Seafarer Employment Rules for Domestic Shipping

Coverage and key definitions

The Rules apply to shipowners and seafarers where an employer-employee relationship exists. (Section 1, Rule I)
The Rules cover Philippine registered ships engaged in domestic shipping, excluding warships and naval auxiliaries, government ships not engaged in commercial operation, and fishing vessels. (Section 1, Rule I)
A seafarer is any person employed, engaged or works in any capacity onboard Philippine registered ships. (Section 2, Rule I)
Domestic Shipping means transport of passenger or cargo, or both, by ships duly registered and licensed under Philippine law to engage in trade and commerce between Philippine ports and within Philippine territorial or internal waters, for hire or compensation, with general or limited clientele, whether permanent, occasional, or incidental, with or without fixed routes, and done for contractual or commercial purposes. (Section 2(g), Rule I)
Ship means any kind, class or type of craft or artificial contrivance capable of floating in water, designed to be used, or capable of being used, as a means of floating in water transport in the domestic trade for the carriage of passengers or cargo, or both, utilizing its own motive power or that of another. (Section 2(p), Rule I)
Shipowner includes the owner of the ship/shipping enterprise or another organization or person (such as manager, agent or bareboat charter) who assumes responsibility for operation of the ship from the owner and who has agreed to take over duties and responsibilities imposed on shipowners under the Maritime Labour Convention, 2006, regardless of whether others fulfill certain duties on behalf of the shipowner. (Section 2(q), Rule I)
Gross Tonnage follows tonnage measurement rules under Annex I to the International Convention on Tonnage Measurement of Ships, 1969, or any successor convention; for ships under the International Maritime Organization interim scheme, it is the gross tonnage shown in the remarks column of the International Tonnage Certificate (1969). (Section 2(g), Rule I)
The Rules define administrative offices including DOLE, Bureau of Labor Relations (BLR), Bureau of Working Conditions (BWC), and regional units (Regional Director, Regional Office). (Section 2(a), (b), (e), (l), (m), Rule I)
The Rules define Certificate of Compliance as the certificate issued to a ship after being found compliant with the Rules. (Section 2(d), Rule I)

Minimum requirements for seafarers

No person below eighteen (18) years old shall work, be employed or be engaged onboard a ship. (Section 1, Rule II)
A seafarer must hold a valid medical certificate issued by a medical facility duly accredited by the Department of Health (DOH), in accordance with DOH rules and regulations. (Section 2, Rule II)
Only seafarers certified by appropriate government agencies may work, be employed or be engaged onboard a ship. (Section 3, Rule II)
Recruitment and placement follow the DOLE guidelines on recruitment and placement and/or contracting and subcontracting work arrangements; no fees or other charges for recruitment, placement, or providing employment to seafarers may be borne directly or indirectly, in whole or in part, by the seafarer. (Section 4, Rule II)
Fees for pre-employment medical examination may be shouldered by seafarers. (Section 4, Rule II)

Employment agreement and minimum benefits

A written employment agreement must exist between the shipowner and the seafarer and must include the seafarer’s full identity (name, date of birth or age, birthplace), the shipowner’s name and address, the place/date of entry, the capacity of employment, salary amount and formula, hours of work, wages and wage-related benefits, social security and welfare benefits, separation pay and retirement pay, and other legally-required or policy/CBA benefits. (Section 1, Rule III)
The employment agreement must be in a working language and in English, executed in three (3) original copies before commencement of employment. (Section 1, Rule III)
The shipowner and seafarer each must have a signed original, and an electronic copy must be submitted to the DOLE through the BWC; a signed original must be made available onboard the ship. (Section 1, Rule III)
The seafarer must be given an opportunity to examine and seek advice on the agreement before signing. (Section 1, Rule III)
Seafarers are entitled to minimum benefits required by law, without prejudice to better terms under company policy, contract, or CBA. (Section 2, Rule III)
Wages for actual work hours/days must not be lower than the applicable minimum wage rates in the domicile or head office of the shipowner, whichever is higher, and must be paid at least once every two weeks or twice a month, with intervals not exceeding 16 days. (Section 2(a), Rule III)
Seafarers are entitled to twelve (12) Regular Holidays with pay; the holiday pay is 100% of the regular rate even if the seafarer does not report for work, and 200% of the regular rate if required to work. (Section 2(b), Rule III)
Seafarers are entitled to three (3) Special Days (non-working) and other declared special days; if required to work on a special day, they must receive an additional premium pay of 30% of the basic wage. (Section 2(c), Rule III)
Seafarers must be allowed a rest day of twenty-four (24) consecutive hours for every six (6) consecutive working days; if required to work on a rest day, they must receive an additional premium pay of 30% of the basic wage, and if the rest day also happens to be a special day, they are entitled to an additional 50% of the basic wage. (Section 2(d), Rule III)
Overtime pay must be paid for work beyond eight (8) hours a day: at least the basic hourly rate plus at least 25% on ordinary days, and regular hourly rate plus at least 30% on regular holidays, special days, or rest days. (Section 2(e), Rule III)
Night shift pay must be an additional 10% of the regular wage rate for work between 10:00 pm and 6:00 am. (Section 2(f), Rule III)
Service incentive leave is five days for every year of service. (Section 2(g), Rule III)
13th month pay equals 1/12 of the total basic salary earned within the calendar year and must be given not later than 24 December. (Section 2(h), Rule III)
Maternity leave is sixty (60) days for normal delivery or seventy-eight (78) days for caesarian section delivery. (Section 2(i), Rule III)
Paternity leave is seven (7) days. (Section 2(j), Rule III)
Parental leave for solo parents is seven (7) days. (Section 2(k), Rule III)
Paid leave for victims of violence against women and their children is ten (10) days. (Section 2(l), Rule III)
Paid special leave for surgery due to any gynecological disorder is not more than sixty (60) days. (Section 2(m), Rule III)
Retirement pay is due upon reaching age sixty (60) or more but not beyond sixty-five (65) years old. (Section 2(n), Rule III)

Working time, rest, and related rights

Normal hours of work must not exceed eight (8) hours a day. (Section 3, Rule III)
If required to work beyond eight (8) hours, maximum hours must not exceed fourteen (14) hours in any 24-hour period and seventy-two (72) hours in any seven-day period. (Section 3, Rule III)
Minimum hours of rest must not be less than ten (10) hours in any 24-hour period and seventy-seven (77) hours in any seven-day period; the ten (10) hours may be divided into not more than two (2) periods, with one period at least six (6) hours, and the interval between consecutive rest periods must not exceed fourteen (14) hours. (Section 4, Rule III)
If hours of work exceed fourteen (14) hours due to overriding safety and operational conditions, hours of rest in any seven-day period must not be less than seventy (70) hours. (Section 4, Rule III)
Waiting time is not considered compensable working time if the seafarer is completely relieved from duty and can use the time effectively for personal purposes. (Section 5, Rule III)
The shipowner must post in an easily accessible place a table of shipboard working arrangements, showing the schedule of service at sea and at port, and the maximum hours of work or minimum hours of rest, in working language and in English. (Section 6, Rule III)
The shipowner must maintain records of each seafarer’s daily hours of work or rest for compliance monitoring. (Section 6, Rule III)
Seafarers enjoy security of tenure; their services can be terminated only for just or authorized causes under the Labor Code. (Section 7, Rule III)
Seafarers have the right to form, join or assist in forming a labor organization of their choice for collective bargaining and to engage in concerted activities in accordance with law. (Section 8, Rule III)
If a CBA exists, it must be registered with the concerned DOLE Regional Office, and a copy must be maintained onboard the ship. (Section 8, Rule III)

Accommodation, food, and safety programs

The shipowner must provide decent accommodations and recreational facilities onboard in accordance with applicable laws and regulations. (Section 1, Rule IV)
The shipowner must protect and promote seafarers’ health and ensure ships carry onboard food and drinking water of appropriate quality, quantity, and nutritional value to cover ship requirements and take into account differing cultural and religious backgrounds. (Section 2, Rule IV)
Food, drinks, and their preparation must comply with the Sanitation Code of the Philippines and pertinent DOH-implemented laws, rules and regulations. (Section 2, Rule IV)
The shipowner must adopt, implement and promote occupational safety and health policies and programs consistent with the Maritime Occupational Safety and Health Guidelines (MOSH), including the 1996 ILO Code of Practice on Accident Prevention On-Board Ship, at Sea and In Port and subsequent versions. (Section 1, Rule V)
The OSH program must cover prevention of occupational accidents and diseases (including measures to reduce and prevent risk from harmful chemicals and physical hazards like heat, noise and vibration, and risks from equipment/machinery), prevention and control of Alcoholism, Hepatitis B, HIV/AIDS and Tuberculosis, prevention of sexual harassment, risk evaluation training and instruction, emergency preparedness, promotion of drug-free workplace, monitoring work environment and engineering/design control compliance with safe work procedures, safe use and maintenance of machinery/equipment, and use of appropriate PPE, and reporting/correcting unsafe conditions and investigating and reporting onboard occupational accidents. (Section 1, Rule V)
The shipowner must establish a safety and health committee onboard or onshore to develop and implement the safety and health policy and programs for seafarers’ welfare. (Section 2, Rule V)
If the committee is onshore, the shipowner must designate a safety and health officer onboard to implement the policy and program. (Section 2, Rule V)
The shipowner must provide adequate medical services and medicine chest onboard, access to shore facilities, and corresponding medical or trained personnel for first-aid and medical care pursuant to MOSH. (Section 3, Rule V)
The shipowner must ensure access to treatment for sickness or injury, hospitalization, and essential dental care. (Section 3, Rule V)
Seafarers must have the right to consult a qualified physician or dentist without delay in ports of call, where practicable. (Section 3, Rule V)
The DOLE, through the Occupational Safety and Health Center (OSHC), must formulate OSH guidelines for implementation within fifteen (15) days from issuance of the Department Order. (Section 4, Rule V)

Social security coverage requirements

All seafarers must be covered by the Social Security System under Republic Act No. 1161, as amended by Republic Act No. 8282, the Employees’ Compensation and State Insurance Fund under Presidential Decree No. 626, PhilHealth under Republic Act No. 7875 as amended by Republic Act No. 9241, and the Pag-IBIG Fund under Republic Act No. 7742, and other applicable laws. (Section 1, Rule VI)
Seafarers are entitled to the benefits under those respective laws and applicable rules and regulations, without prejudice to any established policy, collective bargaining agreement, or other applicable employment agreement. (Section 1, Rule VI)

Cadet onboard training agreements

The shipboard training rules applicable to cadets include Section 2 (Medical Certificate) of Rule II, Sections 1 and 2 (Accommodation; Food and Catering) of Rule IV, Section 1 (Occupational Safety and Health Policy and Program) of Rule V, and Rule IX (Complaint Procedures and Mechanism). (Section 1, Rule VII)
A written shipboard training agreement must be executed between the shipowner, the cadet, and the maritime institution/school and must include the cadet’s full name, date of birth or age (at least 16 years old), birthplace, the maritime institution/school name and address, the shipowner’s name and address, place/date of entry, training capacity, cadet stipend or allowance (if any), required number of training hours and hours of rest (which must not be less than the hours prescribed under Sections 3 and 4 of Rule III), and other legally-required or policy/agreement benefits. (Section 2, Rule VII)
The cadet agreement must be in a working language and in English, executed in three (3) original copies before training begins. (Section 2, Rule VII)
The shipowner and the cadet and maritime institution/school must each have a signed original, and an electronic copy must be submitted to the DOLE through the BWC; a signed original must be available onboard the ship. (Section 2, Rule VII)

Compliance enforcement and certification process

Shipowners engaged in domestic shipping must comply with all provisions of the Department Order and are principally liable for violations. (Section 1, Rule VIII)
The Secretary or authorized representative enforces the Rules through the Labor Laws Compliance System (LLCS) under Article 128 of the Labor Code, as amended. (Section 1, Rule VIII)
The DOLE Regional Office having jurisdiction over the ship’s homeport conducts compliance activities. (Section 2, Rule VIII)
Joint assessment must be conducted on all Philippine domestic ships covered; a Certificate of Compliance is issued by the Regional Director to ships found compliant. (Section 2.1, Rule VIII)
For ships of less than 200 gross tonnage, the implementation of Section 1 (Employment Agreement for Seafarers), Section 3 (Hours of Work), and Section 4 (Hours of Rest) of Rule III is covered by a one (1) year phase-in program of the DOLE. (Section 2.1, Rule VIII)
The DOLE must develop a technical assistance plan to facilitate phase-in and eventual compliance for such shipowners. (Section 2.1, Rule VIII)
The Certificate of Compliance is valid for two (2) years. (Section 2.2, Rule VIII)
Renewal must be filed by the shipowner within sixty (60) days prior to expiration, with the issuing authority informed of the place, date, and time when the ship will be available for succeeding assessment; the renewed certificate is valid from the date of completion of the assessment. (Section 2.3, Rule VIII)
The Certificate ceases to be valid if joint assessment is not completed within the prescribed period due to the shipowner’s fault; if violations/deficiencies are not corrected within the prescribed period; if the ship changes flag; if the shipowner ceases to assume responsibility for the ship’s operation; if ship seaworthiness certification is not certified or MARINA certificates cease to be valid or are revoked; or for other grounds determined by the Secretary. (Section 2.4, Rule VIII)
If there are reports of violations, imminent danger, occurrence of an accident, or when deemed necessary, the Secretary or authorized representatives may order a compliance visit under LLCS procedures. (Section 2.5, Rule VIII)
After joint assessment, the DOLE Labor Law Compliance Officer (LLCO) must provide the shipowner a copy of the completed Maritime Labor Compliance Assessment Checklist showing results and guidance for corrective measures and the basis for an action plan. (Section 2.6, Rule VIII)
If no action plan is formulated within ten (10) days, the LLCO must issue a Notice of Results indicating noted deficiencies. (Section 2.6, Rule VIII)
Joint assessment may be covered by a Memorandum of Agreement to ensure coordination with MARINA, Philippine Coast Guard (PCG), and other relevant agencies having maritime jurisdiction and supervision, as required by regional peculiarities. (Section 2.7, Rule VIII)
If a shipowner refuses or fails to voluntarily correct or rectify deficiencies after joint assessment/compliance visit within the applicable prescribed period, the Secretary or authorized representative must, after due notice and hearing, issue a Compliance Order for necessary correction or restitution. (Section 3, Rule VIII)
The Secretary or authorized representative must recommend to PCG that a ship be prohibited from leaving port in these cases: serious breach found during joint assessment/compliance visit; imminent danger to the ship and/or the seafarers’ life or limbs; denial of access or refusal to allow the assessment/visit; failure/refusal to secure the required Certificate of Compliance; revocation of the Certificate of Compliance; and other analogous/similar circumstances and grounds determined by the Secretary. (Section 4, Rule VIII)
Findings of violations arising from assessment/compliance visits are resolved under LLCS. (Section 5, Rule VIII)
The BWC must issue a DOLE Manual of Assessment and Certification to implement the Department Order. (Section 6, Rule VIII)

Complaints and dispute handling

If a CBA exists between seafarers’ bargaining agent and shipowner, the parties must establish machinery for adjusting and resolving grievances arising from interpretation or implementation of the CBA and from interpretation or enforcement of company personnel policies. (Section 1(a), Rule IX)
If no CBA exists, the shipowner must establish a grievance procedure or machinery ensuring fair, effective and expeditious handling of seafarers’ complaints involving violations of the Department Order and employment agreements. (Section 1(b), Rule IX)
Seafarers may use DOLE conciliation-mediation services under the Single Entry Approach (SEnA) by filing a request with DOLE Regional/Provincial/Field Offices pursuant to Department Order No. 107, Series of 2010. (Section 1(c), Rule IX)

Oversight, non-diminution, repeals, and effectivity

The Maritime Industry Tripartite Council (MITC) created by a Memorandum of Agreement among maritime industry stakeholders exercises oversight functions to ensure effective implementation of the Department Order. (Section 1, Rule X)
Nothing in the Department Order eliminates or diminishes supplements or other benefits enjoyed at the time of issuance. (Section 2, Rule X)
All policies, issuances, rules and regulations, and agreements inconsistent with the Department Order are repealed or modified accordingly. (Section 3, Rule X)
The effectivity rule applies after fifteen (15) days from publication in a newspaper of general circulation. (Section 4, Rule X)