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DoLE sets stricter rules on direct hiring of OFWs


The Department of Labor and Employment (DoLE) has limited the list of foreign employers allowed to directly recruit overseas Filipino workers (OFWs). A statement posted Saturday on its Web site, said the DoLE had imposed stricter rules on direct hiring of OFWs, which took effect last January 15. “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 five," it said. It added foreign employers could engage in direct hiring only upon approval by the DoLE secretary. The prospective employer and the employment contract will also have to pass screening and verification by the labor attaché or the Philippine embassy. Employers will likewise comply with stricter documentation and processing requirements, which include the posting of a repatriation bond of US$5,000 per employee. This will guarantee the repatriation of the worker or of his remains, in the event of death, according to the DoLE. Also, a performance bond of US$3,000 per employee will be required to guarantee payment of the employee’s salary for the duration of the employment contract. The Philippine Overseas Employment Agency (POEA) said that “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. Still, they may hire thru licensed placement agencies willing to assume responsibilities over the employees, including payment of salaries and other employment benefits. The adoption of a stricter policy on direct hires is aimed at strengthening the protection mechanisms for the OFWs, according to the DoLE and the POEA. OFWs with employment contracts and work visas issued after January 15, 2008 will be covered by the new guidelines. The new guidelines for direct hiring are posted on the POEA Web site. - GMANews.TV

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