Q & A On The Salient Points of

The Implementing Rules and Regulations of

Republic Act No. 12021

(Magna Carta of Filipino Seafarers)

The Magna Carta of Filipino Seafarers took effect on 11 October 2024. In accordance with Section 97 of the law, the DMW and MARINA in coordination with the relevant government agencies have promulgated the necessary rules and regulations by signing the Implementing Rules and Regulations on 8 January 2025. This edition of the Philippine Shipping Update will further enhance the basic understanding of the industry stakeholders on the effects of the new law on Filipino Crew claims handling processes in a Q&A form.

The current edition seeks to amplify the previous Q&A issued by the authors on 24 September 2024, which is reproduced hereunder for easy reference

(Note: Statements contained below are opinions of Del Rosario & Del Rosario and does not constitute legal advice)

On The Application of Section 59 (Execution of Judgements and Monetary Awards) of the Magna Carta on Existing Cases

Q:  What cases are covered by the application of Section 59?
 
A:      Section 59 of RA No. 12021 shall only apply to monetary awards, including but not limited to, the salaries, wages, statutory benefits, death and disability claims, claims for damages and other similar awards of seafarers arising from complaints filed with the NLRC or NCMB on or after the date of effectivity of the law. (Section 1 of Rule XXII, IRR)
 
Therefore, in all pending cases arising from complaints filed on or after 11 October 2024, Section 59 will now apply and the employers can no longer be required to pay the disputed amount stated in the decisions of the NLRC and voluntary arbitrator/s unless the seafarer or the seafarer’s heirs post a sufficient bond to ensure the full restitution of the disputed amount.
 
Q:  How about for other pending cases?
 
A:       Complaints filed prior to the effectivity of the law shall be governed by the laws, rules and regulations prevailing as of the date of their filing. (Section 1 of Rule XXII, IRR)

Hence, in all pending cases arising from complaints filed before 11 October 2024, the old regime of laws, rules and regulations will be applied wherein decisions of the NLRC and voluntary arbitrator/s shall be considered final and executory. Thus, the employers will be required to pay the judgment awards after the end of the NLRC and voluntary arbitration proceedings.

On The Referral of Conflicting Medical Grading to a Third Doctor

Q:  If the parties to a dispute cannot mutually select a third doctor from a pool of DOH-accredited medical specialists, what mechanism is in place in the Implementing Rules and Regulations?
 
A:        In case there is no agreement between the parties on the appointment of third doctor from the pool of DOH-accredited third doctors, the DMW shall facilitate the appointment of the third doctor from the same pool.

The DMW shall only facilitate but not appoint a third doctor who will resolve the issue of conflicting medical grading.
 
Q:  Who is a DOH-accredited medical specialist?
 
A:       The DOH-accredited medical specialist refers to the medical practitioners who are bona fide members of their respective specialty societies duly recognized by an Accredited Professional Organization in accordance with their existing rules and regulations.
 
Q:  What is the scope of the mandate of the company-designated physician, seafarer’s doctor and the third doctor in the determination of disability grading?
 
A:      The medical assessment of the company-designated physician, seafarer’s doctor and the third doctor shall strictly adhere to the Schedule of Disabilities as provided in the Standard Employment Contact or the applicable CBA, as warranted. (Section 5 of Rule XI, IRR)

On Insurance Coverage of Benefits Due to the Seafarer or Heirs of Seafarer Under Section 37-A of RA No. 10022 (Amended Migrant Workers Act)

Q:  Is the current practice by foreign principals of issuing a one-page Certificate of Cover as a pre-condition for the issuance of an Overseas Employment Certificate (OEC) still recognized under the Magna Carta?
 
A:      Yes. It is stated in the Implementing Rules and Regulations of the Magna Carta that in the case of seafarers, manning agencies whose seafarers will be deployed on-board vessels with policies issued by foreign insurance companies, including entities providing indemnity coverage to the vessel, shall submit a certificate or other proofs of cover from recruitment/manning agencies provided that the minimum coverage under sub-paragraphs (a) to (i) of Section 37-A of RA No. 8042, as amended by RA No. 10022 are included therein. (Section 4 of Rule IX, IRR)

On Allotments and Remittances of Wages

Q:  Did the Magna Carta maintain the 80% allotment required under the present Standard Employment Contract?
 
A:       Yes the Magna Carta did not change the present requirement stated in the Standard Employment Contract that the allotment shall be at least 80%.
 
Q:  What portion of the total earnings of the seafarer will serve as basis of the 80% allotment?
 
A:       The allotment shall be at least eighty percent (80%) of the seafarer’s monthly salary.
 
Q:  What components of the monthly salary shall be used as basis of the 80% allotment?
 
A:       The monthly salary shall consist of basic wage plus fixed or guaranteed overtime. (Section 6 of Rule VII, IRR)

On Medical Care On-Board Ships

Q:  Is the duty of the seafarer to take personal responsibility of the seafarer’s health while on-board by practicing a healthy lifestyle which includes taking medications and lifestyle changes as prescribed by the company-designated doctor maintained in the Magna Carta?
 
A:       Yes. The Magna Carta shall not, in any way, diminish the personal responsibility of the seafarer for the seafarer’s health while on-board by practicing a healthy lifestyle which includes bringing on-board sufficient number of the seafarer’s maintenance medications and lifestyle changes as prescribed by the duly-licensed doctor. (Section 1 of Rule IX, IRR)

On The Effectivity and Implementation of Magna Carta

Q:  With promulgation of the IRR, when can the new law be fully implemented?
 
A:        The law took effect on 11 October 2024 following its publication on 25 September 2024. With the signing of the Implementing Rules and Regulations (IRR) on 8 January 2025 and its subsequent publication on 9 January 2025, the new law can now be fully implemented starting on 25 January 2025.
 
 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 This email address is being protected from spambots. You need JavaScript enabled to view it.

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Q & A ON THE SALIENT POINTS 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 Judgements 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 Faxes

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:

1. 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
2. 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' Reputation

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:

1. Basic pay and allowances from the moment the seafarers leave the ship until they reach the repatriation destination;
2. Accommodation and food from the moment the seafarers leave the ship until they reach the repatriation destination;
3. Transportation charges, wherein the normal mode of transport should be by air;
4. Deployment cost of the shipowner; and
5. 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:

1. 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
2. When the seafarer is incapable of travelling due to illness, injury or incapacity; or
3. 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:

1. 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.
2. 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:

Q.  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;

A.      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-à-vis the jurisdiction of the existing labor courts.

Right to Free 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.”

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 This email address is being protected from spambots. You need JavaScript enabled to view it. 

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Areas of Specialization:  Labour & personal injury, litigation and dispute resolution, corporate and commercial, shipping and admiralty, intellectual property, cargo claims and charter party, transport, insurance and reinsurance, arbitration and ADR, immigration.