POEA revised contract - salient points

Date: 11/10/2003
Source: Department of Labour of the Republic of the Philippines


Ø 10. - Principal – any person, partnership or corporation hiring Filipino seafarers to work on board ocean-going vessels.

Ø 11. - Work-related Injury - injury (ies) resulting in disability or death arising out of and in the course of employment.

Ø 12. - Work-related illness – any sickness resulting to disability or death as a result of an occupational diseases listed under section 32-A of this contract with the conditions set therein satisfied.


A. Duties of the Employer/Agency/Master

Ø Item 3 – to provide a seaworthy vessel for the seafarers and take all reasonable precaution to prevent accident and injury to the crew including provision of safety equipment, fire prevention, safe and proper navigation of the vessel and such other precautions necessary to avoid accident, injury or sickness to the seafarers.

Ø Item 4 – to observe the Code of Ethics for Seafarers and conduct himself in the traditional decorum of a master.




B. Duties of the Seafarer

Ø item 3. X x x including safety policy and procedures and any instructions given in connection therewith.  


C. Overtime work may be compensated at the following rates:

Ø 3. Overtime work for officers shall be computed based on the fixed overtime rate.

Ø 4. For ratings overtime work shall be based on guaranteed or open overtime rate, as mutually agreed upon by the contracting parties. Overtime work in excess of 105 hours a month for ratings shall be further compensated on the open overtime rate.


Ø X X X . Leave pay shall be settled on board or settled within two weeks after arrival of the seafarer at the point of hire.


Ø C. The foregoing procedure shall be without prejudice to other modes of voluntary settlement of disputes and x x x x


Ø A. The master shall furnish the seafarer with a written notice continuing the following:

1. Grounds for the charges as listed in Section 33 of this contract or analogous act constituting the same

Ø B. The master or his authorized representative shall conduct the investigation or hearing giving the seafarer the opportunity to explain or defend himself against the charges. These procedures must be duly documented and entered into the ship’s logbook.

Ø D. Dismissal for just cause may be effected by the Master without furnishing the seafarer with a notice of dismissal if there is a clear and existing danger to the safety of the crew or the vessel. The Master shall send a complete report to the manning agency substantiated by witnessess, testimonies and any other documents in support thereof.



Ø B. The employment of the seafarer is also terminated when the seafarer arrives at the point of hire for any of the following reasons.

3. when the seafarer, in writing , voluntarily resigns and signs off prior to expiration of contract pursuant to Section 19 (G) of this Contract.




Ø A. Compensation and Benefits for Death

1. In case of work-related death of seafarers, during the terms of his contract the employer shall pay his beneficiaries the Philippine Currency equivalent to the amount of Fifty Thousand US Dollars (US$50,000.00) and an additional amount of Seven Thousand US Dollars (US$7,000) to each child under the age of twenty-one (21) but not exceeding four (4) children, at the exchange rate prevailing during the time of payment.

2. x x x

3. It is understood and agreed that the benefits mentioned above shall be separate and distinct from, and will be in addition to whatever benefits which the seafarer is entitled to under Philippine laws from the Social Security System, Overseas Workers Welfare Administration, Employees’ Compensation Commission, Philippine Health Insurance Corporation and Pag-ibig, if applicable.

4. The other liabilities of the employer when the seafarer dies as a result of work-related injury or illness during the term of employment are as follows:-

Ø B. Compensation and Benefits for Injury or Illness

The liabilities of the employer when the seafarer suffers work-related injury or illness during the term of his contract are follows:-

2. Upon sign-off from the vessel for medical treatment, the seafarer is entitled to sickness allowance equivalent to his basic wage until he is declared fit to work or the degree of permanent disability has been assessed by the company-designated physician but in no case shall this period exceed one hundred twenty (120) days.

For this purpose, the seafarer shall submit himself to a post-employment medical examination by a company-designated physician within three working days upon return except when he is physically incapacitated to do so, in which case, a written notice to the agency within the same period is deemed as compliance. Failure of the seafarer to comply with the mandatory reporting requirement shall result in his forfeiture of the right to claim the above benefits.

If a doctor appointed by the seafarer disagrees with the assessment, a third doctor may be agreed jointly between the Employer and the seafarer. The third doctor’s decision shall be final and binding on both parties.


4. Those illnesses not listed in Section 32 of this Contract are disputably presumed work related.

6. In case of permanent total or partial disability the seafarer caused by either injury or illness the seafarer shall be compensated in accordance with the schedule of benefits in Section 32 x x x

Ø D. No compensation and benefits shall be payable in respect of any injury, incapacity, disability or death of the seafarer resulting from his willfull or criminal act or intentional breach of his duties, provided however, that the employer can prove that such injury, incapacity, disability or death is directly attributable to the seafarer.

Ø E. A seafarer who knowingly conceals and does not disclose past medical condition, disability and history in the pre-employment medical examination constitutes fraudulent misrepresentation and shall disqualify him from any compensation and benefits. This may also be a valid ground for termination of employment and imposition of the appropriate administrative and legal sanctions.

Ø F. When requested, the principal shall furnish the seafarer a copy of all pertinent medical reports or any records at no cost to the seafarers.

Ø G. The seafarer or his successor in interest acknowledges that payment for injury, illness, incapacity, disability or death of the seafarer under this contract shall cover all claims arising from or in relation with or in the course of the seafarer’s employment, including but not limited to damages arising from the contract, tort, fault or negligence under the laws of the Philippines or any other country.



Where the vessel is wrecked necessitating the termination of employment before the date indicated in the contract, the seafarer shall be entitled to earned wages, medical examination at employer’s expense to determine his fitness for work, repatriation at employer’s cost and one month basic wage as termination pay. (the rest of the sentences on this paragraph was deleted).



Where the vessel is sold , laid up, or the voyage is discontinued necessitating the termination of employment before the date indicated in the contract, the seafarer shall be entitled to earned wages, repatriation at employer’s cost and one (1) month basic wage as termination pay, unless arrangements have been made for the seafarer to join another vessel belonging to the same principal to complete his contract in which case the seafarer shall be entitled to basic wages until the date of joining the other vessel.



If the seafarer is terminated and repatriated as a result of port state control procedures/actions in compliance with Regulation ¼ of the 1978 STCW Convention, as amended, his termination shall be considered valid. However, he shall be entitled to repatriation, earned wages and other benefits.



In cases of claims and disputes arising from this employment, the parties covered by a collective bargaining agreement shall submit the claim or dispute to the original and exclusive jurisdiction of the voluntary arbitrator or panel of arbitrators. If the parties are not covered by a collective bargaining agreement, the parties may at their option submit the claim or dispute to either the original and exclusive jurisdiction of the National Labor Relations Commission (NLRC) pursuant to Republic Act (RA) 8042 otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995 or to the original and exclusive jurisdiction of the voluntary arbitrator or panel of arbitrators. If there is no provision as to the voluntary arbitrators to be appointed by the parties, the same shall be appointed from the accredited voluntary arbitrators of the National Conciliation and Mediation Board of the Department of Labor and Employment .

The Philippine Overseas Employment Administration (POEA) shall exercise original and exclusive jurisdiction to hear and decide disciplinary action on cases, which are administrative in character, involving or arising out of violations of recruitment laws rules and regulations involving employers, principals contracting partners and Filipino seafarers.


All claim arising from this Contract shall be made within three (3) years from the date the cause of action arises, otherwise the same shall be barred.including the annexes thereof, shall be governed by the laws of the Republic of the Philippines, international conventions, treaties and covenants where the Philippines is a signatory.




Any unresolved dispute, claim or grievance arising out of or in connection with this Contract




(rather than using the word minimum it was reflected the equivalent of US$50,000.00)



For an occupational disease and the resulting disability or death to be compensable, all of the following conditions must be satisfied:

(1) The seafarer’s work must involved the risks described herein;

(2) The disease was contracted as a result of the seafarer’s exposure to the described risks;

(3) The disease was contracted within a period of exposure and under such other factors necessary to contract it;

(4) There was no notorious negligence on the part of the seafarer.

The following diseases are considered as occupations when contracted under working conditions involving risks described herein:

(please refer to the list as provided in this contract)

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