QuestionsQuestions (Republic Act No. 10575)
It is issued pursuant to Article 18 of the Labor Code of the Philippines, as amended, and Governing Board Resolution No. 04, Series of 2007.
Employees wishing to directly hire Filipino workers, classified as either under Individual Employers or Institutional Employers (e.g., certain diplomatic/international/royal/host-government officials, Filipino expatriates/residents with capacity to hire, employers in countries where foreign placement agencies do not operate, and certain one-time/urgent hiring institutions).
Examples include (1) members of the diplomatic corps and international organizations; (2) immediate members of the royal family and family of heads of State/government; (3) ministers, deputy ministers and other senior government officials of the host country; (4) employers residing in countries where foreign placement agencies do not operate; (5) Filipino expatriates and residents with capacity to hire; and (6) others as approved by the Secretary of Labor and Employment.
Institutional employers include (1) employers hiring on a one-time basis, and (2) employers needing workers immediately and that have submitted an Undertaking to tie-up with licensed Philippine agencies for its next recruitment.
They must have (1) no derogatory track record at the jobsite and in the Philippines; (2) no involvement of an intermediary in recruitment (in the Philippines or at the jobsite); and (3) submission of complete documentary requirements including an employment contract sample, proof of capability, and specified employer undertakings (no placement fee, performance bond, repatriation bond, and medical insurance).
They must submit: (a) business/commercial registration/identification documents; (b) sample employment contract for the workers to be directly hired; (c) proof of capability to hire under the offered terms and conditions; and (d) an Undertaking covering no placement fee, performance bond, repatriation bond, and medical insurance.
(1) No charging of placement fee from the worker; (2) a performance bond equivalent to the worker’s three months’ salary; (3) a repatriation bond of US$5,000 or its peso equivalent; and (4) provision of medical insurance at an amount equivalent to that provided to nationals of the host country.
It guarantees actual costs incurred for repatriation of remains and subsequent burial due to death from any cause, and repatriation from other causes such as violation/non-compliance with the contract, company rules, and Philippine/host country laws—except when the violation is attributable to the worker or when the worker voluntarily resigns or returns to the Philippines.
Employer files request for direct hiring to POLO for pre-qualification (or Philippine Embassy authenticates the contract where there is no POLO). POLO pre-qualifies and forwards to POEA; POEA evaluates and endorses to DOLE; DOLE approval is communicated to POLO and POEA. POLO verifies employment contract(s); verified contracts are submitted to POEA by the worker(s); POEA evaluates/processes documents for exit clearance. The cycle time must not exceed one month unless delayed by employer or worker.
The approval authorizes the employer to process its directly hired workers but does not include authority to recruit personally or through agents.
Pre-qualification is done by the POLO and POEA. If there is no POLO in the jobsite, authentication of the employment contract is performed by the Philippine Embassy in the jobsite.
The POLO requires: (1) individual employment contract; (2) employer undertaking to comply with the contract, treat the worker humanely, and notify the Philippine Embassy/POLO of developments; (3) certificate of worker coverage under a performance bond equivalent to three months’ salary (secured at no cost to the worker); and (4) certificate of medical insurance (secured at no cost to the worker).
They include: valid passport; employment contract signed by employer and worker and verified/authenticated; visa/work permit or equivalent; medical fitness certificate from a DOH-accredited clinic; PDOS certificate/attendance; OFW Information Sheet; employer undertaking; performance bond certificate; repatriation bond certificate (US$5,000); and medical insurance certificate.
Aside from passport, verified/authenticated employment contract, visa/work permit, medical fitness, PDOS (unless exempted later), OFW Information Sheet, undertaking, performance bond, repatriation bond, and medical insurance, HSWs also need: negative pregnancy test (female HSW); TESDA National Certificate II for HSW; and OWWA Certificate on Language and Culture Orientation.
Exemptions apply if: (1) the worker already underwent a visa-required medical examination and submits a copy issued not more than three months before POEA processing; or (2) the host country requires medical examination upon arrival and the employer guarantees in writing that the worker will be repatriated at the employer’s expense if a medical problem arises.
Yes. All direct hires are exempt from PDOS except those with previous employment in the same jobsite. Professional category workers may be given a special briefing instead.
Foreign employers registered/accredited with licensed Philippine recruitment agencies are not allowed to directly hire workers.