Law Summary

1. Authority and Purpose

• Explanation: This circular amends previous Memorandum Circulars Nos. 3 and 3-A to update the war risk trading areas and premium pays for Filipino seamen.
• Key Definitions Introduced:
  • War Risk Premium Pay: Extra compensation for seamen within a warzone area based on their basic wage.

2. Definition of Terms

• Explanation: Clarifies specific categories of vessels and key terms relevant to the circular.
• Key Definitions:
  • Offshore/Supply Vessels: Vessels involved in oil production/exploration and harbor operations (e.g., AHTS vessels, tugboats).
  • Trading Vessels: Vessels involved in international cargo operations (e.g., oil tankers, bulk carriers).
  • Wages: Basic monthly salary of a seaman.
  • Compensation Benefits: Amounts due to seamen/beneficiaries in cases of death or disability.

3. Coverage

• Explanation: The circular maintains the warzone areas defined in the previous circulars for determining premium pay.
• Important Requirements:
  • Areas and coordinates outlined in Circulars Nos. 3 and 3-A remain effective for premium pay calculation.

4. Premium Pay

• Explanation: Outlines the entitlement of seamen to premium pay based on their vessel type and operational areas.
• Important Requirements:
  • Seamen on offshore vessels in war risk areas are entitled to specified premium pays.
  • Seamen on trading vessels entering warzone areas receive 100% premium pay.
• Key Details:
  • These premium pays represent minimum standards; higher amounts can be provided by shipowners or agents.

5. Implementation and Compliance

• Explanation: Details the effective date and compliance requirements for shipowners and principals.
• Important Timeframes:
  • The circular takes effect on July 1, 1986.
• Key Requirements:
  • Shipowners must arrange special coverage with protection and indemnity clubs.

6. Cross-References

• Explanation: The circular references other relevant documents and regulations.
• Key Cross-Reference:
  • Circulars Nos. 3 and 3-A regarding war zones.
  • Memorandum Circular No. 21-C for additional war risk trading areas and premium pay schedules.

Key Takeaways

• The memorandum updates definitions and premium pay entitlements for Filipino seamen operating in war risk areas.
• Differentiation is made between offshore and trading vessels regarding premium pay.
• Compliance with these provisions is mandatory, with specified effective dates.
• Shipowners are encouraged to provide additional coverage benefits beyond the minimum standards set forth.