Guidelines on Registration of Direct-Hire OFWs

Legal basis and related authorities

The circular is issued pursuant to DOLE Administrative Order No. 196, Series of 2018.
It is issued in relation to Article 18 of the Labor Code of the Philippines (Ban on Direct Hiring).
It is issued in relation to Republic Act No. 10022.
It implements the Revised Rules and Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of 2016, specifically drawing operative standards from Section 134 and Section 135.
It also aligns with the insurance and benefits reference in Section 37-A of Republic Act No. 8042, as amended.

Policy, purpose, and deployment principle

The circular governs the registration of Direct-Hire OFWs by the Administration.
The circular observes the principle that deployment must be made only to countries with certification as compliant destination for workers.
The Administration secures the best possible terms and conditions of employment for OFWs, including Direct-Hire OFWs, through continual review of employment standards.

Coverage and exempted direct hires

The circular establishes that no employer shall directly hire an overseas Filipino worker for overseas employment.
The circular provides exemptions from the ban on direct hiring for:
- Members of the diplomatic corps.
- International organizations.
- Heads of state and government officials with the rank of at least deputy minister.
- Other employers allowed by the Administration, including employers falling under the following categories:
  1. Employers covered by the diplomatic/organization/head-of-state categories but with a lesser rank, when endorsed by the Philippine Overseas Labor Office (POLO) or Head of Mission in the absence of the POLO.
  2. Professionals and skilled workers with duly executed verified/authenticated contracts containing terms and conditions over and above the standards set by the POEA; the number of professionals and skilled OFWs hired for the first time by the employer shall not exceed five (5), and workers hired as a group shall be counted as one.
  3. Workers hired by a relative/family member who is a permanent resident of the host country, except domestic workers (live-in caregiver/care worker or household service workers).
The circular requires registration procedures and documentary compliance for Direct-Hire OFWs hired by employers exempted from the ban on direct hiring.

Employment standards for direct-hire contracts

The circular places the primary responsibility on the employer to ensure the Direct-Hire OFW is provided compulsory insurance coverage.
The circular makes the employer responsible for:
- Repatriation insurance of the OFW and his/her remains; and
- Transport of personal effects, covering actual repatriation cost and other attendant costs, including airfare and immigration fines/penalties.
The circular requires employment contracts for all Direct-Hire OFWs to include the following minimum provisions:
1. Complete name and address of the employer/company.
2. Position and jobsite of the Overseas Filipino Worker.
3. Basic monthly salary, including benefits and allowances, and mode of payment, with the salary not lower than the prescribed minimum wage in the host country or prevailing minimum wage in the National Capital Region of the Philippines, whichever is higher.
4. Food and accommodation or the monetary equivalent, commensurate to the cost of living in the host country, or off-setting benefits.
5. Commencement and duration of contract.
6. Free transportation from and back to the point of hire or off-setting benefits, and free inland transportation at the jobsite or off-setting benefits.
7. Regular work hours and day off.
8. Overtime pay for services rendered beyond regular working hours, rest days and holidays.
9. Vacation leave and sick leave for every year of service.
10. Free emergency medical and dental treatment.
11. Just/valid/authorized causes for termination, considering customs, traditions, norms, mores, practices, company policies, and the labor laws and social legislations of the host country.
12. Settlement of disputes.
13. Repatriation of worker in case of imminent danger due to war, calamity, and other analogous circumstances, at the expense of employer.
14. In case of death/repatriation of the OFW and human remains and personal belongings, at the expense of the employer.
For professionals and skilled Direct-Hire OFWs, employment offers must be over and above the above minimum provisions and may include provisions such as:
- Basic compensation package above the minimum prescribed minimum wage in the host country.
- Secured conveyance to and from the work site.
- Bonuses.
- Annual vacation with full pay and free airline tickets.
- Gratuity pay.
- End of service award benefits.
- Free education for OFW children who are 18 years old or younger.
- Stock option program.
The Administration may formulate country- or skill-specific policies and guidelines based on:
- Existing labor and social laws of the host country.
- Relevant bilateral and multilateral agreements or arrangements with the host country.
- Prevailing market conditions/realities.

Medical examination and orientation requirements

Direct-Hire OFWs must undergo and pass the pre-employment medical examination (PEME) by a hospital or medical clinic accredited by the Department of Health (DOH) in accordance with the medical requirements of the host country.
A Direct-Hire OFW may be exempted from PEME if the worker has undergone a medical examination required for visa issuance in the country of destination.
A copy of the medical certificate for a PEME exemption must be submitted to the POEA.
Direct-Hire OFWs must undergo Pre-Employment Orientation Seminar (PEOS) and Pre-Departure Orientations Seminar (PDOS) and submit their Certificates as part of registration documentary requirements.
Direct-Hire OFWs must submit certificates, and where applicable, also provide a copy of certificates evidencing completion of the seminars.
OFWs with previous legal deployment who present valid Certificates of completion of PEOS and PDOS and are returning to the same jobsite are exempt from the seminar requirement.
For domestic worker cases under the covered exemptions, the PDOS requirement includes Comprehensive Pre-Departure Education Program (CPDEP).

Documentary requirements for registration

The circular requires registration by the Administration for Direct-Hire OFWs hired by employers exempted from the ban on direct hiring upon submission of documents to the Direct Hire Assistance Division.
For professional and skilled workers, the required documents are:
1. Verified/authenticated original employment contract, signed on each page by the employer or authorized representative, containing terms and conditions over and above POEA employment minimum standards, plus company profile and business license/commercial registration.
2. Passport valid at least six (6) months before the date of intended departure.
3. Valid and appropriate visa or work permit.
4. Certificate of medical fitness to work from a DOH-accredited medical clinic.
5. Proof of insurance coverage covering at least the benefits under Section 37-A of RA 8042, as amended.
6. Notarized statement by the worker on how employment was secured, attaching photocopy of the employer’s passport/ID and contact details.
7. Certificate of attendance to PEOS and PDOS conducted by OWWA.
For domestic workers falling under the exempt categories (including I. Coverage a, c, and d.1 of the guidelines), the required documents are:
1. Employment contract duly signed by employer and worker and duly verified/authenticated and endorsed by POLO or by the Philippine Embassy having jurisdiction over the jobsite.
2. Passport valid at least six (6) months before intended departure.
3. Valid and appropriate visa or work permit.
4. Certificate of medical fitness from a DOH-accredited medical clinic.
5. Proof of insurance coverage covering at least the benefits under Section 37-A of RA 8042, as amended.
6. TESDA Skill Certification equivalent to National Certificate II (NCII) or higher.
7. Notarized statement by the worker on how employment was secured, attaching photocopy of employer’s passport/ID and contact details.
8. Certificate of attendance to PEOS.
9. PDOS and Comprehensive Pre-Departure Education Program (CPDEP).
The circular requires a registration structure that links documentary completeness to clearance and processing steps conducted by the Administration.

Registration process and responsible offices

The documentation of Direct-Hire OFWs is managed by the Direct Hire Assistance Division (DHAD) under the Pre-Employment Services Office.
Employers not belonging to the exempted category must undergo a process that begins with the DHAD.
DHAD must:
- Receive the application to process as Direct Hire and evaluate requirements from the Direct-Hired OFW.
- Inform the worker if the employer may be allowed to directly hire workers.
- If the employer may be allowed, evaluate the received application and document completeness.
- Recommend issuance of a clearance by the Administrator.
If clearance is granted, the processing steps are:
1. DHAD must inform the worker, and the DHAD authorized officer must approve/sign the employment contract.
2. DHAD issues an OFW Info Sheet to be filled up by the Direct-Hire OFW.
3. The system must be used to encode relevant information into the Direct-Hire E-Processing System.
4. DHAD must endorse for assessment of appropriate fees for POEA Processing and for OWWA, PhilHealth, Pag-IBIG Fund and Philhealth contributions, and the worker pays to the authorized cashier for the release of the OEC to the Direct-Hire OFW applicant whose employer is deemed exempted from the ban on direct hire.
5. DHAD must endorse processed records of Direct-Hire OFWs to the POEA Central Records Division for storage after the period of retention of OFW records.
Direct-Hire OFW registration is carried out at the POEA Main Office and its Regional Centers and Units.
Regional Centers must course requests to the Administrator for Clearance for Direct Hiring through the Regional and Overseas Coordinating Office.

Fees, costs, and employer accreditation limits

Employers must pay the following costs:
1. Visa, including the stamping fee.
2. Work permit and resident permit.
3. Round trip airfare or offsetting benefits.
4. Transportation from the airport to the jobsite.
5. POEA processing fee.
6. OWWA membership fee.
7. Insurance coverage.
Workers must shoulder documentation and social protection membership costs for overseas employment:
1. Passport.
2. NBI/Police Clearance.
3. NSO authenticated birth certificate.
4. Transcript of Records and diploma issued by the school, certified by CHED and authenticated by DFA.
5. Professional license issued by PRC, authenticated by DFA.
6. Certificate of competency issued by TESDA or other competent certifying body for the job applied for.
7. DOH-prescribed medical/health examination based on the host country medical protocol.
8. Membership with PhilHealth, Pag-IBIG Fund and Social Security System.
Foreign employers with previous or current accreditation with any licensed Philippine recruitment agencies are not allowed to directly hire workers.
Employers with previous accreditation with PRAs may be allowed to directly hire workers only after the lapse of one (1) year from cancellation/revocation/expiration of accreditation/registration with a PRA.

Effect of inconsistency and implementing character

All previous issuances inconsistent with the memorandum circular’s provisions are modified and/or amended accordingly.
The circular’s effectivity is governed by the publication in a newspaper of general circulation and filing with the Office of the National Administrative Register, followed by fifteen (15) days.