Guidelines on the Direct Hiring of Filipino Workers

Pursuant to Article 18 of the Labor Code of the Philippines, as amended and Governing Board Resolution No. 04, Series of 2007, the following guidelines are hereby issued to govern the direct hiring of Filipino workers for overseas employment.

I. Coverage
These Guidelines shall cover employers wishing to directly hire Filipino workers who may be classified into any of the following:

1. Individual Employers
a. Members of the diplomatic corps and international organizations
b. Immediate members of royal family and family of heads of State/government
c. Ministers, Deputy ministers and other senior government officials of the host country
d. Employers residing in countries where foreign placement agencies do not operate
e. Filipino expatriates and resident with capacity to hire Filipino workers
f. Others as may be approved by the Secretary of Labor and Employment

2. Institutional Employers
Employers who are hiring on a one time basis
Employers who need workers immediately and have submitted an Undertaking to tie-up with licensed Philippine agencies for its next recruitment.

II. Pre-Qualification of Employers Wishing to Directly Hire Filipino Workers
Employers wishing to directly hire Filipino workers shall pre-qualified by the Philippine Overseas Labor Office and the POEA under the following criteria:

1. No derogatory track record at the jobsite and in the Philippines
2. No involvement of an intermediary in the recruitment process whether in the Philippines of in the jobsite.
3. Submission of all the following documentary requirements:

a. Business/commercial registration and/or identification documents
b. Sample employment contract for the workers to be directly hired
c. Proof of capability to hire Filipino workers under the terms and conditions offered
d. Undertaking by the employer relating to the following:

i. No charging of placement fee from the worker
ii. Provision of a performance bond equivalent to the worker’s three months salary to guarantee compliance of the employer with the provision of the employment contract.
iii. Provision of a repatriation bond in the amount of USD5,000 or its peso equivalent to guarantee the following:

iii.a. actual cost incurred for the repatriation of the remains and subsequent burial following death from any cause.
iii.b. actual cost incurred for the repatriation from other causes such as violation/non-compliance with the contract rules and regulations of the company and Philippine laws as well as the laws of the host country except when violation is attributable to the worker or when worker voluntarily resigns or returns to the Philippines.

iv. Provision of a medical insurance for the worker at an amount equivalent to those provided to nationals of the host country.

for complete details of the guidelines please click this link:
http://www.poea.gov.ph/mc/mc4_2007_namehire.pdf or visit the POEA website at www.poea.gov.ph.