New Hindrance to the Direct Hiring of OFWs

Most Filipinos go abroad to work. Most already find the numerous DOLE and POEA red tape to be unbearable. As if oblivious to their job to serve and assist the Filipinos, POEA released POEA Memorandum Circular No. 04 last December 18, 2008.

The Circular provides stringent rules on direct hiring of OFWs by foreign employees. According to GMA News:

Under the new rules, direct hiring of OFWs by foreign employers will be allowed upon approval by the Secretary of Labor and subject to screening of employers and employment contract verification by the labor attaché or the Philippine embassy.

In addition, direct hiring will also 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.

The new rule also directs the employers to comply with stricter documentation and processing requirements. This includes the posting of repatriation bond in the amount of US$5,000 per employee to guarantee the repatriation of the worker or of his remains, in the event of death, and performance bond of US$3,000 per employee to guarantee payment of the employee’s salary for the duration of the employment contract.

The bonds could be secured from local bonding companies. They will also provide the employees with health and medical insurance.

Employment consultant Emmanuel Geslani complains that the Memorandum will incur additional expenses and delays for both the OFW and the foreign employer, thereby discouraging foreigners from directly hiring OFWs.

On the other hand, Labor Secretay Arturo Brion explained that the memorandum “is aimed at strengthening the protection mechanisms for the OFWs.”

But nobody, not even me, is buying it. Rather than strengthening the “protection mechanisms,” if there are even any to begin with, the memorandum just adds more red tape and expenses to deal with for the Filipinos who are supposed to be skilled and qualified enough to be directly hired.

Rather than making the Filipinos who pay their salaries and whom they are supposed to serve, the POEA and the DOLE has just added another burden, new hindrances to the aspirations of skilled and qualified Filipinos who wish to work abroad for greener pastures.

The memorandum does not make sense at all, and it smells very fishy. Imagine the DOLE Secretary and the labor attaché or the Philippine embassy having to screen and approve or disapprove each and every directly hired OFW? Imagine each directly hired OFW and/or their foreign employer having to pay a bond?

Imagine the amount of graft and corruption that might happen. Yes, I know it is wrong to assume that all people are evil with evil intentions. But here in our country, sadly, there are very few public servants who deserve the benefit of our doubt.

POEA Memorandum Circular No. 04 should be scrapped.

One Response to “New Hindrance to the Direct Hiring of OFWs”

1. Lester Cavestany says:

   February 8, 2008 at 9:31 am

   I think POEA Administrator Rosalinda Baldoz should resign!