On The Application of Section 59 (Execution of Judgments and Monetary Awards) of the Magna Carta on Existing Cases
Q: What cases are covered by the application of Section 59?
A: Section 59 of RA No. 12021 shall only apply to monetary awards, including but not limited to, the salaries, wages, statutory benefits, death and disability claims, claims for damages and other similar awards of seafarers arising from complaints filed with the NLRC or NCMB on or after the date of effectivity of the law. (Section 1 of Rule XXII, IRR)
Therefore, in all pending cases arising from complaints filed on or after 11 October 2024, Section 59 will now apply and the employers can no longer be required to pay the disputed amount stated in the decisions of the NLRC and voluntary arbitrator/s unless the seafarer or the seafarer’s heirs post a sufficient bond to ensure the full restitution of the disputed amount.
Q: How about for other pending cases?
A: Complaints filed prior to the effectivity of the law shall be governed by the laws, rules and regulations prevailing as of the date of their filing. (Section 1 of Rule XXII, IRR)
Hence, in all pending cases arising from complaints filed before 11 October 2024, the old regime of laws, rules and regulations will be applied wherein decisions of the NLRC and voluntary arbitrator/s shall be considered final and executory. Thus, the employers will be required to pay the judgment awards after the end of the NLRC and voluntary arbitration proceedings.
On The Referral of Conflicting Medical Grading to a Third Doctor
Q: If the parties to a dispute cannot mutually select a third doctor from a pool of DOH-accredited medical specialists, what mechanism is in place in the Implementing Rules and Regulations?
A: In case there is no agreement between the parties on the appointment of third doctor from the pool of DOH-accredited third doctors, the DMW shall facilitate the appointment of the third doctor from the same pool.
The DMW shall only facilitate but not appoint a third doctor who will resolve the issue of conflicting medical grading.
Q: Who is a DOH-accredited medical specialist?
A: The DOH-accredited medical specialist refers to the medical practitioners who are bona fide members of their respective specialty societies duly recognized by an Accredited Professional Organization in accordance with their existing rules and regulations.
Q: What is the scope of the mandate of the company-designated physician, seafarer’s doctor and the third doctor in the determination of disability grading?
A: The medical assessment of the company-designated physician, seafarer’s doctor and the third doctor shall strictly adhere to the Schedule of Disabilities as provided in the Standard Employment Contact or the applicable CBA, as warranted. (Section 5 of Rule XI, IRR)
On Insurance Coverage of Benefits Due to the Seafarer or Heirs of Seafarer Under Section 37-A of RA No. 10022 (Amended Migrant Workers Act)
Q: Is the current practice by foreign principals of issuing a one-page Certificate of Cover as a pre-condition for the issuance of an Overseas Employment Certificate (OEC) still recognized under the Magna Carta?
A: Yes. It is stated in the Implementing Rules and Regulations of the Magna Carta that in the case of seafarers, manning agencies whose seafarers will be deployed on-board vessels with policies issued by foreign insurance companies, including entities providing indemnity coverage to the vessel, shall submit a certificate or other proofs of cover from recruitment/manning agencies provided that the minimum coverage under sub-paragraphs (a) to (i) of Section 37-A of RA No. 8042, as amended by RA No. 10022 are included therein. (Section 4 of Rule IX, IRR)
On Allotments and Remittances of Wages
Q: Did the Magna Carta maintain the 80% allotment required under the present Standard Employment Contract?
A: Yes the Magna Carta did not change the present requirement stated in the Standard Employment Contract that the allotment shall be at least 80%.
Q: What portion of the total earnings of the seafarer will serve as basis of the 80% allotment?
A: The allotment shall be at least eighty percent (80%) of the seafarer’s monthly salary.
Q: What components of the monthly salary shall be used as basis of the 80% allotment?
A: The monthly salary shall consist of basic wage plus fixed or guaranteed overtime. (Section 6 of Rule VII, IRR)
On Medical Care On-Board Ships
Q: Is the duty of the seafarer to take personal responsibility of the seafarer’s health while on-board by practicing a healthy lifestyle which includes taking medications and lifestyle changes as prescribed by the company-designated doctor maintained in the Magna Carta?
A: Yes. The Magna Carta shall not, in any way, diminish the personal responsibility of the seafarer for the seafarer’s health while on-board by practicing a healthy lifestyle which includes bringing on-board sufficient number of the seafarer’s maintenance medications and lifestyle changes as prescribed by the duly-licensed doctor. (Section 1 of Rule IX, IRR)
On The Effectivity and Implementation of Magna Carta
Q: With promulgation of the IRR, when can the new law be fully implemented?
A: The law took effect on 11 October 2024 following its publication on 25 September 2024. With the signing of the Implementing Rules and Regulations (IRR) on 8 January 2025 and its subsequent publication on 9 January 2025, the new law can now be fully implemented starting on 25 January 2025.
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