Law Summary
Declaration of State Policy
- State commits to promoting and protecting the welfare of Filipino seafarers
- Recognizes the exploitation of seafarers through ambulance chasing—soliciting claims for monetary recovery with exorbitant fees
- Declares ambulance chasing and such exploitative practices unlawful to protect seafarers
Definition and Prohibition of Ambulance Chasing
- Ambulance chasing defined as soliciting claims from seafarers or heirs for monetary benefits arising from work-related accidents, illness, or death
- Explicitly prohibits any person from engaging in this practice, whether personally or through agents
- Prohibits charging fees or amounts deducted from the awarded compensation in exchange for pursuing claims
Regulation on Fees for Representation in Claims
- Caps fees on representation to a maximum of ten percent (10%) of the compensation or monetary benefit awarded to seafarers or heirs
- Applies to contracts or arrangements made before the NLRC, labor arbiters, NCMB, POEA, DOLE, or other quasi-judicial labor bodies
- Defines fees as the total compensation of the representative for services rendered
Penalties for Violations
- Violators of the prohibition against ambulance chasing face:
- Fines ranging from Fifty Thousand Pesos (P50,000.00) to One Hundred Thousand Pesos (P100,000.00)
- Imprisonment from one (1) year up to two (2) years
- Or both fine and imprisonment
- Penalties also apply to persons colluding in committing the prohibited acts
Implementing Rules and Regulations
- Secretary of Labor and Employment tasked with promulgating rules within ninety (90) days from the Act’s approval
- Coordination required with Maritime Industry Authority (MARINA) and Philippine Overseas Employment Administration (POEA) to ensure effective implementation
Repealing Clause
- All inconsistent laws, orders, issuances, decrees, rules, or regulations are repealed or modified to align with this Act’s provisions
Effectivity Clause
- The Act takes effect fifteen (15) days after its publication in the Official Gazette or in at least two newspapers of general circulation