Question & AnswerQ&A (POEA DEPARTMENT ORDER NO. 16, S. 1995)
The purpose is to ensure the prompt repatriation of all overseas contract workers (OCWs) to prevent them from getting stranded due to termination of their employment from contract violations or other specified causes.
All departing Filipino OCWs with employment contracts of three months or longer, and their respective employers or their agents, are required to post a repatriation bond.
The bond guarantees reimbursement of the actual cost of repatriation, including airfare from the jobsite and other reasonable expenses if repatriation is necessitated by contract violations, war, strike, riot, death, illness, or homesickness within the probationary period leading to contract violations.
The bond liability shall not exceed P22,000. For Asian countries and Trust Territories where the airfare does not exceed P11,000, the maximum liability is P11,000.
Coverage commences upon the departure date of the contract worker and extends worldwide for the duration of the employment contract.
No, posting the bond does not absolve the local recruitment agency and/or the foreign employer from their principal responsibilities under the joint and solidary provisions of the employment contract and POEA regulations.
The total annual premium is a maximum of P198.50 for P11,000 coverage and P377.00 for P22,000 coverage, shared equally between the OCW and the employer or their agents.
No, licensed agencies shall not require cash deposits from workers for guaranteeing contract performance.
A designated bonding company manages and administers the repatriation bond.
Proof of premium payment must be secured and presented to the POEA prior to processing the worker's overseas employment contract or certificate.
The OWWA endorses all repatriation requests to the bonding company, which dispatches prepaid ticket advice within 24 hours. Claims for reimbursement of advanced repatriation costs are filed directly with the bonding company, which processes them within five working days.
The Department Order took effect on May 28, 1995.