NINETEENTH CONGRESS OF THE REPUBUC) 
OF THE PHILIPPINES 
)
First Regular Session 
)
of liip ^'rrrftar^
’22 JUL 14 P6 27
SENATE
Senate Bill No.
659
RECEIVED BV:
Introduced by: Senator Raffy T. Tulfb
AN ACT AMENDING REPUBUC ACT NO. 8042, AS AMENDED BY REPUBUC 
ACT NO. 10022, OTHERWISE KNOWN AS THE "MIGRANT WORKERS AND 
OVERSEAS FILIPI!MOS ACT OF 1995," PROVIDING FOR THE DEPOSIT IN AN 
ESCROW ACCOUN T THE AWARDS FOR MONEY CLAIMS ARISI^^IG OUT OF AN 
EMPLOYER-EMPLOYEE RELATIONSHIP, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippine Ship Manning Industry has made a major contribution to the 
countr/s employment and economic growth. It is a source of decent employment for 
our countrymen with a monthly salary of 400 to 15,000 US Dollars. This translates to 
foreign remittances of more than 5.8 Billion US Dollars in 2017.
Unfortunately, in 2015, the increase in supply of seafarers in the world market 
reflected a Surplus of 119,000 Ratings Seafarers.1 This Surplus makes the struggle of 
competing with foreign nationals real and imminent. There has been an increase in shift 
to other sources of crew like China, India, Indonesia, Vietnam, East European countries 
and other sources with cheaper cost. The Rlipinos are losing market share as the 
nationality of choice. In fact, the Philippines was already replaced by China as the largest 
supplier of seafarers.
How can this be, when our seafarers are the best in the world? We are the 
pioneers. Our advantage has been overshadowed by the government regulatory 
mechanisms in place. Shipowners have found it impractical to hire our competent 
seafarers. According to POEA, from 442,820 deployed Filipino Seafarers in 2016, there 
were only 378,072 deployed in 2017. And it is decreasing further.
BIMCO/ICS Manpower Report 2015.


What is the problem? A serious concern is the increasing number of labor cases 
with unfair and unreasonable awards on disability claims. The International Group of P 
and I Clubs or IG has shown in their statistics that the "Final and Executory" nature of 
the NLRC and NCMB decisions has resulted to claims being awarded and paid immediately 
at the NLRC and NCMB level. But when reversed on appeal due to a more stringent 
review of the case, it is practically impossible to recover the amount.
What makes this problem alarming is the sheer magnitude of unrecovered 
amount. As of September 2017, there are 354 cases reversed or modified by the higher 
courts amounting to USD 25,210,868.47 that is almost impossible to recover. This 
amount is projected to increase to more that $41 million by 2011
y r. Tuifo 
Senator


NINETEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE prn 
Senate Bill No.
of t!jf {g'f-rvflagj
*22 JUL14 P6:27
RliCEiVED By:
Introduced by: Senator Raffy T. Tulfo
AN ACT AMENDING REPUBLIC ACT NO. 8042, AS AMENDED BY 
REPUBLIC ACT NO. 10022, OTHERWISE KNOWN AS THE "MIGRANT 
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995," PROVIDING FOR 
THE DEPOSIT IN AN ESCROW ACCOUNT THE AWARDS FOR MONEY 
CLAIMS ARISING OUT Of AN EMPLOYER-EMPLOYEE RELATIONSHIP, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Represenatives of the 
Philippines, in Congress assembled:
1 
SECTION 1. Section 10 of Republic Act No. 8042, as amended, is hereby
2 
amended to read as follows:
3
4 
"SEC. 10. Money Claims. — Notwithstanding any provision of law to the
5 
contrary, the Labor Arbiters of the National Labor Relations Commission (NLRC)
6 
shall have the original and exclusive jurisdiction to hear and decide, within ninety
7 
(90) calendar days after the filing of the complaint, the claims arising out of an
8 
employer-employee relationship or by virtue of any law or contract involving
9 
Filipino workers for overseas deployment including claims for actual, moral,
10 
exemplary and other forms of damages. Consistent with this mandate, the NLRC
11 
shall endeavor to update and keep abreast with the developments in the global
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services Industry.
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MONEY CLAIM AWARDS IN A FINAL AND EXECUTORY DECISION OF THE
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NATIONAL LABOR RELATIONS COMMISSION (NLRC) OR NATIONAL
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CONQUATION AND MEDIATION BOARD (NCMB) IN FAVOR OF THE SEAFARER
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OR HIS SUCCESSORS-IN-INTERESTS, MAY BE RAISED FOR JUDICIAL REVIEW IN
18 
ACCORDANCE WITH THE RULES OF COURT SUBJECT TO THE DEPOSIT OF THE
19 
CONTESTED AMOUNT IN AN ESCROW ACCOUNT WITH AN ESCROW AGENT
20 
DESIGNATED BY THE NLRC OR NCMB.


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THE CONTESTED AMOUNT IS THE PORTION OF THE MONEY CLAIM 
AWARD THAT IS DISPUTED AND AFFECTED BY THE ARGUMENTS RAISED BY THE 
EMPLOYER/PRINCIPAL. FOR DISABILITY CLAIMS, ANY PORTION OF THE 
MONETARY AV/ARD WHICH IS UNCONTESTED OR ADMITTED BY THE EMPLOYER 
IN ITS PLEADINGS AND BASED ON THE RNDINGS OF THE COMPANY- 
DESIGNATED PHYSICIAN SHALL BE IMMEDIATELY RELEASED TO THE SEAFARER 
AND SHALL NO LONGER FORM PART OF THE AWARD TO BE PLACED IN 
ESCROW. NOTHING IN THIS PROVISION SHALL PREJUDICE THE RIGHTS OF THE 
SEAFARER TO ACaDENTAL DEATH, NATURAL DEATH, AND PERMANENT TOTAL 
DISABLEMENT BENEFTrS UNDER SEC. 37-A OF RA 8042.
THE AMOUNT SHALL REMAIN IN ESCROW UNTIL THE ISSUANCE OF AN 
ENTRY OF JUDGEMENT BY THE APPROPRIATE APPELLATE COURT. THE FEES IN 
OBTAINING THE ESCROW ACCOUNT SHALL BE SHOULDERED BY THE 
EMPLOYER/PRINCIPAL RAISING THE DEQSION FOR REVIEW. WHILE THE 
INTEREST EARNED BY THE AMOUNT IN ESCROW SHALL INURE TO THE BENEFIT 
OF THE PREVAILING PARTY.
XXX
XXX
XXX.J
SECTION 2. Implementing Rules and Regulations. — The departments 
and agencies charged with carrying out the provisions of this Act, except as 
otherwise provided herein, in consultation with the Senate Committee on 
Migrant Workers2 and the House of Representatives Committee on Overseas 
Workers Affairs, shall, within sixty (60) days after the effectivity of this Act, 
formulate the necessary rules and regulations for its effective implementation.
SECTION 3. Separability Clause. — If, for any reason, any portion of this 
Act Is declared unconstitutional or invalid, the same shall not affect the validity 
of the other provisions not affected thereby.
SECTION 4. Repealing Clause. — All laws, decrees, executive orders. 
Issuances, rules and regulations or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.
SECTION 5. Effectivity. — This Act shall take effect fi teen (15) days 
after its publication in at least two (2) newspapers of general circulation.
Approved.
2 Ye t to be organized