5/19/2021
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As shown above, despite the mandatory SSS coverage under the 1988 MOA of the SSSDOLE, 2010 POEA-SEC, and 2006 MLC, foreign principal employers and manning
agencies do not comply with their obligation. There are still thousands of seafarers
deployed who are not covered by the SSS, and foreign principal employers and
manning agencies are not paying their SSS contributions.
Hence, Congress found that the best solution to resolve the failure to report the
seafarers for SSS coverage is to, once and for all, make the seafarer's SSS coverage
mandatory under the law. In that manner, the foreign principal employers and manning
agencies are jointly and solidarily liable under R.A. No. 11199 to ensure that they will
report their seafarers to the SSS and pay their contributions. Failure to comply with the
law shall lead to different sanctions. This is the decree employed by Congress to give
significant effect to the constitutional mandate of the State to afford protection to labor,
whether local or overseas.[48]
Likewise, the apprehension of petitioners that the law places the burden of the SSS
coverage entirely upon the shoulders of manning agencies because they are treated as
employers is more illusory than real. Evidently, Sec. 9-B(b) of R.A. No. 11199 treats
manning agencies of seafarers as employers only for the purpose of enforcing their
solidary liability with the principal foreign ship owners. The law is anchored on the
existing law and regulations. This is to guarantee the SSS coverage of the seafarers.
Again, Sec. 9-B(b) of R.A. No. 11199 clearly states that manning agencies are mere
"agents of their principals." They are only treated as employers for the exclusive
purpose of enforcing their solidarity liability with the foreign principal employer in favor
of the seafarers, including claims arising from SSS coverage. This mechanism was
deemed sufficient by Congress to ensure that seafarers would be fully protected under
their social security coverage.
Manning agencies are sensibly covered by R.A. No. 11199 when their joint and several
liability with the principal foreign ship owner is invoked. Contrary to petitioners'
argument that manning agencies are unnecessarily saddled with the SSS obligations,
they still have available recourses under the Civil Code against their solidary obligors,
particularly, the foreign principal shipowners. The law is reasonable because it is bereft
of any provision that absolutely and unequivocally transfers the entire responsibility of
the SSS coverage to the manning agencies alone. It simply found an innovative method
to utilize the existing solidary liabilities of the parties involved in the hiring of sea-based
OFWs to enforce the mandatory coverage of the SSS.
There is no automatic
criminal liability against
officers of manning agencies.
Petitioners likewise argue that Sec. 9-B of R.A. No. 11199 violates the managers,
officers, owners, or directors of manning agencies' right to substantive due process
when it imposes criminal liability on them for the crimes that others, such as the
https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66432
18/28
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