The Philippines, the world's largest provider of seafarers, has enacted a “Magna Carta” to protect the rights of its mariners worldwide.

Philippine President Ferdinand R. Marcos Jr. signed the long-awaited measure into law on September 23 after a delay in the signing on February 26 this year.

The Magna Carta of Filipino Seafarers, signed as Republic Act (RA) No. 12021, aims to align domestic legislation with international conventions such as the Maritime Labour Convention (MLC) and the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW). This is to ensure that Filipino seafarers have protections and opportunities in line with global standards.

During the bill signing, Marcos emphasized the timeliness of the proposal in light of the ongoing attacks on cargo ships and tankers in the Red Sea.

The "Magna Carta" establishes a comprehensive framework for safeguarding and enhancing the rights and well-being of Filipino seafarers in both local and international shipping. It also sets stringent new standards for training, education, and cadetship necessary for certification.

Maritime insurer Gard said the law was developed partly in response to the complex and often unjust nature of Filipino crew claims and the challenges posed by the existing legal framework. 

In particular, it noted that the application of garnishment has been problematic, and the difficulties in resolving these claims had negatively impacted the Philippines' status as a leading supplier of maritime labour.

Changes to garnishment rules

“One of the most discussed changes introduced by the Magna Carta concerns the process of garnishment. Under previous laws, seafarers were entitled to immediate compensation from their employers if a motion for reconsideration was denied - even if the case was still under appeal,” Gard said.

“With the new law, however, the employer is no longer required to immediately issue full compensation if the case is appealed. The employer must promptly pay the part of the judgment that is not being contested, but for the rest of it, the seafarer must first provide a bond to guarantee that the money will be returned if the employer wins the appeal. If the employer wins, the bonding company will be the one to return the disputed amount to the employer,” it added.

Filipino seafarers comprise a significant portion of the global maritime workforce.

The Philippine Department of Labor and Employment estimates that the country has over 600,000 seafarers in the maritime industry. These people comprise more than 25% of mariners worldwide.

The Philippines has been under increased scrutiny for its training standards and allegations of agencies providing licenses for a fee without following proper processes.

These problems have led to a threat that the EU will stop recognizing Filipino credentials.