Sunday, June 5, 2016

San Pedro Calungsod, Pinoy Seafarers, and the path to sainthood.




The Filipino seafarers are not only major contributors to the country’s economic growth, they are also ‘saint potentials’, thus said  Manila Archbishop Luis Antonio Tagle during the 17th National Seafarers' Day (NSD) last  September 30, 2012 .   

 The archbishop was referring to Saint Lorenzo Ruiz and Blessed Pedro Calungsod, the soon-to-be second Filipino saint as he noted that  these Philippine Catholic Church’s two martyrs were seafarers and missionaries at the same time before they became saints. He added that Ruiz and Calungsod sailed to other countries and died for a mission: “to teach the Good News.”

 “You should be instruments for what is good work and not of temptations,” he added. “The Filipinos today are sailing everywhere. Bring with you the best of the Filipinos.”

President Benigno Aquino III  approved Proclamation 481 declaring October 21 as the   national day of celebration on the canonization of Blessed Pedro Calungsod to honor his “life and martyrdom”.  “The life and martyrdom of Blessed Calungsod shall serve as an inspiration to Filipinos, particularly the youth to live a life anchored on values and principles,” part of the proclamation reads.

Calungsod was a teenage catechist from Visayas who accompanied Blessed Diego Luis de San Vitores in Tumhon village in Guan, Marianas, where they were killed on April 2, 1672. Blessed Pope John Paul II beatified him in March 2000.

The Philippines is considered as the major supplier of maritime labor globally. Philippine Overseas Employment Administration (POEA) data showed that the deployed Filipino seafarers in 2006 (274,497), 2007 (266,553), 2008 (261,614), 2009 (330,424),  2010 (347,150),  and  2011 (400,000) brought in  the dollar remittances that have also  been constantly increasing from US$1.9B in 2006, US$2.2B in 2007 , US$3B in 2008, US$3.4B in 2009, US$3.8B in 2010 to S$4.3B in 2011. On the other hand, the Philippines as a flag State has a registered fleet comprising around 1.4% of total world tonnage.


Given the vast Philippine coast line (twice the size of the United States and nearly three times more than China), Filipinos have natural maritime instincts that place them at an advantage over other nationalities. Foreign shipowners are known to prefer Filipino seafarers for equally important qualities: dedication and discipline, industry, flexibility, loyalty, English language fluency, adaptability, positive work attitude, law-abiding, and problem-solving capability.

Due Process on dismissal

HOW does due process apply to the employment relationship of Filipino seafarers with their employers?

The POEA Standard Employment Contract and Implementing Rules of Book V of the Labor Code prescribe the standards of due process that must be substantially observed in cases of termination of employment on just causes, i.e., the serving of the first written notice on the employee, which states the ground(s) for termination and which gives the employee the opportunity to explain, the holding of a hearing where the employee may present his evidence, and the serving of the notice of termination, indicating the grounds established to justify the dismissal.

In the case of Philippine Transmarine Carriers, Inc. vs. Felicisimo Carilla (G.R. No. 157975, June 26, 2007), the seafarer filed a complaint for illegal dismissal after he was summarily repatriated to the Philippines while the vessel he embarked on was in India. His employer presented mere unauthenticated and unsigned papers and reports to enumerate his alleged acts of incompetence. The Supreme Court found that the said documents have no probative value and that the seafarer was dismissed without due process hence, his claim for the unexpired portion of his contract partially granted.
 
In the case of Joel B. de Jesus vs. NLRC (G.R. No. 151158, Aug. 17, 2007), just barely 3 months from the day he departed from the Philippines and embarked on his vessel, the seafarer was repatriated after he was diagnosed to be suffering from gastric ulcer. After his request for financial assistance and medical treatment was disallowed, he filed a claim for payment of his unpaid salary, sickness allowance, and reimbursement of medical expenses against his employer before the National Labor Relations Commission on the ground that he was illegally discharged.

The Court observed that since the employer did not present proof that: (a) the seafarer breached his employment contract and (b) that the prescribed disciplinary procedures on notice and hearing provided under Section 17 of the POEA SEC were followed, the employer failed to establish its defense of the seafarer’s valid dismissal. As such, the seafarer’s claims for payment were accordingly granted.

Wednesday, June 1, 2016

FAQs - NLRC Proceedings



Here is the Frequently Asked Questions for cases filed before the National Labor Relations Commission (NLRC) 
 Conference
The Labor Arbiter shall summon the parties to a conference within two days from receipt of an assigned case.The purpose of the conference is either to:
·                                 amicably settle the dispute;
·                                 determine the real parties in interest;
·                                 define and simplify the issues of the case;
·                                 enter into admissions and/or stipulations of facts; and
thresh out preliminary matters. (Sec. 2, Rule 5, NLRC Rules as Amended)

 Number of conferences allowed
The number of conferences shall not exceed three (3) settings and shall be terminated within thirty (30) calendar days from the date of the first conference.
No motion for postponement shall be entertained. Non-appearance of the complainant/s during the scheduled hearings for mediation/conciliation conference shall be a ground for the dismissal of the case without prejudice.
In case of non-appearance of the respondent/s during the first conference, a second conference shall proceed. Non-appearance of the respondent/s during the second conference shall immediately terminate the mandatory conciliation/mediation conference. The complainant/s shall thereupon be allowed to file his position paper as well as submit evidence in support of his cause or causes of action after which, the labor arbiter shall render his decision on the basis of the evidence on record. (Sec. 2, Rule 5, NLRC Rules as Amended)
When to submit position papers/ memorandum
If, during the conferences, the parties fail to agree upon an amicable settlement, either in whole or in part, the Labor Arbiter shall issue an order directing the parties to simultaneously file their respective verified position papers, with the supporting documents and affidavits within fifteen (15) calendar days from the date of the last conference, with proof of having furnished each other with the copies thereof.
The verified position papers shall cover only those claims and causes of action raised in the complaint excluding those that may have been amicably settled.

When is a hearing necessary or not?
If there is a need for a hearing, the Labor Arbiter shall issue an order setting the date or dates for said hearing which shall be terminated within ninety (90) days from initial hearing. However, if he finds no necessity for further hearing after the parties have submitted their position papers and supporting documents, he shall issue an Order to that effect and inform the parties. The Arbiter shall render his decision in the case within ninety (90) days.
The Labor Arbiter determines the necessity of a hearing
As soon as the parties have submitted their position papers/memorandum, the Labor Arbiter shall, motu propio, determine whether there is a need for a formal trial or hearing. The Labor Arbiter may, at his discretion, ask clarificatory questions to further elicit facts or information, including but not limited to the subpoena of relevant documentary evidence from any party or witness.

 When will the Labor Arbiter render decision?
The Arbiter shall render his decision within thirty (30) calendar days, without extension, after the submission of the case by the parties for resolution, even in the absence of stenographic notes, provided however that cases involving Overseas Filipino Workers shall be decided within ninety (90) calendar days after the filing of the complaint which shall be deemed perfected upon acquisition by the labor arbiter of jurisdiction over the respondent/s. (Sec. 5, Rule 5, NLRC Rules as Amended)

May the Labor Arbiter conciliate disputes?
Yes. At any stage of the proceedings in all cases, the Arbiter shall exert all efforts and take positive steps toward resolving the dispute through conciliation.



 What is an appeal in compulsory arbitration?
When an aggrieved party is not satisfied with the decision, order or award of the Labor Arbiter, POEA Administrator or DOLE Regional Director or his duly authorized hearing officer, the decision, award or order may be elevated to the Commission Proper upon grounds provided by law.

 What is the period of appeal?
Within ten (10) calendar days from receipt of such decisions, awards or orders of the Labor Arbiter or of the POEA Administrator. In case of a decision of the Regional Director or his duly authorized hearing officer, the appeal may be filed within five (5) calendar days from receipt of such decisions, awards or orders.

What are the other requisites for the perfection of an appeal?
·                                 The appeal should be under oath.
·                                 Proof of payment of appeal fee.
·                                 Proof of posting of a cash or surety bond.
·                                 Must be accompanied by a memorandum of appeal which shall state the grounds relied upon and the supporting arguments.
·                                 A statement of the date when the appellant received the appealed decision or award.
Proof of service on the other party of such appeal.

 When is a bond required in an appeal?
In case the decision of the Labor Arbiter, POEA Administrator and DOLE Regional Director or his duly authorized hearing officer involves monetary award.

How many copies of the appeal must be submitted and where does one file an appeal?
The appeal, in five (5) legibly typewritten copies, may be filed with the respective Regional Arbitration Branch, the DOLE Regional Office or the POEA, where the case was heard and decided.

Can an appeal for decisions involving monetary award be perfected without posting a bond?
An appeal by the employer shall be perfected only upon posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission or the Supreme Court in an amount equivalent to the monetary award.

What is the period to resolve the appeal?
The appeal from the decision, order or reward of the Labor Arbiter and POEA Administrator shall be resolved by the Commission within 20 calendar days from receipt of the answer of the appellee or upon the filing of the last pleading or memorandum.

In case of an appeal from the decision of the DOLE Regional Director or his duly authorized hearing officer, it shall be resolved within 10 calendar days.

Three separate and distinct benefits of a medically repatriated seafarer.


The Filipino  seafarer is entitled to medical treatment at cost to the employer apart from disability benefits and
sickness allowance.

Away from his family and working on board vessels sailing non-stop for weeks or months the world’s oceans, the Filpino seafarer is physically, mentally and emotionally stressed. Constantly exposed to fluctuating temperatures caused by variant weather changes of extreme hot and cold as the ships cross ocean boundaries, not to mention harsh weather conditions, the risks of his getting killed, injured or ill are high.

           
The employer  is liable for  three separate and distinct  kinds of liabilities under the  Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC) for any work-related illness or injury that the seafarer may have suffered during the term of the contract. In other words, employers must: (1) provide   medical treatment to  the seafarer at their cost; (b) pay the seafarer sickness allowance equivalent to his basic wage  and (2) compensate the seafarer for his permanent total or partial disability as finally determined by the company-designated physician.

Section 20-B (2), paragraph 2, of the POEA-SEC entitles the seafarer  medical treatment that is aimed at the speedy recovery of the seafarer and the restoration of his previous healthy working condition. The contract  imposes on the employer the liability to provide, at its cost, for the medical treatment of the repatriated seafarer for the illness or injury that he suffered on board the vessel until the seafarer is declared fit to work or the degree of his disability is finally determined by the company-designated physician. This liability for medical expenses is conditioned upon the seafarer's compliance with his own obligation to report to the company-designated physician within three (3) days from his arrival in the country for diagnosis and treatment.

Since the seafarer is repatriated to the country to undergo treatment, his inability to perform his sea duties would normally result in depriving him of compensation income. To address this contingency, Section 20-B (3), paragraph 1, of the POEA-SEC imposes on the employer the obligation to provide the seafarer with sickness allowance that is equivalent to his basic wage until the seafarer is declared fit to work or the degree of his permanent disability is determined by the company-designated physician. The period for the declaration should be made within the period of 120 days or 240 days, as the case may be.

Once a finding of permanent (total or partial) disability is made either within the 120-day period or the 240-day period, Section 20-B (6) of the POEA-SEC requires the employer to pay the seafarer disability benefits for his permanent total or partial disability caused by the work-related illness or injury. In practical terms, a finding of permanent disability means a permanent reduction of the earning power of a seafarer to perform future sea or on board duties; permanent disability benefits look to the future as a means to alleviate the seafarer's financial condition based on the level of injury or illness he incurred or contracted.


 The Supreme Court emphasized the separate treatment of, and the distinct considerations in, these three kinds of liabilities in the case of Javier v. Philippine Transmarine Carriers, Inc..  (G.R. No. 2014101 July 2, 2014). The evident intent of the POEA-SEC is  to treat these liabilities of the employer separately and distinctly from one another by treating the different items of liability under separate paragraphs. These individual paragraphs, in turn, show the bases of each liability that are unique from the others.

Significantly, too, while Section 20 of the POEA-SEC did not expressly state that the employer's liabilities are cumulative in nature — so as to hold the employer liable for the sickness allowance, medical expenses and disability benefits — it does not also state that the compensation and benefits are alternative or that the grant of one bars the grant of the others.  

It is clear from the above that while a seafarer  is not entitled to total and permanent disability benefits, this does not rule out his right to the other benefits provided for under the POEA-SEC such as reimbursement for medical expenses, sickness allowance and benefit for partial disability caused by a work-related injury.

This formulation is in keeping with the POEA's mandate under Executive Order No. 247 to "secure the best terms and conditions of employment of Filipino contract workers and ensure compliance therewith" and to "promote and protect the well-being of Filipino workers overseas. As a labor contract, the POEA-SEC is imbued with public interest. Accordingly, its provisions must be construed fairly, reasonably and liberally in favor of the seafarer in the pursuit of his employment on board ocean-going vessels. After all, the constitutional policy accords and guarantees full protection to labor, both local and overseas.


Atty. Dennis R. Gorecho  is a graduate of UP College of Law (1998)  and  is currently a junior partner of Sapalo Velez Bundang Bulilan (SVBB) law offices  who heads the seafarers’ division. He is a  speaker on  nationwide paralegal seminars on  seafarers rights.  He is presently the executive vice president of the Maritime Law Association of the Philippines (MARLAW),  and an active  member of the Maritime Forum Inc. , the National Seafarers Day (NSD) committee and International Pro Bono Network. The SVBB law works hand in hand with various seafarers welfare  organizations such as the Apostleship of the Seas (AOS) Philippines, Luneta Seafarers Welfare Foundation (LUSWELF) and United Filipino Seafarers (UFS) . He is a legal commentator on maritime issues on print, radio and TV. A co-anchor of the radio program Bantay OCW Usapang Marino aired over Radio Inquirer/ DZIQ every Wednesday 10:30am to 12noon. For comments, please send  email  at info@sapalovelez.com or call  09175025808/ 09088665786.

Thursday, May 26, 2016

Sources of Seafarers’ Rights


Know Your Rights!

Seafarers’ rights is a complex area since your rights can exist at different levels and they can be overlapping and sometimes conflicting.

Therefore if you have a legal problem, you will need to seek advice from your union and from a lawyer who will discuss your specific situation.

This information is general advice only.

Sources of Seafarers’ Rights:
  • Flag State law
    A ship has the nationality of the flag that it flies.  Also, under international law, the laws of a flag State apply to a ship regardless of the location of the ship.  Therefore you - as a seafarer - are entitled to the protection of, and are governed by, the laws of the flag State wherever the ship is and regardless of your nationality.  For example, if you are a Filipino seafarer on a Panama flag ship, you have rights (and obligations) under the laws of Panama.  So, always be aware of what flag your ship is flying and where necessary, ask for assistance to find out what are the laws of that flag State.
  • Port State law
    When your ship enters a port, that port State can exercise certain powers over the ship whilst it is in port.  Generally a port State does not intervene in the internal affairs of a ship unless there is a dispute which concerns the peace and good order of the port (for example if a crime is committed on board a ship).  However in many jurisdictions around the world, if you have a legal claim, for example for unpaid wages, you will be able to start a legal action in the courts of the port State.   Again where necessary, ask for assistance to find out what are the laws of the port State.
  • Your home State
    You will be able to rely on rights contained in your home State law if that law governs your contract of employment.  Otherwise, if you are in trouble when abroad, your home country should provide support and assistance through its consular offices. Therefore ask for assistance through consular officers.
  • Your contract of employment
    Your individual contract of employment will set out what your rights are as between you and your employer.  Your contract may be (1) a private contract and/or (2) a collective bargaining agreement produced by a trade union or an employers’ association and/or (3) a form of contract in which the government has taken an active role (such as the POEA Contract:  Standard Terms and Conditions governing the employment of Filipino Seafarers onboard Ocean Going Ships).  Your contract may be directly with the shipowner, or it may be with a manning agent, or it may be with some other agent for the shipowner.  All these different arrangements can affect your rights.  However above all it is important that you have a copy of your contract of employment, that you read it and that you know what rights are contained in it.
  • International laws
    International laws are laws made at the highest level between States.  Since it was founded in 1919, the International Labour Organisation (ILO) has set international labour standards for all workers, and specifically has set standards for seafarers in more than 65 Conventions and Recommendations.  These instruments, taken together, constitute a comprehensive set of standards and concern practically all aspects of living and working conditions of seafarers.  In February 2006, these existing conventions and recommendations were updated and consolidated in the Maritime Labour Convention, 2006, a single, coherent international maritime labour standard for seafarers that entered into force on 20 August 2013.
Human rights instruments also exist at international and regional level which may be relevant to the rights of seafarers.

Also at the international level, Conventions of the International Maritime Organisation (IMO) impose obligations on States, a number of which have the effect of creating benefits for seafarers.

Friday, April 29, 2016

Blame-shifting in Seafarer’s labor cases

Pinoy Seafarers’ Rights
Atty. Dennis R. Gorecho



“Aanhin pa ang damo kung patay na ang kabayo.”  Never mind if the seafarer dies before he receives compensation. A popular Filipino saying that applies directly to the possible  legal effect of ANGKLA’s  bill (House Bill No.  5430) that seeks to delay the execution of  the favorable judgment from the National Labor Relations Commission (NLRC) and the National Conciliation and Mediation Board (NCMB).

 In most cases for disability compensation, some incur huge debts to sustain their medication while others die before the decision by the Supreme Court is released. And yet ANGKLA insists that the aim of the bill is “to balance the interest” of  the seafarer and the employer as  “there is little hope of recovering anything through restitution.” In reality,  employers  have the legal remedies to recover the amount, but one cannot reclaim the life of the deceased seafarer.

Worse, ANGKLA has employed the art of deception in sanitizing the real picture  that the seafarers are victims of the employers’ abuses  when it authored the  Republic Act 10706 , or the  Seafarers’ Protection Act. Call it the game of “blameshifting”, ANGKLA has diverted  attention on labor cases   by discrediting the lawyers who ANGKLA   accused of having considerable interest in the seafarer’s  monetary benefits.

Lest we   forget, seafarers are forced to go to court because the employers  violated their legal rights first. Every  labor dispute is a David and Goliath battle as  it  involves two opposing parties:  the worker on one side and the management on the other, for  monetary claims for  disability and death benefits, illegal dismissal as well as unpaid or underpayment of salaries and wages

In illegal dismissal cases,  the POEA contract requires compliance with  two basic requirements for a lawful dismissal: a just or authorized case as prescribed by law (substantive requirement), and observance of due process. Many are sent home due to unfounded accusations and without the proper notices given.

Away from his family and working on board vessels sailing non-stop for weeks or months the world’s oceans, he is mentally and emotionally stressed. Constantly exposed to fluctuating temperatures caused by variant weather changes of extreme hot and cold as the ships cross ocean boundaries, not to mention harsh weather conditions, the risks of his getting killed, injured or ill are high.

As if working under these difficult conditions are not enough, when he sustains injury, illness or lose his life, seldom does he receive full compensation provided under the law due to company’s  legal maneuverings by  using  the POEA  contract  that contains terms and conditions formulated more favorable to his employer and is littered with ambiguous provisions, generalizations, technicalities that he does not understand.

In many instances, he signs Receipt and Quitclaim documents thereby  releasing his employers from all claims, demands and causes of action without even understanding their contents. Oftentimes, he is misled into accepting an ex-gratia, miniscule amount, in the guise that his condition is either not work-connected, or for any other reason for which he does not comprehend. Compensation claims are either denied or downgraded   due to the biased medical opinion of the company designated  physician.

More often than not, he knows that he is being cheated of his rights, but how can he question his employer in these instances, without the assistance of competent lawyer of his own choosing?

Instead of addressing the above issues by giving seafarers more access in compensation benefits, R.A. No. 10706 will   restricts  his option of an avenue to avail of legal services of competent lawyers, which he can voluntarily enter into, are therefore,  antagonistic to his interests, rendering him defenseless against the abuses of his employers.  They will, in effect, obstruct the effective and efficient administration of justice.

Seafarers should not be deceived by the misleading projection of the  law which employed the “scare tactic” to discourage seafarers from engaging the legal services of lawyers by depicting the latter as vultures. By charging even eleven percent (11%) of the amount recoverable, or one percent higher than the ten percent (10%) limit,  is not “abusive” per legal practice standard. Yet, ANGKLA used as “papogi” points its deceptive concern towards the seafarers. In the end, the legislative act intends to protect business interest from the cases filed by seafarers deprived of their rights under contract and the law rather than give more access to the seafarers for rightful compensation.

When a seafarer is forced to go to engage the services of a lawyer, employers   do not hesitate to harness its immense resources to  escape from  or limit its liability. However, when he wins, the employer, in order give a semblance of sympathy, will use the Seafarer’s Protection Act to say “I care for you. Your lawyer should get only ten percent.”  Ironically,  ANGKLA’s escrow bill  is anti-seafarer since it is a  dilatory tactic wherein he  will not immediately get what is rightfully due to him. Never mind if the seafarer dies before the decision, as long as the employer’s interest is also protected by ANGKLA’s  escrow bill.

Without any leverage in prosecuting his monetary claims, chances are, he bows to the demand of his employer to either drop his claim or accept a small settlement.  If he has enough pride and heart, and there are only a few who fall in this category, his only recourse is the exercise of his right, guaranteed by the due process clause of our Constitution, to engage the legal services of attorneys of his choice.  With good, experienced, professional lawyers, he will be able to prosecute his monetary claim in a level playing field.

It is election time again. Be critical of the real colors. 

             

Atty. Dennis R. Gorecho  is a graduate of UP College of Law (1998)  and  is currently a junior partner of Sapalo Velez Bundang Bulilan (SVBB) law offices  who heads the seafarers’ division. He is a  speaker on  nationwide paralegal seminars on  seafarers rights.  He is presently the executive vice president of the Maritime Law Association of the Philippines (MARLAW),  and an active  member of the Maritime Forum Inc. , the National Seafarers Day (NSD) committee and International Pro Bono Network. The SVBB law works hand in hand with various seafarers welfare  organizations such as the Apostleship of the Seas (AOS) Philippines, Luneta Seafarers Welfare Foundation (LUSWELF) and United Filipino Seafarers (UFS) . He is a legal commentator on maritime issues on print, radio and TV. A co-anchor of the radio program Bantay OCW Usapang Marino aired over Radio Inquirer/ DZIQ every Wednesday 10:30am to 12noon. For comments, please send  email  at info@sapalovelez.com or call  09175025808/ 09088665786. 

Tuesday, April 19, 2016

The imbalanced legal battle on seafarers claims



“Aanhin pa ang damo kung patay na ang kabayo.”  Never mind if the seafarer dies before he receives compensation. Through legislative fiat, ANGKLA partylist is  throwing off-balance  the already imbalanced legal battle on seafarers claims. 

ANGKLA  has consistently  used  the phrase “ balancing  the interest of the seafarer and the company”  when it filed the   proposed  bill (House Bill No.  5430)  that aimed to delay the execution of the monetary judgment award  issued by the National Labor Relations Commission (NLRC) and the National Conciliation and Mediation Board (NCMB)   in favor of a  seafarer. It  is the twin bill of the new law, the so-called “Seafarers’ Protection Act”.

Every labor dispute is a David and Goliath battle as  it  involves two opposing parties:  the worker on one side and the management on the other, for  monetary claims for  disability and death benefits, illegal dismissal as well as unpaid or underpayment of salaries and wages. 


 By placing   the proceeds  in escrow until such time the finality of the decision issued by the appropriate appellate court (Supreme Court or Court of Appeals), in the end, the “balance of scale” will tilt more to capital as this  will protect the business interest of the manning agencies and their principal rather than the seafarers themselves.
  

In order to discourage seafarers in pursuing legal actions against the companies when it authored the new law , the Seafarers’ Protection Act,  , ANGKLA deliberately and  sweepingly   depicted   seafarers’ lawyers as “unscrupulous” in an attempt to deflect the real issues why cases are being filed.  They blamed the lawyers , most of them  they described as “ambulance chasers” , who  go to lengths to push seafarers to file labor cases against their foreign employers, claiming for benefits even beyond the claims they are actually entitled to.

In essence, ANGKLA echoed  the employer’s phrase “ benefits even beyond the claims they are actually entitled ”  to sanitize the problematic  legal battle for seafarer’s compensation.


Valid claims,  employers  argue, necessarily must  follow what the POEA contract dictates: a contract  that contains terms and conditions formulated more favorable to his employer and is littered with ambiguous provisions, generalizations, technicalities that he does not understand.

Away from his family and working on board vessels sailing non-stop for weeks or months the world’s oceans, he is mentally and emotionally stressed. Constantly exposed to fluctuating temperatures caused by variant weather changes of extreme hot and cold as the ships cross ocean boundaries, not to mention harsh weather conditions, the risks of his getting killed, injured or ill are high.

Under  the 1996 POEA Standard Employment Contract (SEC),  for disability or death to be compensable,  it was sufficient that the seafarer suffered injury or illness during the term of his employment.  The cause of illness or death is immaterial.

However, through the lobbying of the principals and their  manning agencies, the restrictive clause “work-related”  was added under Section 20 (B) of the 2000 POEA SEC to limit their liabilities.   The 2000 POEA SEC defined "work-related injury" as "injury(ies) resulting in disability or death arising out of and in the course of employment" and "work-related illness" as "any sickness resulting to disability or death as a result of an occupational disease listed under Section 32-A of the contract”.  Being included in the list is not enough, since  all of the following conditions must be satisfied: (a) the seafarer’s   work must involve the risks described; (b) the disease was contracted as a result of the seafarer's exposure to the described risks; (c). the disease was contracted within a period of exposure and under such other factors necessary to contract it;  and (d) there was no notorious negligence on the part of the seafarer.  These same definitions were reiterated in the 2010 POEA SEC.


Two elements must concur for an injury or illness to be compensable. First, that the injury or illness must be work-related; and second, that the work-related injury or illness must have existed during the term of the seafarer's employment contract. The first requirement  appeared in the 2000 and 2010 POEA SEC but is  absent in the 1996 version.


Through such restrictive provisions of the POEA SEC, claims for disability compensation  became a legal battleground, especially in instances   when seafarers do not  receive full compensation that are legally entitled to have. Such emergence of cases is attributable to the fact that  the seafarer’s  employer does not hesitate to harness its immense resources to limit its liability.


In denying, if not limiting,  the seafarer’s claims, the employer usually raise the misleading argument that the POEA mandated that disability can only be assessed by the company-designated physician based on the disability grading system considering that the latter had the time and the opportunity to constantly monitor the health and physical condition of the seafarer. However, the Supreme Court stressed that their  medical assessment “is not the alpha and the omega of the seafarer's claim for permanent and total disability.” (Elburg Shipmanagement Phils. vs. Quiogue, Jr,  G.R.No.211882 July 29, 2015). The problem can be partly attributed to the Supreme Court's observation on the  proliferation of obviously biased company doctor whose “findings cannot be taken as gospel truth” and  “are palpably self-serving  and certainly could not be considered independent” as their  "loyalty rests completely upon the company they serve" (UPL/HAL  vs  . Beseril, 487 SCRA 249).  Thus, the POEA contract does not preclude the seafarer from getting a second opinion as to his condition for purposes of claiming disability benefits.

In reality, the grading system assessment under the POEA Contract is not  reflective of the benefits that should be given to the seafarer. There are medical conditions that are classified as partial disability (between Grade 2 to 14) but in essence should have been considered as total permanent (Grade 1).  Employers will never hire a seafarer who suffered complete loss of the sense of hearing on both ears (Grade 3), loss of speech due to injury to the vocal cord (Grade 9),   total loss of a leg or amputation at or above the knee (Grade 3),    paralysis of one upper extremity (Grade3) , or  loss of one foot at ankle joint or above (Grade 6),   loss of   ten  fingers of both hands (Grade 3)  or amputation between wrist and elbow joint (Grade 5), or total blindness of one  eye and fifty percent (50%) loss of vision of the other eye will never be employed due to visual impairments. (Grade 5).  Fit-To Work certifications are given even to seafarers who are still not cured or in essence can no longer be employed such as those who suffered from heart attacks, aneurism or stroke.
From the business point of view, it will be risky for the employers  to let the seafarer be re-employed since the harsh working environment might only aggravate his fragile condition and in the end expose the company to more serious insurance liabilities.
Thus, Supreme Court's consistently  ruled  that  "it is not the injury which is compensated, but rather it is the incapacity to work resulting in the impairment of one's earning capacity. Disability need not render the seafarer absolutely helpless or feeble to be compensable; it means disablement of an employee to earn wages in the same kind of work, or work of similar nature that [he] was trained for or accustomed to perform, or any kind of work which a person of [his] mentality and attainment could do.  (Valenzona vs. Fair Shipping Corporation, 659 SCRA 642)  

The word “unscrupulous” should likewise be applied to the employers and their people who  harness  their  immense resources to limit  their  liability. In many instances, the seafarer signs Receipt and Quitclaim documents thereby releasing his employers from all claims, demands and causes of action without even understanding their contents. Oftentimes, he is misled into accepting an ex-gratia, miniscule amount, in the guise that his condition is either not work-connected, or for any other reason for which he does not comprehend.

Unless their definition of “valid claims” is changed, through the deletion of the “work-related” clause, and  through the reversion to the  old  1996 POEA Contract , the denials of seafarers’ claims will continue. The compensation scheme should be less restrictive and more realistic, Otherwise, their only recourse is to seek legal assistance from lawyers of their own choosing. Conversely speaking, give the seafarers what they should  receive, and employers will not be hounded by legal cases.  

In essence, such reversion to the 1996 POEA Contract was partially done in the implementation of the Compulsory Insurance Coverage under the Migrant Workers and Overseas Filipinos Act of 1995” or Republic Act 8042 as amended by Republic Acts 9422 and 10022. The seafarer or his beneficiaries  will automatically be given, among others,  the benefits (US$15,000.00 if accidental death, US$10,000.00 if natural death, US$7,500.00 if total permanent disability) with or without fault on the part of the seafarer, as long as the basis of such  claim occurred during the effectivity of the POEA Contract.

And expectedly, ANGKLA will not  pursue the total deletion of the “work related clause” since this will run counter to the business interest of the employers.

In fact, ANGKLA filed  House Bill  No. 5430 aimed to amend the labor code that will have significant impact on labor claims governing the immediately “final and executory” nature of decisions issued by NLRC/NCMB.   The seafarer   will wait for longer years before they receive the award by the NLRC/NCMB,  ANGKLA proposes that the proceeds of execution shall be deposited in an escrow account to ensure the restitution of monetary awards in case the appropriate appellate court annuls or partially or totally reverses the monetary judgment.



Labor litigation takes years before it reaches the supreme court. In most cases, the elevation of the records alone from the NLRC/NCMB to the Court of Appeals or Supreme Court will take several years. The proceedings in the appellate court will entail further delay. ANGKLA justifies the Escrow bill to ensure that the seafarer will still receive the award in the future in the event that the manning agency close down. However, ANGKLA disregarded the fact that  in cases of seafarers with medical conditions, some incur huge debts to sustain their medication while others die before the decision by the Supreme Court is released forcing the seafarers into accepting an ex-gratia, miniscule amount  Companies have the legal remedies to recover the amount, but one cannot reclaim the life of the deceased claimant.


It is election time again. Be critical of the real colors.