Manila Agrees to Revise Policy on Direct Hiring Amid Outrage

Author: 
Gloria E. Melencio, Arab News
Publication Date: 
Sat, 2008-02-09 03:00

MANILA — Labor Secretary Arturo Brion said yesterday the government might exempt employers from a new policy on direct hiring in countries where the salaries of overseas workers are already protected.

Brion issued the announcement as the Philippine Overseas Employment Administration’s (POEA) governing board met to review the policy, which has caused outrage among the people it intended to protect — Overseas Filipino Workers (OFWs).

“We’re looking at exemptions under direct hiring because we got reports from many of our labor attachés that the protection we are looking for from recruitment agencies may already be provided for in some countries,” said Brion.

Under the new rules which took effect Jan. 15, foreign employers who wish to hire workers from the Philippines without passing through a placement agency have to post a $5000 repatriation bond for each employee as a guarantee for the repatriation of the worker in the event of death.

Employers are also required to pay a performance bond of $3000 per worker as guarantee that the employees would be paid their salary for the duration of their respective contracts.

Prospective employers will only be allowed to hire directly after a screening of employers and a verification of the contract by either the labor attaché or the Philippine Embassy at the host country.

Only members of the diplomatic corps and of international organizations and government officials may be allowed to directly hire migrant workers.

The new policy, however, came under fire from OFW groups worried that it could reduce the competitiveness of Filipino professionals from the world labor market.

Brion yesterday said reports of labor attachés last Thursday on the situations in Italy and Hong Kong had satisfied the POEA Governing Board that the agency could approve direct hiring without requiring employers to post repatriation and performance bonds.

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