Affidavit of Closure for Seaman’s Fund Claim
A comprehensive guide under Philippine maritime, labor, and notarial law
1. What is a “Seaman’s Fund Claim”?
In Philippine practice, “Seaman’s Fund” is not a single statutory fund but a convenient umbrella term used by shipping principals, manning agencies, and claimants to refer to every compulsory benefit facility available to Filipino seafarers, namely:
| Benefit Source | Typical Claim | Governing Instrument |
|---|---|---|
| Overseas Workers Welfare Administration (OWWA) Welfare and Trust Funds | Death, disability, social benefits | R.A. 8042, R.A. 10801, OWWA Board Resolutions |
| SSS Flexi-Fund / Employees’ Compensation Fund | Sickness, disability, retirement | R.A. 11199, P.D. 626 |
| PhilHealth Seafarers’ Medicare | Medical and hospital reimbursement | R.A. 11223, PhilHealth Circulars |
| Collective Bargaining Agreement (CBA) Welfare Funds | Enhanced disability/death benefits | POEA-approved CBA |
| P&I Club / Employer’s Insurance Proceeds | Contractual or tort damages | POEA Standard Employment Contract (POEA-SEC), Marine Insurance Act |
A Seaman’s Fund Claim is therefore any demand for payment from one or more of the above benefit “pots,” usually filed after:
- a work-related injury/illness;
- total or partial permanent disability; or
- a seafarer’s death (by his heirs).
2. Why does an Affidavit of Closure matter?
Once a seafarer (or his heirs) receives full settlement of every benefit and pursues no further action—administrative, civil, or arbitral—the employer, insurer, or agency requires documentary proof to:
- Terminate liability and book the claim as closed (for audit, P&I Club renewal, and DOLE inspections).
- Comply with POEA and OWWA reporting on settled claims.
- Extinguish the right of action through waiver/quitclaim that is voluntary, informed, and notarised (a requirement recognised by the Supreme Court to make quitclaims prima facie valid).
That document is the Affidavit of Closure for Seaman’s Fund Claim—sometimes styled “Affidavit of Full Satisfaction, Release, Waiver and Quitclaim.”
3. Legal Foundations
| Source | Key Provisions |
|---|---|
| Civil Code (Arts. 6, 1231 & 1390) | Consent and waiver as a mode of extinguishing obligations; voidable waivers if vitiated by force, fraud, or undue influence. |
| Labor Code (Art. 227 [formerly 222]) | Enforces compromise settlements; voluntary quitclaims in labor-standards claims are valid unless contrary to law, morals, public policy, or executed under duress. |
| POEA Standard Employment Contract (Secs. 29-30, 2010 & 2022 versions) | Permits amicable settlement of disability/death benefits and requires the execution of a quitclaim duly notarised and witnessed by a POEA or NLRC representative, or a licensed lawyer. |
| OWWA Rules on Claims Processing | Require Joint Affidavit of Settlement & Release for death/disability claims before fund disbursement. |
| 2019 Amendments to the Rules of Procedure of the NLRC (Rule IV, Sec. 7) | Allows submission of duly notarised quitclaims to support motions to dismiss on account of settlement. |
| Rules on Notarial Practice 2004 (Rule IV, Secs. 6-7) | Affidavits must be signed in the notary’s presence; competent proof of identity required; entries in Notarial Register mandatory. |
| Key Supreme Court cases | Magsaysay Maritime v. NLRC (G.R. 189240, 6 Nov 2013); Fujian v. Villaruel (G.R. 217117, 15 Jun 2021) – clarify when quitclaims bar further claims and when they are set aside for vitiated consent. |
4. Essential Elements of the Affidavit
Title AFFIDAVIT OF CLOSURE, FULL SETTLEMENT, RELEASE, WAIVER, AND QUITCLAIM (Seaman’s Fund Claim)
Affiant’s Capacity For disability claims: the seafarer-claimant himself. For death claims: the heir/beneficiary recognised under Art. 195 of the Labor Code hierarchy or under the CBA.
Identification & Jurisdictional Facts
- Name, age, civil status, citizenship, address.
- Vessel, IMO No., flag, date & place of sign-on/off.
- POEA contract number and duration.
Narration of Events
- Date of illness/injury or date of death.
- Medical repatriation details, diagnosis, disability grade (if any).
- Steps taken to file the claim (report to company doctor, submission to OWWA, etc.).
Statement of Settlement
“That on 3 May 2025 I received from ABC Maritime Corporation the total amount of ₱4,700,000.00 representing the full and final benefits from OWWA, SSS, PhilHealth, CBA-welfare fund and P&I insurance…”
Acknowledgment of Sufficiency & Voluntariness
- The amount “is more than sufficient”;
- No force, fraud, intimidation;
- Affiant had opportunity to consult counsel.
Waiver & Quitclaim Clause
- Express waiver of any cause of action “arising from my employment aboard MV Pacific Star or under the POEA-SEC, Labor Code, Civil Code, or any maritime law;”
- Undertaking that no complaints are pending before DOLE, NLRC, NCMB, regular courts, or foreign tribunals.
Release Clause
- Discharges employer, manning agent, shipowner, P&I Club, officers, directors, insurers.
Undertaking to Withdraw/Suppress Claims
- If a case is already docketed, the affiant undertakes to file a motion to withdraw with prejudice.
Subscription & Notarization
- Signed in the notary’s presence;
- Two government-issued IDs indicated;
- Notarial seal & register entry.
Witnesses & Conformé (best practice)
- Employer’s representative signs “With Conformity”;
- At least one neutral witness (e.g., family member, union officer).
5. Drafting Tips & Best Practices
- Use Plain Filipino-English Mix if affiant’s educational attainment is limited. Courts frown on legalese that the signer never understood.
- Itemize every funding source and peso amount; “lump-sum” wording alone is vulnerable to attack.
- Attach proof of payment (bank receipt, manager’s check photocopy).
- Give the affiant a cooling-off period (at least 24 hours) before signing. This helps defeat later claims of duress.
- Have it notarised near the seafarer’s home or at the NLRC’s free notary station; venue shopping for a “friendly notary” may cast doubt.
- If signed abroad, have the affidavit apostilled (R.A. 11223, Hague Apostille Convention) or executed before the Philippine Consul.
- Register the document with the DOLE-Regional Office together with the required Report on Settlement (Labor Code, Art. 229). This is optional but persuasive evidence of compliance.
6. Common Pitfalls & How Courts Deal with Them
| Pitfall | Resulting Doctrine |
|---|---|
| Gross Disparity between settlement amount and statutory minimum (e.g., ₱50 k vs. ₱4 m under POEA-SEC) | Quitclaim annulled for being contrary to public policy; employer made to pay full balance plus attorney’s fees (C.F. Sharp Crew v. Daganato, G.R. 213741, 17 Apr 2019). |
| “Take-it-or-leave-it” coercion at the manning office | Vitiated consent: waiver set aside, case reinstated (Balatero v. Senmar Shipping, G.R. 193659, 10 Jun 2013). |
| Notarised by a company lawyer without proper IDs | Defective notarisation; affidavit treated as private document requiring authentication; quitclaim invalid (UniGroup v. Tiu, G.R. 247679, 1 Mar 2023). |
| Settlement signed while case is already on appeal | Any compromise needs NLRC or CA approval; affidavit alone insufficient; decision may still be executed unless duly approved. |
7. Sample Skeleton (Editable)
REPUBLIC OF THE PHILIPPINES )
CITY/MUNICIPALITY OF _______ ) S.S.
AFFIDAVIT OF CLOSURE, FULL SETTLEMENT,
RELEASE, WAIVER AND QUITCLAIM
(Seaman’s Fund Claim – Disability)
I, JUAN D. SANTOS, Filipino, of legal age, married, and a resident of
#123 Dagat-Dagatan St., Navotas City, after having been duly sworn,
state:
1. I was employed by ABC Maritime Corporation as Bosun on board the
vessel MV PACIFIC STAR under POEA Contract No. OFW-123456, with a
contract period from 12 October 2024 to 11 April 2025.
2. On 3 February 2025, I sustained a lumbar spine injury while rigging
mooring lines, for which I was medically repatriated and later
assessed by the company-designated physician as having Grade 8
permanent disability under the POEA-SEC.
3. After negotiations, and with advice of independent counsel, I
voluntarily accepted and, on 3 May 2025, received the total sum of
FOUR MILLION SEVEN HUNDRED THOUSAND PESOS (₱4,700,000.00)
representing:
a) POEA-SEC disability benefit ............. ₱2,619,843.75
b) OWWA supplemental disability assistance .. ₱100,000.00
c) SSS & EC disability pension (present value) ... ₱680,156.25
d) CBA welfare fund top-up .................. ₱1,300,000.00
4. I declare that the foregoing constitutes full and final settlement
of any and all claims arising from my employment, including but not
limited to those under the Labor Code, Civil Code, POEA-SEC,
Maritime Labor Convention 2006, CBA, or any other law.
5. I freely and voluntarily RELEASE, ACQUIT, and FOREVER DISCHARGE
ABC Maritime Corporation, XYZ Shipmanagement Ltd., their officers,
directors, insurers, P&I Club, and assigns from any liability,
past, present or future, in connection with my employment or injury.
6. I further undertake to cause the immediate withdrawal with
prejudice of NLRC Case No. ___, if any, filed by me.
IN WITNESS WHEREOF, I have hereunto set my hand this 5th day of
May 2025 at Navotas City, Philippines.
(Sgd.) ___________________________
JUAN D. SANTOS
Affiant
With Conformity: Witnesses:
(Sgd.) HR Manager (Sgd.) ___________________
ABC Maritime Corporation (Sgd.) ___________________
SUBSCRIBED AND SWORN to before me this 5 May 2025,
affiant exhibiting his PhilSys ID No. __________.
Doc. No. ___; Page No. ___; Book No. ___; Series of 2025.8. Procedural Checklist (Timeline)
| Step | Actor | Typical Time Frame |
|---|---|---|
| Medical repatriation & treatment | Employer/Seafarer | Up to 120 days (extendible to 240) |
| Final disability grading / death certificate | Company doctor / family | Day 120-240 |
| Negotiation & computation | Manning agency & claimant (w/ counsel) | 1-3 weeks |
| Draft and review Affidavit | Employer’s counsel | 2-3 days |
| Execution & notarisation | Parties & Notary | Same day |
| Disbursement of funds | Employer / P&I | Within 24 hours of signing |
| Submission of Report on Settlement | Employer to DOLE & POEA | Within 10 days |
| Case withdrawal (if any) | Claimant’s counsel | Within 5 days |
9. Tax & Documentary Stamp Considerations
- Labor-standard disability or death benefits are exempt from income tax (NIRC, Sec. 32[B][4]) as they are compensatory/beneficial.
- Documentary stamp tax is not imposed on affidavits (NIRC, Sec. 196); but any separate Deed of Quitclaim over real property shares may attract DST.
- Notarial fees are normally absorbed by the employer; these are professional fees, VAT-exempt if below ₱3 million gross receipts per year (TRAIN Law thresholds).
10. Frequently Asked Questions
| Question | Answer |
|---|---|
| Can the seafarer still file a complaint after signing the affidavit? | Yes, but the employer can move to dismiss citing the affidavit. The NLRC will scrutinize voluntariness and adequacy; if both are present, the case will likely be dismissed. |
| Is POEA or NLRC appearance mandatory at signing? | Not strictly, but highly advisable. A settlement witnessed by a Conciliator-Mediator (NCMB) enjoys immediate finality under Art. 234, Labor Code. |
| What if the injury worsens after settlement? | The affidavit typically bars further claims, but if deterioration stems from latent conditions unknown to the parties, courts may award additional compensation on equity grounds (see Wallem Maritime v. Quillao, G.R. 227080, 8 Aug 2022). |
| Must heirs execute separate affidavits? | Yes, each compulsory heir (spouse and minor children via legal guardian) must sign, or a Special Power of Attorney authorising a single signatory must be attached. |
| Is court approval needed? | Only if settlement occurs after a decision has become final and executory; otherwise, notarisation suffices. |
Key Take-Aways
- An Affidavit of Closure is the maritime equivalent of the labor law quitclaim: indispensable for employers, protective for seafarers if fairly negotiated.
- Its validity hinges on four pillars—adequate consideration, informed consent, voluntariness, and proper notarisation.
- When drafted with the above elements and safeguards, it peacefully ends the entire matrix of Seaman’s Fund liabilities, shielding all parties from protracted litigation.
Prepared as of 21 June 2025 for practitioners, manning agencies, and Filipino seafarers seeking a reliable, up-to-date reference on closing fund claims through an affidavit.