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

EIGHTEENTH CONGRESS
First Regular Session

272

House Bill

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

EXPLANATORY NOTE

The latest available data has recorded about 700,000 Filipinos actively pursuing
seafaring jobs and professions all over the world as of 2016. They contribute to the economy
by sending back home billions of remittances annually

Although, the Filipino seafarers comprise about 30% of all the seafarers around the
world, the Philippine maritime industry has been a self-policing industry, which follows best
Practices as prescribed by international organizations/authorities, such as, the United Nations,
the International Labor Organization, and the IMO, abiding by international maritime
regulations and conventions to sustain its global competence.

On August 2013 the Philippines ratified the 2006 Maritime Labor ‘Convention, which
bound us in an international obligation to enact laws that would meet the global labor standards
protected by the Convention.

DIWA Party-list has been an active advocate of the rights and welfare of the Filipino
seafarers. During the 15", 16" and 17 Congresses, DIWA filed the same Bills on Magna Carta
of Filipino Seafarers, which seeks to recognize and uphold the rights and to promote the welfare
of Filipino seafarers as well as institute mechanisms for the enforcement and protection of
thereof.

‘This proposed Magna Carta, which in essence simply enshrines into Philippine Law the
Maritime Labor Convention of 2006, which was ratified by the Philippine Senate last August
2013, specifically the right to safe and secure workplace that complies with safety standards;
decent working and living conditions on board a ship; medical care, welfare measures and other
forms of health and social protection; and fair terms and conditions of employment including
salary commensurate to their rank, minimum number of working hours, and rest periods
consistent with Philippine or international maritime conventions.

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The bill also provides for seafarers’ rights to engage in collective bargaining; access to
educational advancement and training at reasonable and affordable costs; relevant information,
including the terms and conditions of employment and company policies affecting seafarers. It
protects them against discrimination based on race, sex, religion and political opinion and
provides for free legal representation for victims of violations who cannot afford legal
representation

The enactment of a Magna Carta for Filipino Seafarers is necessary for the State
to be able to provide adequate protection and recognition to the contribution of seafarers to our
society.

Approval of this bill is eamestly sought.

MICHAEL EDGAR\Y. AGIIPAY,
Representative, DIWA Party-list

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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No,_272

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

AN ACT INSTITUTING THE MAGNA CARTA FOR FILIPINO SEAFARERS

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Magna Carta for
Filipino Seafarers."

2. Declaration of Policies. ~Itis 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;

(b) 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 intemational
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

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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:
(@) Warships and naval auxiliaries:
(b) Government ships not engaged in commercial operations:

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

(@ Fishing vessels.
SEC. 4. Definition of Terms. - As used in this Act:

(@) Cadet refers to a student of a maritime educational institution who is required
toundergo training on board registered international ships or domestic ships
to fulfill 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;

(©) Intemational 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;

(@) 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;

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

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

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

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

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

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

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

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

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

(m) Philippine Seafarers’ One Stop Processing Center (PSOC) refers to the facili
which houses multiple offices or agencies involved in providing services
to seafarers in one roof,

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

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

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

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

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(®) 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 activitiesand offshore operations, except fixed platform;

(8) Sea Going Ship refers to a ship other than those which navigate exclusively
inland water or water within or closely adjacent to sheltered water or areas where

Port regulations apply;

(8) 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
hhas 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 and responsibilities of a shipowner under this Act, regardless of
whether any other organization or persons fulfill certain of the duties or
responsibilities on behalf of the shipowner.

CHAPTER IT
SEAFARERS' RIGHTS

SEC. 5. Right toJust Terms and Conditions of Work. ~ Seafarers shall have the
rightto:

(@) Safe and secure workplace that complies with safety standards;
(b) Decent working and living conditions on board a ship;

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

(@) 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 self.

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:

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(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 tonew demands in the industry; and

() 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 10 Relevant Information. ~ Shipowners, manning agencies, and other
Organizations responsible forthe 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 sand the grievance procedures available on board.

SEC. 9. Right to Consultation. - Seafarers, shipowners and legitimate seafarers’
and shipowners’ organizations, as well as other relevant stakeholders, shall be adequately
Consulted before adopting any maritime policy, executive issuance, rule or regulation or
in the enactment of any maritime law that may directly affect them 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 female seafarers

SEC. Il. 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 Aecess to Communication. ~ Seafarers, especially during their
free time or off-duty shall have reasonable access 10 ship-o-shore telephone
‘communications, and email and internet facilities, where available.

CHAPTER IIT
SEAFARERS’ DUTIES
SEC. 13. Seafarers shall have the following duties
(@) To comply with and observe the terms and conditions of the employment
contract;
(b) To abide by lawful and reasonable company personnel policies;
(©)To be obedient to the lawful commands of the Master or the Master's lawful

Successor, and to comply with the shipowner's/principal's policy on safety and
operational procedures and instructions given in connection therewith:

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

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

(D) To take personal responsibility to be healthy at all times by practicing a healthy
lifestyle.

CHAPTER IV
MINIMUM REQUIREMENTS FOR SEAFARERS

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

SEC. 15. Medical Ceruficates. -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 for work.

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

The medical certificate shall certify that the person is expected to be able to meet
theminimum requirements for performing the duty specific to the person’s post at sea
safely andeffectively 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 goverment 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 (DOLE),

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CHAPTER V
CADETSHIP

SEC. 19. Applicability. -The shipboard training of cadets shall be governed by
Sections 8, 10, 11, 12, 15,42 and Chapters VII and IX hereof

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

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

(b) Name and address of the maritime institution or school;
(©) Name and address of the shipowner, if applicable;
(d)Place and date when the cadet’s agreement is entered into;
(©) Capacity in which the cadet is to be trained:

© 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 Section 21 of this Act;

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

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

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

Maritime Higher Education Institutions (MHEIs) shall demonstrate that over the
last three (3) years, an average of at least sixty percent (60%) of students enrolled in theis
Bachelor of Science in Marine Transportation (BSMT) or Bachelor of Science in Marine
Engineering (BSMarE) programs are able to secure cadet berths in connection with
their studies. The Commission on Higher Education (CHED), in coordination with the
Maritime Industry Authority (MARINA), shall ensure that only BSMT or MSMarE
Programs in MHEls that meet the above requirement are conferred approved ot accredited

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CHAPTER VI
‘TERMS AND CONDITIONS OF EMPLOYMENT.

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

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

(b) Shipowner's name and address;

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

(d) Capacity in which the seafarer is to be employed:

(c) Amount of the seafarers salary, and the formula used for calculating the same;

(®) 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;

@ Separation pay and retirement pay, if applicable:

(k) Reference to the collective bargaining agreement, if applicable, and

() 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. Theshipowner and the seafarer shall each have a signed original of the
agreement. A signed original shall be made available on board the ship.

For seafarers on board foreign registered ships, the Philippine Overseas
Frmployment Administration — Standard Employment Contract (POEA-SEC) approved by
the DOLE shall beobserved.

‘When there is a collective bargaining agreement, 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 citeiaas determined pursuant to Republic Act No. 6727,
otherwise known as "Wage Rationalization Act":~Provided, that wages for actual work
hours and days shall not be lower than the applicable minimum wage rates i.1 the domicile
or head office of the employer.

Wages shall be paid at least once every two (2) weeks or twice(2) a month at
intervals not exceeding sixteen (16) days.

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

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

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

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

For ships licensed to engage in domestic shipping, the 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.

CHAPTER VII
REPATRIATION

SEC. 25. Seafarers Shall Be Entitled to Repatriation. All costs related to the
Tepatriation or transport of the personal effects of seafarers shall be borne by, or charged,
to the shipowner and the manning agency concemed, 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 seafarers during the journey and transportation of thirty kilograms (30 kgs) of
the seafarers’ personal luggage to the repatriationdestination. The primary responsibility
to repatriate entails the obligation on the part of the shipowner or agency to advance
the repatriation and other attendant costs, including plane fare, deployment cost of the
Principal and immigration fines and penalties, to immediately repatriate the seafarer
should the need for it arises, without a prior determination of the cause of the
termination of the seafarer’s employment. However, after the worker has returned to the
country, the shipowner or agency may recover the cost of repatriation from the seafarer
if the termination of the employment was due solely to the seafarer's fault.

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

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The DFA shall take the lead in the repatriation of the affected seafarers in areas
where there are no Philippine Overseas Labor Offices (POLO),

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
Fequired 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
4ualifications taking into account the need to operate the vessel safely and efficiently.

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

The certificate of competency shall attest to the fact that the seafarer to whom it is
issued meets the requirements for service, age, qualification, and examinations for the
position held

SEC. 30. Registry of Seafarers. ~To better respond to the manning requirements
of ocean-going ships of foreign registry, and domestic and ocean-going ships of Philippine
registry the POEA and MARINA, respectively, shall maintain a registry of all
seafarers in the Philippines. The registry shall contain the relevant information or data
to promote employment opportunities for seafarers whether on board or ashore, 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 of this Act

CHAPTER IX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING

SEC. 31. Application. -TherequirementsofthisChapter for crewaccommodation
and recreational facilities covering ships of Philippine Registry shall be applicable to the
following:

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

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

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

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 that meet the minimum standards for health and hygiene and are
accessible to seafarers on board. The sanitation facilities shall be located at convenient
Places, allowing for easy access to work stations. Separate facilities shall be provided for
male and female crew.

SEC. 34. Recreational Facilities. - Unless otherwise exempted herein or by
appropriate regulations, all ships of Philippine registry shall have recreational facilities
amenities, and services that are appropriate and accessible to seafarers.

Domestic ships are exempted from this requirement considering 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 the protection and
Promotion of health of seafarers. Whenever applicable, shipowners shall ensure that ships
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 of seafarers. All foods and drinks and the
Preparation thereof shall be in accordance with the standards of the Sanitation Code of the
Philippines and pertinent laws, rules and regulations.

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

SEC. 36. Medical Care On board Ships and Ashore. ~ The shipowner shall provide
adequate equipment, paraphernalia and medical supplies, including medicines on board,
andshall ensure access to shore facilities for the health of seafarers, as well as the
corresponding medical or trained personnel who shall provide first-aid and medical
care pursuant to theMaritime 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 mental treatment.

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

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N


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

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

For this purpose, a Maritime Labour Certificate or a Certificate of Compliance,
as applicable, shall be issued in accordance with the Implementing Rules and Regulations
of this Act.

SEC. 39. Inspection and Enforcement. -For purposes of this Act, the Secretary of
Labor or a duly authorized representative shall have the sole and exclusive authority to
inspect all Philippine ships, domestic or ocean-going to ensure compliance with the
provisions of this Act.

The 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 ofthis 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 the 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 andits implementing rules and regulations or poses imminent danger to the ships ot
to the life or limb of the seafarer, the Secretary of Labor or the duly authorized
Tepresentative may order the detention of the ship immediately until the violation or
deficiency is corrected,

SEC. 40. Recognized Organization. ~ Recognized organizations may be

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I


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 XIII
TERMINATION OF EMPLOYMENT

SEC. 41. Termination of Employment,

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

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

(1) When the seafarer signs-off and is disembarked for medical reasons in the event
the seafarer is declared: (1) fit for repatriation; or (2) ft to work, but the employer
is unable to find employment for the seafarer onboard the former ship or
another shipoftheemployer;

(2) When the seafarer signs-off dueto 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 voluntarily resigns in writing and signs-off prior to the
expiration of contract within a reasonable period as may be prescribed in the
IRR of this Act; or

(@) When the seafarer is discharged for just causes in accordance with the provisions
ofthe POEA Standard Employment Contract.

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

(c)Thetermination of employment of.aseafarer on board a foreign vessel or foreign-
registered ship shall be governed by the POEA SEC or applicable collective bargaining
agreement (CBA).

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CHAPTER XIV
SETTLEMENT OF DISPUTES

SEC. 42. On board and Onshore Grievance Machinery. - All ships of Philippine
registry shall 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 agreement 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
10396 and its Implementing Rules and Regulations, by filing a request for assistance before
the conciliation-mediation desks at the Regional/Field/Provincial Offices of the DOLE or its
attached agencies.

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

CHAPTER XV
REINTEGRATION FOR OVERSEAS FILIPINO SEAFARERS

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

These agencies shall formulate skills upgrading or retraining curricula to meet the
needs of returning or unemployed seafarers. The participation of the maritime industry, in
Particular, port and shipping industry, and maritime educational institution 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.

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CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY.

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

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

CHAPTER XVIL
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 Conyntion 2006 and other international treaties and conventions
fo 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). - The DFA, through its home offices
or foreign posts, shall give paramount importance to the safety and well-being of
Filipino seafarers, by providing adequate and timely intervention and assistance, such as
Fepresenting their interests with foreign authorities concemed and facilitating their
repatriation when they are distressed or beleaguered:

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

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

(d) Philippine Overseas Employment Administration (POEA). - The POEA shall

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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 officers or coordinating officers, shall provide the Filipino seafarers and
their families all the assistance they may need in the enforcement of contractual obligations
by agencies and their principals,

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

() 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.

(g) 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 Maritime Labour Convention 2006 including orders to detain vessels
found in gross violation of pertinent laws, rules and regulations,

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

SEC. 47. Philippine Seafarer One Stop Processing Center (PSOC). ~The PSOC,
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);

(©) Philippine Overseas Employment Administration (POEA);
(d) National Bureau of Investigation (NBI); and

(©) Philippine Statistics Authority (PSA).

CHAPTER XVIII
FINAL PROVISIONS

SEC. 48. Administrative Fines and Penalties. - Any shipowner, master, their
Tepresentative or other person who fails or refuses to present employment records,

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such as payrolls, daily time records, payslip or other documents, when required by the
Secretary of Labor, or the duly authorized representative of the Secretary of Labor, or
the duly authorized representative of a recognized organization, shall be subjected to
administrative fines and penalties in accordance with the Implementing Rules and
Regulations (IRR).

SEC. 49. Penalties for Violations of Sections 38 and 39. - Any person who,
without proper delegation, exercises the authority granted to the Secretary of Labor under
Sections and of this Act, shall be punished with a fine of not less than One hundred
thousand pesos (PI00,000.00) nor more than Four hundred thousand pesos
(400,000.00), or imprisonment of 15. 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 itscommission.

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

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

SEC. 52. Separability Clause. -If, for any reason, any section, clause orterm 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. S3._ Repealing Clause. -All laws, presidential decrees, issuances, executive
orders letters of instruction, rules or regulations inconsistent with the provisions of the Act
are hereby repealed or modified accordingly.

SEC. 54, Effectivity. ~ This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation

Approved,

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