QuestionsQuestions (MEMORANDUM CIRCULAR NO. 08, S. 2018)
The general rule is that no employer shall directly hire an overseas Filipino worker for overseas employment (ban on direct hiring). The Memorandum Circular provides specific exemptions to this ban.
Exemptions include: (a) members of the diplomatic corps; (b) international organizations; (c) heads of state and government officials with rank of at least deputy minister; and (d) other employers allowed by the Administration, including certain lower-rank officials endorsed by POLO/Head of Mission, professionals/skilled workers with contracts over-and-above POEA minimum standards (subject to a limit of five for first-time hiring, counted by group), and workers hired by a relative/family member who is a permanent resident of the host country (except domestic workers).
The number of professionals and skilled OFWs hired for the first time by the employer shall not exceed five (5). Workers hired as a group are counted as one for determining the number.
The employment contract must be duly executed and verified/authenticated, containing terms and conditions over and above the standards set by POEA.
It is the primary responsibility of the employer to provide compulsory insurance coverage, including repatriation insurance for the OFW and remains and transport of personal effects, covering actual repatriation costs and attendant costs such as airfare and immigration fines/penalties.
Minimum provisions include: (1) complete employer name and address; (2) position and jobsite; (3) basic monthly salary and benefits/allowances with proper minimum-wage compliance; (4) food and accommodation or equivalent commensurate to cost of living; (5) contract commencement and duration; (6) free transportation to/from point of hire (or equivalent) and free inland transportation (or equivalent); (7) regular work hours and day off; (8) overtime pay; (9) vacation and sick leave; (10) free emergency medical and dental treatment; (11) just/valid/authorized causes for termination; (12) settlement of disputes; (13) repatriation in imminent danger at employer expense; and (14) death/repatriation of remains and personal belongings at employer expense.
The salary shall not be lower than the higher of: the prescribed minimum wage in the host country or the prevailing minimum wage in the National Capital Region (NCR) of the Philippines.
The offer should be over and above minimum provisions and may include secured conveyance to/from worksite, bonuses, annual vacation with full pay and free airline tickets, gratuity pay, end-of-service award benefits, free education for OFW children (18 or younger), and stock option programs.
Employers in categories like diplomatic corps and heads of state/government with lesser rank may be allowed if endorsed by the Philippine Overseas Labor Office (POLO), or by the Head of Mission in the absence of the POLO.
Yes. Direct-Hire OFWs must undergo and pass the pre-employment medical examination (PEME) by a DOH-accredited hospital/clinic in accordance with host country requirements. An exemption applies if the worker underwent a medical examination required for visa issuance; a copy must be submitted to POEA.
All Direct-Hire OFWs are required to undergo Pre-Employment Orientation Seminar (PEOS) and Pre-Departure Orientation Seminar (PDOS), and submit certificates as documentary requirements for registration. Exemption applies if the OFW has previous legal deployment and presents valid certificates of completion returning to the same jobsite.
They must submit: (1) verified/authenticated original employment contract (each page signed by employer/authorized representative; with company profile and business license/commercial registration); (2) passport valid at least six months before intended departure; (3) valid appropriate visa/work permit; (4) DOH-accredited medical fitness certificate; (5) proof of insurance coverage; (6) notarized statement by the worker on how employment was secured with copy of employer’s passport/ID and contact details; and (7) PEOS and PDOS certificates.
For domestic workers, requirements include: employment contract duly signed and verified/authenticated and endorsed by POLO or the Philippine Embassy with jurisdiction; passport; visa/work permit; DOH medical fitness; proof of insurance coverage; TESDA NCII or higher; notarized statement on how employment was secured with employer passport/ID and contact details; PEOS certificate; and PDOS plus CPDEP.
The documentation is managed by the Direct Hire Assistance Division (DHAD) under the Pre-Employment Services Office.
DHAD receives the application, evaluates documentation completeness, and then recommends issuance of a clearance by the Administrator. The subsequent contract approval and processing steps occur only if the clearance is granted.
Under the procedure, fees for POEA processing and contributions (including OWWA, PhilHealth, Pag-IBIG Fund, and Social Security where applicable) are endorsed for assessment; the worker pays to the authorized cashier for the release of the OEC when the employer is deemed exempted.
The employer pays visa (including stamping fee), work permit/resident permit, round-trip airfare (or offsetting benefits), transportation from airport to jobsite, POEA processing fee, OWWA membership fee, and insurance coverage.
Foreign employers with previous/current accreditation with any licensed Philippine recruitment agency may not directly hire workers. However, those with previous accreditation may be allowed to directly hire only after a lapse of one (1) year from cancellation/revocation/expiration of its PRA accreditation/registration.
Registration is carried out at the POEA Main Office and its Regional Centers and Units. Regional Centers course their requests to the Administrator for clearance through the Regional and Overseas Coordinating Office.