iy RECEIVED 2)

Republic of the Philippines PATI SEP 09 aie

HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL No, _7630

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS,
AND FOR OTHER PURPOSES

Itis estimated that around 30% of all seafarers around the world are Filipinos. The population of
our seafarers, numbering more than 440,000 Filipino, are even larger than the population of
some of our country’s cities and municipalities. More and more Filipinos are actively seeking
seafaring jobs to provide for their families. In turn, the Philippine economy benefits from their
remittances. In 2018, Filipino seafarers contributed 6.14 Billion USD or around 19% of the total
OFW remittances that year.

Unlike other OFWs, Filipino seafarers face unique challenges attached to their movement from
international waters to different ports of call in various countries. Hence, the laws protecting them
can be vague and elusive. They are likewise prone to illegal recruitment and other forms of
abuses.

The Philippines ratified the 2006 Maritime Labor Convention. It is high time to enact legislation
in addition to our existing labor laws and social legislation such as our Migrant Workers Act in
order for us to adhere to internationally recognized instruments such as those from the
International Labor Organization and International Maritime Organization.

This proposed bill simply seeks the protection of rights and welfare of the Filipino seafarers in
accordance with the Maritime Labor Convention. It shall serve as a guide from training and
recruitment to the seafarer’s retirement.

In view of the foregoing, the passage of this bill is hereby earnestly sought.

LUIS RAYMUND “LRAY} F. VILLAFUETE, JR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. 7630

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and 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 2020".

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

(a) To afford Filipino seafarers full protection before, during and after
employment by granting them certain rights as maritime professionals, in recognition
of their unique role and contribution to national development;

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

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

(@  Toenact laws that adopt, and implement the standards set by international
conventions and agreements on working and living conditions, and occupational
safety and health, among others, for seafarers particularly the Maritime Labour
Convention, 2006; and

(e) To recognize ship owners, 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 promulgate
policies and programs to uplift the socioeconomic well-being of the families of Filipino
seafarers.

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;

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

(a) 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 undertaken for contractual or commercial
purposes;

(©) _ International Maritime Convention or Intemational 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 MLC, 2006;

(@) License refers to the document issued by the Department of Labor and
Employment (DOLE) authorizing any person or entity to engage in the recruitment and
placement of seafarers;

(©) Manning/Recruitment and Placement Agency refers to any Filipino person,
corporation, partnership, company, or other entity engaged in the canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring whether for profit or not, of seafarers
whether domestic or international;

() Maritime Industry Stakeholders refer to all private sector stakeholders,
engaged in the business of owning, managing, chartering or operating domestic and
international ship(s) of Philippine or foreign registry, manning of ships, management of
ports, stevedoring and arrastre services, ship brokering and chartering, shipbuilding and
ship repair, providing maritime services such as ship supplies and provisions, maritime
education and training, shipping agency, and other similar activities.

This term shall also include bona fide maritime labor organizations and professional
associations of seafarers;

(g) Master refers to a person having command of a ship;

(hy) 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 Il of the
International Convention on the Standards of Training, Certification and Watchkeeping for
Seafarers, 1978 (STCW, 1978), as amended;

(k) Engine Officer refers to an officer qualified in accordance with Chapter Il of
the International Convention on the 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 sixty percent (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;

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

() __ Ship or Vessel refers to any kind, class or type of craft or artificial contrivance
capable of floating in water, whether publicly or privately owned, ordinarily engaged in
commercial activities and offshore operations, except fixed platform;

(8) Seagoing 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;

() 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 person fulfill certain of the duties or responsibilities on behalf of the shipowner.

CHAPTER I
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;

(©) Medical care, welfare measures and other forms of health and social
protection; and

(@ Fair terms and conditions of employment including salary commensurate to
their rank, hours of work, and other relevant basis for wage computation, minimum


number of working hours, rest period consistent with Philippine laws or international
maritime conventions, when applicable.

SEC. 6. Right to Self-organization, to Engage in Collective Bargaining and to
Participate in Democratic Exercises. — 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.

No fee or other charges shall be imposed on cadets, intems, apprentices, on-the-job-
trainees or other persons similarly situated.

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

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

SEC. 8. Right to Relevant Information. - Shipowners, manning agencies, and other
organizations responsible for the recruitment and placement of Filipino seafarers shall be
mandated to provide seafarers relevant information, including the terms and conditions of
employment and company policies affecting seafarers. 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 MLC, 2006 and the grievance
procedures observed on board.

SEC. 9. Right to Consultation. - Seafarers, ship owners and legitimate seafarers’
and ship owners’ organizations, as well as other relevant stakeholders, shall be adequately
consulted before any maritime policy, executive issuance, rule or regulation affecting
seafarers and their families is promulgated, or before any maritime law that may directly
affect them is enacted.

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

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

SEC. 12. Right to Access to Communication. - Seafarers, especially during their
free time or when they are not on duty, shall have reasonable access to ship-to-shore
telephone communications, and email and internet facilities, where available.



CHAPTER Ill
DUTIES OF SEAFARERS
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;

() To be obedient to the lawful commands of the Master or the Master's lawful
successor, and to comply with the shipowner's/principal's policy on safety and
operational procedures and instructions given in connection therewith;

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

(©) 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 be personally responsible for maintaining a healthy lifestyle.

CHAPTER IV
MINIMUM REQUIRENENTS 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.

No waiver of liabilities resulting to forfeiture of benefits shall be allowed in case of
insufficient compliance with the fit to work certificate.

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

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


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

SEC. 18. Contracting or Subcontracting of Services. — The contracting or
subcontracting of seafarers for work on board domestic ships shall be governed by existing
rules and regulations issued by the DOLE.

CHAPTER V
CADETSHIP

SEC. 19. Applicability. — The shipboard training of cadets shall be governed by
Sections 5 to 12 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

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

(g) Required number of hours of training and rest which shall 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 (MHEls), and cadets, as may be provided under the Standard Cadet Training
Agreement on Ships Engaged in International Voyage of the Philippine Overseas
Employment Administration (POEA); and

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

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

MHEls 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 Commission
on Higher Education (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 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 seafarer, which shall include the
following information and terms:

(a) Seafarer's full name, date of birth or age, and birthplace;

(b) Shipowner's name and address;

(©) Place where and date when the seafarer's employment agreement is entered

into;

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

(©)

(0) 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, 13" month pay, if applicabl

(h) Social security and welfare benefits;
(Stipulation on repatriation or similar undertakings;
Gg
(k) Reference to the collective bargaining agreement, if applicable; and

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

Amount of the seafarer's salary, and the formula used for calculating the same;

Separation pay and retirement pay, if applicable;

The foregoing employment agreement shalll 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 a month, at intervals not exceeding sixteen (16) days.

Trainees, probationary crew members and other similarly situated persons 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
on board vessels as part of the completion of their academic or training program, shall be
provided with stipends or allowances, which shall not be less than fifty percent (50%) of
the existing minimum wage of regular seafarers.

SEC. 23. Hours of Work and Hours of Rest. — The normal hours of work of every
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 anv seven (7)-dav period.


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

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

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 (CBA) or by the
shipowner as company practice or policy.

CHAPTER VII
REPATRIATION

SEC. 25. Seafarers Shall Be Entitled to Repatriation. — All costs related to the
repatriation or transport of the personal effects of a seafarer shall be borne by or charged
to the shipowner and the manning agency concerned. The expenses of repatriation shall
include the transportation charges, pay and allowances from the moment the seafarers
leave the ship until they reach the repatriation destination, the accommodation and the
food of the seafarer during the journey and transportation of thirty kilograms (30 kgs.) of
the seafarers’ personal luggage to the repatriation destination. The primary responsibility
to repatriate entails the obligation on the part of the shipowner or agency to advance the
repatriation and other attendant costs, including plane fare, deployment cost of the
principal and immigration fines and penalties, to immediately repatriate the seafarer should
the need for it arise, without a prior determination of the cause of the termination of the
seafarer's employment. However, after the worker has returned to the country, the
shipowner or agency may recover the cost of repatriation from the seafarer if the
termination of the employment was due solely to the seafarer's fault.

SEC. 26. Emergency Repatriation for Seafarers on Board Foreign Registered
Ships. — In cases of war, epidemics, abandonment of ship by ship owners, disasters,
calamities, natural or man-made, and other similar events, the Department of Foreign
Affairs (DFA), in coordination with the 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 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 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 ship owners, disasters or calamities, whether natural or man-
made, and other similar events.

CHAPTER VIII
MANNING REQUIREN'ENT

SEC. 28. Manning Levels. — All ships of Philippine registry shall observe 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 pattems 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 oceangoing ships of foreign registry, and domestic and oceangoing ships of Philippine
registry, the POEA and the 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.

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 oceangoing ships and domestic ships constructed on or after the date
when the NILC, 2006 comes into force;

(b) _Allsecond-hand ships, whether oceangoing 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) __Allships constructed prior to the entry into force of the MLC, 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 ship owner 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 ship owner shall ensure that seafarers have access to medical treatment for any
illness or injury, hospitalization and dental treatment.

A seafarer shalll 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
ship owner 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, CBA
or other applicable social agreement, all seafarers shall become members of the Social
Security System (SSS), 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 XII
CONTLIANCE AND ENFORCENENT


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 ship owner and master, as acting ship owner'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,
applicable, shall be issued in accordance with the implementing rules and regulations. The
DOLE, the DFA and the MARINA, in consultation with ship owners and seafarers’
organizations, shall formulate the said implementing rules and regulations.

SEC. 39. Inspection and Enforcement. — The Secretary of Labor and Employment
or the duly authorized representative shall have the sole and exclusive authority to inspect
all Philippine ships, domestic or oceangoing, 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 the 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 life or limb of the seafarer, the Secretary of Labor and Employment or the 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 NILC, 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
TERNMINATION OF EMPLOYNENT
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) 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-SEC.

(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.

(©) _ 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 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 onshore
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 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 No. 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
the 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 the OWWA, the Technical
Education and Skills Development Authority (TESDA), the Technology and Livelihood
Resource Center (TLRC), the Cooperative Development Authority (CDA), the National
Maritime Polytechnic (NNW) and the 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

CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

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

Under such rules and regulations that may be promulgated, deserving shipowners,
seafarers, manning and other organizations or entities, shall be commended or awarded
for their outstanding performance in upholding the rights of seafarers and complying with
this Act.

CHAPTER XVII
GOVERNMENT AGENCIES

SEC. 46. Role of Government Agencies. — The following government agencies
shall perform the following functions to promote the welfare and protect the rights of Filipino
seafarers:

(a) Department of Labor and Employment (DOLE). — The DOLE shall 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 NILC, 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 (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.

(©) Department of Health (DOH). — 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.

(d) Philippine Overseas Employment Administration (POEA). 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.

(©) 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 seafarers 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 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 (PCG). — The PCG, in line with its function to assist in
the enforcement of applicable laws within the maritime jurisdiction of the Philippines, shall
assist the DOLE in the enforcement of Department Orders and other issuances
implementing the MLC, 2006, including orders to detain vessels found in gross violation of
pertinent laws, rules and regulations.

Unless otherwise provided in this Act, the mandate, power and function of all existing
departments, agencies or instrumentalities of the government, including government-
owned and controlled corporations, shall remain and continue to be recognized in
accordance with the law or order creating them.

SEC. 47. Philippine Seafarers ' One Stop Processing Center (PSOC). - The
PSOC shall 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;

(©) Commission on Higher Education;
(d) Professional Regulation Commission;

(©) National Telecommunications Commissior
(8 Philippine Overseas Employment Administration;

(g) Overseas Workers Welfare Administration;

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

(National Bureau of Investigation;

(k
0
(m) Philippine Statistics Authority;

(a) Home Development Mutual Fund; and

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

Social Security System;
Philippine Health Insurance Corporation;

Further, the PSOC for its initial operation shall create a pilot PSOC in areas identified with
the biggest number of seafarers. the data gathered for the PSOC shall be made accessible
to and shall be utilized by the maritime sector and stake holders. the LGUs are encouraged
either to reduce the amount of local taxes, fees and charges imposed or to exempt
documents or transactions pertaining to the process of 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 the duly authorized representative of the Secretary of Labor
and Employment, 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 (P 100,000.00) 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 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 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.

SEC. 53. Repealing Clause. — All laws, presidential decrees, issuances, executive

orders, letters of instruction, rules and 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 publication
in the Official Gazette or in a newspaper of general circulation.

Approved,