QuestionsQuestions (POEA DEPARTMENT ORDER NO. 4, S. 2000)
It commences upon the actual departure of the seafarer from the airport or seaport in the point of hire (with a POEA-approved contract) and is effective until the seafarer’s date of arrival at the point of hire upon termination pursuant to Section 18. Contract period is mutually agreed but not to exceed 12 months, and extensions require mutual consent.
The seafarer must make a monthly allotment payable to a designated allottee in the Philippines through an authorized Philippine bank, with the allotment being at least 80% of the seafarer’s monthly basic salary (including backwages, if any).
Monthly wages must be paid not later than 15 days of the succeeding month from commencement until arrival at point of hire upon termination. Shipboard pay in foreign ports is subject to currency control regulations at the port abroad and the official exchange rate at the time of payment.
Regular work is eight (8) hours in every 24 hours (midnight to midnight, Monday to Sunday) and not more than 48 hours of regular work per week. Overtime is work performed in excess of the regular 8 hours and is compensated based on open/guaranteed or fixed overtime rates; fractions of hours are counted as full/half rules.
Open overtime must be not less than 125% of the basic hourly rate computed on 208 regular working hours per month. Guaranteed/fixed overtime must be not less than 30% of the basic monthly salary; it includes Sundays and holidays but must not exceed 105 hours per month.
Emergency duty applies to work performed in case of emergency affecting safety of the vessel, passengers, crew, or cargo, where the master is the sole judge, or for fire/boat/emergency drill or assistance to other vessels/persons in immediate peril.
Leave pay follows the agreed number of days leave per month but must not be less than 2.5 days for each month of service (pro-rated). Leave pay must be settled onboard or within two weeks after arrival at the point of hire.
Employer continues wage payment while on board. If medical/dental treatment is needed in a foreign port, employer pays full costs of serious medical/dental/surgical/hospital treatment plus board and lodging until declared fit or repatriated. After sign-off for treatment, sickness allowance equals basic wage until declared fit or disability assessed, but not exceeding 120 days.
The seafarer must submit to a post-employment medical exam by a company-designated physician within three working days upon return; if physically incapacitated, written notice to the agency within the same period suffices. Failure to comply results in forfeiture of the right to claim the sickness allowance/benefits.
Employer pays beneficiaries the Philippine currency equivalent to US$50,000 plus US$7,000 for each child under 21 but not exceeding four children, at the exchange rate at payment time. Burial expenses of US$1,000 equivalent are also provided. Employer also pays outstanding obligations and transports remains/personal effects to the Philippines at its expense (subject to local port restrictions).
If vessel is outside PH at expiration, service continues until arrival at a convenient port or after replacement crew arrival, but not beyond 3 months (earned wages/benefits continue). If vessel arrives at a convenient port before expiration and unserved portion is not more than 1 month, employer may repatriate with earned wages and earned leave pay and basic wages for unserved portion unless rehired within 60 days. If arrival is within 3 months before expiration, employer may repatriate with all earned wages plus leave pay for entire contract and termination pay equivalent to one month basic pay (if original contract at least 10 months).
Shipwreck termination: earned wages, medical exam at employer’s expense to determine fitness, repatriation at employer’s cost, and one month basic wage termination pay. Vessel sale/lay-up/discontinuance: earned wages, repatriation at employer’s cost, and one month basic wage termination pay (unless joined to another vessel to complete contract). Unseaworthiness: seafarer cannot be forced to sail; if termination is necessary, earned wages, repatriation at employer cost, and one month basic wage termination pay. STCW 1/4 port state control: termination is valid; repatriation, earned wages and other benefits are owed.
Seafarer first approaches head of department (Chiefmate/Chief Engineer/Chief Steward &/or Purser depending on department), makes a written orderly complaint choosing a time to be heard; the department head resolves or refers to the Master. If still unsatisfactory, seafarer may appeal to company management or POLO/consular officer overseas with master afforded facilities to transmit appeal. Any documentation is required for protection, and the process is without prejudice to other dispute modes and POEA/NLRC jurisdiction.
Master must furnish written notice stating grounds and date/time/place of formal investigation. Master (or authorized representative) must conduct investigation/hearing giving seafarer opportunity to explain/defend; procedures must be documented in ship’s logbook. If penalty is justified, Master issues a written notice of penalty with reasons and copies to Philippine agent. Dismissal for just cause may be effected without notice only if there is clear and existing danger to safety of crew or vessel, with a complete report to the manning agency substantiated by witnesses and documents.
For those covered by a CBA: claims/disputes go to the original and exclusive jurisdiction of the voluntary arbitrator/panel. If not covered by CBA: parties may choose NLRC pursuant to RA 8042 or voluntary arbitrators. POEA has original and exclusive jurisdiction over administrative disciplinary actions involving violations of recruitment laws, rules, and regulations concerning employers/principals/contracting partners and Filipino seafarers.
All claims arising from the contract must be made within three (3) years from the date the cause of action arises; otherwise claims are barred.
Concealing and failing to disclose past medical condition/disability/history in the pre-employment medical examination constitutes fraudulent misrepresentation, disqualifying the seafarer from compensation and benefits and may also be a valid ground for termination and imposition of appropriate administrative and legal sanctions.
All conditions must be satisfied: (1) the seafarer’s work involves the risks described; (2) disease resulted from exposure to those risks; (3) disease contracted within exposure period and under factors necessary; and (4) there is no notorious negligence on the part of the seafarer. If the seafarer is notoriously negligent, compensability is barred.