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Philippine Shipping Update – Manning Industry [Download]
By: Ruben Del Rosario, President, Del Rosario Pandiphil Inc., August 11, 2010
Update on the Amended Migrant Workers Act (AMWA – Republic Act No. 10022)
The Implementing Rules and Regulations (IRR) has been signed and published and becomes effective 14 August 2010. Copy of the law and the IRR can be downloaded at our website www.delrosariolaw.com. There are three areas where there are still awaited developments:
Compulsory Insurance
The amended law provides that each migrant worker deployed by a manning agency shall be covered by a compulsory insurance policy which shall be secured at no cost to the said worker. The certificate of insurance coverage shall be submitted to the POEA as a requirement for the issuance of Overseas Employment Certificate to the migrant worker. This provision of the law cannot be implemented without the necessary rules and regulations which shall be issued by the Insurance Commission that will include the following:
1. Qualification of participating insurers;
2. Accreditation of insurers;
3. Uniform Standard Policy format;
4. Premium rate;
5. Benefits;
6. Underwriting Guidelines;
7. Claims procedure;
8. Dispute settlement;
9. Administrative monitoring and supervision; and
10. Other matters deemed necessary.
In fact, under Section 2 Rule XX of the Omnibus Rules, it is provided that all OFWs who were issued Overseas Employment Certificates prior to the effectivity of the necessary rules and regulations to be issued by the Insurance Commission shall not be covered by the compulsory insurance requirement.
The Insurance Commission is given a period of thirty (30) days after the effectivity of the Omnibus Rules and Regulations on 14 August 2010 within which to issue the necessary rules and regulations.
The target date for the insurance IRR to be effective is mid-September 2010.
Department of Health – Pre-Employment Medical Examinations (PEME)
Under the amended law, the Department of Health (DOH) shall regulate the activities and operations of all clinics which conduct medical, physical, optical, dental, psychological and other similar examinations on Filipino migrant workers as requirement for their overseas employment. This provision of the amended law, however, cannot yet be implemented by the DOH as it has to issue guidelines within a period of sixty (60) days from 14 August 2010.
NLRC – No Longer Has Exclusive Jurisdiction Over Money Claims of Seafarers with CBA’s?
Under the original Migrant Workers Act (RA No. 8042) and the Amended Migrant Workers Act (RA No. 10022), the Labor Arbiters of the NLRC have jurisdiction to hear seafarer’s money claims. The law states:
“Sec. 7 (formerly Sec.10). Money Claims. Notwithstanding any provision of law to the contrary, the Labor Arbiters of the NLRC shall have the original and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after the filing of the complaint, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral, exemplary and other form of damages.”
However, Section 7 Rule VII of the Omnibus Rules and Regulations implementing RA 10022 states:
“Sec. 7. Voluntary Arbitration
For OFWs with collective bargaining agreements, the case shall be submitted for voluntary arbitration in accordance with Articles 261 and 262 of the Labor Code”.
The above IRR provision appears to be inconsistent with the law as it gives jurisdiction to voluntary arbitrators for those seafarers with CBA’s. However, it echoes Section 29 of the POEA Standard Contract in vesting original and exclusive jurisdiction to voluntary arbitrators on claims of seafarers with CBA’s.
Thus, for OFW’s with CBA’s, will the Labor Arbiters of the NLRC or the voluntary arbitrators have jurisdiction over money claims?
Under Philippine jurisprudence, it is well-settled that jurisdiction is conferred by law. Thus, it appears that the Labor Arbiters retain jurisdiction even on those OFW’s with CBA’s.
However, it is also well-settled that rules and regulations enacted by administrative agencies partake of the nature of a statute and are just as binding as if they have been written in the statute itself. As such they have the force and effect of law and enjoy the presumption of constitutionality and legality until they are set aside with finality in an appropriate case by a competent court.
The author is closely monitoring the developments and will give subsequent updates as needed.
“The Philippines’ top shipping firm, Del Rosario & Del Rosario has a wealth of talent at its disposal.”
from Asia-Pacific, The Legal 500, 2009-2010, p. 341
This publication aims to provide commentary on issues affecting the manning industry, analysis of recent cases and updates on legislation. It is meant to be brief and is not intended to be legal advice. For further information, please email This email address is being protected from spambots. You need JavaScript enabled to view it. .
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mail@delrosario-pandiphil.com
Telephone: +63 2 5317 7888, +63 2 8810 1791 Fax: 63 2 5317 7890 24/7
Mobile: 63 917 830 8384