} HOUSE OF REPRESENTATIVES:
RECEIVED
Republic of the Philippines 4.09 Hinson
HOUSE OF REPRESENTATIVES DATE: St 201

Quezon City, Metro Manila We 22
SEVENTEENTH CONGRESS | wr a
First Regular Session |
REGISTRATION UNIT

,
House Bill No. 73 {BILLS AND INDEX SERVICE

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay — Villar

EXPLANATORY NOTE

The contribution of the Shipping Industry and Seafarers is estranged from the
knowledge of the majority, worldwide. This is the sad reality that envelopes the industry
which supports world trade and economy to an extent greater than commonly perceived.

The International Maritime Organization (IMO) recognizes that the shipping industry
has a good story to tell about how it is able to safely, securely, and efficiently carry more than
90 percent of world trade within countries, and in and out of countries, from the bottom to the
top of the world, making goods from one area available for the everyday survival and life of
individuals in another. Trade, whether it be interisland, international, or intercontinental,
would simply not be possible without shipping and the seamen and sea women that make this
trade all the more possible.

The real picture of the Shipping and Seafaring Industry of the Philippines shows that
the country has an estimated pool of seafarers of about 700,000. This is according to the latest
available statistics (2011) by the Philippine Overseas Employment Administration. Less than
400,000 of which are deployed on ships of Philippine registry and about 369,104 are
deployed on ships of foreign registry.

Overseas Filipino Seafarers (OFS) constitute 30% of the world merchant marine fleet,
contributing almost 5 billion US dollars of foreign exchange earnings based on Bangko
Sentral ng Pilipinas (BSP) statistics through inward dollar remittances used for the retail
spending by their families, tuition fees paid to local schools for their children, domestic
expenditures made for training, medical examinations, travel, communications, and other
ancillary services. These have all gone towards the support of our local economy. In January
2013, BSP declared that the remittances of Overseas Filipino Workers showed positive
development with the increase in remittances from both sea-based and land-based workers by
6.05 percent and 5.42 percent, respectively.

Through the decades, the Philippine maritime industry has been a self-policing
industry following best practices as prescribed by international organizations/authorities such
as the United Nations, the International Labor Organization, and the IMO, to name a few,
abiding by international maritime regulations and conventions to sustain its competence. It is
high time that presence of said industry and its distinet nature be properly recognized in
Philippine laws.

Page 1 of 19


This bill seeks to recognize and uphold the rights of Filipino seafarers, institute
mechanisms for the enforcement and protection thereof, and provide for compulsory benefits
to alleviate their condition in life.

For the promotion of Filipino seafarers’ welfare, this bill also provides for regulation
on conditions of employment, recruitment and placement of Overseas Filipino Seafarers. For
the above purpose, this bill also seeks to provide requirements for Filipino seafarers’ health
protection, medical care, welfare and social protection, accommodation, recreational
facilities, food and catering.

Also, this bill seeks to strengthen legal assistance, dispute resolution and voluntary
arbitration for seafarers and their families. Most importantly, this bill defines and penalizes
illegal recruitment and other prohibited acts to protect Filipino seafarers from abuses.

This bill also intends to recognize the unique and peculiar policies, regulations, and
international conventions that govern the maritime industry which make it necessary to
provide separate legislation for seafarers instead of being part of Republic Act No. 8042,
otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995,” as amended,
which is primarily for land-based OF Ws.

This bill is also intended to implement the standards set by the Maritime Labor
Convention of 2006 which was ratified by the Philippine Senate last August 2013. The
Philippines was the 30" state to ratify the Maritime Labor Convention, thus meeting the
requirement for the Convention to come into force. Upon the effectivity of the Maritime
Labor Convention, the Philippines is obliged to follow through with domestic legislation that
would meet the global labor standards protected by the Maritime Labor Conve

In addition to the above, this bill recognizes the contribution of manning agencies to
the national economy and enables them to benefit from incentives enjoyed by other income-
generating industries in the Philippines.

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

Considering that this bill, being a product of a joint Committee Report by the
Committee on Overseas Workers’ Affairs and the Committee on Labor and Employment last
16" Congress, which also considered the inputs from the tripartite deliberations headed by
the Department of Labor and Employment, together with various stakeholders like the
representatives of the manning agencies and seafarers, approval of this bill is earnestly
sought.

Lote %. feta
EMMELINE Y. AGLIPAY — VILLAR
Representative, DIWA Party-list

Page 2 of 19


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

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._'78

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

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

assembled:

CHAPTERI
GENERAL PROVISIONS

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

Filipino Seafarers."

State:

SECTION 2. Declaration of Policies. - It is hereby declared the policy of the

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

(6) 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;

(@) 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

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

Toward these ends, the State shall endeavor to improve the Filipino seafarers’
working conditions, terms of employment, career prospects and provide them

Page 3 of 19


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.

SECTION 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

(@) Fishing vessels.

SECTION 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 done for contractual or
commercial purposes,

(©) International Maritime Convention ot 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;

(£) 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

Page 4 of 19


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 II] 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,
or a commercial partnership or corporation organized under the laws of the
Philippines, at least 60% of the capital of which is owned by citizens of the
Philippines;

(m) Philippine Seafarers’ One Stop Processing Center (PSOC) refers to the
facility 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;

(©) 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;

Page 5 of 19


(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;

(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, 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 II
SEAFARERS! RIGHTS

SECTION 5. Right toJust Terms and Conditions of Work. - Seafarers shall
havetheright to:

(a) 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

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

SECTION 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

SECTION 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 tonew 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.

Page 6 of 19


SECTION 8. Right to Relevant Information. - Shipowners, manning agencies,
and_other organizations responsible for the recruitment and placement of Filipino
seafarers shall be mandated to provide seafarers relevant information. This right shall
include the right of seafarers organizations to relevant information affecting the terms and
conditions of employment of their members.

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

SECTION 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

SECTION 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.

SECTION 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

SECTION 12. Right to Access to Communication. — Seafarers, especially
during their free time or off-duty shall have reasonable access to ship-to-shore
telephone communications, and email and internet facilities, where available.

CHAPTER IIT
SEAFARERS’ DUTIES

SECTION 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;

(©) 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

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

Page 7 of 19


CHAPTERIV
MINIMUM REQUIREMENTS FOR SEAFARERS

SECTION 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 those on
board foreign registered ships.

SECTION 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 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.

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

SECTION 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

SECTION 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),

CHAPTERV
CADETSHIP

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

SECTION 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

Page 8 of 19


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;

(©) Capacity in which the cadet is to be trained;

(f) 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;

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

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

‘The foregoing agreement shall be 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 shall also be made
available on board the ship

Maritime Higher Education Institutions (MHEIs) shall demonstrate that over
the last three (3) years, an average of at least sixty percent (60%) of students enrolled in
their 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 or accredited

CHAPTER VI
‘TERMS AND CONDITIONS OF EMPLOYMENT

SECTION 21. Standard Employment Agreement for Seafarers. - There shall
beanagreement 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;

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

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

(f) Hours of work and hours of rest;

(g) Wages and wage-related benefits, which include the following: overtime

pay, holiday pay, premium pay, paid leaves, 13th month pay, if applicable;

(h) Social security and welfare benefits;

Stipulation on repatriation or similar undertakings;
@) Separation pay and retirement pay, if applicable;

Page 9 of 19


(k) Reference tothe collective bargaining agreement, if applicable, and
(1) Other benefits in accordance with Law, company policy or agreements

The foregoing employment agreement shall be in a working language or in
English, executed in three (3) original copies before the commencement of the
employment. The 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 seafarers on board foreign registered ships, the Philippine Overseas
Employment 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.

SECTION 22. Wages. - Upon effectivity of this Act, the Regional Tripartite
Wages and Productivity Boards shall set the mini mum 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 criterias 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
ilthe 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.

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

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

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

SECTION 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

Page 10 of 19


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 VIL
REPATRIATION

SECTION 25. Seafarers Shall Be Entitled to Repatriation. All costs related to
the repatriation or transport of the personal effects of seafarers 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 seafarers 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 repatriatethe 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

SECTION 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 concemed.

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

SECTION 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

SECTION 28. Manning Levels. - All ships of Philippine registry shall have
the required minimum manning levels in accordance with the requirements prescribed by
MARINA. Every ship shall be manned by a crew that is adequate in terms of size and

Page 11 of 19


qualifications taking into account the need to operate the vessel safely and efficiently

SECTION 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 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

SECTION 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

CHAPTERIX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING.

SECTION 31. Application. - The requirements of this Chapter for crew
accommodation and recreational facilities covering ships of Philippine Registry shall be
applicable to the following

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

() All ships constructed prior to the entry into force of the Maritime
Labor

Convention 2006 which have undergone majoror substantial structural alterations
after the entry into force of the Convention, unless provided exemption by the
relevant Philippine government agency.

SECTION 32. Accommodation Facil s. - 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

SECTION 33. Requirements for Sanitation. - All ships of Philippine registry
shall have sanitation facilities that meet the minimum standards for health and hygiene

Page 12 of 19


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

SECTION 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.

SECTION 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,

CHAPTERX
HEALTH PROTECTION AND MEDICAL CARE

SECTION 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 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.

CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

SECTION 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

SECTION 38. Compliance and Certification. - All ships of Philippine registry

Page 13 of 19


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

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

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

SECTION 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 of this Act and its implementing rules and regulations.

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

‘The Secretary of Labor and Employment or 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
or to the life or limb of the seafarer, the Secretary of Labor or the duly authorized
representative may order the detention of the ship immediately until the violation or
deficiency is corrected.

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

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

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

Page 14 of 19


CHAPTER XIII
TERMINATION OF EMPLOYMENT

SECTION 41. Termination of Employment.

(a) The employment of Filipino seafarers on board Philippine-registered ships
operating intemationally 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 ofthe 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 (2) fit to work, but the
employer is unable to find employment for the seafarer onboard the former
ship oranother shipofthe employer;

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

(3) When the seafarer 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

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

CHAPTER XIV
SETTLEMENT OF DISPUTES

SECTION 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

Page 15 of 19


during grievance machinery shall be final and binding.

SECTION 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:

SECTION 44, Reintegration. - Returning or unemployed overseas Filipino
seafarers may avail of the livelihood development, training programs and placements
services offered by concemed 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 retuming seafarers. The Center shall provide a mechanism for their
reintegration into the Philippine society, serve as a promotion house for their local
employment, and tap their skills and potentials for national development

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

SECTION 45 Inentives 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

Page 16 of 19


CHAPTER XVII
GOVERNMENT AGENCIES

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

(C) Department of Health (DOH). - The 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 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.

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

(€) Overseas Workers Welfare Administration (OWWA). - The OWWA,
through its welfare 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

Page 17 of 19


(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 the written programs, methods and media of delivery,
procedures and course materials compliant with intemational 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

SECTION 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

(e) Philippine Statistics Authority (PSA)

CHAPTER XVIII
FINAL PROVISIONS,

SECTION 48. Administrative Fines and Penalties. - Any shipowner,
master, their representative or other person who fails or refuses to present
employment records, such as payrolls, daily time records, payslip or other documents,
when required by the Secretary of Labor, or the duly authorized representative of the
Secretary of Labor, or the duly authorized representative of a recognized organization,
shall be subjected to administrative fines and penalties in accordance with the
Implementing Rules and Regulation s (IRR).

SECTION 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 (P100,000.00) nor more than Four hundred thousand
pesos (P400,000.00), 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 its commission

Page 18 of 19


SECTION 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

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

SECTION 52. Separability Clause. -If, for any reason, any section, clause or
term of this Act isheld tobe illegal, invalid, or unconstitutional, sich parts not affected by
such declaration shall remain in full force and effect.

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

SECTION 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,

Page 19 of 19