Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

a 4360

House Bill No. es,

Introduced by AKBAYAN Representative Tomasito 8. Villarin

EXPLANATORY NOTE

With the Philippines deploying over 300,000 overseas Filipino seafarers
(OFS) in international ocean-going vessels, the government’s continuous
efforts to ensure their protection and welfare has been strengthened through
the ratification of the international seafarers’ bill of rights, making the
Philippines the 30th member-state to sign the International Labor
Organization’s Maritime Labor Convention 2006.

Aimed towards better protection, before, during and after deployment,
increase in competency building, education and training, and increase in
overall competency building, education and training, and increase in overall
competitiveness and professional advantage of our Filipino overseas
seafarers, this bill seeks to strengthen the rights of our OFS through
stronger compensation benefits, clearer institutional accountabilities and
more hardworking protective mechanisms that can empower the Philippine
institutions in their protection of OFS within and beyond our borders. This
bill seeks to forge clearer accountability of specific institutions when it
comes to protection of OFS, and to ensure just compensation of our OFS
and relevant social protection.

This bill adopts the version of the same subject that was passed on third
reading during the 16 Congress.

a

TOMASITO S. VILLARIN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

rate 2
HOUSE BILL No. 4860

Introduced by AKBAYAN Representative Tomasito S, Villarin

AN ACT
INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

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

(b) To maintain and progressively develop a pool of competent and
world- 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, 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 opportunities to harness their potentials to the fullest. The State
shall further work to uplift the socio-economic well-being of the Filipino
seafarers’ families.

SEC. 3.

Applicability. ~This Act shall cover Filipino seafarers engaged,

employed, or working in any capacity on board Philippine registered ships
operating domestically or internationally as well as those on board foreign
registered ships.

‘This Act shall not cover the following categories of ships:

SEC, 4,

(a) Warships and naval auxiliaries;
(b) Government ships not engaged in commercial operations;

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

(a) Fishing vessels.
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 fulfil a maritime academic
course;

(b) Domestic Shipping refers to the transport of passenger or cargo or
both by ships duly registered and licensed under Philippine law to
engage in trade and commerce between Philippine ports and
within Philippine territorial or internal waters for hire or
compensation with general or limited clientele whether permanent,
occasional or incidental with or without fixed routes and done for
contractual or commercial purposes;

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

(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;

(c) Manning/ Recruitment and Placement Agency refers to any Filipino

person, corporation, partnership, company, or other entity
engaged in the canvassing, enlisting, contracting, transporting,

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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
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;

(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;

() 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 (STCW)
1978, as amended;

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

()) Philippine National refers to any individual who is a citizen of the
Philippines, 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
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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;

(:) 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;

(s) 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 fulfil
certain of the duties or responsibilities on behalf of the shipowner.

CHAPTER II
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. — Scafarers 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,
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including the guarantee of representation in governing boards or appointment
in government instrumentalities,

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

Toward this end, relevant government agencies shall:

(a) Regulate the operation of all educational and training institutions
offering courses related to seafaring;

(b)Pursue grant programs such as scholarships, subsidies, loan
assistance and other measures that will harness the skills of
Filipino seafarers toward greater competitiveness given to new
demands in the industry; and

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

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

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

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

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

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


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

CHAPTER III
SEAFARER’S DUTIES

SEC. 13. 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;

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

CHAPTER IV
MINIMUM REQUIREMENTS FOR SEAFARERS

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

SEC. 15. Medical Certificates. — No scafarer 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 the minimum requirements for performing the duty specific to the
person’s post at sea safely and effectively during the period of validity of the
certificate.


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

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

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

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

SEC. 18. Contracting or Subcontracting of Services. — Contracting or
subcontracting work arrangement involving seafarers on-board domestic ships
shall be governed by existing rules and regulations issued by the Department
of Labor and Employment (DOLE).

CHAPTER V
CADETSHIP

SEC. 19. Applicability. - The shipboard training of cadets shall be governed
by Sections 8,9, 11, 12, 15, 42 and Chapters VII and IX hereof.

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

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

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

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

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

(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

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in International Voyage of the Philippine Overseas Employment
Administration (POEA); and

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

‘The foregoing agreement shall be in a working language or in English,
executed in 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
MHEIs that meet the above requirement are conferred approved or accredited.

CHAPTER VI
TERMS AND CONDITION OF EMPLOYMENT

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

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

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

() Hours of work and hours of rest;

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

(h) Social security and welfare benefits;

(i) Stipulation on repatriation or similar undertakings;
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() Separation pay and retirement pay, if applicable;
(i) Reference to the collective bargaining agreement, if applicable,

() 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 cach 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 (PORA-SEC)
approved by the DOLE shall be observed.

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

SEC. 22. Wages. - Upon effectivity of this Act, the Regional Tripartite Wages
and Productivity Boards shall set the minimum wage rates of the seafarers on
board ships engaged in domestic shipping, taking into account the
peculiarities of the employment arrangement of seafarers and the criteria as
determined pursuant to Republic Act No. 6727, 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 (2) a month at intervals not exceeding sixteen (16) days.

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

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

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

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

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For ships licensed to engage in domestic shipping, the rules found in
Book Three Chapter Ill, on ‘Holidays’, Service Incentives Leave and Service
Charges” of the Labor Code of the Philippines shall continue to apply and shall
be considered as substantially complying with international standards unless
higher annual leave is already provided under the Collective Bargaining
Agreement or by the shipowner as company practice or policy.

CHAPTER VII
REPATRIATION

SEC, 25. Seafarers Shall Be Entitled to Repatriation. All costs related to
the 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. — 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,
isasters or calamities, natural or man-made, and other similar events without
prejudice to reimbursement by the responsible shipowner or
manning/recruitment and placement agency within sixty days of notice. In
such case, the POEA shall simultaneously identify and give notice to the
shipowner or agency concerned.

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

SEC. 27. Repatriation for Seafarers On-board Domestic Ships. - The
provisions on repatriation shall also apply to seafarers working on domestic
ships. Seafarers on-board domestic ships shall be entitled to emergency
repatriation in cases of war, epidemics, abandonment of ships by shipowners,
disasters or calamities, natural or man-made, and other similar events.

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CHAPTER VIII
MANNING REQUIREMENT

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

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

SEC, 29. Crew Competence. ~ 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
examinations for the position held.

SEC. 30. Registry of Seafarers. - To better respond to the manning
requirements of ocean-going ships of foreign registry, and domestic and ocean-
going ships of Philippine registry the POEA and MARINA, respectively, shall
maintain a registry of all seafarers in the Philippines. The registry shall contain
the relevant information or data to promote employment opportunities for
seafarers whether on board or ashore, or allow for further training and
education to support skills development and competencies of seafarers in order
to secure or improve employment opportunities as may be provided in the
Implementing Rules and Regulations,

CHAPTER IX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING

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

(a) All oceaii-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

(c) All ships constructed prior to the entry into force of the Maritime
Labor Convention, 2006 which have undergone major or
substantial structural alterations after the entry into force of the

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Convention, unless provided exemption by the relevant Philippine
government agency.

SEC. 32. Accommodation Facilities. - Unless otherwise exempted herein or
by appropriate regulations, all ships of Philippine registry shall have safe,
decent and adequate accommodations for seafarers taking into account the
need to protect the health and safety of seafarers working or living on board.

SEC. 33. Requirements for Sanitation. ~ All ships of Philippine registry shall
have sanitation facilities that meet the minimum standards for health and
hygiene and are accessible to seafarers on board. The sanitation facilities shall
be located at convenient places, allowing for easy access to work stations.
Separate facilities shall be provided for male and female crew.

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

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

SEC. 35. Food and Catering. - The shipowner shall ensure the protection
and promotion of health of seafarers. Whenever applicable, shipowners shall
ensure that ships serve free food and drinking water of appropriate quality,
quantity and nutritional value that adequately cover the requirements of the
ship and tal into consideration the differing cultural and_ religious
backgrounds of seafarers. All foods and drinks and the preparation thereof
shall be in accordance with the standards of the Sanitation Code of the
Philippines and pertinent laws, rules and regulations.

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

SEC. 36. Medical Care On-board Ships and Ashore. - The shipowner shall
provide adequate equipment, paraphernalia and medical supplies, including
medicines on board, and shall ensure access to shore facilities for the health of
seafarers, as well asthe 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 treatment for
sickness or injury, hospitalization and dental treatment.

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

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CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

SEC. 37. Social Welfare Benefits. — Without prejudice to established policy,
collective bargaining agreement or other applicable social agreement, all
seafarers shall be covered by the Social Security System, Employees’
Compensation and State Insurance Fund, Philhealth, Pag-IBIG Fund and
other applicable laws.

CHAPTER XII
COMPLIANCE AND ENFORCEMENT

SEC. 38. Compliance and Certification. ~ All ships of Philippine registry
shall comply with the provisions of this Act. The shipowner or master shail
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. DOLE, DFA and MARINA, in consultation
with shipowners and seafarers’ organizations, shall formulate the said
implementing rules and regulations.

SEC. 39. Inspection and Enforcement. — For purposes of this Act, the
Secretary of Labor or 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 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 or the duly authorized representative may order the
detention of the ship immediately until the violation or deficiency is corrected.

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

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

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

CHAPTER XIII
TERMINATION OF EMPLOYMENT

_SEC. 41. Termination of Employment.

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

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

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

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

(3) When the seafarer, 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 of the POEA Standard Employment
Contract.

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

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(c) 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 collective bargaining agreement (CBA).

CHAPTER XIV
SETTLEMENT OF DISPUTES

42. On-board and Onshore Grievance Machinery. ~ All ships of
Philippine registry shall have a fair, effective and expeditious on-board and on-
shore grievance machinery at no cost to the seafarer in accordance with the
implementing rules and regulations of this Act.

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

SEC. 43. Mandatory Conciliation-Mediation and Arbitration. — Seafarers,
whether engaged, employed or working on-board ships of Philippine registry or
other registries, shall avail of the conciliation-mediation services of the DOLE
pursuant to Republic Act 10396 and its Implementing Rules and Regulations,
by filing a request for assistance before the conciliation-mediation desks at the
Regional /Field/ Provincial Offices of the DOLE or its attached agencies.

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

CHAPTER XV
REINTEGRATION FOR OVERSEAS FILIPINO SEAFARERS

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

These agencies shall formulate skills upgrading or retraining curricula to
meet the needs of returning or unemployed seafarers. The participation of the
maritime industry, in particular, port and shipping industry, and maritime
educational institutions shall be likewise solicited by the DOLE in devising the
appropriate retraining and local job placement programs for unemployed
seafarers.



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

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

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

Under such rules and regulations that may be promulgated, deserving
shipowners, seafarers, manning and other organizations or entities shall be
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
ensure that the standards set forth under this Act, Presidential
Decree No. 442, as amended, and other laws, the Maritime Labour
Convention 2006 and other international treaties and conventions to
which the Philippines is a signatory are faithfully complied with and
fairly applied to Filipino seafarers;

To this end, the DOLE shall establish an effective system for the
inspection and certification to ensure that the working and living
conditions of seafarers are met and continue to be met pursuant to
the Maritime Labour Convention 2006;

(b) Department of Foreign Affairs (DFA) - 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
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examination will genuinely determine the seafarer’s state of health,
considering the duties that the seafarer shall be required to perform
on board. The DOH shall likewise prescribe the contents of the
medical certificate to ensure that such certification will genuinely
reflect the seafarer’s state of health.

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

shall 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;

(e) Overseas Workers Welfare Administration (OWWA) - The OWWA,

O)

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

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

Maritime Industry Authority (MARINA) - The MARINA shall ensure
that all maritime education including the curricula and training
programs are structured and delivered in accordance with the written
programs, methods and media of delivery, procedures and course
materials compliant with international standards as prescribed under
the STCW Convention.

(g) Philippine Coast Guard (PCG) - The PCG, in line with its function to

assist in the enforcement of applicable laws within the maritime
jurisdiction of the Philippines, shall assist the DOLE in the
enforcement of Department Orders and other issuances implementing
the 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 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);
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(b) Overseas Workers Welfare Administration (OWWA);
(c) Philippine Overseas Employment Administration (POEA);
(d) National Bureau of Investigation (NBI); and

(c) Philippine Statistics Authority (PSA).

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, or the duly authorized representative
of the Secretary of Labor, or the duly authorized representative of a recognized
organization, shall be subjected to administrative fines and penalties in
accordance with the Implementing Rules and Regulations (IRR).

SEC. 49, Penalties for Violations of Sections 38 and 39. - Any person who,
without proper delegation, exercises the authority granted to the Secretary of
Labor under Sections 38 and 39 of this Act, shall be punished with a fine of
not less than One hundred thousand pesos (P100,000.00) nor more than Four
hundred thousand pesos (P400,000.00), or imprisonment of not less than one
(1) year nor more than four (4) years, or both at the discretion of the court. The
offense provided herein shall prescribe after five (5) years from its commission.

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

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

SEC. 52. Separability Clause. - If, for any reason, any section, clause 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 or 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.

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