Law Summary

I. Definition of Full Disclosure

• Legal Principle: Full disclosure mandates that all parties involved in an overseas employment contract must transparently declare the actual terms and conditions of employment before engagement.
• Key Definitions:
  • "Parties" refer to land-based agencies, employers/principals, and workers.

II. Terms and Conditions of Employment to be Disclosed by the Agencies

• Legal Principle: Agencies must provide comprehensive details regarding employment terms prior to worker engagement.

• Key Requirements:

  • Wages and Salaries:
    • Must adhere to bilateral/multilateral employment standards if they exist.
    • Host country laws regarding minimum wage prevail unless below Philippine minimum wage.
    • In absence of statutory minimum wage, prevailing local market rates apply, subject to verification by POLO or Embassy/Consulate, ensuring they meet or exceed Philippine minimum wage.

• Other Disclosure Requirements:

  • Job position, nature and expectations
  • Required qualifications and worksite conditions
  • Employer profile, contract duration, work hours, and overtime
  • Provisions for board, lodging, transportation, and leave
  • Medical and dental benefits, insurance, grievance mechanisms
  • Assistance with remittances and repatriation
  • Taxes, legal deductions, allowable placement fees, documentation, and visa categories

• Relevant Cross-References: Department Order No. 34 (Series of 1996) for placement fees; existing labor laws for minimum terms.

III. Worker’s Obligation to Disclose

• Legal Principle: Workers must fully disclose their qualifications and personal circumstances relevant to their employment.
• Key Requirements:
  • Disclosure includes educational background, training, work experience, and medical history.

IV. Support Mechanisms to Empower OFWs

• Legal Principle: Various seminars and advisories are mandated to support Overseas Filipino Workers (OFWs).
• Key Requirements:
  • Pre-Employment Orientation Seminar (PEOS):
    • Mandatory for applicants; conducted by government and accredited NGOs.
  • Pre-Departure Orientation Seminar (PDOS):
    • Must be conducted by the agency before deployment; country and company-specific.
  • Advertisements and Notices of Job Offer:
    • Governed by existing regulations; comprehensive job information must be accessible.
  • Travel Advisories:
    • Issued by POEA quarterly to inform workers of market conditions in host countries.

V. Exemption

• Legal Principle: Certain categories of workers are exempt from these guidelines.
• Exempt Groups: Seafarers, household workers, entertainers, covered by separate regulations.

VI. Sanctions and Penalties

• Legal Principle: Violations of the guidelines will result in penalties as per existing laws.
• Key Requirement: Compliance is mandated, with repercussions for non-adherence.

Key Takeaways

• Full disclosure is required from all parties involved in overseas employment contracts, ensuring transparency in employment terms.
• Agencies must disclose comprehensive details about employment conditions to protect workers' rights.
• Workers have a responsibility to fully disclose relevant personal qualifications.
• Support mechanisms, such as mandatory orientation seminars and travel advisories, are established to empower OFWs.
• Exemptions apply to specific worker categories, and violations of these guidelines may attract legal penalties.

This Circular took effect 15 days post-publication on April 04, 1997.