not
covered by a collective bargaining agreement (CBA), or the shipowner or manning
agent, may manifest before the conciliator-mediator to submit the complaint for
Voluntary Arbitration, or to endorse the same before the appropriate regional branch
of the NLRC for Compulsory Arbitration, in case the parties failed to agree on a
compromise settlement.

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For this purpose, a pool of trained maritime industry conciliator-mediators and
experts shall be made available by the DOLE at the POEA, NCMB and NLRC. It shall
also establish, in consultation with the maritime industry stakeholders, accreditation
standards for Maritime Industry Voluntary Arbitrators that require competence,
integrity and knowledge of the Philippine and global maritime industry practices and
standards, MLC, 2006, and related Philippine ratified conventions and treaties.

CHAPTER XI
REPATRIATION

SEC. 39. Seafarers’ Repatriation. — Should the need for repatriation of the seafarers
arise, all costs related to the repatriation and transport of the personal effects of
seafarers, including the provision on financial security in case of abandonment of
seafarers, shall be borne by or charged to the shipowner or the manning agency
concerned to expedite the repatriation without prior determination of the cause of
repatriation or termination of the seafarer’s employment.

SEC. 40. Repatriation Expenses; Advance and Recovery. — The repatriation
expenses that shall be borne by or charged to the shipowner or the manning agency
concerned shalll include:

(a) pay and allowances from the moment the seafarers leave the ship until they
reach the repatriation destination;

(b) accommodation and food during the journey to the repatriation destination;
(c) transportation charges, the normal mode of transport should be by air;

(4) deployment cost of the principal; and

(e) Immigration fees, fines and penalties.

However, after the seafarer has returned to the country, the shipowner or
manning agency concemed may recover the cost of repatriation from the seafarer if
the termination is determined to be solely due to his or her fault.

SEC. 41. Quarantine and Medical Expenses in Repatriation Due to Infection,
Epidemics or Pandemic. ~ Before or during the process of repatriation, the expenses
of medical care and board and lodging for periods spent by seafarers in self-isolation
or in quarantine, whether or not the seafarers have symptoms, have been exposed or
are quarantined as a safety precaution, must be covered by the shipowner or manning
agency until the seafarers have been duly repatriated to the repatriation destination.
Thereafter, medical care and quarantine expenses after repatriation to the destination
shall be covered by the OWWA.

SEC. 42. Repatriation Destination. - The repatriation destination, at the option of

the seafarers, may either be the place indicated in the SEC as the point of hire, or the
place stipulated under the collective bargaining agreement.

1s


SEC. 43. Emergency Repatriation for Seafarers On-board Foreign Registered
Ships. — In cases of war, epidemics, abandonment of ship by shipowners, natural or
manmade disasters or calamities, and other similar events, the Department of Foreign
Affairs (DFA), in coordination with the POEA and OWWA, and in appropriate situations
with international agencies, 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 seafarers while the POEA shall require the manning agencies to effect
the repatriation of seafarers within forty-eight (48) hours, unless prevented from doing
0 for justifiable or valid reasons. A manning agency that fails to repatriate a seafarer
within the prescribed period without justifiable cause shall suffer the penalty of
suspension or cancellation of license in accordance with pertinent rules and
regulations

In case of failure of the manning agency to provide the repatriation within the
prescribed time, the POEA shall coordinate with the OWWA to advance the cost of
repatriation of the seafarers without prejudice to reimbursement from the concerned
manning agency within sixty (60) days from notice.

SEC. 44. Prescription of Entitlement to Repatriation. — Entitlement to repatriation
may lapse if the concerned seafarers do not claim it within the period prescribed in the
implementing rules and regulations or collective bargaining agreement, if any, except
when such seafarers are held captive on or off the ship as a result of acts of piracy or
armed robbery against the ship, or are incapable to travel due to illness, injury or
incapacity.

CHAPTER XII
REINTEGRATION OF OVERSEAS FILIPINO SEAFARERS

SEC. 45. Reintegration. — Returning or unemployed overseas Filipino seafarers may
avail of the livelihood development, training programs and placements services
offered by concemed government agencies, including OWWA, Technical Education
and Skills Development Authority (TESDA), National Maritime Polytechnic (NMP),
Commission on Higher Education (CHED) and other relevant government agencies
providing training.

These agencies shall formulate 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 retuming seafarers. For this purpose, NRCO 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.

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CHAPTER XII
PROVISIONS APPLICABLE TO DOMESTIC SEAFARERS

SEC. 46. Wages, Holiday Pay, Service Incentive Leave and other Statutory
Benefits. — The minimum wage rate of Filipino seafarers onboard ships engaged in
domestic shipping shall be determined by the Regional Wages and Productivity
Boards (RTWPB), taking into account the peculiarities of the employment
arrangement of seafarers and the criteria for wage fixing pursuant to Republic Act No.
6727, otherwise known as the “Wage Rationalization Act,” Provided, That wages for
actual work hours and days shall not be lower than the applicable minimum wage rates
in the place where the ship is registered. Wages of domestic seafarers shall be paid
in full and regularly at least twice a week in a month, or at intervals not greater than
16 days as provided in the Labor Code of the Philippines, as amended.

In addition, the provisions of the Labor Code of the Philippines, as amended, on
“Prohibitions Regarding Wages,” “Wage Studies, Wage Agreements, and Wage
Determination,” “Administration and Enforcement,” “Holidays,” “Service Incentive
Leaves and Service Charges,” 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 or seafarers’ employment agreement. In addition, domestic
seafarers shall also be entitled to (i) 13" month pay pursuant to Presidential Decree
No. 851, as amended, (ii) paid maternity leave under Republic Act No. 11210,
otherwise known as the 105-Day Expanded Maternity Leave Law, (iil) paid paternity
leave under Republic Act No. 8187, otherwise known as the Paternity Leave Act of
1996, (iv) Paid parental leave for solo parents under Republic Act No. 8972, otherwise
known as the Solo Parents’ Welfare Act of 2000; (Vv) paid leave for victims of violence
against women and their children under Republic Act No. 9262, otherwise known as
the Anti-Violence Against Women and their Children Act of 2004, (vi) paid special
leave due to surgery for any gynecological disorder, under Republic Act No. 9170,
otherwise known as the Magna Carta of Women, and retirement pay, pursuant to
Republic Act No. 7641.

Domestic seafarers shall also be entitled to SSS, PhilHealth, and Employee
Compensation Commission (ECC) benefits, regardless of the benefits already
provided under a contract, collective bargaining agreement, or company practice or
policy.

SEC. 47. Hours of Work, Hours of Rest. — As far as practicable, the provisions of
Section 21 of this Act shall also apply to domestic seafarers.

SEC. 48. Termination of Employment of Domestic Seafarers. — 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.

SEC. 49. Repatriation for Seafarers On-board Domestic Ships. - The provisions
under this Act on repatriation as may be applicable 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, whether natural or man-made, and other similar
events.

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SEC. 50. Contracting or Subcontracting of Services. - The contracting or
subcontracting of seafarers for work on-board domestic ships shall be governed by
existing rules and regulations issued by the DOLE.

CHAPTER XIV
MANNING LEVELS AND COMPLIANCE AND ENFORCEMENT OF
‘SHIPS OF PHILIPPINE REGISTRY

SEC. 51. Manning Levels. — All ships of Philippine registry shall have the required
minimum manning levels as prescribed by the Maritime Industry Authority (MARINA).
They shall, at all times, 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. 52. Crew Competence. — Every member of the crew of a ship of Philippine
Registry shall possess, in addition to the required medical certificate in Section 17, the
appropriate certificate of competency setting forth his/her 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 concemed.

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. 53. Compliance and Certification. — All ships of Philippine registry shall
comply with the provisions of this Act. The shipowner and master shall ensure the
compliance of the ship with this Act and its implementing rules and regulations, who
shall be made principally liable for any violation thereof.

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.

SEC. 54. 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.

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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. 55. 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 shall also have the necessary and qualified
professional, technical and support expertise to carry out the conduct of inspection
and issuance of certification.

CHAPTER XV
SHIPBOARD TRAINING OF CADETS

SEC. 56. Applicability. - The provisions of Sections 5 to 14 (Seafarers’ Rights),
Section 17 (Medical Certificate), Sections 29 to 32 (Accommodation, Recreation
Facilities, Food and Catering in Ships), Section 33 (Medical Care On-Board Ships and
Ashore), Sections 36 to 38 (Settlement of Disputes), Sections 39 to 44 (Repatriation)
shall apply with respect to the training of cadets.

SEC. 57. Shipboard Training Agreement for Cadets. — There shall be a written
agreement among the shipowner, the cadet and the maritime institution or school,
which shall embody the following information, terms and conditions:

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

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

(c) Name and address of shipowner and its manning and placement agency, if
applicable;

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

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

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(g) Required number of hours of training and rest which shall not be less than the
prescribed hours of rest in Section 23 of this Act;

(h) Duties and responsibilities of the sponsoring company, the Maritime Higher
Educational Institution (MHEls), 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

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

The foregoing agreement shall be in a language familiar to and understood by
all parties or in English, executed in four (4) 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.

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

SEC. 58. 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 concemed government agency, upon 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.

CHAPTER XVII
ROLE OF GOVERNMENT AGENCIES

SEC. 59. 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). 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.

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.

(b) Department of Foreign Affairs (DFA). 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

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(c)

(d)

e)

(9)

assistance, including the repatriation of distressed or beleaguered
seafarers.

Department of Health (DOH). 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 health, 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). 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, shalll 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 intemational standards
as prescribed under the STCW Convention.

Philippine Coast Guard (PCG). 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 department, agency and instrumentality of the govemment including
government owned and controlled corporation shall remain and continue to be
recognized in accordance with the law or order creating them.

SEC. 60. One Stop Service Center for OFWs (OSSCO). — Within six months from
the implementation of this Act, at least one OSSCO shall be established in each region
of the country.

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SEC. 61. 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 to provide a list of available training and education to
support skills development and competencies of seafarers.

SEC. 62. Integrated Documentation System. — All concerned government agencies,
in coordination with the Department of Information and Communications Technology
(DICT), shall collate and integrate all relevant information with respect to Filipino
seafarers in the Shared Government Information System established pursuant to
Section 20 of Republic Act No. 8042, otherwise known as the “Migrant Workers and
Overseas Filipinos Act of 1995,” as amended.

Information regarding seafarers shall include the education, training, licensing,
and certification of seafarers, which can be used by the seafarers in all their
transactions with government, manning, recruitment or placement agencies, and other
pertinent bodies.

SEC. 63. Maritime Occupational Safety and Health Standards. — The DOLE, in
consultation with the maritime industry stakeholders, shall formulate the Maritime
Occupational Safety and Health Standards (MOSHS) pursuant to the provisions of
Republic Act No. 11058, otherwise known as the “Occupational Safety and Health
Law’ and pertinent maritime conventions and treaties ratified by the Philippines.

CHAPTER XVIII
FINAL PROVISIONS

SEC. 64. 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, pay slip, 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
ranging from One Hundred Thousand Pesos (Php 100,000) to One Million Pesos
(Php1,000,000), in accordance with the implementing rules and regulations of this Act.

SEC. 65. Penalties for Violations of Sections 54 and 55. — Any person who, without
proper authorization, exercises the authority granted to the Secretary of Labor and
Employment under Sections 54 and 56 of this Act, shalll be punished with a fine of not
less than Two Hundred Thousand Pesos (Php200,000.00) nor more than Two Million
Pesos (Php2,000,000), 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.

SEC. 66. 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

22


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

SEC. 68. 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. 69. Repealing Clause. — All laws, presidential decrees, issuances, executive
orders, letters of instruction, rules and regulations inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC. 70. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,

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