Direct hiring for overseas jobs

BEHIND THE SCENES

Alfred P. Dizon

BAGUIO CITY – Last week, I accompanied a friend who works abroad to the regional office of the Dept. of Labor and Employment here since her employer was looking for a mechanic and at least two house helpers. She was told by a POEA employee who manned the main desk that workers can’t be hired through “direct hiring” by her boss or his representative since they have to have their papers processed first by a POEA-accredited private employment agency.

She told him all papers of the prospective employees were actually finished, in order, and that all that was needed was a certification from the POEA so they could travel and work abroad.

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The POEA “frontliner” repeated under POEA policies, she has to get a private employment agency to work out the papers and the agency would in turn get the certification from the POEA.

She said she actually talked to a local employment agency who gave her a minimal fee for “processing.” But after she went back after some days to negotiate since she said she had to talk first to her employer, they told her the amount was $2,400. Yes that is dollars. Converted to pesos that would be P108, 000 at prevailing rate. “Nagpanginadan (They upped the price,)” she said.

Considering all papers were finished, all the agency had to do was to go to the regional POEA, have the permit signed, and lo and behold -- get the P108 thousand. Easy money.Wow! I thought,I should have started an employment agency years ago instead of this paper which had given me more difficulties, stress and wrinkles than I bargained for.

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Anyway, she related to me what happened, so I told her, we better go to the regional POEA office along Magsaysay Road to clarify their policies on the matter telling her, this could be a prospective issue for a column.

The POEA guy told the same thing – all who are applying for jobs abroad should have their papers processed by a private employment agency.I pointedly asked him: “Is direct hiring illegal?” “Yes,” he retorted without batting an eyelash. I told her we better talk to the regional director. Since he was not around, we went back to the office a few days later but according to POEA workers, the regional director was usually in La Union and they didn’t know when he could be coming up (to do his work), I thought.

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Maybe, a Congressional inquiry on this, in aid of legislation, should be done to clarify matters and improve the lawon hiring of overseas contract workersso those applying for work abroad would not have a difficult time landing jobs direly needed by their families. Imagine paying P108,000 to a private employment agency just to have a permit signed by a POEA bigshot.

I told her to elevate the matter to the central POEA office in Manila saying it would cost her, but then things could be clarified and maybe, the prospective workers could go abroad as soon as possible.An investigative article or documentary on the matter by our peers would be a welcome development as this could be happening nationwide.

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Perhaps, the regional Philippine Information Agency under regional director Helen Tibaldocould schedule a “kapihan” with media outfits and invite top Cordillera regional POEA officials to clarify matters. When I told this story in a media watering hole, most of the newsmen were of the opinion that something was fishy. One said there was strong possibility a “percentage” of fees demanded by private employment agencies went to the pockets of “corrupt” POEA officials so they would issue needed certifications.

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Meanwhile, I told her, we could do some research on the matter. We found out the POEA had issued stricter rules on direct-hiring by foreign employers.

Under Philippine law, “generally,” direct hiring is not allowed (Article 18 of the Labor Code – Ban on direct-hiring). There are two modes of hiring Filipinos for overseas placement -- through POEAand through private recruitment agencies duly accredited by the POEA. An exception is under name-hire as may be allowed or regulated by the Secretary of Labor. (This means direct hiring could be done through POEA and not necessarily through a private employment agency contrary to what the POEA official said.)

With this memorandum circular, the POEA said it has plugged an operative loophole in the rules on overseas placement. But did it?

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This POEA MC, supposedly, will provide protection to Filipino workers hired through name-hire with the provisions on pre-qualification with the Philippine Overseas Labor Office (POLO) and the POEA. There is also a bond requirement on the employer. Such pre-qualification (which is akin to verification or the employer and the job order) puts into POEA regulatory mechanism this loophole in overseas placement rules.

The POEA circular was issued on December 18, 2007.

Competent legal assistance is needed to ensure compliance with this rule on direct-hiring as well as other Philippine overseas placement rules and regulations.

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Below is Memo Circular 04 Series of 2007 guidelines on direct hiring of Filipino workers:

Pursuant to article 16 of the Labor Code of the Philippines, as amended and governing board resolution 04 Series of 2007, the following guidelines are hereby issued to govern the direct hiring of Filipino workers for overseas employment:

Coverage

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

Individual employers

Members of the diplomatic corps and international organizations

Immediate members of royal family and family heads of state/government

Ministers, deputy ministers and other senior government officials of that host country

Employers residing in countries where foreign placement agencies do not operate

Filipino expatriates and residents with capacity to hire Filipino workers

Others as may be approved by the secretary of labor and employment

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.

Pre-qualification of employers wishing to directly hire Filipino workers

Employers wishing to directly hire Filipino workers shall be pre-qualified by the Philippine overseas labor office and the POEA under the following criteria:

No derogatory track record at the jobsite and in the Philipines

No involvement of an intermediary in the recruitment process whether in the Philippines or in the jobsite

Submission of all the following documentary requirements:

Business/commercial registration and/or identification documents

Sample employment contract for the workers be directly hired

Proof of capability to hire Filipino workers under the terms and conditions offered

Undertaking by the employer relating to the following

No charging of placement fee from the worker

Provision of a performance bond equivalent to the worker’s three months salary to guarantee compliance of the employer with the provisions of the employment contract

Direct or Name hires are Filipino workers who are able to secure an overseas employment opportunity with an employer without the assistance or participation of any agency. They may have been directly contacted by a foreign employer by referral or have directly applied to their company. 

Although your future employer would take care of your requirements (plane ticket, work visa, etc.), you must still have certain documents processed at POEA (Philippine Overseas Employment Administration).
The requirements are the following: passport, work visa or work permit, employment contract verified or authenticated by the Philippine embassy or Philippine consulate in the country of your destination. You are also required to undergo a medical examination by a DOH-accredited clinic or hospital and a pre-departure orientation seminar (PDOS).

Fees and Costs

POEA Processing Fee - US$100 or its peso equivalent

OWWA membership fee - US$25 or its peso equivalent

OWWA Medicare - Php900.00

Required Documents

You shall be issued an Overseas Employment Certificate (OEC), which serves as the OFW travel exit clearance at the airport and immigration counters. The OEC is also an exemption for OFWs from payment of travel tax and airport terminal fees. You shall likewise get a free OFW electron ID card or e-Card, which is your permanent identification card to facilitate your departure and access to services as OFW. - See more at: http://www.workabroad.ph/poea_guideline.php#sthash.wl5rf1BF.dpuf