There’s a news in Inquirer about the POEA board amending the provisions on Named Hires. I came  to Nigeria  under Named Hire  employment.

Under the new ruling, foreign companies can no longer hire Filipinos directly, they either have to use  DOLE-accredited  employment agencies or  the foreign company should registered and get clearance from DOLE.

What would be its impact to would-be OFWS?

Before,  a lot of companies directly hire Filipinos. It makes sense for  us since we don’t need to pay stupendous  agency fees and go through an “agency accredited” diagnostic center for medical. In other words, when you go by agency, you are milked twice. First by the agency fee, then by the medical exam.

Why would i pay that much on a medical? I went to a private hospital for a standard pre-employment exam and cost less than my friend who went to the agency -affiliated clinic — and they do the same battery of tests.

Besides, with employment agencies, the agency fee does not end with a one-time fee but they get percentage from your salary. So an OFW who gets 800 dollars will actually receive only 500 dollars or less after agency. This is the problem specially in Middle East-bound OFWs.

I know a group of Pinoys skilled worker whose stated salary was 500 dollars, but after agency, they will end up receiving 200 dollars only. Agency told them to ‘take-or-leave’.

At least with Named Hire (NH), they are process by the foreign company and directly sends letter of invitation to the embassy. The NH can do medical in any hospital or clinic near his area and best of all, do away with the exorbitant agency cut.

But thanks to the new ruling. Foreign companies who dislike dealing with pesky employment agencies will think twice of employing Filipinos. Add to that the government’s ban on countries like Nigeria and Lebanon for New Hires.

The new POEA ruling holds that by going to a recruitment agency, the OFW will get benefit because of mandatory registration at POEA. But aren’t NH also required to register? I am a NH and i did register with POEA. So what gives?

Conspiracy theorists would suspect that a strong lobby by employment agencies are responsible for this new ruling.

below is the complete news.

Direct hires for overseas work should be cleared by DoLEBy Jerome Aning
Last updated 06:56pm (Mla time) 09/06/2007
MANILA, Philippines — Foreign employers who want to hire Filipino
workers without using the services of local recruitment agencies must
obtain approval from the Department of Labor and Employment, the
Philippine Overseas Employment Administration governing board has
In a board resolution, the POEA board repealed a section of the rules
covering the recruitment of land-based overseas workers, which
allowed the registration with the POEA of “name hires” as an
exemption from the ban on direct hiring.
“Name hires” refer to workers who obtain employment on their own
without the participation of recruitment agencies.

Registration with the POEA gives overseas workers such benefits as
insurance and health care, education and training, family welfare
services as well as protection and assistance in their place of work.

The Labor Code prohibits an employer from hiring Filipino workers for
overseas employment, except through the boards (the POEA) or entities
authorized by the secretary of labor.

As an exemption, however, the POEA was allowed to process the
employment contracts of overseas Filipino workers who were directly
hired by members of the diplomatic corps and international

Foreign employers who are accredited with private recruitment
agencies are not allowed to directly hire Filipino workers, according
to POEA administrator Rosalinda Dimapilis-Baldoz.

The new measure will cover directly hired OFWs like nurses.

Baldoz said the POEA would issue guidelines for the implementation of
the resolution.