POEA suspends mandatory insurance coverage for rehired, direct hired OFWs

The Philippine Overseas Employment Administration (POEA) has temporarily suspended the implementation of the expanded mandatory insurance for land-based returning and directly hired overseas Filipino workers (OFWs) upon  instructions from Migrant Workers Secretary Susan Ople.

POEA cited in its August 5 advisory the improving global health situation, opening of borders, and high vaccination rates among OFW.

"In this regard, the implementation of the expanded compulsary insurance coverage shall be temporarily suspended pending the consultations and dialogue among the recruitment industry stakeholders, and submission of an offer from the insurance providers, for improved package of services beneficial to the needs of the OFWs," POEA Administrator Bernard Olalia said in Advisory No. 55.

In November 2021, the Department of Labor and Employment (DOLE) Department Order (DO) 228-21  to “extend, expand, and strengthen” the protection of OFWs amid the COVID-19 outbreak.

"The suspension will save our 'balik-manggagawa' workers and the directly hired by foreign employers at least $35 worth of mandatory insurance coverage, while reducing the numbers of requirements imposed by government. Malaking ginhawa ito para sa ating OFWs (This is a great help for our OFWs)," Ople said in a news release Monday.

She, however, clarified the mandatory insurance coverage for newly-hired OFWs will remain in place as it is set by the law.

“Para malinaw, may dalawang uri ng compulsory insurance. 'Yung para sa mga bagong OFW na bunga ng naipasang batas, at itong expanded compulsory insurance para sa mga balik-manggagawa at direct hires na nakasaad sa isang lumang department order ng DOLE. 'Yung itinatakda ng batas ay ating patuloy na ipatutupad dahil ito naman ay sagot ng mga foreign employers,” the secretary said.

(To clarify, there are two kinds of compulsory insurance: for the new OFWs which is mandated by the law and the expanded compulsory insurance for the rehires and direct hires in accordance with an old DOLE order. The compulsary insurance for new OFWs will stay in place because it will by shouldered by the foreign employers.)

“Ngunit 'yung expanded na version na itinatakda ng Department Order 228 para sa mga balik-manggagawa at direct hires ay isasantabi muna natin dahil sa kakulangan ng konsultasyon sa mga stakeholders,” she added.

(But the expanded DO 228, which are for the rehired workers and direct hires, will be suspended due to the lack of consultation with stakeholders.)

Among other provisions, the DO requires employers or the workers themselves to pay for the insurance coverage subject to full refund on the first day of arrival at the worksite or country of destination.

Ople said the benefits of such an insurance scheme for rehired and directly hired overseas workers at the height of the COVID-19 epidemic have yet to be established.

“The order to suspend will be followed by a series of formal consultations with all stakeholders most especially our OFWs in different parts of the world via online meetings since they were meant to be the primary beneficiaries of DO No. 228,” she said.

The consultations will also enable the DMW to report on the progress of other programs and services, including ongoing efforts to cut red tape and carry out the digitalization of the overseas employment certificate (OEC), Ople added.—AOL, GMA News