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LARGO 2 2028

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

EIGHTEENTH CONGRESS

2
2
x
Second Regular Session Fi

House Bill No. _7236

Introduced by Representative Evelina Escudero

EXPLANATORY NOTE

As a state party to the Maritime Labour Convention (MLC), an international
agreement promoting seafarers’ rights to decent conditions of work, the country is
‘expected to uphold and abide by its provisions.

The MLC 2006 sets minimum requirements for nearly every aspect of working
and living conditions for seafarers including recruitment and placement practices,
conditions of employment, hours of work and rest, repatriation, annual leave, payment
of wages, accommodation, recreational facilities, food and catering, health protection,
occupational safety and health, medical care, onshore welfare services and social
protection.' This bill intends to guarantee the implementation of these and strengthen
thereafter.

Introduced during the 17" Congress, this measure was passed in the third reading.
Therefore, its passage is earnestly sought.

EVELINA ESCUDERO

» https://seafarersrights.org/seafarers-subjects/maritime-labour-convention-mlc/


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

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. _7236

Introduced by Representative Evelina Escudero

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

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

CHAPTER I
GENERAL PROVISIONS

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

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

(a) To afford Filipino seafarers full protection before, during and after employment
by granting them certain rights as maritime professionals, in recognition of their
unique role and contribution to national development;

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

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

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


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

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

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

This Act shall not cover the following categories of ships:
(a)Warships and naval auxiliaries;
(b)Government ships not engaged in commercial operations;

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

(d)Fishing vessels.

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

(a) Cadet refers to a student of a maritime educational institution who is required
to undergo training on board registered international ships or domestic ships to
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 undertaken
for contractual or commercial purposes;

(©) 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 MLC, 2006;

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

(©) 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;


(8) 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, shipbuilding and ship repair, providing maritime services such as ship
supplies and provisions, maritime education and training, shipping agency, and
other similar activities.

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

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

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

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

(j) 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;

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

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

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

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

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

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

(q) 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;

(8) 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;


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

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

CHAPTER IL
SEAFARERS' RIGHTS

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

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

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

(4) 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-
organization, to collective bargaining and to participate in the deliberation of issues and
in the formulation of policies that affect them, including the guarantee of representation
in governing boards or appointment in government instrumentalities.

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

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


Towards 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

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

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

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

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

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

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

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


CHAPTER IIL
DUTIES OF SEAFARERS,

SEC. 13. Seafarers shall have the following duties:

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

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

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

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

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

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

CHAPTER IV
REQUIREMENTS FOR SEAFARERS

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

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

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

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

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


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

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

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

SEC. 18. — 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 V
CADETSHIP

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

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

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

(b) Name and address of the maritime institution or school;
(c) Name and address of the shipowner, if applicable;

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

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

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


(h) Duties and responsibilities of the sponsoring company, Maritime Higher
Education Institutions (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

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

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

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

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;

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

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

(f) Hours of work and hours of rest;

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

(h) Social security and welfare benefits;


(i) Stipulation on repatriation or similar undertakings;
(i) 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. The shipowner and the scafarer shall each have a signed original of
the agreement. A signed original shall be made available on board the ship.

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

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

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

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

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

SEC.23. Hours of Work and Hours of Rest. — The normal hours of work of every
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
twenty-four (24)-hour period, and seventy-two (72) hours in any seven (7)-day period.

The minimum hours of rest for every seafarer shall not be less than ten (10) hours.
Hours of rest may be divided into not 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 seven (7)-day period. This exception shall not be allowed for more than
two (2) consecutive weeks. The intervals between two (2) periods of exception shall
not be less than twice the duration of the exception.

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

For ships licensed to engage in domestic shipping, the provisions on "Holidays,
Service Incentive Leaves and Service Charges" of Presidential Decree No. 442, or the
Labor Code of the Philippines, as amended, shall continue to apply unless higher annual
leave is already provided under the collective bargaining agreement (CBA) or by the
shipowner as company practice or policy.

CHAPTER VII
REPATRIATION

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

SEC.26. Emergency Repatriation for Seafarers on Board Foreign Registered Ships.

—_ In cases of war, epidemics, abandonment of ship by shipowners, disasters,
calamities, natural or man-made, and other similar events, the Department of Foreign
Affairs (DFA), in coordination with the POEA and the Overseas Workers Welfare
Administration (OWWA), shall undertake the repatriation of seafarers. The DFA shall
draw from the Emergency Repatriation Fund (ERF) provided under the General
Appropriations Act (GAA) to defray the expenses involved in the repatriation of
undocumented seafarers, while the POEA shall require manning agencies to effect the


repatriation of seafarers within forty-eight (48) hours or suffer the penalty of suspension.
In case of failure of the manning agency to provide for the repatriation within the
prescribed time, the POEA shall coordinate with the OWWA to advance the cost of
repatriation of the seafarer without prejudice to reimbursement from the concerned
manning agency.

The DFA shall take the lead in the repatriation of the affected seafarers in areas
where there is no Philippine Overseas Labor Office (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 ship by shipowners, disasters or calamities, whether natural
or man-made, and other similar events.

CHAPTER VIII
MANNING REQUIREMENT

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

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

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

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

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


and allow for the appropriate learning for and implementation of additional training,
skills and development programs for seafarers.

CHAPTER IX

ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND
CATERING

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

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

SEC. 33. Recreational Facilities. — Unless otherwise exempted herein or by
appropriate regulations, all ships of Philippine registry shall have recreational facilities,
amenities, and services that are appropriate and accessible to seafarers. Domestic ships
shall be exempted from this requirement considering that their trading patterns and
length of voyages allow their crew to go home or to make use of comparable facilities
on land.

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

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

(a) All oceangoing ships and domestic ships constructed on or after the date when
the MLC, 2006 comes into force;


(b) All second-hand ships, whether oceangoing 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) Allships constructed prior to the entry into force of the MLC, 2006 which have
undergone major or substantial structural alterations after the entry into force of the
Convention, unless provided exemption by the relevant Philippine government
agency.

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

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

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

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

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

CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

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


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 the provisions of this Act and its implementing rules and
regulations.

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

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

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

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

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

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

SEC. 40. Recognized Organization. — Recognized organizations may be authorized
by the Secretary of Labor and Employment to conduct the inspection of ship's premises
and issue the maritime labour certificate or the certificate of compliance with, as
appropriate, in accordance with the provisions of this Act and its implementing rules
and regulations.


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

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

CHAPTER XIII
TERMINATION OF EMPLOYMENT

SEC. 41. Termination of Employment. —

(a) The employment of Filipino seafarers. onboard
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: (i) fit for repatriation; or (ii) when after an illness
the seafarer is declared fit to work, but the employer is unable to find
employment for the seafarer on board the ship originally boarded or on another
ship of the employer;

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

(3) When the seafarer voluntarily resigns in writing and signs of prior to the
expiration of contract within a reasonable period as may beprescribed 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-SEC.

(6) 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.

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


CHAPTER XIV
SETTLEMENT OF DISPUTES

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

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

SEC. 43. Mandatory Conciliation-Mediation and Arbitration. —
Seafarers, whether engaged, employed or working on board ships of Philippine registry
or other registries, shall avail of the conciliation-mediation services of the DOLE
pursuant to Republic Act No. 10396 and its implementing rules and regulations, by
filing a request for assistance before the conciliation-mediation desks at the
Regional/Field/Provincial Offices of the DOLE or its attached agencies

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

CHAPTER XV
REINTEGRATION FOR OVERSEAS FILIPINO SEAFARERS:

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

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


likewise solicited by the DOLE in devising the appropriate retraining and local job
placement programs for unemployed seafarers.

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

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

SEC. 45. Incentives and Awards. — There shall be established an incentives
and awards system for the maritime industry stakeholders which shall be developed and
administered by the concerned government agency in consultation with the Maritime
Industry Tripartite Council (MITC). Under such rules and regulations that may be
promulgated, deserving shipowners, seafarers, manning and other organizations or
entities, shall be commended or awarded for their outstanding performance in
upholding the rights of seafarers and complying with this Act.

CHAPTER XVII
GOVERNMENT AGENCIES

SEC. 46. Role of Government Agencies. — The following government agencies
shall perform the following functions to promote the welfare and protect the rights of
Filipino seafarers:

(a) Department of Labor and Employment (DOLE). — The DOLE shall
exercise sole and exclusive jurisdiction in implementing the provisions of this Act
and ensure that the standards set forth herein, under Presidential Decree No. 442,
as amended, and other laws, the MLC, 2006 and other international treaties and
conventions to which the Philippines is a signatory are faithfully complied with
and fairly applied to Filipino seafarers. The DOLE shall likewise determine and set
appropriate benchmarks consistent with the MLC, 2006, this Act and other
applicable laws on employment conditions and other labor standards and
regulations.

(&) 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 representing their interests with foreign authorities concerned
and facilitating their repatriation when they are distressed or beleaguered.


(©) Department of Health (DOH). — The DOH shall regulate the activities and
operations of all clinics which conduct physical, optical, dental, psychological and
other similar examinations, hereinafter referred to as health examinations, on
Filipino seafarers. The DOH shall determine and prescribe the nature of the health
examination that shall be required ofa 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.

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

() 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 seafarers and their families of these programs
and other related governmental programs.

(f) 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 written programs, methods and media
of delivery, procedures and course materials, international standards as prescribed
under the STCW Convention and other applicable laws.

(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 MLC, 2006, including orders to detain
vessels found in gross violation of pertinent laws, rules and regulations. Unless
otherwise provided in this Act, the mandate, power and function of all
existing departments, agencies or instrumentalities of the government, including
government-owned and -controlled corporations, shall remain and continue to
be recognized in accordance with the law or order creating them.

SEC. 47. Philippine Seafarers' One Stop Processing Center (PSOC). — The
PSOC shall 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 Labor and Employment;
(b) Department of Foreign Affairs;

(c) Commission on Higher Education;

(d) Professional Regulation Commission;

(e) National Telecommunications Commission;

(f) Philippine Overseas Employment Administration;
(g) Overseas Workers Welfare Administration;

(h) Technical Education and Skills Development Authority;
(i) Maritime Industry Authority;

() National Bureau of Investigation;

(k) Social Security System;

(1) Philippine Health Insurance Corporation;

(m) Philippine Statistics Authority;

(n) Home Development Mutual Fund; and

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

CHAPTER XVIII
FINAL PROVISIONS

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

SEC. 49. Penalties for Violations of Sections 38 and 39. — Any person who,
without proper authorization, exercises the authority granted to the Secretary of Labor
and Employment under Sections 38 and 39 of this Act, shall be punished with a fine of
not less than one hundred thousand pesos (100,000.00) nor more than four hundred
thousand pesos (P400.000.00), or imprisonment of not less than one (1) year nor more
than four (4) years, or both at the discretion of the court. The foregoing offense shall


prescribe after five (5) years from its commission, or upon discovery of the violation
by competent authorities.

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

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

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

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

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

Approved,