NLRC issues Rules of Procedure Implementing the Magna Carta of Filipino Seafarers

The National Labor Relations Commission (NLRC) has recently issued its Rules of Procedure to implement the Magna Carta of Filipino Seafarers through En Banc Resolution No. 03-25 (Series of 2025) dated 31 January 2025.  Some key points to know are:
 
1.  Coverage of the new rules extend to those seafarers covered by the Magna Carta. The rules are effective if the complaint is filed on or after 12 October 2024 (effectivity of the new law).
 
2.  The third doctor's determination of a final disability grading is now mandatory before a case may be filed if the issue refers to work-related illness/injury.   Absent the referral to a third doctor, the labor arbiter shall order the suspension of the proceedings and direct the parties to seek the opinion of a third doctor.  The third doctor's opinion shall then be submitted by the parties to the labor arbiter.  If none is submitted, the labor arbiter will require the parties to file their respective position papers and evidence for continuance of the proceedings and decision making.
 
3.  The seafarer's legal representative is required to submit an Entry of Appearance to the Labor Arbiter or the NLRC attaching a notarized affidavit of undertaking stating that the seafarer will not be charged a fee of more than 10% of the compensation which may be awarded, and any excess thereof shall be held by the legal representative in trust for the seafarer. The legal representative shall also undertake not to lend/borrow money from the seafarer or participate in usurious lending practices.  
 
     If the legal representative fails to submit the required certificate and undertaking, despite directive to do so, he/she will not be recognized in the proceedings, but the pleadings will still be considered if verified and signed by the seafarer.
 
     If the legal representative of the seafarer fails to comply with the above, the labor arbiter/NLRC shall refer the matter to the NLRC Action Desk tasked to receive reports or instances of ambulance chasing and charging of exorbitant fees which shall then endorse the complaint or report to the Integrated Bar of the Philippines or the Supreme Court.
 
4.  If there are monetary awards, the decisions of the labor arbiter and the NLRC shall clearly state the specific amounts due to the seafarer, such as but not limited to the following:
 
     a.  Unpaid salary or wage, including the amount equivalent to the unexpired portion of the contract in cases arising from an illegal dismissal and any payment capable of being expressed in monetary value as stated in the Contract or CBA.
 
     b.  Unpaid statutory monetary and welfare benefits, including those arising from Section 34 (m) to (r), Sections 36 to 43, and Sections 48 to 51 of the Magna Carta, and Section 37-A of the Amended Migrant Workers Act.
 
     c.   The undisputed amount, if any, which is admitted by a party to be legally due to the other party. In case the disability grading is submitted to the determination of a third doctor, the amount corresponding to the assessment of the third doctor shall be deemed undisputed.
 
     d.  The disputed amount determined to be legally due the seafarer; and
 
     e.  Damages, including moral damages, exemplary damages, nominal damages, attorney's fees and other similar awards.
 
     Monetary awards under (a), (b), and (c) above shall be deemed as undisputed amounts and shall be immediately executory even pending appeal or judicial review.  
 
     Monetary awards under paragraphs (d) and (e) shall be deemed disputed amounts and shall not be immediately executory unless the seafarer, posts a sufficient bond to ensure the full restitution of the amount of the awards.
 
5.   If an appeal is taken from the decision of the labor arbiter granting monetary awards, this must be filed within (ten) 10 days from receipt of said decision.  
 
     If there is an award referring to disputed and undisputed amounts, the undisputed amount must be paid within 10 days to the seafarer and proof thereof must be attached to the appeal.  Also attached to the appeal must be the bond equivalent to the disputed amount, including damages and attorney's fees.   If the requirements above are not complied, the appeal is deemed non-perfected.
 
6.   Any time during the pendency of a judicial review of the decision of the Commission, the seafarer may file a motion for the execution of the disputed amount. The motion shall be supported by a bond sufficient to ensure the full restitution of the amount to be released in case the decision or resolution is reversed. The sufficiency of the seafarer's bond shall be determined by the Labor Arbiter during the pre-execution conference.
 
     If the Labor Arbiter approves the posting of a reduced bond, the seafarer may file a motion for the partial execution of the disputed amount in the decision in the same amount of the reduced bond.
 
7.   If the seafarer prevails after judicial review, the disputed amount shall be immediately executory. The employer shall reimburse the seafarer for the total cost of the seafarer's bond, inclusive of related costs to maintain it.
 
     If the award corresponding to the disputed amount is reversed by the appropriate court, and such reversal has become final and executory, the labor arbiter, upon motion, shall release the proceeds of the seafarer's bond to the prevailing party.
 
The above Rules will create significant changes in the legal proceedings specifically in appeals and execution stages. 

Author's note: There are certain issues on above Rules of Procedure, which some stakeholders have raised and are being address with the NLRC. We shall advise you further in subsequent editions as developments arise. 

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