POEA rules on seafarer’s fees

5:14 am Tuesday, May 16, 2017

By: Atty. Dennis R. Gorecho

The Revised POEA Rules and Regulations 2016 states how chargeable fees and costs are considered in relation to the  recruitment and employment of Filipino seafarers, the revised rules was passed in accordance with the policy of the Philippine Overseas Employment Administration (POEA)  policy, among others, to uphold the dignity and fundamental human rights of Filipino seafarers navigating foreign seas, and promote full employment and equality of employment opportunities for all:

A. Fees Chargeable to Principal/Employer

1. Manning Fees– Licensed manning agencies shall charge from their principal/employer a manning fee to cover services rendered in the recruitment and deployment of seafarers.
2. Processing Fees– All processing fees required for deployment. However, in case of seafarer’s failure or unjustified refusal to join ship after all processing fees have been incurred by the principal/employer, the said fees shall be refunded by the seafarer within thirty (30) days from demand.  These include:
3. pre-employment medical examination in the principal’s/employer’s designated clinic,
4. POEA and OWWA fees,
5. visas,
6. principal’s/employer’s flag State ship requirements,
7. principal’s/employer’s required trainings and other requirements

B. Costs Chargeable to the Seafarer

Documentation costs of all statutory requirements such as, but not limited to, passport, seafarer’s identification and record book (SIRB), NBI/police/barangay clearance, Seafarer’s Registration Certificate (SRC) and birth certificate.

No other charges in whatever form, manner or purpose, shall be imposed on and be paid by the seafarer unless otherwise provided by law.

Administrative offenses involving collection of fees are classified into serious, less serious and light, depending on their gravity.  The POEA shall impose the appropriate administrative penalties for every recruitment violation. in view of the

A. SERIOUS OFFENSES are those that by their nature and effect are punishable by immediate cancellation of license, plus refund of fee or bond collected or excess processing or documentation costs (if applicable).  Permanent disqualification and delisting from the roster of accredited principals/employers may also be imposed.

1. Charging or accepting directly or indirectly any amount of money, goods or services, or any fee or bond for any purpose from an applicant seafarer.

2. Charging, imposing or accepting, directly or indirectly, under any guise whatsoever, any amount of money as payment for the insurance premium for compulsory insurance coverage.

3. Collecting any amount as payment for processing, or documentation costs not prescribed by the rules, or an amount greater than the actual documentation costs, as covered by official receipts issued by entities where payments were made.

B. LESS SERIOUS OFFENSESare those that by their nature and effect are punishable by the penalty of suspension to cancellation of license.

1. Withholding or denying travel or other pertinent documents from an applicant seafarer for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing Rules and Regulations

2. Failure to reimburse expenses incurred by the seafarer in connection with his documentation and processing for purposes of deployment, where deployment does not take place without the seafarer’s fault. The penalty shall include the carry the accessory penalty of immediate refund of expenses incurred by the seafarer.

Unlike serious offenses which are punishable by immediate cancellation of license, plus a refund of fee or bond collected or excess processing or documentation costs (if applicable).  as well as Permanent Disqualification and delisting, penalties for less serious offenses may vary based on the frequency of violations:

1^st Offense — Suspension of License (2 to 6 Months)

2^nd Offense — Suspension of License (6 Months and 1 day to 1 year)

3^rd Offense — Suspension of License (1 year and 1 day to 2 years)

4^th Offense — Cancellation of License

Money claims arising from recruitment violation may be awarded in addition to the administrative penalties imposed. In lieu of the penalty of suspension of license, the POEA may impose the penalty of fine which shall be computed at Fifty Thousand Pesos (P50, 000.00) for every month of suspension.

The penalty of cancellation of license shall be imposed upon a respondent found liable for committing an offense, regardless of the number or nature of charges, against five (5) or more workers in a single case. This provision shall not apply to consolidated cases unless there are five (5) or more complainants in any of the consolidated cases.

Prescription: All cases shall be barred if not commenced or filed with the POEA within three (3) years after such cause of action accrued.