Republic of the Philippines HOUSE OF REP@ESENTATIVES

HOUSE OF REPRESENTATIVES} RECE
Quezon City, Metro Manila : TJUL 2018

r

SEVENTEENTH CONGRESS Vivi: u
First Regular Session

House Bill No. 1356 REISTRATION UNIT
—— BILLS iN) :NCEX SERVICE

Introduced by Hon. Karlo A. B. Nograles and Hon. Jericho Jonas B. Nograles

EXPLANATORY NOTE

Trade would not be possible without shipping and the seamen that man the sea
According to the latest statistics (2011) of the Philippine Overseas Employment
ration, the Philippines has an estimated pool of 700,000 seafarers, about
400,000.00 of which are deployed in ships of Philippine registry and about 300,000
deployed in ships of foreign registry. A report stated that there was even a time when
Filipino seafarers accounted for nearly one-third of the world’s 1.3 million se:

It is unfortunate, however, that despite their number and great contribution to the
national economy, the particular needs of our Filipino seafarers have been neglected. For
many years, the Philippine maritime industry has been a self-policing one loosely guided by
best practices, and international standards prescribed by the United Nations, the
International Labor Organization, and the International Maritime Organization. It would be
to the benefit and welfare of our seafarers if clear pol are established governing them,
and the distinct nature of their work is properly recognized in Philippine laws.

In consideration of the need for a law that would focus on Filipino seafarers, this bill
secks to recognize and uphold the rights of Filipino seafarers, institute mechanisms for the
enforcement and protection these rights, and provide for compulsory benefits to alleviate
their condition in life, Among its provisions are as follows:

1. Provide for seafarers’ rights such as just terms and conditions of work, right to self-
organization, educational advancement and training at reasonable and affordable
costs, free legal assistance, and access to cornmunication;

2. Provide guidelines for shipboard training of cadets;

3. Provide that the ship owner or agency shall have the primary responsibility to
immediately repatriate seafarers and to advance the repatriation and other attendant
costs; and

4. Provide for the welfare and social security protection of Filipino seafarers.


KARLO A. B. NOGRALES.


SNTEENTH CONGRESS

First Regular Session

House Bill No. 1356

Introduced by Hon. Karlo A. B. Nograles and Hon. Jericho Jonas B. Nograles

AN ACT INSTITUTING POLICIES FOR THE PROTECTION OF WELFARE OF
FILIPINO SEAFARERS

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

CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. — This Act shall be known as the “Filipino Seafarers’
Act.”

>. 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-class

seafarers through a system of education, training, accreditation and licensi

(c) To establish mechanisms for the enhancement of administrative, adjudicative.
social, as well as welfare services for seafarers 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

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

Toward these ends, the State shall endeavor to improve the Filipino seafarers” working
conditions, terms of employment, career prospects and provide them opportunities to
harness their potentials to the fullest. The State shall further work to uplift the

socioeconomic 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:

(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

(d) Fishing vessels.

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

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

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

(c) 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:

(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;

(ec) Manming/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;

(f) 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;

ipping agency; and other similar activities.
This term shall also include bona fide maritime labor organizations and professional

ociations 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;

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

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

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

(m) Philippine Seafarers’ One-Stop 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;

(q) Seafarer refers to a person who is employed or is engaged to work in any capacity

on board a ship to which this Act applies;


(r) 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; and

(8) Shipowner refers to the owner of the ship employing Filipino seafarers to work on
board domestic ships and ships engaged in international trade, or any other organization or
person, such as the manager, agent or bareboat charterer, who 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

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

(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 international maritime
conventions, when applicable.

SE

°.6. Right to Self-organization, to Engage in Collective Bargaining and to
Participate in Democratic Exercises. — Seafarers shall enjoy their right to self
organization, to collective bargaining and to participate in the deliberation of issues and in
the formulation of policies that affect them, including the guarantee of representation in
governing boards or appointment in government instrumentalities.

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

reasonable and affordable costs.


‘Towards this end, relevant government agencies shall:
(a) Regulate the operation of all educational and training institutions offering courses
related to seafaring;

(b) Pursue grant programs such as scholarships

. subsidies, loan assistance and other
measures that will harness the skills of Filipino seafarers toward greater competitiveness
given the new demands in the industry; and
(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 ple

ement 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.

nd

SEC. 9. Right to Consultation. ~ Seafarers, shipowners and legitimate seafarers
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

all 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

communi

‘ions, and email and internet facilities, whenever available,

CHAPTER III



SEAFARERS’ 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;

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

(ce) 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

istered ships operating domestically or internationally, as well as those on board foreign

registered ships.

.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 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 1978, as amended, shall be accepted.

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 agencies 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 DOLE.

CHAPTER V

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

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

(a) Cadet’s full name, date of birth, birthplace and age, which should be at least sixteen
(16) years old:

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

(c) Name and address of the shipowner, if applicable;

(d) Place and date when the cadet’s agreement is entered into;

(e) Capacity in which the cadet is to be trained;
(£) Amount of the cadet’s allowance or stipend, 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 (MHEIs), 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 or school shall cach 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.

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 BSMarE programs in MHEls 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 s

farer, 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;

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

(e) 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, and 13"

month pay, if applicable;
(h) Social security and welfare benefits:

(i) Stipulation on repatriation or similar undertakings;

(j) Separation pay and retirement pay, if applicable:

(k) Reference to the 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 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,
SE

22. Wages. — Upon the 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 the “Wage Rationalization Act”: Provided, That wages for actual work
hours and days shall not be lower than the applicable minimum wage rates in the domicile
or head office of the employer. Wages shall be paid at least once every two (2) weeks or
twice a month at intervals not exceeding sixteen (16) days.

SE

a 2 Hours of Work and Hours of Rest. The normal hours of work of a

seafarer shall not exceed eight (8) hours a day. If the seafarer is allowed to work beyond

eight (8) hours, the maximum hours of work shall not exceed fourteen (14) hours in any

twenty-four (24)-hour period and seventy-two (72) hours in any seven (7)-day period

The minimum hours of rest for every seafarer shall not be less than ten (10) hours.
Hours of rest may be divided into 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

seven (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, seafarers shall be paid an
annual leave to be calculated on the basis of a minimum of two point five (2.5) calendar

days per month of employment.


For ships licensed to engage in domestic shipping, the rules found in Book Three,

of the Labor

Chapter III, on “Holidays, Service Incentive Leaves and Service Charges’
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 (CBA) or by the shipowner as company practice or

policy.
|APTER VIL
REPATRIATION

SEC. 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 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 manning agency to advance the
repatriation and other attendant costs, including plane fare, deployment cost of the principal
and immigration fines and penalties, to immediately repatriate the seafarer should the need
for it arises, without a prior determination of the cause of the termination of the seafarer’s
employment. However, after the worker has returned to the country, the shipowner or
manning agency may recover the cost of repatriation from the seafarer if the termination of
the employment was due solely to the seafarer’s fault.

S|

>. 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 (60) days of notice. In such case,
the POEA shall simultaneously identify and give notice to the shipowner or agency

concerned.


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

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

CHAPTER VIII
MANNING REQUIREMENT

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

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

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

The certificate of competency shall attest to the fact that the seafarer to whom it is

issued meets the requirements for service, age, qualification, and 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

shall maintain a r

registry, the POEA and the MARINA, respectively stry 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 (IRR) of this Act
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 ocean-going ships and domestic ships constructed on or after the date when the
Maritime Labour Convention 2006 comes into force:

(b) All s

ond-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 Labour
Convention 2006 which have undergone major or substantial structural alterations after the
entry into force of the convention, unless provided exemption by the relevant Philippine

government agene:

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

s, allowir

pla 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.

Dome:

ic

hips are exempted from this requirement considering the wading 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.

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, rul

ind regulations.
CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

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

The shipowner shall ensure that seafarers have access to 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.

CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTE!

TION

SEC. 37 Social Welfare Benefits. — Without prejudice to established policy,
CBA or other applicable social agreement, all seafarers shall be covered by the Social
Security System (SSS), Employees’ Compensation and State Insurance Fund (ECSIF),

Philippine Health Insurance Corporation (PhilHealth), Pag-IBIG Fund, and other applicable

laws
CHAPTER XII
COMPLIANCE AND ENFORCEMENT
SEC. 38. Compliance and Certification. ~ All ships of Philippine registry shall

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

The shipowner or master, as acting shipowner’s representative, shall be made
principally liable for any violation of the provisions of this Act and its IRR.

For this purpose, a Maritime Labour Certificate or a Maritime Certificate of

Compliance, as applicable, shall be issued in accordance with the IRR of this Act.


SEC. 39. Inspection and Enforcement. — For purposes of this Act, the Secretary

of Labor and Employment 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 IRR.

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 IRR or poses imminent danger to the ships or to the life or limb of the seafarer, the

ecretary of Labor and Employment or the duly authorized representative may order the

detention of the ship immediately until the violation or deficiency is corrected.

SEC. 40. Recognized Organization. Recognized organizations may be

jon and issue

authorized by the Secretary of Labor and Employment to conduct inspe

certification in accordance with the provisions of this Act and its IRR.

A recognized organization shall have the necessary knowledge of the requirements of
this Act and its IRR, Maritime Labour Convention 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:

(i) Fit for repatriation; or

(ii) Fit to work, but the employer is unable to find employment for the seafarer on
board 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
s provided for in the POEA-SEC;

voyage or change of ship principal,

(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 caus
the POEA-SEC

s in accordance with the provisions of

(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 v

el or foreign-
registered ship shall be governed by the POEA-SEC or applicable CBA.
CHAPTER XIV

SETTLEMENT OF DISPUTES

SE

2. 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 IRR 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.


43. Mandatory Conciliation-Mediation and Arbitration. — Seafarers,

whether engaged, employed or working on board ships of Philippine registry or other
registries, shall avail of the conciliation-mediation services of the DOLE pursuant to
Republic Act No. 10396 and its IRR, 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 CBA,
the seafarer shall have the option to submit the case to compulsory arbitration or voluntary
arbitration

CHAPTER XV
REINTEGRATION FOR OVERSEAS FILIPINO SEAFARERS

44. Reintegration. — Returning or unemployed overs

Filipino seafarers
may avail of the livelihood development, training programs and placement services offered
by concerned government agencies, including the OWWA, the Technical Education and

3SDA), the

Skills Development Authority ( echnology and Livelihood Resource Center
(TLRC), the Cooperative Development Authority (CDA), the National Maritime
Polytechnic (NMP) and the CHED.

Thes

gencies 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

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,


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.

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 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 certifi

ion 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, 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.

(f) Maritime Industry Authority (MARINA). — The MARINA shall ensure that all

maritime education including the curricula and tr

ining 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 Convention of STCW 1978, as amended.

(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
or-controlled corporations, shall remain and continue to be recognized in accordance with
the law or order creating them

SEC. 47. Philippine Seafarers’ One-Stop 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;

(b) Overseas Workers Welfare Administration;

(c) Philippine Overseas Employment Administration;

(d) National Bureau of Investigation (NBD); and

(c) Philippine Statistics Authority (PSA).

CHAPT XVII
FINAL PROVISIONS

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

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 and

Employment 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 offe

se provided herein shall prescribe after five
(5) years from its commission.

SE

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, the 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
d

claration shall remain in full force and effect.

SEC. 53 Repealing Clause. ~ All laws, presidential decrees, issuances, executive
orders, letters of instruction, and 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.

Approved,