Philippines – New Law to Protect Seafarers

The ANGKLA Seafarer’s Protection Act [Republic Act No. 10706], also known as the Anti-Ambulance Chasing Act, became effective from 16 December 2015.

The Implementing Rules and Regulations (IRR) which define the details of the law are expected to be published in the next few months. The Seafarers Protection Act does not have retrospective effect.

The Act is intended to limit any legal fees to 10% of the compensation or benefit awarded to the seafarer.  It is also hoped that one effect of the Act will be to stop claimant lawyers from engaging in ambulance chasing or soliciting from seafarers in pursuit of any claim against an employer for compensation.

Ambulance chasing has been deemed to contain the following elements:

a)    That a person or his agent solicits from seafarers or his heirs, the pursuit of any claim against the employer of the seafarer.

b)    That such claim is for the purpose of recovery of any monetary award or benefits arising from accident, illness or death including legal interest.

c)    That the pursuit of the claim is in exchange of an amount or fee which shall be retained or deducted from the monetary award or benefit granted to or awarded to the seafarers or their heirs.

Strict penalties, including fines and imprisonment, can be applied to those who violate the law
The rules also confirm that fees over 10% of the total compensation awarded shall be considered excessive and violation of this shall be subject to the Civil Code of the Philippines and other related laws and regulations.

It is important that seafarers are aware of the Act which was introduced to protect seafarers and their families.