DOLE issues new rules on execution of seafarers’ claims

DOLE issues new rules on execution of seafarers’ claims
Gabriela Baron 16 Jan 2025 https://tribune.net.ph/2025/01/16/dole-issues-new-rules-on-execution-of-...

The Department of Labor and Employment (DOLE) has issued new rules on the execution of monetary claims by seafarers.

Department Order No. 247, series of 2025, signed on Wednesday by Labor Secretary Bienvenido Laguesma, implements Section 59 of the Magna Carta of Filipino Seafarers, or Republic Act No. 12021.

The new order stipulates that before a disputed monetary award in favor of a seafarer can be executed while the National Labor Relations Commission (NLRC) or a voluntary arbitrator's decision is pending appeal with the courts, the seafarer must first file a bond sufficient to fully restitute the amount in case the award is eventually reversed by the courts.

This order complements the implementing rules and regulations of the Magna Carta, which were issued last week by the Department of Migrant Workers (DMW).

Laguesma stated that the prompt issuance of the DOLE order is in response to President Ferdinand R. Marcos Jr.’s call during the signing of the DMW implementing rules and regulations, urging all concerned agencies to issue corresponding rules to ensure the immediate and full implementation of the law.

“The DOLE order clarifies the distinction between undisputed and disputed amounts for purposes of requiring the filing of the seafarer’s bond while the decision is being questioned in the courts,” the order reads.

Undisputed amounts include unpaid salaries or wages, the unexpired portion of the contract in cases of illegal dismissal, any remuneration capable of being expressed in monetary terms stipulated in the standard employment contract or applicable collective bargaining agreement, unpaid statutory monetary and welfare benefits, disability compensation as determined by a third doctor, and any amount admitted by the employer as owed to the seafarer.

Upon finality of the decision by the NLRC or voluntary arbitrator, undisputed amounts shall be immediately executory, even if an appeal is pending with the courts, without requiring the seafarer to file a bond.

On the other hand, disputed amounts include amounts legally owed to the seafarer and damages, such as moral damages, exemplary damages, nominal damages, attorney’s fees, and other similar awards.

Upon finality of the decision by the NLRC or voluntary arbitrator, disputed amounts shall also be immediately executory, provided that the seafarer files the required bond.

To protect all parties involved, the DOLE order includes provisions to ensure the seafarer’s access to timely remedies, procedures for posting the bond to facilitate execution of disputed awards pending appeal, and reimbursement of bond costs if the courts eventually affirm the disputed amount in favor of the seafarer.

In issuing the order, Laguesma emphasized that the Magna Carta did not modify or amend the jurisdiction of the NLRC and voluntary arbitrators over money claims of Filipino seafarers.

“Further, the general rule still holds that decisions of the NLRC and voluntary arbitrators, which have become final, are still immediately executory, even if pending appeal with the courts,” the order reads.

“The requirement for a seafarer’s bond is an exception to this general rule and applies only to disputed amounts in the awards of the NLRC or voluntary arbitrator,” it further specifies.

The order ensures that this requirement will be applied consistently with the intent of the law, protecting the rights of all parties involved, Laguesma said. He also urged all concerned parties to contribute to the dissemination and effective implementation of the order.

The new order will take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.