In a recent case, the Philippine Supreme Court ruled that Article 291 of the Labor Code, not Section 28 of the Standard Employment Contract for Seafarers, is the law governing the prescription of money claims (i.e. death benefits) of seafarers. Under the Labor Code, the prescriptive period for filing money claims is three (3) years from the time the cause of action accrues. On the other hand, the seafarer’s standard employment contract provides for a short period of one (1) year.

The Supreme Court pointed out, however, that in order to avail of death benefits, the death of the employee should occur during the effectivity of the employment contract. Thus, it may happen, just like in the present case, that the claim for death benefits has not yet prescribed, yet the employer is not liable to pay for death compensation benefits because the seaferer died after the effectivity of his contract. (Medline Management, Inc. and Grecomar Shipping Agency vs. Roslinda, G.R. No. 168715, September 15, 2010)