CONGRESS PASSES MAGNA CARTA OF FILIPINO SEAFARERS – EXECUTION PENDING APPEAL NOW REQUIRES POSTING OF A BOND FROM THE SEAFARER.
The Philippine Congress has already ratified the proposed Magna Carta of Filipino Seafarers on 13 December 2023. The significant provisions which passed the legislative scrutiny include the seafarer’s duty to post a bond in case of execution pending appeal which, in reality, is a counter bond, and the prohibition on ambulance chasing, among others.
Section 57 of the proposed law provides that a writ of execution shall only be issued to the seafarer if he posts a sufficient bond to ensure the full restitution of the disputed amount and such bond shall be maintained until the final resolution of the appeal or judicial review. The disputed amount means the part of the monetary award which the employer previously opposed or challenged during the arbitration proceedings to be not due to the seafarer. Thus, the seafarer is now required to post a bond to proceed with the execution of the judgment award.
The provision serves as a deterrence for clearly unfounded and unmeritorious disability benefit claims. This is a huge win for the ship owners and P&I clubs who have become victims of “paper victory” in a number of Supreme Court cases due to the “final and executory” nature of NLRC decisions thereby causing them considerable and irreparable damage. As it may be noted, the remedy of vessel owner’s to recover the amount through restitution has not been successful in the past years due to the fact that there is no collateral on the part of the employee when the judgment award is released.
The Magna Carta of Filipino Seafarers is now awaiting the signature of President who certified the bill as urgent. Once passed into law, it shall be a vital safeguard to the rights of all stakeholders in the maritime industry.
For a copy of the Bill, please see the link below.
“AN ACT PROVIDING FOR THE MAGNA CARTA OF FILIPINO SEAFARERS”