Warning aired vs new hiring policy for OFWs

The issuance of a new policy on direct hiring will hinder the job opportunities for overseas Filipino workers and place an additional layer of bureaucracy on foreign employment, according to a recruitment industry consultant.

Employment consultant Emmanuel Geslani in a statement on Monday said that Memorandum Circular No. 4, series 2007 that took effect last Jan. 15 will also mean additional costs for interested employers.

“The new guidelines will reduce the chances of Filipino workers in acquiring their own employers through their own efforts," Geslani said.

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.

Geslani said before the issuance on the guidelines, the contract for direct hiring just needs verification from the POLO (Philippine Overseas Labor Offices) and submission to the POEA for processing.

He said the approval of the Labor Secretary in all cases specified under the new guidelines is just another layer to the process of recruitment and will result to the delay of employment.

Geslani added that the $5,000 bond for repatriation, performance bond equivalent to three months salary, and medical insurance will discourage foreign employers to hire Filipinos.

Labor Secretay Arturo Brion explained that the adoption of a stricter policy on direct hires is aimed at strengthening the protection mechanisms for the OFWs. - GMANews.TV

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