on foreign ocean-going vessels.[33] Every seaman and the vessel owner
(directly or represented by a local manning agency) are required to execute the
POEA Standard Employment Contract as a condition sine qua non prior to the
deployment for overseas work.The POEA Standard Employment Contract is
supplemented by the CBA between the owner of the vessel and the covered
seamen.
A notable feature of the POEA Standard Employment Contract is Section
31 its provision on the Applicable Law. It provides:
Any unresolved dispute, claim or grievance arising out of or in connection
with this Contract, including the annexes shall be governed by the laws of the
Republic of the Philippines, international conventions, treaties and convenants
where the Philippines is a signatory.
Through this provision, the DOLE skirted any possible issue regarding the law
that should govern the terms and conditions of employment of Filipino seamen
working in ocean-going vessels that have no significant Philippine presence and
that hardly see Philippine waters. Thus, with the POEA Standard Employment
Contract, there is no doubt that in case of any unresolved dispute, claim or
grievance arising out of or in connection with the contract, Philippine laws
shall apply.
In real terms, this means that the shipowner an employer operating
outside Philippine jurisdiction does not subject itself to Philippine laws, except
to the extent that it concedes the coverage and application of these laws under
the POEA Standard Employment Contract. On the matter of disability, the
employer is not subject to Philippine jurisdiction in terms of being compelled to
contribute to the State Insurance Fund that, under the Labor Code, Philippine
employers are obliged to support. (This Fund, administered by the Employees
Compensation Commission, is the source of work-related compensation
payments for work-related deaths, injuries, and illnesses.) Instead, the POEA
Standard Employment Contract provides its own system of disability
compensation that approximates (and even exceeds) the benefits provided under
Philippine law.[34] The standard terms agreed upon, as above pointed out, are