MANILA – The Department of Labor and Employment (DOLE) has announced new guidelines designed to improve the execution of seafarers’ monetary claims, emphasizing fairness, efficiency, and access to justice.
Labor Secretary Bienvenido Laguesma signed the order, which sets out rules for enforcing decisions by the National Labor Relations Commission (NLRC) and voluntary arbitrators under the National Conciliation and Mediation Board (NCMB). These decisions relate to monetary claims filed by Filipino seafarers and are intended to align with Section 59 of the Magna Carta of Filipino Seafarers—also known as Republic Act No. 12021—and its recently issued Implementing Rules and Regulations (IRR) from the Department of Migrant Workers (DMW).
Key Changes Under the New DOLE Order
Clarification of Undisputed vs. Disputed Amounts
The new rules introduce clear distinctions between “undisputed” and “disputed” monetary claims, ensuring proper procedures for each category.
Undisputed Amounts
These are monetary claims that are not subject to appeal or contest, including:
- Unpaid salaries or wages, including payment for the unexpired portion of a contract in cases of illegal dismissal.
- Monetary benefits stipulated in contracts or collective bargaining agreements.
- Statutory monetary and welfare benefits owed to the seafarer.
- Disability compensation, based on the determination of a third doctor in cases of dispute over disability grading.
- Any amount acknowledged by the employer as due to the seafarer.
The new guidelines state that undisputed amounts are immediately executory once the NLRC or arbitrator’s decision is final, regardless of any appeal, without requiring the seafarer to post a bond.
Disputed Amounts
Disputed claims include amounts that are:
- Legally due to the seafarer but contested by the employer.
- Claims for damages, such as moral, exemplary, or nominal damages, and attorney’s fees.
For disputed claims, seafarers must file a bond sufficient to cover the monetary award before the NLRC or arbitrator’s decision can be executed pending appeal. Once the decision becomes final, the disputed amounts are also immediately executory, provided the bond is posted.
Simplifying Execution of Claims
The DOLE order includes measures to streamline the enforcement process and safeguard seafarers’ rights:
Timely Remedies for Seafarers
Seafarers are assured of immediate access to monetary claims through:
- Clear execution procedures for both undisputed and disputed amounts.
- Elimination of delays in processing undisputed awards.
Bond Posting for Disputed Awards
To facilitate the execution of disputed awards:
- The procedures for posting the required bond have been simplified.
- The seafarer is entitled to reimbursement of bond costs if the court upholds the award in their favor.
These provisions aim to reduce financial barriers for seafarers while ensuring due process for employers.
Alignment with the Magna Carta of Filipino Seafarers
The new DOLE order reinforces the objectives of the Magna Carta, a landmark law designed to protect the welfare and rights of Filipino seafarers. It addresses longstanding challenges in labor dispute resolution by providing a balanced approach to:
- Prompt resolution of monetary claims.
- Ensuring compliance by employers and manning agencies.
- Upholding fairness for all parties involved.
Broader Implications for the Maritime Industry
The guidelines signify the government’s commitment to safeguarding Filipino seafarers, a cornerstone of the country’s maritime industry and a vital contributor to the global shipping workforce. By clarifying the process for executing claims, the DOLE fosters:
- Greater confidence among seafarers in pursuing their rights.
- Improved accountability for employers and manning agencies.
- A more equitable framework for resolving labor disputes.
This effort strengthens the Philippines’ standing as a leading supplier of skilled and reliable maritime professionals.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While efforts have been made to ensure the accuracy and reliability of the content, readers are advised to consult relevant government agencies, legal professionals, or official publications for detailed guidance on the implementation of the Magna Carta of Filipino Seafarers, DOLE regulations, or related labor laws. The author and publisher disclaim any liability for decisions made based on the information provided herein.
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