POEA suspends memo on employers’ $5,000 repatriation bond

By Veronica Uy
www.INQUIRER.net

Posted date: February 14, 2008

MANILA, Philippines — (UPDATE) The Philippine Overseas Employment Administration (POEA) has suspended a circular requiring employers to pay a $5,000 repatriation bond and direct-hire Filipino workers to post a performance bond equal to three months’ pay.

Memorandum Circular (MC) 04, series of 2007, was suspended after a directive from President Gloria Macapagal-Arroyo, POEA Administrator Rosalinda Baldoz said.In a phone interview, Baldoz told INQUIRER.net the suspension will remain in effect pending discussions by the POEA governing board on Monday.The suspension means direct-hires will be processed under POEA rules in effect before MC 04 was issued.MC 04 received a lot of flak from overseas Filipino workers’ (OFWs) organizations and advocacy groups when it took effect January 16 this year.

The OFWs complained the additional requirements would either be passed on to them by their employers or make them unattractive to employers abroad.But Labor Secretary Arturo Brion, who heads the POEA governing body, said the additional requirements were meant to protect the workers. Baldoz said discussions will center principally on professionals who will be adversely affected by the order.“We will review the order to see if there is a need for a more relaxed policy pertaining to professionals and countries with a long track record of workers’ protection,” she said.The POEA chief foresees a very lively discussion on Monday, particularly on the definition of professionals.The new order would “relax” the rules for direct-hire “professionals, those to be employed by reputable companies already providing adequate protection, and similarly situated employers.”Earlier, the Department of Labor and Employment (DoLE) backpedaled on the controversial order and said it would consider exempting countries with verified protective mechanisms.Some two weeks ago, Brion said of the 35 countries with a high concentration of OFWs, the Philippine Overseas Labor Offices (POLOs) in Italy, Geneva, and Hong Kong have so far confirmed that employers have been complying with the requirements guaranteeing repatriation assistance and payment of salaries.