Just recently POEA issued a memorandum stating stricter rules in hiring OFWs, which is now causing an uproar among the OFW community worldwide, and even on those who are planning to work abroad.
The new rule which took effect last January 15,2008 imposed the following rules :
- 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 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
- 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.
OFWs are now petitioning for this memorandum to be ABOLISHED. Why? because of the following points :
