Title
POEA on Contract Substitution Penalties
Law
Poea Memorandum Circular No. 04, S. 2009
Decision Date
Apr 30, 2009
The POEA mandates that licensed recruitment agencies and their foreign principals must not alter employment contracts to the detriment of overseas Filipino workers, imposing strict penalties for violations to protect workers' rights and ensure compliance with approved agreements.
A

Questions (POEA MEMORANDUM CIRCULAR NO. 04, S. 2009)

The main purpose is to prohibit the substitution or alteration of employment contracts to the prejudice of Overseas Filipino Workers (OFWs) once such contracts have been approved and verified by the DOLE.

Licensed recruitment agencies and their foreign principals who deploy Overseas Filipino Workers (OFWs).

It refers to the practice of replacing or altering the originally approved and verified employment contracts with new contracts that contain terms less favorable to the worker, particularly lower salaries and benefits.

From the time the contract is actually signed by the parties up to and including the expiration period of the same contract, unless approved by the DOLE.

Suspension of the recruitment agency's license for a period ranging from two months to six months.

Suspension of license for a period between six months and one day to one year.

Cancellation of the recruitment agency's license.

Yes, the memorandum allows placing the agency and the principal under preventive suspension pending investigation for possible contract substitution.

Recruitment agencies must ensure that workers are provided copies of their employment contracts duly verified by the DOLE or POEA.

The Department of Labor and Employment (DOLE) has the authority to approve or disapprove any substitution of employment contracts after initial approval and verification.


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