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Thursday, December 2, 2010

POEA Warns Recruitment Agency Not To Charge Applicants Of Insurance Cost

The Philippine Overseas Employment Administration (POEA) has warned licensed philippine recruitment agency not to charge candidates the cost of insurance coverage as a condition for the launched of their exit clearance or abroad employment certificates (OEC).

POEA Administrator Jennifer Jardin-Manalili reiterated that the cost of insurance protection for agency-hired OFWs must be paid by the deploying agency and shouldn't be handed on to the worker.

According to a POEA news launch, OFWs can report companies that violate the legislation to Manalili’s workplace directly.

Beneath Part 37-A of Republic Act (RA) 8042, as amended, any licensed recruitment/manning agency which passes on the cost of insurance coverage coverage to the worker, or uses such insurance protection as basis to claim any additional fee from the migrant employee shall lose its license and all its administrators, companions, proprietors, officers and workers shall be perpetually disqualified from partaking within the overseas recruitment business.

RA 10022 mandates that every newly-hired OFW deployed by licensed recruitment agencies should have insurance coverage protecting the following: accidental dying, pure death, permanent whole disablement, repatriation price, subsistence allowance benefit, cash claims arising from the employer’s legal responsibility, compassionate visit, medical evacuation and medical repatriation.

Direct hires and returning staff or balik-manggagawa are not covered by obligatory insurance coverage requirement.

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