Seafarer Allotment and Family Support: What to Do if the Manning Agency Fails to Remit

In the Philippines, the seafarer is often the primary breadwinner, providing for a family left behind through the mandatory remittance of their hard-earned wages. This "allotment" is not just a financial transaction; it is a lifeline. When a manning agency fails to remit these funds, it creates a crisis of trust and survival.

Under Philippine law, specifically the rules set by the Department of Migrant Workers (DMW)—formerly the POEA—and the Labor Code, the protection of these remittances is a priority. Here is a comprehensive guide on your rights and the legal avenues available when an allotment goes missing.


1. The Legal Requirement: The 80% Rule

According to the Standard Employment Contract (SEC) governing Filipino seafarers, a seafarer is required to execute an allotment of at least 80% of their basic salary to be paid to their designated beneficiary in the Philippines.

  • Currency: The allotment is typically paid in Philippine Pesos.
  • Timeline: Manning agencies are generally required to remit the allotment within 30 days from the time it was earned.
  • Joint and Solidary Liability: This is the most crucial legal concept. The foreign principal (the shipowner) and the local manning agency are "jointly and severally" liable. This means if the foreign owner fails to send the money, the local agency is legally obligated to pay you out of their own pocket.

2. Steps to Take When Allotments are Delayed

If the monthly allotment does not reflect in the designated bank account, do not wait. Take the following steps:

Phase 1: Informal Inquiry

  • Contact the Agency: Send a formal email or visit the manning agency’s office. Request a "Remittance Report" or proof of bank transfer.
  • Coordinate with the Seafarer: Ensure the seafarer on board has not had their wages "held" for legitimate disciplinary reasons or has not changed the allotment instruction without notice.

Phase 2: Formal Demand

If the agency is unresponsive or offers vague excuses (e.g., "the principal hasn't sent the funds yet"), you must:

  • Send a Formal Demand Letter: Draft a letter (preferably through a lawyer) demanding the immediate release of the unpaid allotments. This serves as vital evidence if the case reaches court.

3. Legal Remedies and Regulatory Action

If the demand letter is ignored, you have three primary government avenues for redress:

A. The Department of Migrant Workers (DMW) / POEA

You can file an Administrative Complaint against the manning agency. The DMW has the power to:

  • Suspend or revoke the license of the manning agency.
  • Place the agency on "Watchlist" or "Blacklist," preventing them from deploying more seafarers until the debt is settled.

B. Single Entry Approach (SEnA)

Before filing a full-blown labor case, the National Labor Relations Commission (NLRC) or the DMW usually requires "SENA." This is a 30-day mandatory conciliation-mediation process where a mediator helps both parties reach a settlement without a trial.

C. The NLRC (Money Claims)

If SEnA fails, you file a Formal Complaint for Money Claims with the NLRC. Since the manning agency is "solidarily liable," you can win a judgment against the local agency regardless of the financial status of the foreign shipowner.

Note: Under the law, unpaid wages/allotments may also be subject to legal interest (usually 6% per annum) from the time of judicial or extrajudicial demand.


4. Possible Defenses of the Agency (And Why They Usually Fail)

Agencies often cite the following, but Philippine courts generally rule in favor of the seafarer:

  • "The Shipowner is Bankrupt": Irrelevant. The local agency’s license is predicated on their guarantee to pay even if the principal fails.
  • "The Seafarer has Debts on Board": Any deductions from the 80% allotment must be strictly documented and authorized by law.
  • "Bank Errors": The agency is responsible for ensuring the funds actually reach the beneficiary's account.

5. Protective Measures for Families

To avoid these issues, families should:

  1. Keep Records: Always save copies of the Employment Contract and the Allotment Slip.
  2. Monitor Regularly: Check bank balances on the exact date the allotment is due.
  3. Know the Agency License: Verify if the agency’s license is "Valid" or "Suspended" via the DMW online portal.

Summary Table: Quick Reference

Action Authority Goal
Conciliation SEnA (NLRC/DMW) Quick settlement within 30 days.
License Suspension DMW Adjudication To pressure the agency via their business license.
Money Claim NLRC Labor Arbiter To get a court order for the unpaid money plus interest.

Would you like me to draft a template for a Formal Demand Letter that you can send to a manning agency?

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.