» RECEIVED
f
SEVENTEENTH CONGRESS OF THE REPUBLIC) pave} 0 JUN 2015
OF THE PHILIPPINES ) TIME: 5
BY:
First Regular Session )

REGISTRATION UNIT
457 | BILLS AND INDEX SERVICE

ene

HOUSE BILL NO.

Introduced by ANGKLA Party-

st Representative JESULITO A. MANALO

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

EXPLANATORY NOTE

‘The Philippines, is a State party to the Maritime Labour Convention (MLC),
an international agreement that desires to create a single, coherent instrument
embodying as far as possible all up-to-date standards of existing maritime labour
conventions, to promote decent conditions of work. Considering our ratification of
the MLC on 20 August 2012, we are obliged to conform to the provisions provided
therein.

Our Filipino seafarers have provided our country national pride, for being the
seafarer of choice. Likewise, they have extended huge monetary contributions,
supporting our economic growth through the annual dollar remittances, which last
year alone reached approximately US$5.2 Billion. Considering these contributions,
the State must recognize their significance and grant them their much needed
support.

Our seafarers’ lives are always at risk on board vessels, with every voyage,
facing different perils of the sea, By reason of such circumstances, the government
must find ample means to protect them, through the enforcement of laws, policies,
and regulations that will ensure their well being, promote safety, health and welfare
measures.

This Act is intended to strengthen and guarantee the implementation of
provisions, rules, and mechanisms all consistent with the standards that set by the
MLC, so that our Filipino seafarers’ conditions of employment are duly and properly
safeguarded, whether they are on board domestic or international vessels.

A, MANALO
arty-list Representative
ANGKLA

HOUSE 0F REPRESENTATIVES


SEVENTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES }

First Regular Session )

HOUSE BILL NO. 457

Introduced by ANGKLA Party-list Representative JESULITO A. M.

AN ACT INSTITUTING THE MAGNA CARTA OF FILIPINO SEAFARERS

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

CHAPTER I
GENERAL PROVISIONS

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

SECTION 2.Declaration of Policies. - It is hereby declared the policy of the
State:

(a) To recognize the rights, contributions and unique role of Filipino
seafarers as maritime professionals, as well as their vulnerabilities,
and afford them full protection before, during and after their
employment;

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

(©) To establish mechanisms for the enhancement of administrative,
adjudicative, social as well as welfare services for them and their
famili¢

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

(c) To recognize shipowners, manning and recruitment entities as vital
partners inpromoting 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 shalll further work to
uplift the socio-economic wellbeing of the Filipino seafarers’ families

SECTION 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.

SECTION 4.Definition of Terms. - As used in this Act:

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

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

(c) International Maritime Convention 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;

(ec) 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, ship-building and ship repair, providing maritime
services such as ship supplies and provisions, maritime education
and training, shipping agency, and other similar activities.

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

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

(h) Maritime Labour Certificate refers to the document that certifi
that the working and living conditions of the seafarers on the ship
have been inspected and are compliant with the requirements of
Philippine laws and regulations;

(i) Officer refers to a member of the crew other than the master who
has been designated as such by national law or regulation or, in the
absence of such designation by collective agreement or custom;

(i) Deck Officer refers to an officer qualified in accordance with
Chapter II of the International Convention on 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;

(I 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 P!

hilippines;

(m)Philippine Seafarers’ One Stop Processing Center (PSOC) refers to
the facility which houses multiple offices or agencies involved in
providing services to seafarers in one roof:

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


(0) Recognized Organizations refer to organizations recognized by the
DOLE to carry out inspections or issue the Maritime Labour
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;

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

(s) Sea Going Ship refers to a ship other than those which navigate
exclusively inland water or water within or closely adjacent to
sheltered water or areas where port regulations apply;

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

CHAPTER IL
SEAFARERS’ RIGHTS

SECTION 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

(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.

SECTION 6.Right to Self-organization, fo 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.

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

‘Toward this end, relevant government agencies shall:

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

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

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

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

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

SECTION 9.Right (0 Consultation, - Seafarers, shipowners and legitimate
seafarers’ and shipowners’ organizations, as well as other relevant stakeholders,
shall be adequately consulted before adopting any maritime policy, executive
issuance, rule or regulation or in the enactment of any maritime law that may
directly affect them or their families and beneficiaries.

SECTION 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


SECTION 11 Right fo 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.

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

CHAPTER III
SEAFARER'S DUTIES

SECTION 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;

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

(c) 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

(0 To take personal responsibility to be healthy at all times by
practicing a healthy lifestyle.

CHAPTER IV
MINIMUM REQUIREMENTS FOR SEAFARERS

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


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

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

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

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

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

SECTION 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 ofLabor and Employment,

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

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

CHAPTER V.
CADETSHIP

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

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

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


(b) Name and address of the maritime institution or school;
(©) Name and address of the shipowner, if applicable;

(d) Place and date when the cadet’s agreement is entered into;
(e) Capacity in which the cadet is to be trained;

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

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

(h) Duties and responsibilities of the sponsoring company, Maritime
Higher Education Institutions, 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 shall
also be made available on board the ship.

Maritime Higher Education Institutions (MHEls) shall demonstrate that over
the last three (3) years, an average of at least sixty percent (60%) of students enrolled
in their Bachelor of Science in Marine Transportation (BSMT) or Bachelor of Science
in Marine Engineering (BSMarE) programs are able to secure cadet berths in
connection with their studies, The Commission on Higher Education (CHED), in
coordination with the Maritime Industry Authority (MARINA), shall ensure that
only BSMT or MSMarE programs in MHEIs that meet the above requirement are
conferred approved or accredited,

CHAPTER VI
TERMS AND CONDITION OF EMPLOYMENT

SECTION 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;

(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, 13th month pay,
if applicable;

(h) Social security and welfare benefits;

(i) Stipulation on repatriation or similar undertakings;

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

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

(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.

For seafarers on board foreign registered ships, the Philippine Overseas
Employment Administration - Standard Employment Contract (POEA-SEC)
approved by the DOLE shall be observed

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

SECTION 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,

10


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.

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

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

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

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

CHAPTER VII
REPATRIATION

SECTION 25.Seafirers Shall Be Entitled to Repatriation. All costs related to the
repatriation or transport of the personal effects of seafarers shall be borne by, or
charged, to the shipowner and the manning agency concerned. The expenses of
repatriation shall include the transportation charges, pay and allowances from the
moment the seafarers leave the ship until they reach the repatriation destination, the
accommodation and the food of the seafarers during the journey and transportation
of thirty kilograms (30 kgs) of the seafarers’ personal luggage to the repatriation
destination. The primary responsibility to repatriate entails the obligation on the part
of the shipowner or agency to advance the repatriation and other attendant costs,
including plane fare, deployment cost of the principal and immigration fines and
penalties, to immediately repatriate the seafarer should the need for it arises,

a


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.

SECTION 26.Emergency Repatriation for Seafarers On board Foreign Registered
Ships.

The Overseas Workers Welfare Administration (OWWA), in coordination
with the Departmentof Foreign Affairs (DFA) and in appropriate situations, with
international agencies, shall undertake the repatriation of seafarers in cases of war,
epidemics, abandonment of ships by shipowners, disasters or calamities, natural or
man-made, and other similar events without prejudice to reimbursement by the
responsible shipowner or manning/ recruitment and placement agency within sixty
(60) days of notice. In such case, the POEA shall simultaneously identify and give
notice to the shipowner or agency concerned.

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

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

CHAPTER VIII
MANNING REQUIREMENT

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

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

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

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

it is issued meets the requirements for service, age, qualification, and examinations
for the position held.

12


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

CHAPTER IX
ACCOMMODATION, RECREATIONAL FACILITIES, FOOD AND CATERING

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

(a) All ocean-going ships and domestic ships constructed on or after
the date when the Maritime 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.

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

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

SECTION 34 Recreational Facilities. - Unless otherwise exempted herein or by

appropriate regulations, all ships of Philippine registry shall have recreational
facilities, amenities, andservices that are appropriate and accessible to seafarers.

13


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

SECTION 35.Food and Catering. - The shipowner shall ensure the protection
and promotion of health of seafarers. Whenever applicable, shipowners shall ensure
that ships serve free food and drinking water of appropriate quality, quantity and
nutritional value that adequately cover the requirements of the ship and 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.

CHAPTER X
HEALTH PROTECTION AND MEDICAL CARE

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

‘The shipowner shall ensure that seafarers have access to treatment for
sickness or injury, hospitalization and dental treatment.

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

CHAPTER XI
WELFARE AND SOCIAL SECURITY PROTECTION

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

CHAPTER XII
COMPLIANCE AND ENFORCEMENT
SECTION 38.Compliance and Certification. — All ships of Philippine registry

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

14


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 of this Act.

SECTION 39.Inspection and Enforcement. — For purposes of this Act, 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 Secretary of Labor and Employment may authorize other government
agencies or duly recognized organizations to conduct inspection and issue
certification in accordance withthe provisions of this Act and its implementing rules
and regulations.

Unless directly exercised by the Secretary of Labor and Employment, the duly
authorized representative shall have the power to board ships and carry out any
examination, test or inquiry which they may consider necessary in order to satisfy
themselves that the standards are strictly observed.

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

If the violation or deficiency constitutes serious breach of the requirement of
this Act and its implementing rules and regulations or poses imminent danger to the
ships or to the life or limb of the seafarer, the Secretary of Labor or the duly
authorized representative may order the detention of the ship immediately until the
violation or deficiency is corrected.

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

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

‘A recognized organization shall also have the necessary and qualified

professional, technical and support expertise to carry out the conduct of inspection
and issuance of certification.

15


CHAPTER XU
‘TERMINATION OE EMPLOYMENT

SECTION 41, Termination of Employment,

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

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

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

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

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

(4) When the seafarer is discharged for just causes in accordance
with theprovisions 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.

(0) The termination of employment of a seafarer on board a foreign vessel or
foreign registered ship shall be governed by the POEA SEC or applicable collective
bargaining agreement (CBA).

CHAPTER XIV
SETTLEMENT OF DISPUTES

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

16


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

SECTION 43.Mandatory Conciliation-Mediation and Arbitration, - Seafarers,
whether engaged, employed or working on board ships of Philippine registry ot
other registries, shall avail of the conciliation-mediation services of the DOLE
pursuant to Republic Act 103% 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 ofthe 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

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

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

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

7


CHAPTER XVI
INCENTIVES AND AWARDS GRANTED TO THE MARITIME INDUSTRY

SECTION 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

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

(a) Department of Labor and Employment (DOLE). - The DOLE
shall ensure that the standards set forth under this Act, Presidential
Decree No. 442, as amended, and other laws, the Maritime Labour
Convention 2006 and other international treaties and conventions to
which the Philippines is a signatory are faithfully complied with and
fairly applied to Filipino seafarers;

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

(b) Department of Foreign Affairs (DFA). - The DFA, through its
home offices or foreign posts, shall give paramount importance to the
safety and well-being of Filipino seafarers, by providing adequate and
timely intervention and tance, such as representing their interests
with foreign authorities concemed and facilitating their repatriation
when they are distressed or beleaguered;

(c) Department of Health (DOH). - The DOH shall regulate the
activities and operations of all clinics which conduct medical, physical,
optical, dental, psychological and other similar examinations,
hereinafter referred to as health examinations, on Filipino Seafarers;

18


The DOH shall determine and prescribe the nature of the
medical examination that shall be required of a seafarer, ensuring that
such examination will genuinely determine the seafarer’s state of
health, considering the duties that the seafarer shallbe 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.

(A) Philippine Overseas Employment Administration (POEA). -
‘The POEA shall look into and improve on the working conditions and
terms of employment of the officers and crew of vessels of Philippine
registry, and of such officers and crew members who are Filipino
citizens and employed by foreign vessels;

(c) Overseas Workers Welfare Administration (OWWA). - The
OWWA, through its welfare officers or coordinating officers, shall
provide the Filipino seafarers and their families all the assistance they
may need in the enforcement of contractual obligations by agencies
and their principals.

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

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

(g) Philippine Coast Guard (PCG) - The PCG, in line with its
function to assist in the enforcement of applicable laws within the
maritime jurisdiction of the Philippines, shall assist the DOLE in the
enforcement of Department Orders and other issuances implementing
the Maritime Labour Convention 2006 including orders to detain
vessels found in gross violation of pertinent laws, rules and
regulations.

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

19


SECTION 47.Philippine Seafarer One Stop Processing Center (PSOC). - The
PSOG, as established under Administrative Order No. 56, has been tasked to
operationalize and make available to the public, an integrated document processing,
center for the seafarers and the general public to conduct official transactions. The
agencies that are mandated to provide services in the PSOC are as follows:

(a) Department of Foreign Affairs (DFA);

(b) Overseas Workers Welfare Administration (OWWA);

(c) Philippine Overseas Employment Administration (POEA);
(d) National Bureau of Investigation (NBI); and

(c) Philippine Statistics Authority (PSA).

CHAPTER XVIII
FINAL PROVISIONS

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

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

SECTION 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.

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

SECTION 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.

20


SECTION 53.Repealing Clause. — All laws, presidential decrees, issuances,
executive orders, letters of instruction, rules or regulations inconsistent with the
provisions of this Act are herebyrepealed or modified accordingly.

SECTION 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,

21