Title
Ensuring Proper OFW Employment Contracts
Law
Poea Memorandum Circular No. 07
Decision Date
Jun 15, 2015
The POEA mandates that employment contracts for departing overseas Filipino workers must be accurately filled with specific job positions and salaries to prevent offloading due to documentation issues.

Purpose and policy intent

  • The Circular directs attention to a practice where employment contracts presented by departing OFWs are not appropriately filled up.
  • The Circular emphasizes that employment contracts must clearly stipulate the basic terms and conditions of employment.
  • The Circular requires that the contract’s filled details reflect the actual job category and salary of the worker.
  • The Circular warns that deficient contract completion reduces contract signing to mere paper compliance with legal consequences.

Coverage and persons/entities affected

  • The Circular addresses employment contracts presented by departing OFWs during pre-departure airport formalities.
  • The Circular covers employment contracts signed by workers hired by agencies concerned with OFW deployment and documentation.
  • The Circular focuses on the handling of departing OFWs by clearing authorities at international airports and other exit points.

Required contract contents: position and salary

  • Employment contracts must include the worker’s position.
  • Employment contracts must include the worker’s salary.
  • Contract spaces for required information must be filled with the worker’s actual position and salary, not generic references.
  • Employment contracts are intended to clearly stipulate basic terms and conditions of employment, including the position and salary.

Defects and consequence for departure clearance

  • Failure to indicate the basic information—specifically position and salary—renders employment contracts grossly defective.
  • Grossly defective employment contracts may serve as a ground for offloading departing OFWs from their intended flights.
  • Clearing authorities may offload workers when required basic details in the employment contract are not properly stated.
  • The Circular ties legal repercussions to contract signing that is reduced to mere paper compliance.

Rule on monitoring at exit points

  • Section 1, Rule IX, Part II of the 2002 Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Workers requires monitoring departing OFWs at international airports and other exit points.
  • The monitoring is conducted to ensure departing OFWs are properly documented before proceeding to overseas jobsites.
  • Workers without proper documents shall not be cleared for departure under the 2002 Rules and Regulations framework.

Compliance direction to concerned agencies

  • Concerned agencies must ensure that employment contracts signed by their hired workers are properly accomplished.
  • Proper accomplishment requires alignment with job orders approved by the POEA.
  • Concerned agencies are reminded that inaccurate or improper contract completion undermines contract purpose and exposes legal repercussions.
  • The Circular directs that contract signing must not be treated as mere paper compliance.

Transitory and implementation notes

  • The Circular applies immediately upon issuance.
  • The Circular operates by reminder and enforcement linkage through contract compliance, monitoring, and departure clearance mechanisms.

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