Legal basis and repealed framework
- Article 18 of the Labor Code, as amended, prohibits employers from hiring Filipino workers for overseas employment except through POEA (or entities authorized by the Secretary of Labor and Employment).
- Article 18 of the Labor Code, as amended creates an exception for direct hiring by members of the diplomatic corps, international organizations, and other employers allowed by the Secretary of Labor and Employment.
- Section 6, Rule III, Part III of the 2002 Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Workers is repealed to harmonize processing of “name hired workers” with Article 18.
- The Resolution mandates POEA to process employment contracts for the categories expressly allowed under Article 18.
Policy and purpose
- The Resolution is adopted to harmonize the processing framework for name hired workers with Article 18 of the Labor Code, as amended.
- The Resolution is adopted to accommodate workers who obtained employment on their own without recruitment agency participation by structuring the allowed direct-hiring categories consistently with Article 18.
- The Resolution establishes a harmonized approach by repealing the earlier name-hire registration exemption framework under the 2002 rules.
Covered parties and direct-hiring coverage
- POEA is directed to process employment contracts of workers directly hired by members of the diplomatic corps.
- POEA is directed to process employment contracts of workers directly hired by international organizations.
- All foreign employers other than diplomatic corps members and international organizations must secure approval of the Secretary of Labor and Employment before POEA processes their directly hired workers’ employment contracts.
- Foreign employers registered/accredited with private recruitment agencies are prohibited from directly hiring workers.
Core operative requirements (POEA processing)
- POEA must process employment contracts of workers directly hired by members of the diplomatic corps.
- POEA must process employment contracts of workers directly hired by international organizations.
- For foreign employers not covered by the diplomatic corps or international organizations categories, the foreign employer must obtain approval from the Secretary of Labor and Employment before POEA processes the employment contracts of workers they directly hired.
- POEA must treat direct hiring by foreign employers as subject to the approval requirement unless the foreign employer is a member of the diplomatic corps or an international organization.
Prohibitions on foreign employers
- Foreign employers who are registered/accredited with private recruitment agencies are prohibited from directly hiring workers.
- Direct hiring by foreign employers is allowed for members of the diplomatic corps and international organizations through the POEA processing directive.
- Direct hiring by other foreign employers is restricted by the requirement to obtain approval from the Secretary of Labor and Employment prior to POEA processing.
- The Resolution operates by repealing the earlier name-hired worker registration exemption under Section 6, Rule III, Part III of the 2002 Rules and Regulations.
Implementation and guidelines
- POEA is directed to process the employment contracts for the expressly allowed direct-hiring categories.
- POEA must promulgate the necessary guidelines to implement the Resolution.
- The Resolution’s implementation depends on POEA applying the approval requirement for foreign employers outside the diplomatic corps and international organizations categories.
- POEA implementation must apply the prohibition against direct hiring by foreign employers registered/accredited with private recruitment agencies.
Repeal and effect on earlier rules
- The Resolution repeals Section 6, Rule III, Part III of the 2002 Rules and Regulations Governing the Registration of Name Hired workers.
- The repeal removes the earlier framework that allowed registration of name hires as an exemption from the ban on direct hiring.
- The Resolution establishes the governing harmonized rule by aligning processing of directly hired overseas workers with Article 18 of the Labor Code, as amended.
- The Resolution directs POEA to implement the revised approach through necessary guidelines.