Republic of the Philippines

RECEIVED

HOUSE OF REPRESENTATIVES / .,. SEP18 919 OF
‘Quezon City (ites
oY
EIGHTEENTH CONGRESS i
First Regular Session
4685
HOUSE BILLNO.

Introduced by TUCP Party-List Rep. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The 300,000 to 700,000 Filipino seafarers in ocean-going vessels around the world is
more than enough to enact a Magna Carta of Filipino Seafarers. The Magna Carta has been
languishing in Congress since 2012 despite consensus and endorsement by stakeholders,
recognizing the need to protect our maritime workers, the Philippines being the biggest supplier
of seafarers in the world.

‘The proposed Magna Carta of Filipino Seafarers benefitted from the consultations and
dialogues at the Maritime Industry Tripartite Council (MITC) of the Department of Labor and
Employment. The MITC technical working group composed of maritime stakeholders from
labor, employer and government sectors has conducted a series of discussions/dialogues to
institutionalize a set of standard for Filipino seafarers, recognizing their rights, instituting
mechanisms for the enforcement and protection thereof, providing for compulsory benefits and
implementing the standards set by the Maritime Labour Convention, 2006, which entered into
force in the country on August 20, 2013.

This bill proposes to institutionalize not only a bill of rights of Filipino seafarers but
recognizes as well the right to expansion and growth of shipowners, manning and recruitment
entities as vital partners in promoting and upgrading the skills and competitiveness of Filipino
seafarers by providing access to loan facilities and incentives scheme for industry’s best
practices

Additionally, a systematic inter-government agency coordination is mandated to ensure
coherence in implementation of laws and mandates. The increasing challenge to our Filipino
seafarers dominance around the world and the rapidly evolving technology in the maritime
industry, require us all stakeholders to work together. We haveto work to ensure the flourishing
economic prospects it brings to the maritime industry, its workers and their families.

Hence, the enactment of this Bill is eat ly sought.

TO C. MENDOZA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. _ 4685

Introduced by
HON. RAYMOND DEMOCRITO C. MENDOZA
Representative, TUCP Partylist

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 |
GENERAL PROVISIONS

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

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

(a) To afford full protection before, during and after employment to Filipino
seafarers, ensuring occupational safety and health at sea, and to guarantee
the free exercise of their rights, in recognition of their unique role and
contribution to national development;

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

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

(d) To implement, through national laws and practices, standards set by
international conventions and agreements such as the Maritime Labour
Convention, 2006; and

(e) To equally guarantee the right to expansion and growth of shipowners,
manning and recruitment entities as vital partners in promoting and upgrading
skills and competitiveness 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 hamess their potentials to the fullest. The State shall further promulgate policies and
programs to uplift the socio-economic well-being of the families of Filipino seafarers.

1


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 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
undertaken 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;

(e) 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;

(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, shipping
agency, and other similar activities.


The 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 I! 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 created under DOLE Administrative Order No. 56, series of 2003,
which houses multiple offices or agencies involved in providing services to
seafarers, in one place;

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

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

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

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

(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
in inland water or water within or closely adjacent to sheltered water, or areas
where port regulations apply;


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

CHAPTER I
SEAFARERS’ RIGHTS

SEC. 5. Right to Just Terms and Conditions of Work. — All 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.

SEC. 6. Right to Self-Organization, to Engage in Collective Bargaining and to
Participate in Decision-Making Processes. — All seafarers shall enjoy the 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 representation in governing boards or
appointment in government instrumentalities on seafarers and related maritime concerns.

SEC. 7. Right of Access to Affordable Educational Advancement and Training.
~All seafarers shall have access to affordable educational advancement and training.

Toward this end, relevant government agencies shall ensure that no fees or charges
shall be imposed on cadets, interns, apprentices, on-the-job-trainees or other persons
similarly situated, and 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 Information. — All Filipino seafarers shall have the to right to
information and accordingly, shipowners, manning agencies, and other organizations
responsible for their recruitment and placement shall fully disclosed the terms and
conditions of employment, company policies, grievance procedure and such other relevant
information affecting them including the right to self-organization and collective bargaining.

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

SEC. 9. Right to Consultation. — All seafarers, shipowners and legitimate
seafarers’ and shipowners’ organizations, as well as other relevant stakeholders, shall be
adequately consulted in the formulation and adoption of any maritime policy, executive
issuance, rules or regulations affecting seafarers and their families.

SEC. 10. Right Against Discrimination. - 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 of Access to Communication. - All seafarers, especially during
their free time or when they are not on duty, shall be afforded reasonable access to ship-to-
shore telephone communications, and email and internet facilities, where available.

CHAPTER Iil
DUTIES OF SEAFARERS

SEC. 13. Duties of Seafarers. - A\| seafarers shall have the following duties:

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

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

(c) To be obey 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;

(d) 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) Tobe, 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 be personally responsible for maintaining 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 on board foreign
registered ships.

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

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

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

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

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

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

No fees shall be charged to the seafarer for their recruitment and placement.

SEC. 18. Contracting or Subcontracting of Services. - The contracting or sub-
contracting of seafarers for work 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 5 to12 of Chapter Il; Section 13 of Chapter Ill; Section 15 of Chapter IV; Sections
22 to 23 of Chapter VI; Sections 25 to 27 of Chapter VII; Sections 31 to 35 of Chapter IX;
Section 36 of Chapter X; and Section 42 of Chapter XIV hereof.

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

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

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

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

Maritime Higher Education Institutions (MHElIs) shall demonstrate that over the last
three (3) years, an average of at least the minimum percentage of the target number of
cadets, as per updated relevant CHED Memorandum Order are able to secure berths in
connection with their studies, which minimum percentage, however, shall not be lower than
sixty percent (60%) of students enrolled in their Bachelor of Science in Marine
Transportation (BSMT) or Bachelor of Science in Marine Engineering (BSMarE) programs.
The 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 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;
(e) Amount of the seafarer’s salary, and the formula used for calculating the same;
(f) Hours of work and hours of rest;

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

(h) Social security and welfare benefits;

(i) Stipulation on repatriation or similar undertakings;

(i) Separation pay and retirement pay, if applicable;

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

(I) 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.

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

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

SEC. 22. Wages. - 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.

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

Cadets, on-the-job trainees, apprentices and other similarly situated persons who
are onboard vessels as part of the completion of their academic or training program, shall
be provided with stipends or allowances, which should not be less than 75% of the existing
minimum wage of regular seafarers. No training fees shall be charged to cadets, on-the-job
trainees, apprentices and other similarly situated persons.

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 and is subject to corresponding
overtime pay and wages.

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. The number of working hours rendered is subject to
corresponding wages and benefits.

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

For ships licensed to engage in domestic shipping, the provisions on “Holidays,
Service Incentive Leaves and Service Charges’ of Presidential Decree No. 442, or the Labor
Code of the Philippines, as amended, shall continue to apply unless higher annual leave is
already provided under the Collective Bargaining Agreement or by the shipowner as
company practice or policy

CHAPTER Vil
REPATRIATION

SEC. 25. Seafarers’ 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 kg) of the seafarers’ personal luggage to
the repatriation destination. The primary responsibility to repatriate entails the obligation on
the part of the shipowner or agency to advance the repatriation and other attendant costs,
including plane fare, deployment cost of the principal and immigration fines and penalties,
to immediately repatriate the seafarer should the need for it arise, without a prior
determination of the cause of the termination of the seafarer’s employment. However, after
the worker has returned to the country, the shipowner or agency may recover the cost of
repatriation from the seafarer if the termination of the employment was due solely to the
seafarer’s fault.

SEC. 26. Emergency Repatriation for Seafarers On-board Foreign Registered
Ships. - In cases of war, epidemics, abandonment of ship by shipowners, disasters,
calamities, natural or manmade, and other similar events, the Department of Foreign Affairs
(DFA), in coordination with the Philippine Overseas Employment Administration (POEA)
and the Overseas Workers’ Welfare Administration (OWWA), shall undertake the
repatriation of seafarers. The DFA shall draw from the Emergency Repatriation Fund (ERF)
provided under the General Appropriations Act (GAA) to defray the expenses involved in
the repatriation of undocumented seafarers, while the POEA shall require manning

9


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

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

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

CHAPTER VIII
MANNING REQUIREMENT

SEC. 28. Manning Levels. - All ships of Philippine registry shall observe the
required minimum manning levels in accordance with the requirements prescribed by
Maritime Industry Authority (MARINA).

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

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

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

SEC. 30. Registry of Seafarers. — To better respond to the manning requirements
of 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, and allow for the
appropriate learning for and implementation of additional training, skills and competency
development programs for seafarers.

CHAPTER IX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING

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

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

SEC. 33. Recreational Facilities. - Unless otherwise exempted herein or by
appropriate regulations, all ships of Philippine registry shall have recreational facilities,
amenities, and services that are appropriate and accessible to seafarers.

Domestic ships shall be exempted from this requirement considering that their
trading patterns and length of voyages allow their crew to go home or to make use of
comparable facilities on land.

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

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

(a) All 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

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

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

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

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

a


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

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

CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

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

CHAPTER Xil
COMPLIANCE AND ENFORCEMENT

SEC. 38. Compliance and Certification. - All ships of Philippine registry shall
comply with the provisions of this Act. The shipowner or master shall ensure the compliance
of the ship with the provisions of this Act and its implementing rules and regulations.

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

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

SEC. 39. Inspection and Enforcement. - The Secretary of Labor 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 duly authorized representative shall have the power to board ships and carry out
any examination, test or inquiry in order to ensure that the standards established under this
Act and its implementing rules and regulations are strictly observed.

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

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

If the violation or deficiency constitutes serious breach of the requirement of this Act
and its implementing rules and regulations, or poses imminent danger to the ships or to the

12


life or limb of the seafarer, the Secretary of Labor or a duly authorized representative may
immediately order the detention of the ship until the violation or deficiency is corrected.

SEC. 40. Recognized Organization. - Recognized organizations may be
authorized by the Secretary of Labor and Employment to conduct the inspection of ship's
premises and issue the Maritime Labour Certificate or the Certificate of Compliance with,
as appropriate, in accordance with the provisions of this Act and its implementing rules and
regulations.

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

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

CHAPTER XIll
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) when after an
illness the seafarer is declared fit to work, but the employer is unable to
find employment for the seafarer on board the ship originally boarded or
on another ship of the employer;

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

(3) When the seafarer, voluntarily resigns in writing and signs off prior to the
expiration of contract within a reasonable period as may be prescribed in
the implementing rules and regulations of this Act; or

(4) When the seafarer is discharged for just causes in accordance with the
provisions of the POEA 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

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

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

SEC. 43. Mandatory Conciliation-Mediation and Arbitration. — Seafarers,
whether engaged, employed or working on-board ships of Philippine registry or other
registries, shall avail of the conciliation-mediation services of the DOLE pursuant to
Republic Act 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 and training programs, placements and other
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 sector, in
particular, port and shipping industry, and maritime educational institutions shall be likewise
solicited by the DOLE in devising the appropriate retraining and local job placement
programs for unemployed seafarers.

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

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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). Incentive schemes shall include ease in access to loan
facilities for shipping fleet expansion, upgrading and retrofitting for ease in compliance with
the requirements of the Maritime Labour Convention, 2006.

Under such rules and regulations that may be promulgated, deserving shipowners,
seafarers, manning and other organizations or entities shall be awarded for best practices
in promoting and upgrading the skills and competitiveness of Filipino seafarers and for
outstanding performance in upholding the rights of seafarers under 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 - The DOLE shall exercise sole and
exclusive jurisdiction in implementing the provisions of this Act and ensure that
the standards set forth herein, under Presidential Decree No. 442, as amended,
and other laws, the 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;

The DOLE shall likewise determine and set appropriate benchmarks consistent
with the MLC 2006, this Act and other applicable laws on employment conditions
and other labor standards and regulations;

(b) Department of Foreign Affairs - 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 — The DOH shall regulate the activities and operations of
all clinics which conduct physical, optical, dental, psychological and other similar
examinations, hereinafter referred to as health examinations, on Filipino
seafarers;

The DOH shall determine and prescribe the nature of the health examination that
shall be required 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.

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

(e) Overseas Workers Welfare Administration - 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 - The MARINA shall ensure that all maritime
education including the curricula and training programs are structured and
delivered in accordance with written programs, methods and media of delivery,
procedures and course materials, international standards as prescribed under the
STCW Convention and other applicable laws.

(g) Philippine Coast Guard - 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
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 Labor and Employment;

(b) Department of Foreign Affairs;

(c) Commission on Higher Education;

(d) Professional Regulation Commission;

(e) National Telecommunications Commission;

(f) Philippine Overseas Employment Administration;

(g) Overseas Workers Welfare Administration;

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

(j) National Bureau of Investigation;

(k) Social Security System;

() Philippine Health Insurance Corporation;

(m)Philippine Statistics Authority;

(n) Home Development Mutual Fund;

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

CHAPTER XVIII
FINAL PROVISIONS

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

SEC. 49. Penalties for Violations of Sections 38 and 39. - Any person who,
without proper authorization, exercises the authority granted to the Secretary of Labor and
Employment under Sections 38 and 39 of this Act, shall be punished with a fine of not less
than One hundred thousand pesos (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 foregoing offense shall prescribe after five
(5) years from its commission, or upon discovery of the violation by competent authorities.

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

SEC. 51. Implementing Rules and Regulations. - The Department of Labor and
Employment (DOLE), in coordination with the Department of Foreign Affairs (DFA), Maritime
Industry Authority (MARINA) and other concerned agencies, shall formulate the rules and
regulations to implement this Act within ninety (90) days after its effectivity.

SEC. 52. Separability Clause. — If, for any reason, any section, clause or term of

this Act is held to be illegal, invalid, or unconstitutional, such parts not affected by such
declaration shall remain in full force and effect.

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eVausenn

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.

Approved.

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