$8,000 bond required of direct hirers THE Department of Labor and Employment is now requiring foreign employers to post a performance bond amounting to $8,000 per employee before they directly hire Filipino workers.
This requirement forms part of the new stricter rules formulated by the Philippine Overseas Employment Administration. The new rules took effect Jan. 15, according to Labor Secretary Arturo Brion who is chairman of the Philippine Overseas Employment Administration.
Direct hiring of Filipinos by foreign employers has to be approved by the labor chief and the contract will be scrutinize and verified the labor attaché or the Philippine Embassy, Brion said.
“Direct hiring may be allowed only for members of the diplomatic corps and of international organizations, government officials of ministerial level, and employers who are hiring on one-time or trial basis,†Brion said.
However, the number of employees that can be hired directly by a company shall not exceed five, the labor department said.
The government decided to adopt a stricter policy on direct hires because it wanted to protect the Filipinos from abusive employers, according to Brion.
Under the new rules, the foreign employers who want to hire directly should post a repatriation bond in the amount of $5,000 per employee to guarantee the repatriation of the worker or of his remains, in the event of death, and a performance bond of $3,000 per employee to guarantee payment of the employee’s salary for the duration of the employment contract. The total bond amounts to $8,000 per employee. Arlie Calalo
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