Illegal Seafarer's Loans

Appropriate criminal and administrative penalties will be imposed  on persons or entities involved in loan  transactions which are considered  violations under the Amended Migrant Workers and Overseas Filipinos Act (AMWA) R.A.  No. 10022 and the  Revised POEA Rules and Regulations  2016   in relation to the  recruitment and employment of Filipino seafarers: 

1. Withholding or denying travel or other pertinent documents from an applicant seafarer for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing Rules and Regulations

 

2.  Withholding of seafarer’s salaries or remittances, SSS contributions and loan amortization or shortchanging/reduction thereof without justifiable reasons.The penalty shall include the release of the salaries or remittances being claimed

 

3. Impose a compulsory and exclusive arrangement whereby a seafarer is required to avail of a loan from a specifically designated institution, entity, or person.

 

4. Granting a loan to a seafarer with interest exceeding eight percent (8%) per annum which will be used for payment of legal and allowable fees and making the seafarer issue, either personally or through a guarantor or accommodation party, post-dated checks in relation to the said loan

 

5. Refuse to condone or renegotiate a loan incurred by the seafarer after the latter’s employment contract has been prematurely terminated through no fault of his/her own.

 

Under  the AMWA,  any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than Five hundred thousand pesos (P500,000.00) nor more than One million pesos (P1,000,000.00).

Under the 2016 Revised POEA Rules and Regulations, penalties for  the aforesaid less serious offenses may vary based on the frequency of violations:

              1st Offense — Suspension of License (2 to 6 Months) 

              2nd Offense — Suspension of License (6 Months and 1 day to 1 year) 

              3rd Offense — Suspension of License (1 year and 1 day to 2  years) 

              4th Offense — Cancellation of License 

 

Money claims arising from recruitment violation may be awarded in addition to the administrative penalties imposed. In lieu of the penalty of suspension of license, the POEA may impose the penalty of fine which shall be computed at Fifty Thousand Pesos (P50,000.00) for every month of suspension. 

 

The penalty of cancellation of license shall be imposed by the POEA upon a respondent found liable for committing an offense, regardless of the number or nature of charges, against five (5) or more workers in a single case. This provision shall not apply to consolidated cases unless there are five (5) or more complainants in any of the consolidated cases. 

 

Prescription: All cases  shall be barred if not commenced or filed within three (3) years after such cause of action accrued.

The revised rules was passed in accordance with the POEA's policy,   among others, to uphold the dignity and fundamental human rights of Filipino seafarers navigating foreign seas, and promote full employment and equality of employment opportunities for all;