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PIA Press Release
2008/02/01

POEA issues stricter rules on direct hiring of OFWs

Tacloban City (February 1) -- In order to strengthen the protection mechanisms for the OFWs, the Philippine Overseas Employment Administration issued stricter rules on direct hiring of Overseas Filipino workers which took effect on January 15, 2008.

The new rule allow 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 Attach or the Philippine Embassy.

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

Also included in the rules is the compliance by employers of stricter documentation and processing requirements such as 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.

Another requirement is the posting of performance bond of US$3000 per employee to guarantee payment of the employee's salary for the duration of the employment contract. The bond must be secured from local bonding companies.

The employers willl also have to provide the employees with health and medical insurance.

Non-compliance by the employers with these requirements or with the standard employment contract will mean that the employers will not be allowed to hire OFWs directly. (PIA 8) [top]

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