DoLE amends direct hiring policies for OFWs

By Margaux Ortiz, Jerome Aning
Philippine Daily Inquirer
Posted date: February 12, 2008

MANILA, Philippines -- The Department of Labor and Employment (DOLE) has amended its memorandum circular providing new regulations for the direct hiring of overseas Filipino workers after the controversial rules drew protests from migrant workers groups.

Labor Secretary Arturo Brion announced on Tuesday that foreign employers who have been required by their respective governments to guarantee “protective mechanisms” to OFWs would be exempted from paying the required repatriation and performance bonds specified in Memorandum Circular No. 4.

Brion said the amendment was made after some Philippine Overseas Labor Offices (POLOs) abroad confirmed that a number of foreign governments including those in Italy, Switzerland and Hong Kong have been requiring their citizens to ensure the payment of salaries and benefits to OFWs.

“As a result of the confirmations, the Governing Board of the Philippine Overseas Employment Administration (POEA) in a meeting last week agreed to exempt foreign employers in countries where OFWs are assured of these protective mechanisms,” Brion said in a statement.

“The POEA has also been directed to amend Memorandum Circular No. 4 to provide for the exemption,” he added.

Under the memorandum circular, foreign employers are required to provide a US$5,000 repatriation bond and performance bond equivalent to three months’ salary of the OFW.

The requirements aim to strengthen the protective mechanisms for OFWs, according to Brion.

“Employers in Canada are also exempted from the payment of the bonds since their country already imposes sufficient welfare protection for foreign workers,” Brion said.

He added that POLOs in 35 sites all over the world with a high concentration of OFWs were asked to confirm whether the foreign governments in their areas of jurisdiction required the implementation of protective mechanisms for OFWs.

Members of the local recruitment industry have demanded for the immediate recall of the memorandum circular.

The Center for Migrant Advocacy joined on Tuesday calls for the POEA to scrap the new guidelines on direct hiring because of many "problems" hindering its successful implementation.

"I do not see how the POEA will be able to successfully implement it. This is a classic example of a government policy that was formulated and is being implemented without the benefit of adequate consultation with the affected sector, the overseas Filipino workers themselves," said CMA legal counsel Henry Rojas.

Rojas said the most important questions were the memorandum’s coverage, the process for the posting of bonds, measures to ensure that OFWs would not ultimately pay for the bond.

"Will the foreign employer even bother to comply or just opt to hire from other countries? How will a foreign employer secure the bonds if he has no local agent to do this for him? Will POEA facilitate access to local surety companies?" he asked.

He added that POEA exempted members of diplomatic corps and international organizations, as well as royal families and families of heads of state or government from the memo's coverage without guarantees that OFWs hired by such people would be given protection similar to those that would be enjoyed by other OFWs.

Also exempted are employers residing in countries where foreign placement agencies do not operate. Rojas described this category "too vague and can be subject to abuse" because the memo did not specify what countries these were.