POEA to blacklist agencies, employers violating mandatory OFW insurance coverage

The Philippine Overseas Employment Administration (POEA) on Saturday, April 2, 2022, expressed readiness to blacklist employers as well as recruitment and manning agencies that will violate the mandatory insurance coverage for overseas Filipino workers (OFWs).

POEA Administrator Bernard Olalia said in a televised public briefing that they are prepared to sanction employers and agencies that do not comply with the provision of the mandatory insurance coverage for all OFWs.

“If there are principals or agencies, who don’t want to pay the premium and charge them to you (OFWs), just report them to us at the POEA,” said Olalia.

“If there are any complaints, we will definitely take action. We are ready to blacklist them. This would mean that they can no longer hire OFWs,” he added.

The POEA chief said they will initially attempt to negotiate with their employers regarding the insurance policy.

“But if they will insist on their refusal, we will file charges and blacklist them in our database,” said Olalia.

He said the policy is already in effect after the implementing rules and regulations were published in March.

“The implementation of the enhanced compulsory insurance should have started already,” said Olalia.

The Department of Labor and Employment earlier issued Department Order No. 228-2021 detailing the expansion of the compulsory OFW insurance coverage by including rehires and direct hires, aside from new hires.

The OFW insurance coverage will cover the duration of the worker’s employment contract and assures coverage in case of death, disability, repatriation, medical emergency and litigation.

Among the migrant workers’ benefits are the following:

• OFWs who will be hurt during their line of service or will have permanent total disablement may get at least $7,500.
• Surviving relatives or beneficiaries of OFWs who died of natural causes while they were working abroad can get at least $10,000 or P500,000.
• Surviving relatives or beneficiaries of OFWs who died because of an accident during the course of their work may get at least $15,000.

HOW DOES THIS WORK? 

According to POEA’s memorandum circular, all licensed recruitment and manning agencies in the country and their employers should offer the insurance coverage to “all OFWs that will include all acts or incidents considered as force majeure and all health issues.”

This includes “all man-made hazards and perils at the worksite or the country destination” which will be added to the minimum coverage for all OFWs.

POEA said the following disabilities will be considered permanent if:

• There is total or complete loss of sight of both eyes.
• There is loss of 2 limbs at or above the ankles or wrists.
• There will be permanent complete paralysis of 2 limbs.
• There will be a brain injury resulting in brain imbecility or insanity.

Read the POEA Memorandum Circular from here – https://poea.gov.ph/memorandumcirculars/2022/MC-10-2022.pdf