The Magna Carta of Filipino Seafarers REPUBLIC ACT NO. 12021 : Key Provisions, Salient Points & Implementing Ruled and Regulations (IRR) [with Downloadble Copy]
The Magna Carta of Filipino Seafarers, or Republic Act No. 12021, was signed into law by President Ferdinand Marcos Jr. on September 23, 2024. This landmark legislation aims to safeguard the rights and welfare of Filipino seafarers, both in domestic and international waters. Recognizing their significant contributions to the Philippine economy and global maritime industry, the law seeks to address long-standing issues in their profession, such as fair working conditions, legal protections, and access to proper education and training.
Key Provisions of the Magna Carta
Rights and Welfare: The Magna Carta upholds seafarers' fundamental rights, including the right to safe working environments, fair compensation, and protection from discrimination. It also emphasizes the need for secure contracts and just benefits for seafarers. This is a crucial step in ensuring that Filipino mariners, who account for a significant portion of the global maritime workforce, maintain their competitive edge while enjoying better protection.
Education and Training: The law mandates the improvement of maritime education and training. The Maritime Industry Authority (MARINA) will regulate and monitor maritime schools and programs to ensure seafarers receive world-class training that meets international standards. This aims to maintain the Philippines’ reputation as the largest source of qualified seafarers.
Disability and Repatriation: A new mechanism for resolving disputes related to disability grading and fitness for work has been introduced, involving the mandatory appointment of a third, DOH-accredited doctor in case of disagreements. The law also clarifies the responsibilities of shipowners and managers regarding the repatriation of seafarers, ensuring they bear all related costs, including transportation of the seafarer’s remains in the case of death.
Legal Protection and Representation: The law restricts the fees charged by legal representatives for handling seafarers' claims, capping them at 10% of the awarded compensation. This provision seeks to prevent exploitative practices and ensure seafarers retain the majority of their earnings and benefits.
Global Compliance: One of the law’s significant objectives is to align Philippine maritime policies with international standards, addressing concerns from foreign employers about the competency and training of Filipino seafarers. This is critical in preventing the blacklisting of Filipino mariners by international shipping companies, especially in Europe.
Impact on Filipino Seafarers and the Economy
With Filipino seafarers contributing a substantial amount in remittances to the Philippine economy, the law is also seen as a recognition of their role as modern-day heroes. It enhances their job security and ensures they can continue supporting their families while contributing to the nation's foreign exchange reserves.
The passage of this law comes at a crucial time when Filipino seafarers face numerous challenges, such as the risk of piracy and geopolitical conflicts in critical maritime routes. The Magna Carta offers much-needed protection and support to seafarers working under difficult and often dangerous conditions
The Magna Carta of Filipino Seafarers is a significant step towards recognizing and protecting the labor rights of one of the Philippines’ most vital labor sectors, securing their rights, safety, and future employment opportunities.
RA 12021 Strengthens Seafarers' Education, Training, and Certification Systems
In a move to further support the maritime sector, President Ferdinand R. Marcos Jr. signed Republic Act No. 12021 on September 23, 2024. This new law, known as the Magna Carta of Filipino Seafarers, aims to provide comprehensive guidelines for the education, training, and certification of seafarers in both international and domestic shipping.
The Maritime Industry Authority (MARINA) has been assigned a crucial role in advancing education and training systems for both overseas and domestic Filipino seafarers. Under the new law, MARINA will be responsible for overseeing maritime education, with the authority to accredit, regulate, and monitor institutions offering maritime degree programs and technical courses.
In addition to its educational responsibilities, MARINA will establish a robust framework for shipboard training. This will involve setting standards for training duration, outlining qualifications for training officers, and creating mechanisms to prevent harassment. These measures aim to improve the practical skills of cadets while ensuring a safe and supportive training environment.
The Magna Carta also mandates that MARINA work closely with industry stakeholders in developing training guidelines. This collaboration emphasizes the importance of industry input in creating a responsive and effective maritime workforce.
The law further allows MARINA to implement a "green lane" system, facilitating the safe travel of seafarers, particularly in times of crisis. This proactive approach underscores the government's commitment to ensuring the welfare of seafarers.
The signing of the Magna Carta of Filipino Seafarers marks a significant step in strengthening the Philippines' position as a global leader in providing skilled maritime professionals. By enhancing education and training standards, MARINA is poised to elevate the safety, professionalism, and competitiveness of the Filipino maritime workforce.
SIGNED R.A. 12021 - AN ACT PROVIDING FOR THE MAGNA CARTA OF FILIPINO SEAFARERS
Click this link to download a copy: DOWNLOAD FILE: SIGNED R.A. 12021 - AN ACT PROVIDING FOR THE MAGNA CARTA OF FILIPINO SEAFARERS
Q&A ON THE SALIENT POINTS Related to Claims Handling Process OF MAGNA CARTA OF FILIPINO SEAFARERS (REPUBLIC ACT NO. 12021)
This important piece of legislation was signed into law by the President of the Philippines on 23 September 2024 and will become effective after 15 days following its publication. In the midst of the crafting of the Rules and Regulations necessary for the effective implementation of the law, this edition of the Philippine Shipping Update will attempt to familiarize our industry stakeholders on this new law’s impact on Filipino Crew Claims handling in Q&A form. (Note: Statements contained below are opinions of Del Rosario & Del Rosario and does not constitute legal advice)
On Execution of Judgments and Monetary Awards
Q. Would there be an execution or enforcement of the judgment award after the end of the proceedings at the NLRC or voluntary arbitration at the NCMB?
A. It depends on the nature of the claim.
1. On disputes involving termination of employment, underpayment of wages, payment of wages for the unexpired portion of the employment contract
Yes, the judgment award can be enforced against the vessel interest even if the case is elevated to the Court of Appeals or to the Supreme Court.
2. On Disability or Death Claims
No, the Decision cannot be automatically enforced against the manning agents/shipmanagers/shipowners during the pendency of the case before the Court of Appeals or the Supreme Court.
However, for those undisputed amount which is admitted to be legally due to a party, the same is immediately executory even pending review.
For example, the company is willing to pay the seafarer US$25,000 for his grade 6 disability as assessed by the company-designated physician. The NLRC or the Voluntary Arbitrator awarded him US$60,000 disability benefits. If the company questions the claim before the higher courts, the seafarer can only immediately execute the amount of US$25,000 as this is an undisputed amount.
Q. Do the seafarers or the heirs, in disability or death claims, have a remedy to still enforce the judgment award while the case is pending appeal or judicial review?
A. Yes, the judgment award may still be enforced provided the seafarers or the heirs post a sufficient bond to ensure the full restitution of the amounts received and the bond shall be maintained until final resolution of the appeal or judicial review. However, the costs of the bond shall be immediately reimbursed by the losing party if the seafarer ultimately prevails on appeal or judicial review.
Q. In case the Court of Appeals or the Supreme Court reverses or modifies the judgment award issued by the Labor Arbiters or Voluntary Arbitrators, can the judgment award paid to the seafarers or to the heirs still be recovered?
A. Yes, the amounts paid to the seafarer or to the heirs can be recovered by the shipowner/shipmanagers/manning agents from the bonding company which issued the seafarer’s bond.
On Determination of Disability Grading / Fitness to Work
Q. Who shall resolve the issue of conflicting medical assessments of the company-designated physician and seafarer’s personal doctor?
A. The third doctor shall determine the final disability grading / fitness to work of the seafarer which shall be binding upon the seafarer and the employer.
Q. Is the process of appointing a third doctor mandatory under the law?
A. Yes, the process of appointing a third doctor is mandatory before any dispute settlement, arbitration proceedings or case may be filed where the issue is the disability grading, fitness to work, or the illness or injury of the seafarer.
Q. Is work-relation among the issues to be determined by the third doctor?
A. No, the issues to be resolved by the third doctor are only with respect to the final disability grading or the fitness to work of the seafarer.
Q. Can any medical practitioner be appointed as third doctor by the seafarer and the employer?
A. No, the third doctor shall only be selected from a pool of DOH-accredited medical specialists relevant to the injury or illness of the seafarer. In addition, the third doctor should be duly trained in the determination of maritime disability grading.
Q. What steps must be followed by the seafarer before a third doctor may be appointed?
A. A seafarer, who disagrees with the company-designated physician’s final assessment, may seek its re-evaluation by a physician of choice of the seafarer who must specialize in the illness or injury. If the seafarer’s doctor issues a different disability grading, the seafarer must file, within thirty (30) days from receipt of findings of the seafarer’s doctor, a written request with the DMW to refer the conflicting medical grading to a third doctor.
Prohibition on Appearances of Non-Lawyers in Labor Proceedings and Fees
Q. May a non-lawyer appear on behalf of the seafarer in labor proceedings?
A. No, non-lawyers may not act as legal representatives of seafarers or appear on their behalf at any stage or in any proceedings before labor tribunals including the NLRC, Labor Arbiter, conciliation and mediation in the NCMB or voluntary arbitration, DMW and other quasi-judicial bodies unless they represent themselves or they represent the organization or members thereof.
Q. Is there a cap on attorney’s fees that may be charged for representing the seafarers?
A. Yes, any stipulation on fees shall not exceed ten percent (10%) of the compensation or benefit which may be received by or awarded to the seafarer or to his successors-in-interest pursuant to Seafarers Protection Act. Any contract, agreement, or arrangement of any sort to the contrary shall be null and void.
Q. How did the Magna Carta limit the fees to be charged against the seafarers to 10%?
A. The Magna Carta limits the fees by requiring the seafarer’s legal representative/s to submit an Entry of Appearance, with attached notarized certification and Affidavit of Undertaking with the following averments:
The legal representatives shall not charge the seafarer for a fee contingent of more than ten percent (10%) of the compensation which may be awarded to the seafarer; and
The legal representatives shall not lend or borrow money from the seafarers, or participate in usurious lending practices, and shall not recommend, endorse, or facilitate loans, with lending individuals or companies connected to seafarers, directly or indirectly.
Further, any excess from the ten percent (10%) received or collected by the legal representative of the seafarer shall be held in trust in favor of the seafarer.
On Seafarers’ Repatriation
Q. What is the basic rule in the repatriation of a Filipino seafarer?
A. In all cases of repatriation, the affected seafarer shall be repatriated to the point of hire.
“Point of Hire” shall mean the place indicated in the contract of employment, and which shall be the basis in determining the commencement of the contract.
Q. Would there be an instance that the seafarer will be repatriated other than to the point of hire?
A. Yes, in case of incapacity of the seafarer which need not be of permanent character, or in case of seafarer’s death, the seafarer or the remains of the seafarer shall be repatriated to the point of hire or to the seafarer’s place of domicile at the option of the seafarer or the seafarer’s next of kin.
“Place of Domicile” shall refer to the home address of seafarers as declared in the standard employment contract.
Q. To whom did Magna Carta impose the liabilities related to repatriation?
A. Similar to the provisions of the POEA Standard Employment Contract and the Amended Migrant Workers Act of 2010 (Republic Act No. 10022), the shipowners/shipmanagers/manning agents shall bear all costs related to repatriation, transport of the personal effects and remains of the seafarers, including the provision on financial security in case of abandonment of seafarers.
Q. What are the components of repatriation expenses which shall be borne by the shipowners/shipmanagers/manning agents?
A. The repatriation expenses to be provided by the shipowners/shipmanagers/manning agents shall consist of the following:
Basic pay and allowances from the moment the seafarers leave the ship until they reach the repatriation destination;
Accommodation and food from the moment the seafarers leave the ship until they reach the repatriation destination;
Transportation charges, wherein the normal mode of transport should be by air;
Deployment cost of the shipowner; and Immigration fees, fines, and penalties.
Q. Is there an exception to the rule that repatriation costs shall be borne by the shipowners/shipmanagers/manning agents?
A. Similar to Sections 19.E and G of the POEA Standard Employment Contract, the Magna Carta likewise exempts the shipowners/shipmanagers/manning agents from shouldering the costs of repatriation in instances where the termination of employment is for (a) just cause or (b) upon the request of the seafarer.
Q. While repatriation-related costs can be demanded as a matter of right by the seafarer or the next of kin, can that right be waived?
A. Yes, the right can be waived provided the waiver is in writing, and made freely and voluntarily, with full knowledge of its consequences.
However, no waiver shall be allowed under the following circumstances:
When the seafarer is abandoned, held captive on or off the ship as a result of acts of piracy or armed robbery against the ship; or
When the seafarer is incapable of travelling due to illness, injury or incapacity; or
Other causes that affect the seafarer’s safety and security.
Q. What are the rules insofar as quarantine and medical expenses are concerned in repatriation due to epidemic or pandemic?
A. The following rules shall be followed:
Before repatriation to the point of hire – the shipowner or manning agency shall be responsible for the expenses of medical and board and lodging for periods spent by seafarers in self-isolation or quarantine, whether or not the seafarers have symptoms, have been exposed, or are quarantined as a safety precaution for the community.
Upon arrival at the point of hire – the Philippine government shall bear the cost of medical care and quarantine expenses, following the whole-of-government approach in the management of epidemics and pandemics.
Note: Declaration of the World Health Organization is required.
Period to Settle Claims
Q. What is the period mandated by the Magna Carta to the principal or manning agent to act on the claim of a seafarer or seafarer’s successor-in-interest?
A. In the event a seafarer, or the successor-in-interest files a claim for unpaid salaries and other statutory monetary benefits, or those arising from disability or death, the principal or the manning agent shall have a period of 15 days from the submission of the claim, proof or complete documents, as the case may be, to determine the validity of the claim. The results of the validation by the principal or manning agent shall be communicated to the seafarer within the aforesaid 15-day period. The principal or manning agent shall, within 15 days from the time it has communicated to the seafarer its findings, settle its obligations to the seafarer, if any.
Q. Is the principal or manning agent mandated by law to settle the above-described claim of a seafarer?
A. No, the Magna Carta merely imposes upon the principal or manning agent the obligation to determine the validity of the claim within the 15-day period. Further, the mandate of the law does not mean an automatic settlement of the claim regardless of the validity or merits of the claim.
Dispute Resolution
Q. Which has jurisdiction over claims or disputes arising from the employment of Filipino seafarers?
A. Similar to the provisions of the POEA Standard Employment Contract, Amended Migrant Workers Act and the Labor Code of the Philippines, the following rules shall apply:
If the employment contract is covered by a CBA – the matter shall be submitted for voluntary arbitration in accordance with existing laws, rules, and regulations;
When there is no CBA – the parties have the option of either submitting the case to the jurisdiction of the National Labor Relations Commission or commence voluntary arbitration under the Labor Code of the Philippines.
Q. What is the purpose sought to be achieved in the creation of Maritime Industry Labor Conciliators-Mediators and Voluntary Arbitrators?
A. The said body shall handle the mediation, conciliation or arbitration of all issues relating to the employment of seafarers. Further, they shall have expertise, appropriate competence, integrity, and knowledge of the Philippine and global maritime industry practices, and standards, MLC 2006, and related Philippine-ratified conventions and treaties.
There is a need to await the Implementing Rules to fully understand the implication of this new organization (if any) vis-Ã -vis the jurisdiction of the existing labor courts.
Right to Free Legal Representation
Q. Can the seafarer avail of free legal assistance for his money claims against the shipowners/ shipmanagers/manning agents?
A. Yes, if the seafarer cannot afford the services of a counsel, seafarer shall have a right to free legal assistance and protection at the expense of the government.
On the Application of the Law
Q. Does the law have retroactive application?
A. No, because the law does not contain a provision stating that it can be applied retroactively. This is in accordance with Article 4 of the Philippine Civil Code which states that “Laws shall have no retroactive effect unless the contrary is provided.”
Department of Labor and Employment (DOLE) Advisory No. 12 Series of 2024, which provides clarification on the application of Republic Act No. 12021, otherwise known as Magna Carta of Filipino Seafarers.
DOLE Advisory No 12 Series of 2024 - Application of RA No 12021 on Cases Filed with the NLRC and with Voluntary Arbitrators under the Administration of the NCMB
Navigating Labor Disputes for Filipino Seafarers Under RA No. 12021
In the Philippine maritime industry, the enactment of Republic Act No. 12021, also known as the Magna Carta of Filipino Seafarers, marks a pivotal moment in strengthening protections for overseas seafarers. A recent advisory from the Department of Labor and Employment (DOLE) sheds light on how the new law impacts labor cases filed with the National Labor Relations Commission (NLRC) and voluntary arbitrators administered by the National Conciliation and Mediation Board (NCMB).
Key Features of the Magna Carta
The Magna Carta outlines procedures and policies for resolving labor disputes for seafarers. Notable provisions include:
- Grievance Mechanisms: Enhanced onboard and onshore grievance systems to streamline dispute resolution.
- Conciliation and Mediation: A dedicated pool of maritime conciliator-mediators and arbitrators is set up to handle cases specific to the maritime industry.
- Health Assessments: Accredited third doctors, in coordination with the Department of Migrant Workers (DMW) and the Department of Health (DOH), are designated to assess disability grading or fitness for work.
- Judgment Execution: Timely resolution of claims and the prohibition of excessive legal fees.
The law, which took effect on October 11, 2024, also emphasizes the critical roles of government agencies like the NCMB and NLRC in mediation and arbitration for disputes involving domestic and overseas seafarers.
Interim Guidance from DOLE
Pending the issuance of the law's Implementing Rules and Regulations (IRR), DOLE has issued an advisory ensuring the continued application of existing rules and procedures for managing and resolving cases. This decision aligns with NLRC's En Banc Resolution No. 07-24, which requested maintaining the status quo ante until the IRR is finalized.
The advisory affirms that:
- Existing dispute resolution mechanisms under the NLRC and NCMB remain in place.
- Rights, privileges, and benefits previously enjoyed by seafarers under laws like Presidential Decree No. 442 (Labor Code) and RA No. 8042 (Migrant Workers Act) will not be diminished.
Implications for Stakeholders
This directive ensures continuity and stability in labor dispute processes during the transition. Stakeholders, including employers, employees, and arbitrators, must continue adhering to established protocols. For seafarers, it underscores a commitment to protecting their welfare and upholding their rights during a critical phase in the law's implementation.
Signed Impelenting Rules & Regulations (IRR) of RA No. 12021: A Landmark for Filipino Seafarers
On January 14, 2025, the Republic of the Philippines unveiled the Implementing Rules and Regulations (IRR) of Republic Act No. 12021, also known as the Magna Carta of Filipino Seafarers. This pivotal legislation, crafted in collaboration with the Department of Migrant Workers (DMW) and the Maritime Industry Authority (MARINA), sets a new standard for safeguarding the rights and welfare of Filipino seafarers.
Key Objectives of the IRR
The Magna Carta of Filipino Seafarers aims to provide clear procedures and guidelines to implement RA No. 12021, ensuring compliance and meeting its objectives. It introduces measures that:
- Protect seafarers' rights to just employment conditions, safe workplaces, and fair wages.
- Standardize employment terms and provide robust social, medical, and legal protections.
- Strengthen industry regulations to prevent violations of seafarers' rights and uphold international maritime conventions like the MLC 2006 and STCW 1978.
Scope of Coverage
The IRR applies to Filipino seafarers engaged in international waters, including cadets undergoing shipboard training. Exclusions include personnel on warships, government ships not in commercial operation, and vessels governed by specific international treaties. It also extends partial coverage to domestic seafarers, focusing on areas such as education, welfare, and employment standards.
Highlighting Seafarers' Rights
The IRR reinforces a comprehensive range of rights:
- Decent Work Conditions: Access to safe workplaces, fair terms of employment, and quality medical care.
- Educational Advancement: Opportunities for skill development at reasonable costs.
- Gender Equality: Strong protections against gender discrimination, harassment, and bullying.
- Legal Support: Free legal representation for disputes or contract violations.
- Safety and Communication: Guarantees of safe travel and access to communication during voyages.
Promotion of Women in Maritime
Special provisions advocate for increased female participation in the maritime industry. These include policies to eliminate gender bias in promotions, training, and workplace safety.
This significant milestone underscores the Philippines' commitment to the welfare of its seafarers, reinforcing their pivotal role in global trade while aligning domestic practices with international maritime standards.
DOLE Department Order No. 247, Series of 2025: Ensuring Justice for Filipino Seafarers
The Department of Labor and Employment (DOLE) has issued Department Order No. 247, Series of 2025, which establishes the Implementing Rules and Regulations (IRR) for the execution of decisions and awards made by the National Labor Relations Commission (NLRC) and Voluntary Arbitrators concerning Filipino seafarers. Signed on January 15, 2025, this IRR aligns with Section 59 of Republic Act No. 12021 (Magna Carta of Filipino Seafarers) and seeks to uphold fair, just, and expeditious resolution of seafarers' labor disputes.
Key Features of Department Order No. 247
Coverage and Objectives
- Scope: The IRR applies to disputes, claims, and complaints involving Filipino seafarers working overseas.
- Purpose: Ensures timely and equitable execution of decisions involving salaries, benefits, and claims related to death, disability, and illegal dismissal.
Defined Terms for Clarity
The order defines terms crucial to the process, such as:
- Disputed and Undisputed Amounts: Differentiates between legally acknowledged claims (e.g., unpaid wages) and contested claims (e.g., moral damages).
- Seafarer’s Bond: A bond posted by seafarers to secure immediate execution of monetary awards pending appeals.
Execution of Decisions
Jurisdiction
The Labor Arbiter, NLRC, and Voluntary Arbitrators retain exclusive jurisdiction over unresolved disputes arising from the employer-employee relationship under the Magna Carta and other relevant laws.
Finality and Execution
- Final Decisions: Decisions become final and executory 10 days after the parties receive them.
- Immediate Execution: Undisputed amounts are executed immediately upon finality, while disputed amounts require a seafarer’s bond.
Appeal and Stay of Execution
- Losing parties intending to appeal must file a manifestation or provide evidence of the appeal within the 10-day period to stay execution.
- If the appeal fails, the seafarer is entitled to reimbursement for costs associated with the bond.
Protecting Seafarers' Rights
Speedy Resolutions
This order emphasizes prompt execution to mitigate financial burdens on seafarers awaiting the resolution of claims.
Reimbursement Guarantees
Seafarers who prevail in appeals are assured of immediate execution of disputed amounts and reimbursement of bond-related costs.
Legal Safeguards
Prescription Periods
- Monetary claims must be filed within three years from the time the cause of action accrued.
- Claims related to illegal dismissal have a four-year prescriptive period.
Superseding Clause
The order invalidates previous issuances inconsistent with its provisions, reinforcing its authority.
Conclusion
DOLE Department Order No. 247 underscores the Philippine government's commitment to protecting the rights of Filipino seafarers. By streamlining dispute resolution and ensuring the timely execution of monetary awards, this IRR strengthens the foundation for fair treatment and justice in the maritime industry.
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Note: The authors intend to limit the scope of this Article to issues which may have an impact in the claims handling process of the readers. For questions on other provisions of the law and clarifications, you may send an email to mail@delrosariolaw.com
Source:
"Q&A ON THE SALIENT POINTS Related to Claims Handling Process OF MAGNA CARTA OF FILIPINO SEAFARERS"
Del Rosario Pandiphil Inc. / Del Rosario & Del Rosario
DelRosarioLaw Centre, 21st Drive corner 20th Drive, Bonifacio Global City,
Taguig, Metro Manila, Philippines
Telephone: 63 2 8810 1791 / 63 2 5317 7888 Fax: 63 2 5317 7890
24/7 Emergency Mobile: (63) (917) 830-8384;
mail@delrosario-pandiphil.com; www.delrosario-pandiphil.com
Other References:
Esguerra, D. J. (2024, September 23). Marcos signs Magna Carta of Filipino seafarers. Philippine News Agency.
Gutierrez, P., & Delizo, M. (2024, September 23). Marcos signs law protecting welfare of Filipino seafarers. ABS-CBN News.
Maravilla, B. (2024, September 23). Marcos signs Magna carta for Filipino seafarers’ protection. Explained PH.
Maritime Industry Authority. (2024, September 23). RA 12021 consolidates functions relating to seafarers' education, training, and certification [Press release].
Department of Labor and Employment. (2024, November 15). Labor Advisory No. 12, Series of 2024: Application of Republic Act No. 12021, otherwise known as the Magna Carta of Filipino Seafarers, on cases filed with the National Labor Relations Commission (NLRC) and with voluntary arbitrators under the administration of the National Conciliation and Mediation Board (NCMB). Department of Labor and Employment.
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