Law Summary
Employment Standards for Direct-Hire OFWs
- The Administration ensures Direct-Hire OFWs receive the best terms and conditions as per Section 134, 2016 POEA Rules.
- Employers must provide compulsory insurance covering repatriation costs, remains, personal effects, airfare, and penalties.
- Employment contracts must include minimum provisions such as employer details, job position, salary (not below host country or NCR minimum), food/accommodation benefits, contract duration, transportation, work hours, leave benefits, medical treatment, termination causes, dispute resolution, and repatriation clauses.
Enhanced Standards for Professionals and Skilled OFWs
- Employment offers must exceed the minimum provisions.
- Additional benefits may include higher basic pay, secured transport, bonuses, paid vacation with airfare, gratuity, end-of-service benefits, free education for children, and stock options.
- The Administration may develop country-specific or skill-specific policies based on host country laws, bilateral agreements, and market conditions.
Medical Examination Requirements
- Direct-Hire OFWs must pass a pre-employment medical exam by a DOH-accredited facility according to host country standards.
- Exemptions apply if the medical exam was done for visa issuance.
- Medical certificates must be submitted to POEA.
Pre-Employment and Pre-Departure Orientation Seminars
- Mandatory attendance of PEOS and PDOS for all Direct-Hire OFWs.
- Certificates of completion are documentary requirements for registration.
- Returning OFWs to the same jobsite with valid certificates may be exempted.
Documentary Requirements for Registration
- Professionals and skilled workers must submit:
- Verified employment contract with terms exceeding POEA standards.
- Valid passport (6 months before departure), work visa/permit.
- Certificate of medical fitness.
- Proof of insurance coverage.
- Notarized statement on employment secured, employer ID details.
- Certificates of PEOS and PDOS attendance.
- Domestic workers must additionally provide TESDA NCII certification and POLO/Embassy authentication of contract.
Registration and Processing Procedure
- Managed by the Direct Hire Assistance Division (DHAD) under the Pre-Employment Services Office.
- DHAD evaluates employer eligibility and completeness of application.
- Upon clearance by the Administrator, contracts are approved, info sheets filled, data encoded, fees assessed, and records stored.
Fees and Expenses
- Employer covers visa fees, work/resident permits, airfare, transport, POEA and OWWA fees, and insurance.
- OFW bears costs for passport, clearances, academic/professional documents, medical exams, and contributions to government social protection programs.
Restrictions on Employers with Recruitment Agency Accreditation
- Employers accredited with licensed Philippine Recruitment Agencies (PRAs) are barred from direct hiring.
- Employers losing PRA accreditation may hire directly only after one year post cancellation/revocation.
Registration Locations and Processes
- Registration of Direct-Hire OFWs occurs at POEA Main Office, Regional Centers, and Units.
- Regional offices coordinate clearance requests through administrative channels.
Effectivity and Supersession
- This Circular modifies prior inconsistent issuances.
- Comes into effect 15 days after publication and filing with the National Administrative Register.