Title
Amendment on OCW Repatriation Bond Policy
Law
Poea Department Order No. 16, S. 1995
Decision Date
May 26, 1995
The amendment mandates that all overseas contract workers (OCWs) with contracts of three months or longer must post a repatriation bond to ensure their prompt return in cases of employment termination due to contract violations or other specified causes, with liability limits set for reimbursement of repatriation costs.
A

Premium Rates, Payment, and Cash Deposit Guidelines

  • Maximum annual premium rates are Php 198.50 for the Php 11,000 bond and Php 377.00 for the Php 22,000 bond.
  • Premium payments are equally shared by the OCW and employer or their agent.
  • Premium rates may be adjusted periodically based on actual experience and agreed upon by OWWA and the designated bonding company.
  • Applications and payments for the bond are to be made at designated centers established by POEA and the bonding company, or through licensed agencies transmitting applications to these centers.
  • Licensed recruitment agencies are prohibited from requiring cash deposits as contract performance guarantees from workers.

Designation and Role of the Bonding Company

  • A bonding company is designated to manage and administer the repatriation bond system.

Documentation and POEA Oversight

  • Proof of premium payment must be presented to the POEA before processing the overseas employment contract or certificate.
  • POEA supervises proper implementation of the repatriation bond requirement.
  • The bonding company must provide monthly summary reports to POEA and OWWA.

Repatriation Procedures and Claims Processing

  • When repatriation is needed, OWWA endorses requests to the bonding company.
  • The bonding company shall issue prepaid ticket advice (PTA) within 24 hours to the OCWs through Philippine embassies, consulates, or POLO offices abroad.
  • If repatriation expenses were advanced by the OCWs or OWWA, claims for reimbursement are filed with the bonding company.
  • The bonding company is required to process claims within five working days from the submission of required documents.

Effectivity and Supersession

  • The provisions of this order take effect on May 28, 1995.
  • This order supersedes all earlier inconsistent issuances regarding repatriation of OCWs.
  • Strict compliance is mandated by the POEA Acting Secretary.

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