POEA also exempts OFWs in Geneva and HK from MC4

The governing board of the Philippine Overseas Employment Administration has also exempted directly hired overseas Filipino workers in Geneva and Hong Kong from the implementation of Memorandum Circular 4, which requires employers to post an $8,000 bond to ensure the OFW’s repatriation and salaries.

POEA Governing Board chair and Labor Secretary Arturo Brion also said in the interests of identifying exemptions to this circular, the Department of Labor and Employment has ordered labor attachés abroad to point out possible safety nets that could take the place of the bonds being required.

Brion specifically said the attachés should verify the existence and the enforcement of protective mechanisms that would ensure the repatriation and payment of salaries to OFWs in their respective areas of jurisdiction.


He said the Philippine Overseas Labor Offices (POLOs) in 35 sites with high concentration of OFWs abroad have been asked to confirm with the Department of Labor and Employment (DOLE) whether foreign governments in their areas of jurisdiction require employers hiring OFWs to guarantee protective mechanisms particularly repatriation and payment of salaries and benefits and benefits to the OFWs.

Brion said the POLOs in Italy, Geneva, and Hong Kong have so far confirmed that the requirements guaranteeing repatriation assistance and payment of salaries to OFWs are being strictly complied with by employers in these areas.


He said as a result of the confirmations, the POEA governing board in a meeting last week agreed to exempt foreign employers in countries where OFWs are assured of protective mechanisms particularly repatriation and payment of salaries and benefits.


MC No. 4 provides for the new regulations on direct hiring of OFWs. It requires foreign employers to cover for the US$5,000 repatriation bond and performance bond equivalent to three months salary of the OFW. The requirements aim to strengthen the protective mechanisms for OFWs.


Brion said foreign employers who are required by their governments to guarantee the payment of salaries to OFWs are exempted from payment of the performance bond.


He added that the employers will also simply commit in the employment contracts to repatriate the OFWs or their remains.


Employers in Canada hiring OFWs are also exempted from payment of the repatriation and performance bonds since Canada already imposes sufficient welfare protection for foreign workers.ABS-CBN News

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