Duration of Contract

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Usually, extension of the contract period is not encouraged due to some detrimental factors that

may be incurred to the seafarer- seafarers shall be granted shore leave to benefit their health and
well-being and with the operational requirements of their positions. However, should the parties
both agree to it, a voluntary extension will therefore arise. It is evident in both contracts with the
Fred Olsen Cruise Lines that seafarer Jose Villalobos consented to the said contracts

The duration of Contract is explained under Section 2 – Commencement or Duration of


Contract, Memorandum Circular No. 10, Series of 2010:

“A. The employment contract between the employer and the seafarer shall commence upon
actual departure of the seafarer from the airport or seaport in the point of hire and with a POEA
approved contract.  It shall be effective until the seafarer’s date of arrival at the point of hire
upon termination of his employment pursuant to Section 18 of this Contract.

B. The period of employment shall be for a period mutually agreed upon by the seafarer and the
employer but not to exceed 12 months.  Any extension of the contract shall be subject to the
mutual consent of both parties.”

MLC, 2006 laid down the maximum period of shipboard service for seafarers. In some
cases, the crew members have subsequently agreed to additional service extensions. However, it
is not always guaranteed that these service extensions have complied with the “mutual
agreement” requirements of MLC, 2006 Regulation 2.1 – Seafarers’ Employment Agreements.
MLC, 2006 requirements can be read as indicating that the maximum continuous period that a
seafarer should serve on board a vessel without leave, is 11 months.
In the 2 contracts presented, it is shown that the seafarer is given a valid term of service for it
does not exceed 11 months. In the contract signed on September 19, 2019, the duration of
contract is only for 2 months which was from October 17, 2019 to December 17, 2019. Since the
first contract has been complied with validly, another contract was entered into on February 5,
2020. The second contract contains a duration of 4 months on board (2 mos on and 2 mos off w/
pay). With this, the literal meaning of the terms used cannot be applied for they were not clearly
explained in the contract. Because of that, the most adequate meaning will be applied. The
second contract means that the duration of the seafarer’s contract will be for 4 months only. It
means that the seafarer is under the employment of the Fred Olsen Cruise Lines for a period of 4
months. The seafarer is guaranteed of his total monthly pay of $5,074.00 for 4 months. Included
in the 4-month contract is that he could also enjoy a 2-month off with pay. However, upon the
expiration of the contract or on June 16, 2020, the seafarer could no longer enjoy the mentioned
pay and could only have it again should both parties consent in constituting another contract.
What the seafarer should also do to have a more clear explanation to this is to also consult with
the agency which made this contract of adhesion in order to avoid further misinterpretations.

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