New Rules For OFW Hiring

New rules on OFW hiring issued
Saturday, January 19, 2008

Stricter rules on direct hiring of OFW was issued recently by the Philippine Overseas Employment Administration. The rules which takes effect on January 15, 2008 allows direct hiring of OFWs by foreign employers only upon approval by the Secretary of Labor and subject to screening of employers and employment contract verification by the Labor Attaché or the Philippine Embassy.

Direct hiring may be allowed only for members of the diplomatic corps and of international organizations, government officials of ministerial level, and employers who are hiring on one-time or trial basis. The number of employees to be hired directly shall not exceed 5.

Employers will likewise comply with stricter documentation and processing requirements which include the posting of repatriation bond in the amount of US$5000 per employee to guarantee the repatriation of the worker or of his remains, in the event of death, and performance bond of US$3000 per employee to guarantee payment of the employee's salary for the duration of the employment contract. The bonds should be secured from local bonding companies. They will also provide the employees with health and medical insurance.

Employers who do not want to comply with the bonding and insurance requirements or with the standard employment contract will not be allowed to hire OFWs directly. But they may hire thru licensed placement agencies which are willing to assume responsibilities over the employees, including payment of salaries and other employment benefits.

DOLE Secretary and POEA Board Chairman Arturo Brion announced that the adoption of a stricter policy on direct hires is aimed at strengthening the protection mechanisms for the OFWs.

OFWs with employment contracts and work visas issued after January 15, 2008 will be covered by the new guidelines. The new guidelines for direct hiring is posted at the POEA website (www.poea.gov.ph).

Source: http://www.dole.gov.ph/news/