Guidelines on Direct Hiring of Filipino Workers Overseas

Policy purpose and governing authority

The circular governs direct hiring of Filipino workers for overseas employment.
Article 18 of the Labor Code provides the legal basis for regulating overseas employment arrangements.
The Secretary of Labor and Employment approves requests for direct hiring, and that approval authorizes processing for directly hired workers.
The POEA evaluates and processes documents for direct hires after the request approval.
The Philippine Overseas Labor Office (POLO) and, where applicable, the Philippine Embassy perform pre-qualification and verification roles tied to the jobsite.

Core coverage: who may be direct hired

Employers wishing to directly hire Filipino workers are covered by the guidelines for overseas employment.
Coverage applies to workers direct-hired by Individual Employers including:
- Members of the diplomatic corps and international organizations.
- Immediate members of royal family and the family of heads of State/government.
- Ministers, Deputy Ministers and other senior government officials of the host country.
- Employers residing in countries where foreign placement agencies do not operate.
- Filipino expatriates and residents with capacity to hire Filipino workers.
- Others approved by the Secretary of Labor and Employment.
Coverage also applies to Institutional Employers, including:
- Employers hiring on a one-time basis.
- Employers who need workers immediately and have submitted an Undertaking to tie-up with licensed Philippine agencies for its next recruitment.

Pre-qualification standards for employers

Employers must be pre-qualified by the POLO and the POEA before they may proceed with direct hiring.
Pre-qualification requires all of the following conditions:
- No derogatory track record at the jobsite and in the Philippines.
- No involvement of an intermediary in recruitment, whether in the Philippines or in the jobsite.
- Submission of documentary requirements including:
  - Business/commercial registration and/or identification documents.
  - A sample employment contract for the workers to be directly hired.
  - Proof of capability to hire Filipino workers under the terms and conditions offered.
Pre-qualification also requires employer Undertaking including the following obligations:
- No charging of placement fee from the worker.
- Provision of a performance bond equivalent to the worker’s three months salary to guarantee compliance with the employment contract provisions.
- Provision of a repatriation bond of US $5,000 or its peso equivalent to guarantee:
  - Actual cost for repatriation of remains and subsequent burial following death from any cause; and
  - Actual cost for repatriation from other causes such as violation/non-compliance with the contract, company rules, and Philippine laws and host-country laws.
- The repatriation bond exception applies when the violation is attributable to the worker or when the worker voluntarily resigns or returns to the Philippines.
- Provision of medical insurance for the worker at an amount equivalent to that provided to nationals of the host country.

Procedures and approvals for direct hiring

Employers must submit a request for direct hiring to the POLO for pre-qualification.
After POLO evaluation and pre-qualification, the request is forwarded to the POEA.
Where there is no POLO in the jobsite, pre-qualification/authentication of the employment contract is done by the Philippine Embassy in the jobsite.
The POLO sends the pre-qualified request to the POEA, while documents for jobsites without a POLO are sent directly to the POEA by the employer.
The POEA evaluates documents from POLO/employer and endorses the request to the Office of the Secretary of Labor and Employment.
The Secretary of Labor and Employment approval is communicated directly to both the POLO and the POEA.
After approval is received, the POLO verifies the employment contract(s) of the worker(s).
The verified employment contract is submitted to POEA by the worker(s), and the POEA evaluates and processes documents for compliance with the guidelines’ documentary requirements.
The process cycle time from employer filing to issuance of POEA exit clearance must not exceed one month, except delays caused by the employer or the worker.
Secretary approval authorizes an employer to process directly hired workers, but it does not authorize the employer to recruit workers personally or through agents.

Verification and documentary requirements

POLO must verify the individual employment contract upon receipt of advise from the DOLE on approval of the direct hiring request.
POLO verification requires presentation and evaluation of:
- Individual employment contract.
- Undertaking to faithfully comply with the employment contract provisions, treat the worker humanely, and notify the Philippine Embassy/POLO of developments about the worker’s condition and employment.
- Certificate of worker coverage under a performance bond equivalent to the worker’s three months salary, secured at no cost to the worker.
- Certificate of medical insurance secured at no cost to the worker.

Required documents for processing (general)

A copy of the Secretary of Labor and Employment approval to directly hire Filipino workers must be submitted together with the following requirements.

Skill categories other than HSWs

For skill categories other than household service workers, processing requires:
- Valid passport.
- Employment contract duly signed by the employer and worker and verified by the POLO or authenticated by the nearest Philippine Embassy to the jobsite.
- Visa/employment or work permit, or equivalent document.
- Certificate of medical fitness to work from a DOH-accredited medical clinic.
- Certificate of attendance to the Pre-Departure Orientation Seminar (PDOS) conducted by POEA.
- Duly accomplished OFW Information Sheet.
- Employer Undertaking to faithfully comply with the employment contract provisions, treat the worker humanely, and notify the Philippine Embassy/POLO of developments about the worker’s condition and employment.
- Certificate of worker coverage under a performance bond equivalent to the worker’s three months salary, secured at no cost to the worker.
- Certificate of worker coverage under a repatriation bond of US $5,000 or its peso equivalent, secured at no cost to the worker.
- Certificate of medical insurance secured at no cost to the worker.
For drivers bound for the Middle East under this category, the documents must include:
- Personal accident insurance and motor vehicle insurance duly verified by the POLO.

Household service workers (HSWs)

For household service workers (HSWs), processing requires:
- Valid passport.
- Employment contract or offer of employment or equivalent document duly signed by employer and worker and duly verified by the POLO or authenticated by the Philippine Embassy nearest the jobsite.
- Visa/employment or work permit, or equivalent document.
- Certificate of medical fitness to work issued by a DOH-accredited medical clinic.
- Certificate of attendance to the Pre Departure Orientation Seminar (PDOS) conducted by POEA.
- Duly accomplished OFW Information Sheet.
- Employer Undertaking to faithfully comply with the employment contract provisions, treat the worker humanely, and notify the Philippine Embassy/POLO of developments about the worker’s condition and employment.
- Certificate of worker coverage under a performance bond equivalent to the worker’s three months salary, secured at no cost to the worker.
- Certificate of worker coverage under a repatriation bond of US $5,000 or its peso equivalent, secured at no cost to the worker.
- Certificate of medical insurance secured at no cost to the worker.
- Negative pregnancy test for a female HSW.
- TESDA National Certificate II for HSW.
- OWWA Certificate on Language and Culture Orientation.
For family drivers bound for the Middle East under HSW processing, the documents must include:
- Personal accident insurance and motor vehicle insurance duly verified by the POLO.

Medical and PDOS requirements and exemptions

All direct hires must undergo a pre-employment medical examination at a DOH-accredited medical clinic of their choice and submit a medical certificate of medical fitness to work.
Direct hires are exempt from pre-employment medical examination only in the following instances:
- When the worker has undergone a medical examination as a visa requirement, provided a copy of the medical certificate is submitted to POEA and was issued not more than three (3) months prior to submission for processing.
- When the host country requires medical examination upon arrival at the jobsite and the employer guarantees in writing that workers will be repatriated at the employer’s expense if a medical problem arises.
All direct hires are exempt from attendance in the Pre-Departure Orientation Seminar (PDOS) conducted by POEA, except workers with previous employment in the same jobsite.
Workers in the professional category may be administered a special briefing on relevant information requirements.

Prohibition on direct hiring through licensed PRAs

Foreign employers registered/accredited with a licensed Philippine recruitment agency (PRA) are prohibited from directly hiring workers.
This ban applies regardless of category of employer, because it targets foreign employers that are linked to licensed PRAs.

Transitory provisions, registrations, and repeals

Direct hires whose contracts were verified and/or whose visas are issued on or before the effectivity of the circular must be processed by POEA under the old procedure for processing of name hires.
Workers may be processed as direct hires at any POEA Regional Centers and Regional Extension Units in the provinces in accordance with the guidelines.
All previous issuances inconsistent with the circular’s provisions are modified, amended, and/or repealed accordingly.