Amended of POEA Standard Contract (2)
While the contract was amended on 25 June 2000, labor unions and Filipino seafarers filed petitions with the Philippines Supreme Court to stop the implementation of the amended POEA contract claiming that the amended contract was unfair. On 11 September 2000, the Supreme Court issued the TRO stopping the Secretary of Labor and the Administrator of the POEA from implementing certain provisions of the amended contract, while the petitions were pending.
On 17 April 2002, the Supreme Court dismissed with finality all the petitions questioning the validity of the amended POEA contract and motions for reconsideration were also denied. Then the POEA issued on 5 June 2002 the said Memorandum Circular to implement the suspended provisions and give effect to the amended contract in full. The relevant provisions in effect are as follows;-
"Compensation and Benefit" in Section 20,
1 Paragraphs (A), (B) and (D) on "work-related" provisions have been implemented instead of "during the term of the contract" in the old contract.
2 Paragraphs (E) and (G) on "releasing the shipowners from damages arising from contract due to concealment of the past medical condition, and tort, fault or negligence in any other country", which had been deleted once, have been revived.
The notable provision is the above mentioned Section 20 which apply to compensation and benefits only for the case on "work-related" injury, illness, disability or death suffered by Filipino seafarers. Hence the shipowners shall not be liable to pay compensation in case of "non work-related".
However, it should be noted that the Supreme Court did not rule on the merits of the petitions but simply dismissed the petitions for being filed in the "wrong court". Namely it should have been filed in the lower court, not directly in the Supreme Court. Accordingly, it does not mean that the substantial issue about reasonableness of the amended POEA contract has been totally resolved. In such circumstance, disputes between the relevant parties on the "work-related" provisions may be occurred in future.