POEA Issues Stricter Rules on Direct-Hiring by Foreign Employers

20 01 2008

The POEA has recently issued rules on direct-hiring by foreign employers. Here is a copy of the POEA circular on direct hiring. (See also the DOLE article on POEA MC No. 04-2007.)

Under Philippine law, generally, direct hiring is not allowed (Article 18 of the Labor Code – Ban on direct-hiring). There are two modes of hiring Filipinos for overseas placement: 1. Through POEA; and, 2. Through Private Recruitment Agencies duly accredited by the POEA. An exception was under name-hire as may be allowed or regulated by the Secretary of Labor.

With this Memorandum Circular, the POEA has effectively plugged an operative loophole in the rules on overseas placement. Name-hire (or direct-hiring) has been known to be used by non-licensees (those “recruiters” with no license from POEA) to conduct recruitment activities.

Likewise, this POEA MC will provide protection to Filipino workers hired through name-hire with the provisions on pre-qualification with the Philipine Overseas Labor Office (POLO) and the POEA. There is also a bond requirement on the employer. Such pre-qualification (which is akin to verification or the employer and the job order) puts into POEA regulatory mechanism this loophole in overseas placement rules.

The POEA circular was issued on December 18, 2007.

Competent legal assistance is needed to ensure compliance with this rule on direct-hiring as well as other Philippine overseas placement rules and regulations.

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18 responses

1 02 2008
John

I think we have to SCRAP MC04 since this will discourage foreign employers to hired skilled and talented Filipinos.

15 02 2008
Ghe

The required fee is too high, what’s the basis for this fee? I agree, this will discourage employers outside Philippines to hire Filipino workers. Do we really need this? Where would this money go?Is this really for the OFW’s? I doubt it.I’m against this new regulation.I wish this rule wouldn’t push thru.

7 03 2008
EL

I for one will not be promoting the filipino national, if this rule continues. I know for myself, employers will not support it.

This ruling does not take into consideration the countries the workers are going to. Who thinks up of these asinine rules anyway? I read it somewhere that the head of employment something or other in HK wasn’t even consulted on the memorandum before it was issued. Dumb or what?

My own experience? We have a family waiting for their nanny to arrive in Vancouver– nanny has visa – ready to fly. She’s told the she needs an authenticated contract coming from the employer. Before she can do PEDOS? This authentication – in my estimation will take a month or more – considering the snail pace of Philippine Government offices. How do I know this? I emailed a concern to Philippine Consulate , and they respond by snail mail. Wow! The paper, the time and the stamp plus the usage of Canada post — and the post person. That took a lot of manpower.

We called Philippine Consulate in Vancouver — didn’t know anything about ithe authenticated contract process– directed us to Toronto. In the meantime, our family is now seeking a local nanny – if the nanny doesn’t arrive by end of March she’s cancelled. What do I do with a nanny – that has a visa for Canada – and loses the opportunity?
:) I have to laugh at how hard Philippine Government sticks it their people.

6 05 2008
Sonia

Yes. Philippine officials seem not know what they are doing. They might think that they are helping people find a job, but not! Instead, they send more and more people unemployed!

24 09 2008
clark

i need an employer to go outsice the country

17 11 2008
Arlene Visser

This is ridiculous? It is more getting difficult for someone to get help from the Philippines. Getting more and more expensive for the employer and very slow in processing.

8 01 2009
aileen

i agree..it’s too disgusting to realize that our own government is the one making it difficult for a direct-hire worker to come here in canada. my brother had already a valid working visa for almost two months but since he is a direct-hired the philippine embassy in vancouver won’t issue the POLO verification for that reason. They’re giving the employer a hard time since it is not affiliated to an agency recognized by POEA.. Common guys, do you think you have a good system in helping our foreign workers if they have been in trouble with their employer??? Most of the time here in Canada it is their government who assist them and you’re nowhere to be reached.

20 01 2009
bojo

you know what, that MC04 direct hire rules is bullshit!!!!(excuse my words)
my employer was discouraged to hire filipino and they decided to hire to other countries.

24 02 2010
Burnell

I am happy I found your site on reddit. Thanks for the sensible critique. Me and my brother were just preparing to do some research about this. I am happy to see such good info being shared freely out there.
Regards,
Dru from Vallejo city

21 03 2010
JBernoulli

I am glad that this topic was discussed on this blog, totally agree with all the above, but there are some problems in the legal regulation in the light of recent changes in legislation. I would not wish to write here in great detail, much is written on the site http://moslegist.ru … But thanks anyway!

7 10 2010
arief

Hello,

I am Indonesian, as long as I know, your POEA is much better than our BNP2TKI or even our Labor Departement. If you think that your POEA respond with snail email, I don’t know how to name our system here, since most of our BNP2TKI and Labor Department officer do not have email:)

5 05 2011
ellen

may we ask the complete process we have to go through? i worked previously in China as a singer and i found a friend who is works as a manager in one of the hotels there. they intend to hire me directly without going thru a local recruitment agency. is this possible? how do we go about it? how much, how long is the processing of papers. please send me the step by step on making this job opportunity work out.

23 06 2011
Luan

I’m already working in china for more than 6-yrs. I just came to the philippines for vacation. I wen to POEA for OEC, then they found out that I have my new company, i’m already working in my new company for more than a year. POEA asked me to go to name-hire. I take a look at the proccess of name hire I need to go for medical exam and predeparture orientation seminar and this process tkes two-week to a month I need to go bakc to my job wihtin a week..what the toooottt!@#$%.

anybody who has the same experience?

11 09 2011
basketball drills

I’m really impressed with your writing abilities and also with the format to your blog. Is that this a paid topic or did you modify it yourself? Either way keep up the excellent quality writing, it?s rare to see a great blog like this one today..

17 01 2012
roy

I suspect that in direct hiring unscrupulous DOLE\POEA employees cannot make money.

2 07 2012
`

..WHY ..? THE APPLICANT NEEDS TO SACRIFICE THIS WRONG DOING OF FEE;S PROCEDURE ..APPLICANT MUST PAY UPON ARRIVAL HERE IN PHILIPPINES THAT MEANS ALREADY TO PAY..NOT TO ASK PAYMENT TO APPLICANT YET NO SALARY YET JOBLESS…AND WHY THE APPLICANT PAY THIS SO DAMN HIGH FEE;S..?. WHY OUR GOVERNMENT ALWAYS EAT MONEY FOR NO GOOD REASONS..WHY THE CITIZEN POOR WILL SUFER EVERYTHING..WHY..? WILL YOU PLEASE CHANGE THIS WRONG PROCEDURES…PLEASE,,?

31 12 2013
Nina

This is a big joke !!! This boy has already a VISA !!! To make sure there is no misunderstanding, he went to POEA asking what he needs before he fly, POEA asking for translation for his contract, so he did and went back to submit it,at the end they said he dont need POEA ! So he left without instruction by the POEA.This boy was so exusted trying to complete his papers to pass the immigration !!! He was sure he dont need anything so he is ready to fly. He check in, pass immigration! Again Immigration said he needs official papers to exit.So he was not allowed to go intead of someone give a reciept to authorize him on the spot !!! But no they said he has to go back to POEA to get that single paper!!! So he has to cancel his flight on that time. So much money, time and effort to be wasted before he finally pass to the Philippine immigration !!!
I hope that the Philippine goverment must see how our own folks suffering from this rules.

8 01 2014
michael perez

Ask k lng po paalis n po kasi ako s friday visa from employer lng po dala ko at ticket hndi po authenticated ang visa ko ng consulate nten dun makkalusot po b ako s airport nten pls reply po asap thank you po

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