The Philippines Overseas Employment Administration (POEA) prohibits the direct hiring of overseas Filipino workers (OFWs) pursuant to DOLE Administrative Order No. 196, Series of 2018, Republic Act No. 10022 and the Revised Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Filipino Workers of 2017.
According to the Memorandum Circular 08-2018, “No employer shall directly hire an overseas Filipino worker for overseas employment” except if the employer is one of the following:
- Member of the diplomatic corps
- International organizations
- Heads of state and government officials with the rank of at least deputy minister
- Other employers as allowed by the Administration:
- Those provided in (a), (b) and (c) who bear a lesser rank, if endorsed by the Philippine Overseas Labor Office (POLO)
- Professionals and skilled workers with duly executed/authenticated contracts containing terms and conditions over and above the standards set by the POEA. The number of professional and skilled Overseas Filipino Workers hired for the first time by the employer shall not exceed five (5). For the purpose of determining the number, workers hired as a group shall be counted as one; or
- Workers hired by a relative/family member who is a permanent resident of the host country, except domestic workers.
COMPANY SELF ASSESSMENT
1. The Job Category / Position is strictly Highly Skilled / Professional
(managerial, supervisory, technical level, e.g. engineer, professor).
2. The compensation package / benefits should be over and above the minimum required by POEA (e.g. high salary and with other benefits, allowances).
3. The person to be hired must be at least a college graduate and has adequate expertise / knowledge and work experience related to the job (with good credentials).
The required items in the POEA Standard Employment Contract as stated in POEA MC 08-2018 are as follows:
1. Complete name and address of the employer / company
2. Position and jobsite of the Overseas Filipino Worker
3. Basic monthly salary, including benefits and allowances and mode of payment. The compensation package shall be above the minimum prescribed minimum wage in the host country
4. Food and accommodation or the monetary equivalent which shall be commensurate to the cost of living in the host country, or off-setting benefits
5. Commencement and duration of contract
6. Free transportation from and back to the point of hire, or off-setting benefits, and free inland transportation at the jobsite or off-setting benefits
7. Regular work hours and day off
8. Overtime pay for services rendered beyond the regular working hours, rest days and holidays
9. Vacation leave and sick leave for every year of service
10. Free emergency medical and dental treatment
11. Just/valid/authorized causes for termination of the contract or of the services of the workers, taking into consideration the customs, traditions, norms, mores, practices, company policies and the labor laws and social legislations of the host country
12. Settlement of disputes
13. LIFE AND INSURANCE COVERAGE: It is the primary responsibility of the employer that the Direct-Hire OFW is provided with a compulsory insurance coverage. The repatriation insurance of an OFW and his/her remains, and the transport of his/her personal effects shall be the obligation of the employer to cover actual repatriation cost and other attendant costs, including airfare and immigration fines / penalties.
14. EXPANDED COMPULSARY INSURANCE COVERAGE FOR REHIRES AND DIRECT HIRES: Per Department of Labor and Employment Department Order 228 – 2021 due to the prevailing COVID-19 pandemic, “In the case of rehires, direct hires, and name hires and for their families, the cost of expense shall be borne by their foreign employers or the workers themselves, subject to a complete refund upon arrival of the OFW concerned at the worksite or country of destination…Only reputable private insurance companies duly registered and currently accredited with the Insurance Commission (IC) shall be qualified to provide this OFW compulsory insurance coverage.”
15. CONTINGENCY PLAN: Repatriation of worker in case of imminent danger due to war, calamity, and other analogous circumstances, at the expense of the employers
16. REPATRIATION CLAUSE: In case of worker’s death / repatriation of Overseas Filipino Workers human remains and personal belongings, at the expense of the employer
For the contract to be over and above the minimum requirements of employment contract stated above, the following provisions may be included:
1. Provision of secured conveyance to and from the work site
3. Annual vacation with full pay and free airline tickets
4. Gratuity pay
5. End of service award benefits
6. Free education for OFW children who are 18 years old or younger
7. Stock option program