To deal with the protests and negative criticisms against Memorandum Circular No. 4, approved on Dec. 18, 2007 and took effect on January 15. DOLE and POEA decided to revise the guidelines on direct hiring by foreign employers. This time, major labor exporting countries such as Canada, Italy and Hong Kong will be exempt from the compulsory USD 5,000 repatriation bond and the USD 3,000 performance bond.

Arturo Brion, Labor Secretary Arturo Brion said, “MC 04 stays but we are looking at exemptions because we received reports from POLOs in Italy and Hong Kong that this protection is already in place.” Brion futher emphasized that the repatriation and performance bonds would not be paid in cash, but in bonds. The Labor chief stressed that the guidelines were intended to protect Filipino workers recruited directly for overseas employment.

Click here to view FAQ’s on the New Direct Hiring rules.