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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
In the case of Macalinao vs. Macalinao, G.R. No. 250613, April 3, 2024, the Supreme Court has ruled that benefits arising from the seafarer’s death under the Philippine Overseas Employment Administration (POEA) contract should be awarded only to the surviving legitimate spouse, despite being long estranged from the seafarer, alongside the seafarer’s legitimate and illegitimate children.
Such benefits are payable to the legal heirs not as inheritance but as proceeds from a death benefit. The beneficiaries, however, must be determined in accordance with the rules of compulsory and intestate succession.
The Section 20 (B) of the POEA Memorandum Circular 010-10 provides for the Compensation and Benefits for Death of a seafarer:
B. Compensation and Benefits for Death
- In case of work-related death of the seafarer, during the term of his contract, the employer shall pay the seafarer’s beneficiaries the Philippine currency equivalent to the amount of Fifty Thousand US Dollars (US $50,000) and an additional amount of Seven Thousand US Dollars (US $7,000) to each child under the age of twenty-one (21) but not exceeding four (4) children, at the exchange rate prevailing during the time of payment.
- Where death is caused by warlike activity while sailing within a declared war zone or war risk area, the compensation payable shall be doubled. The employer shall undertake appropriate war zone insurance coverage for this purpose.
- It is understood and agreed that the benefits mentioned above shall be separate and distinct from, and will be in addition to whatever benefits which the seafarer is entitled under Philippine laws from the Social Security System, Overseas Welfare Administration, Employees’ Compensation Commission, Philippine Health Insurance Corporation, and Home Mutual Development Fund (Pag-IBIG Fund).
- The other liabilities of the employer when the seafarer dies as a result of work-related injury or illness during the term of employment are as follows:
- The employer shall pay the deceased’s beneficiary all outstanding obligations due the seafarer under this Contract.
- The employer shall transport the remains and personal effects of the seafarer to the Philippines at employer’s expense except if the death occurred in a port where local government laws or regulations do not permit the transport of such remains. In case death occurs at sea, the disposition of the remains shall be handled or dealt with in accordance with the master’s best judgment. In all cases, the employer/master shall communicate with the manning agency to advise for disposition of seafarer’s remains.
- The employer shall pay the beneficiaries of the seafarer the Philippine currency equivalent to the amount of One Thousand US dollars (US $1,000) for burial expenses at the exchange rate prevailing during the time of payment.
With respect to the beneficiaries who may claim the death benefits, the POEA Memorandum defines them as:
“Beneficiary(ies) refers to the person(s) to whom the death compensation and other benefits due under the employment contract are payable in accordance with the rules of succession under the Civil Code of the Philippines, as amended.”
In other words, the death benefits that the heirs of a deceased seafarer are entitled shall be paid in accordance with the rules on succession, in that they may only be paid to those who are considered as the seafarer’s legal heirs. This reference to the rules of succession, however, does not extend to say that the death benefits are part and parcel of the seafarer’s hereditary estate or inheritance.
Related Articles:
Summary of the Newly Enacted Filipino Seafarer’s Magna Carta
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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