Title
Solidary Liability in Overseas Employment Contracts
Law
Poea Memorandum Circular No. 14
Decision Date
Mar 7, 1996
The Migrant Workers and Overseas Filipinos Act mandates that employment contracts for overseas workers must include a provision for joint and solidary liability of both employers and recruitment agencies, ensuring accountability for all claims.

Legal basis and governing rule

  • Republic Act No. 8042 (the Migrant Workers and Overseas Filipinos Act of 1995) provides the governing statutory framework for overseas employment regulation.
  • Section 60 of the Rules and Regulations implementing Republic Act No. 8042 requires joint and solidary liability for specified claims.
  • The rule under Section 60 expressly requires that the solidary liability provision be incorporated into the overseas employment contract as a condition precedent for approval.

Policy and purpose statement

  • The circular implements a contractual requirement to secure enforceable solidary liability between principals/employers and recruitment placement agencies.
  • The circular ensures that contracts submitted for overseas employment processing include the solidary liability term mandated by Section 60 of the implementing rules.

Core contractual requirement: solidary liability

  • The liability of the principal/employer and the recruitment placement agency must be joint and solidary for any and all claims under the applicable rule (Section 60).
  • The joint and solidary liability must be incorporated in the contract for overseas employment.
  • The solidary liability contract clause is a condition precedent for approval of the overseas employment contract.

Who must comply and what must be submitted

  • Employment contracts to be submitted in support of requests for accreditation of principals must include the required solidary liability provision.
  • Employment contracts submitted in support of processing of documents must include the required solidary liability provision.
  • The principal/employer and the recruitment placement agency are the contracting parties covered by the joint and solidary liability requirement.

Implementation mechanics and compliance directive

  • Contracting parties must ensure that the overseas employment contract submitted to the POEA contains the joint and solidary liability provision.
  • The solidary liability clause must be included as a pre-approval requirement for the contract’s approval.
  • The POEA requires immediate compliance with the circular’s contractual inclusion rule.

Sanctions, separability, repeal, and deadlines

  • The circular contains a directive of immediate compliance but does not provide a specific fine, penalty amount, or enumerated sanction for non-compliance within its own text.
  • The circular contains no separability clause, repealing clause, or sunset provision in its own terms.
  • The circular does not provide additional deadlines beyond the directive for immediate compliance.

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