Amended POEA Terms for Filipino Seafarers

Definitions and contract terms

“Point of Hire” is the place indicated in the contract of employment that determines commencement and termination of the contract.
“Convenient Port” means a port where it is practicable, economical, safe and convenient to repatriate the seafarer.
“Philippine Port” means any Philippine airport or seaport.
“Basic Wage” means the seafarer’s salary excluding overtime, leave pay and other bonuses.
“Departure” is the actual departure from the point of hire of the seafarer through air, sea or land travel transport to join the vessel to a Philippine or foreign port.
“Regular Working Hours” refers to the seafarer’s eight (8) hour working hours within the period of 24 hours.
“Dental Treatment” covers tooth extraction or dental surgery if necessary due to accident.
“Shipwreck” means damage or destruction of a vessel at sea caused by collision, storm, grounding or any other marine peril at sea or in port rendering the vessel absolutely unnavigable or unable to pursue its voyage.
“Compassionate Ground” refers to death of an immediate member of the seafarer’s family, including parents, spouse, and children if married, or parents if single.
“Principal” means any person, partnership or corporation hiring Filipino seafarers to work onboard ocean-going vessels.
“Work-Related Injury” means injury(ies) resulting in disability or death arising out of and in the course of employment.
“Work-Related Illness” means sickness resulting in disability or death as a result of an occupational disease listed under Section 32-A with the conditions set therein satisfied.

Parties’ core duties and obligations

The employer/agency/master must faithfully comply with the stipulated contract terms, especially prompt payment of wages, remittance of allotment, and expeditious settlement of valid claims of the seafarer.
The employer/agency/master must put in place the grievance machinery in the contract and ensure free access at all times by the seafarer.
The employer/agency/master must provide a seaworthy vessel and take reasonable precautions to prevent accident and injury, including safety equipment, fire prevention, safe and proper navigation, and other necessary precautions.
The employer/agency/master must observe the Code of Ethics for Seafarers and the master’s traditional decorum.
The seafarer must faithfully comply with contract terms; violations are subject to disciplinary action under Section 33 of the Contract.
The seafarer must abide by the Code of Discipline under POEA rules and regulations for overseas contract workers, and the Code of Ethics for Seafarers.
The seafarer must be obedient to lawful commands of the Master (or lawful successor) and comply with company policy, safety policies and procedures, and instructions connected with them.
The seafarer must be diligent regarding the vessel, its stores and cargo, whether onboard, in boats or ashore, and must conduct himself orderly and respectfully toward passengers, shippers, stevedores, port authorities, and other persons on official business with the ship.

Contract duration, travel, wages, and benefits

The employment contract commences upon the actual departure of the seafarer from the airport or seaport in the point of hire, with a POEA approved contract.
The contract is effective until the seafarer’s arrival at the point of hire upon termination under Section 18.
The employment period is for a period mutually agreed by the seafarer and employer, but shall not exceed 12 months, and any extension requires mutual consent.
The seafarer joins the vessel or is available for duty at the specified date and time, and travel from the point of hire is by air or as directed at the employer’s expense.
For air travel joining or repatriation, the seafarer receives the normal free baggage allowance offered by the airlines, while the cost of excess baggage is for the seafarer’s account.
The seafarer must keep quarters and living spaces clean and tidy to the satisfaction of the master, and work for hygiene is performed outside regular working hours and no overtime pay is claimed.
The seafarer must submit to vaccination/inoculation or health measures ordered by the Master or required by laws of countries whose territorial jurisdiction the vessel enters.
The seafarer must be paid monthly wages not later than 15 days of the succeeding month from commencement until arrival at the point of hire upon termination under Section 18.
Shipboard pay in foreign ports is subject to currency control regulations and the official rate of exchange prevailing at the time of payment; advances are at the master/employer’s discretion under those conditions.
The seafarer must make a monthly allotment to a designated allottee in the Philippines through any authorized Philippine bank.
The allotment must be at least eighty percent (80%) of the seafarer’s monthly basic salary, including backwages, if any.
The master/employer/agency must provide facilities for allotment at no expense to the seafarer.
The master/employer/agency may provide facilities for remitting amounts earned in excess of the allotment through an authorized Philippine bank without charge to the seafarer.
Allotment payments must be made to the designated allottee in Philippine currency using the rate of exchange indicated in the credit advice of the local authorized Philippine bank.
Upon discharge, the seafarer receives a written account of wages reflecting all deductions.
Where the seafarer is landed in an emergency, the written account of wages is provided as soon as practicable thereafter.
On request, the employer/agency provides a certificate of employment or service record without any charge.
The seafarer works not more than forty-eight (48) hours of regular work a week.
Regular working hours are eight (8) hours in every 24 hours, midnight to midnight, Monday to Sunday, with department-specific scheduling (day worker 0600–1800; steward 0500–2000; radio operator as established by International Telecommunication Conventions and as prescribed by the master; sea watch workers 8 hours per day, with staggering at the master’s discretion).
The seafarer receives reasonable rest periods in accordance with international standards.
The seafarer receives compensation for work performed beyond regular eight (8) hours.
Fractions rule for overtime computation: a fraction of the first hour is treated as one full hour; less than thirty (30) minutes after the first hour is half an hour; more than thirty (30) minutes is one full hour.
Open overtime must be paid at not less than 125% of the basic hourly rate computed based on 208 regular working hours per month.
Guaranteed/fixed overtime must be paid at not less than 30% of the basic monthly salary and includes overtime on Sundays and holidays, but must not exceed 105 hours a month.
Officers’ overtime is computed using the fixed overtime rate; ratings’ overtime is based on guaranteed or open overtime rate as mutually agreed, and overtime beyond 105 hours a month for ratings is compensated on the open overtime rate.
Work on designated rest days and holidays must be paid as rest day or holiday pay; designated holidays at sea and in port include New Year’s Day (January 1), Maundy Thursday (movable), Good Friday (movable), Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes Day (last Sunday of August), All Saints Day (November 1), Bonifacio Day (November 30), Christmas Day (December 25), and Rizal Day (December 30).
Emergency duty applies where no overtime is considered for work in an emergency affecting safety of vessel, passenger, crew or cargo (master sole judge), or for fire/boat/emergency drill, or assistance to other vessels or persons in immediate peril.
Leave pay must follow agreed days leave per month, but shall not be less than two and a half (2-A12) days for each month of service and is pro-rated.
Leave pay must be settled onboard or settled within two weeks after arrival at the point of hire.
Shore leave is granted when practicable upon consent of the master or his deputy considering vessel operations and safety.

Safety, stores, transfers, and shore arrangements

The master/employer must provide subsistence consistent with good maritime standards and practices while on board.
Stores and provisions issued to the seafarer are for use and consumption on board only; unused or unconsumed items remain the employer’s property.
The seafarer must not take ashore, sell, destroy or give away such stores and provisions.
The seafarer may be transferred at any port to another vessel owned or operated, manned or managed by the same employer, provided it is accredited to the same manning agent, the seafarer’s position and wage rate and service terms are not inferior, and the total period of employment does not exceed the originally agreed period.
Transfers must be documented and made available when necessary.
The seafarer must observe regulations or restrictions imposed by the master concerning safety, drug and alcohol, and environmental protection.
The seafarer must use all appropriate safety equipment provided and ensure proper safety dressing for the job at hand.
The grievance procedure and decisions are to be documented when availed of by the seafarer for the protection and interest of both parties.

Grievance handling and disciplinary procedures

If aggrieved, the seafarer must first approach the head of the Department assigned, to explain the grievance.
Department-head identification applies as follows: in the Deck, Radio and Catering Department, the head is the Chiefmate; in the Engine Department, the head is the Chief Engineer; in Catering/Hotel on passenger ship, the head is the Chief Steward and/or Purser.
The seafarer must present the grievance in writing in an orderly manner and choose a time when it can be properly heard.
The Department head must deal with the complaint and, if no solution is possible at that level, refer it to the Master, who handles it personally.
If no satisfactory result is achieved, the seafarer may appeal to the company management or to the Philippine Overseas Labor Office or consular officer overseas, and the Master must facilitate transmission of the appeal.
If, after grievance procedure, the Master finds violation of contract terms or breach of discipline, the Master must discipline the seafarer or terminate employment if warranted.
The seafarer may seek assistance of the highest ranking Filipino seafarer on board.
Grievance procedure and related actions are documented when used.
The grievance procedure does not impair other voluntary modes of dispute settlement and does not impair jurisdiction of POEA or NLRC over unresolved complaints arising from shipboard employment brought before them by the seafarer.

Termination, repatriation, and allowances

Employment ceases when the seafarer completes contractual service, signs-off from the vessel, and arrives at the point of hire.
Employment is also terminated when the seafarer arrives at the point of hire due to: medical sign-off and disembarkation pursuant to Section 20 (B)[5], sign-off due to shipwreck/ship sale/lay-up/discontinuance of voyage/change of principal under Sections 22, 23 and 26, written voluntary resignation and sign-off prior to expiration under Section 19 (G), or discharge for just cause under Section 33.
Repontiation continuation rule: if the vessel is outside the Philippines upon contract expiration, the seafarer continues until vessel arrival at a convenient port and/or after replacement crew arrival, but service continuance shall not exceed three months; earned wages and benefits under the contract continue.
If vessel arrives at a convenient port before expiration, the master/employer may repatriate if the unserved portion is not more than one (1) month.
When repatriated under that one-month unserved portion rule, the seafarer receives earned wages and earned leave pay and basic wages corresponding to the unserved portion, unless within 60 days from disembarkation the seafarer is rehired at the same rate and position, in which case the seafarer receives only earned wages and earned leave pay.
If vessel arrives at a convenient port within three (3) months before expiration, the master/employer may repatriate provided the seafarer is paid all earned wages, leave pay for the entire contract period, and termination pay equivalent to one (1) month basic pay.
The three-month-before-expiration termination mode is allowed only if the original contract period is at least ten (10) months, and the conditions do not apply to dismissal for cause.
If discharged abroad for any reason other than discipline and not intended to rejoin, the seafarer is accommodated ashore and repatriated to the Philippines via sea or air or as directed by the employer/master/agency.
If discharged for just cause, the employer may recover replacement and repatriation costs from the seafarer’s wages and other earnings.
Upon discharge and repatriation as directed, the seafarer receives basic wages from signing-off until arrival at the point of hire except when discharge is under the earlier exceptions (as stated in Section 19) or for disciplinary reasons.
If the seafarer delays or takes a detour/different destination other than the most direct to the point of hire, additional expenses are for the seafarer’s account, and basic wage is calculated based on date of arrival by the most direct route.
Early termination at the seafarer’s request makes the seafarer liable for repatriation cost and replacement transportation cost; the employer may, for compassionate grounds, assume replacement transportation cost.
Termination due to shipwreck grants earned wages, medical examination at employer’s expense to determine fitness, repatriation at employer’s cost, and termination pay of one month basic wage.
Termination due to vessel sale/lay-up/discontinuance grants earned wages, repatriation at employer’s cost, and one (1) month basic wage termination pay unless arrangements allow joining another vessel of the same principal to complete the contract, in which case entitlement is basic wages until joining the other vessel.
Unseaworthiness: the seafarer cannot be forced to sail with a vessel declared unseaworthy by a classification society, port state or flag state.
If unseaworthiness necessitates termination before contract date, entitlement includes earned wages, repatriation at employer’s cost, and termination pay of one (1) month basic wage.
Termination due to Regulation 1/4 control procedures of the 1978 STCW Convention, as amended is treated as valid, and the seafarer is entitled to repatriation, earned wages and other benefits.
Change of principal: if change necessitates termination before contract date, entitlement includes earned wages, repatriation at employer’s expense, and one month basic pay termination pay.
If the seafarer continues by mutual agreement on the same vessel, it is treated as a new contract and entitles only earned wages.
If arrangements allow joining another vessel to complete the contract, entitlement is basic wage until date of joining.
Crew effects damaged by marine peril: employer reimburses the full loss amount but in no case more than Philippine currency equivalent to US$2,000 for total loss/damage caused by wreck/loss/stranding/abandonment, fire, flooding, collision or piracy.
For partial loss, amount is determined by mutual agreement but must not exceed Philippine currency equivalent to US$2,000.
Reimbursement does not apply if loss/damage is due to the seafarer’s own fault, larceny/theft, or robbery.
Reimbursement is computed using the exchange rate prevailing at the time of payment.

Death, injury, illness, and disability compensation

For work-related death during the contract term, the employer pays beneficiaries a Philippine currency equivalent of US$50,000, plus US$7,000 for each child under 21, not exceeding four (4) children, at the exchange rate prevailing during payment.
Where death is caused by warlike activity within a declared war zone or war risk area, compensation is doubled and the employer must undertake appropriate war zone insurance coverage.
The death benefits under the contract are separate and distinct and are in addition to benefits under Philippine laws from the Social Security System, Overseas Workers Welfare Administration, Employees’ Compensation Commission, Philippine Health Insurance Corporation, and Pag-ibig if applicable.
If work-related injury or illness results in death, the employer must: pay beneficiaries all outstanding obligations under the contract; transport remains and personal effects to the Philippines at employer’s expense except where local government laws prevent transport; if death occurs at sea, disposition is handled per the master’s best judgment; and communicate with the manning agency for disposition.
For burial expenses, the employer must pay beneficiaries Philippine currency equivalent of US$1,000 at exchange rate during payment.
For work-related injury or illness during the contract term, the employer must continue paying wages during the time on board the vessel.
If injury/illness requires medical or serious dental/surgical/hospital treatment in a foreign port, the employer pays full cost of treatment plus board and lodging until declared fit to work or repatriated.
After repatriation, if medical attention is still required arising from the injury/illness, the employer provides it at cost until declared fit or disability degree is established by the company-designated physician.
Upon sign-off for medical treatment, the seafarer receives sickness allowance equivalent to basic wage until declared fit or permanent disability degree is assessed, but not exceeding one hundred twenty (120) days.
The seafarer must submit to a post-employment medical exam within three working days of return by a company-designated physician, except when physically incapacitated; written notice to the agency within the same period is deemed compliance.
Failure to comply with the mandatory reporting requirement results in forfeiture of the right to claim the benefits.
If the seafarer-appointed doctor disagrees with the assessment, the parties may agree on a third doctor; the third doctor’s decision is final and binding.
On sign-off for medical treatment, the employer bears full cost of repatriation if the seafarer is declared fit for repatriation or fit to work but the employer cannot find employment on board the former or another employer vessel despite earnest efforts.
Permanent total or partial disability compensation follows the schedule of benefits in Section 32; computation follows the rates and rules of compensation applicable when the illness or disease was contracted.
Warzone disability computation is based on compensation rates payable within the warzone area as prescribed in the contract.
No compensation or benefits are payable for injury/incapacity/disability/death resulting from the seafarer’s willful or criminal act or intentional breach of duties, provided the employer proves direct attribution to the seafarer.
Concealment of past medical condition/disability/history in the pre-employment medical examination constitutes fraudulent misrepresentation and disqualifies the seafarer from compensation and benefits, and may serve as a valid ground for termination and imposition of appropriate administrative and legal sanctions.
When requested, the principal furnishes a copy of all pertinent medical reports or records at no cost to the seafarer.
Compensation for injury/illness/incapacity/disability/death covers all claims arising from or in relation to or in the course of employment, including damages arising from contract, tort, fault or negligence under laws of the Philippines or any other country.

War risks and war-risk premiums

If war or warlike operations arise during the contract term in any country within the vessel’s trading area, the seafarer may sail within and out of the trading area if required by the master.
If at signing a trading area is declared a war or war-risk trading area, and the seafarer binds himself in writing to sail into that area, the agreement is appended to the contract for verification and approval by POEA, and the seafarer must comply or bear his repatriation costs if he opts not to sail.
When sailing within a war-risk trading area, the seafarer is entitled to premium pay determined by POEA through appropriate periodic issuances.
POEA is the sole authority to determine whether the vessel is within a war risk trading area and to determine the premium pay amount for seafarers.

Dispute settlement, prescription, and governing law

Claims and disputes arising from employment covered by a collective bargaining agreement must be submitted to the original and exclusive jurisdiction of the voluntary arbitrator or panel of arbitrators.
For parties not covered by a collective bargaining agreement, claims and disputes may, at their option, be submitted to either the original and exclusive jurisdiction of the NLRC pursuant to Republic Act (RA) 8042 (Migrnant Workers and Overseas Filipinos Act of 1995) or to the original and exclusive jurisdiction of the voluntary arbitrator or panel of arbitrators.
If there is no provision for appointing voluntary arbitrators, the arbitrators are appointed from the accredited voluntary arbitrators of the National Conciliation and Mediation Board of the Department of Labor and Employment.
POEA exercises original and exclusive jurisdiction to hear and decide disciplinary action on cases that are administrative in character involving violations of recruitment laws and rules by employers, principals, contracting partners and Filipino seafarers.
All claims arising from the contract must be filed within three (3) years from the date the cause of action arises, otherwise they are barred.
Unresolved disputes, claims or grievances arising out of or in connection with the contract, including annexes, are governed by the laws of the Republic of the Philippines, and by international conventions, treaties and covenants where the Philippines is a signatory.

Occupational diseases and compensability rules

An occupational disease and resulting disability or death are compensable only if: (1) seafarer’s work involves the risks described; (2) disease results from exposure to the described risks; (3) disease is contracted within the period of exposure and under other necessary factors; and (4) there is no notorious negligence by the seafarer.
Occupational diseases are considered compensable when contracted under listed working conditions, including:
- Bladder cancer (papilloma of the bladder) from exposure to alpha-naphthylamine, beta-naphthylamin, benzidine, or salts and auramine or magenta.
- Skin cancer, or corneal surface eye ulceration due to tar, pitch, bitumen, mineral oil or paraffin, or compound products or residues.
- Deafness from excessive noise operations, especially higher frequencies.
- Decompression sickness from work in compressed or rarefied air (caissons disease; aeroembolism).
- Dermatitis due to irritants and sensitizers from handling of chemical agents that are skin irritants and sensitizers.
- Brucellosis from handling contaminated food and drink, particularly milk, butter, and cheese of infected goats and cows.
- Ionizing radiation diseases including inflammation, ulceration, malignant disease of skin/subcutaneous tissues of bones, leukemia, or anemia of aplastic type from X-rays, ionizing particles, radium, or radioactive substances.
- Poisoning and sequelae from specified substances (ammonia, arsenic compounds, benzene derivatives, beryllium compounds, brass/zinc/nickel, carbon dioxide, carbon bisulfide, carbon monoxide, chlorine, chrome compounds, dinitrophenol/homologous compounds, halogen derivatives, lead compounds, manganese compounds, mercury compounds, nitrous fumes, phosgene, phosphorous compounds, sulfur dioxide).
- Diseases from abnormalities in temperature and humidity, including heat stroke/cramps/exhaustion heat, chilblain/frostbite/freezing, immersion foot/general hypothermia.
- Vascular disturbance in upper extremities due to continuous vibration from pneumatic tools/power drills/riveting machines/hammers.
- Cardio-vascular disease under required causation conditions, including acute exacerbation precipitated by unusual work strain and a specific timing/clinical-sign requirement.
- Cerebro-vascular accidents under required causation conditions, including trauma due to unusual and extraordinary strain or undue exposure to noxious gases and a direct connection to collapse.
- Pneumonia under required wetting/chilling and exposure history and timing requirements.
- Hernia under required recent origin and strain sequence requirements.
- Bronchial asthma under required absence of prior history, allergen presence, and positive sensitivity and provocative tests.
- Osteoarthritis based on joint strain/carrying heavy loads, joint injuries, excessive joint use, extreme temperature changes, and faulty posture or vibratory tools.
- Peptic ulcer related to prolonged emotional or physical stress.
- Pulmonary tuberculosis considering Philippine Decree No. 626, as amended and additional exposure conditions.
- Viral hepatitis considering exposure through ingestion of contaminated water/milk/foods, and incubation manifestation verification.
- Essential hypertension compensability conditions requiring substantiating documents, including chest x-ray report, ECG result, blood chemistry report, funduscopy report, and C-T scan.
- Asbestosis requiring exposure to asbestos dust certified by employer or medical institution/practitioner acceptable or accredited, and chest X-ray report findings; if discovered after retirement/separation, claim must be filed with the System within three (3) years from discovery.

Schedule of disability and disability allowances

The contract provides a schedule of disability or impediment listing injury categories (e.g., traumatic head injuries, face disfigurement, eyes impairment, nose and mouth injuries, ears injuries, neck injuries, chest-trunk-spine injuries, abdomen injuries, pelvis injuries, urinary and generative organ injuries, thumbs and fingers, hands, shoulder and arm injuries, and lower extremity injuries) with corresponding impediment grades (e.g., Gr. 1, Gr. 2, Gr. 3, etc.).
The schedule provides a rule that any item classified under Grade 1 is considered or constitutes total and permanent disability.
The contract includes a schedule of disability allowances that computes compensation by using an impediment grade basis and a multiplier derived from the listed percentage schedule:
- Impediment Grade 1 corresponds to US$50,000 x 120.00%.