Philippine Republic of the Philippines

Department of Labor and Employment

Overseas BFO Building, Ortiga§ Avenue car. EDSA, Mandaluyong City 1501
Employment
Administration
Webslte: w\^rw poea.gov.ph E-mail: info@poea.gov.ph
Hotlines. 722-1144, 722-1155 •:±1;€=-
io March 2o21

HON. RAyMOND I)EMocRITo c. MriNDozA

Chairman
COMMITTEE ON OVERSEAS WORKERS AFFAIRS
House of Representatives
3/F Ramon V. Mitra Building
Batasan Complex, Constitution Hills
Que7,on City

THRU: ATIY. CHRISTOPHER S. LOMIBAO

Leg islative Committee Secretary

Dear Congressman Mendoza:

May we respectfully provide the Honorable House Committee on Overseas

Workers Affairs our comment on the following I-Iouse Bills:

House Rill No. 143o entitled AN ACT FURTHER AMENDING

RFjpuBI.IC ACT NO. 8o42, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINO ACT OF 1995, AS AMENDED BY
RF,PUBLIC ACT NO. 1oo22, FURTHER STRENGTI-IENING THE
STANDARD oF pROTECTloN oF THE WELFARE oF MIGRAr`IT
WORKERS BY EXPANDING THE COVERAGE OF COMPULSORY
INSURANCF., AND FOR OTHER PURPOSES introduced tity
Representative Luis Jose Angel N. Cc[m:pos, Jr.
House Bill No. 3217 entitled AN ACT PROVIDING FREE INSURANCE
FOR COVERED APPLICANTS OF OVERSEAS EMPLOYMENT
CERTIFICATES, APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PUR`POSES introduced by CIBAC Party-List
Representatives Eduardo "Bro. Rddie" C. Vtllanueva cnd
Domingo C. Rivera
House Bill No. 339o entitled AN ACT PROVIDING FOR AN
INSURANCE COVERAGE FOR THE PROTECTION OF INCOME OF
EVERY BONAFIDE OVF,RSEAS FILIPINO WORKER AND
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
introdueed by Representative Precious IIi:pouto Castelo
House Bill No. 3811 entitled AN ACT PROVIDING COMPULSORY
WELFARE INSURANCF. PROGRAM FOR ALL OVERSEAS CONTRACT
WOT`:KERS introduced by Representative Ruf us 8. Rodriguez
 House Bill No. 469o entitled AN ACT PROVIDING FREE INSURANCE
FOR COVERED APPLICANTS OF OVERSEAS EMPLOYMENT
CERTIFICATES, APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PURPOSES I.nfrodrced bar Represenraft.tje vector A. yap

House Bill No. 5258 entitled AN ACT EXPANDING THE COVERAGE

OF COMPULSORY INSURANCE OF OVERSEAS FILIPINO WORKERS,
FURTHER AMENDING REPUBLIC ACT NO. 8o42, OTHERWISE
KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT
OF igg5, AS AMENDED BY REPUBLIC ACT NO. ioo22 1.rifrodrced bg
Re|)resentatives Enrico A. Itneda and Michael Odulon L.
Romero, PhD.
House Bill No. 8252 entitled AN ACT FURTHER AMENDING
REPUBLIC ACT NO. 8o42, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINO ACT OF 1995, AS AMENDED BY
REPUBLIC ACT NO. 1oo22, FURTHER STRENGTHENING THE
STANDARD OF PROTECTION OF THE WELFARE OF MIGRANT
WORKERS BY EXPANDING THE COVERAGE OF COMPULSORY
INSURANCE, AND FOR OTHER PURPOSES I.nfrodrced bar
Representative Samantha Louise V. Agfonso
Upon reviewing the foregoing House Bills which seek to expand the coverage
of the compulsory insurance under Section 37-A of R.A. NO. 8o42, as amended by
R.A. No. 1oo22, to include returning workers (balik-manggagawa), name-
hire/direct-hire workers, and workers deployed under the Government-to-
Government arrangement, we would like to express our full support and cooperation
over the same.

The proposed law will definitely benefit not only the Overseas Filipino
Workers (OFWs) classified as returning workers (balik-manggagawa), name-
hire/direct-hire workers, and workers deployed under the Government-to-
Government arrangement, but also their families considering that they were the ones
who were not fortunate enough to be part of the coverage of the Compulsory
Insurance Coverage under the previous law. The pertinent annual deployment data
for the past years would clearly show that the number of re-hires are significantly
higher compared to the number new hire workersl which would mean that the
number of OFWs who al.e no longer covered by the mandatory insurance are also
increasing over the years. Considering that these returning workers, just like other
new hire workers, may encounter or experience the same risks overseas, it is thus
essential that they be protected as well by extending the coverage of the mandatory
insurance for OFWs in their favor. At this juncture, we wish to emphasize that
workers classified as re-hires no longer have recruitment agencies from which they
could request assistance from if ever they encounter problems overseas. Moreover,

1 Based on POEA Overseas Employment Statistics (Annual Deployment)

 being no longer an agency hire would also, in turn, mean that the principle of joint
and several liability with respect to monetary claims and other benefits would no
longer be applicable to them. Hence, with all the more reason that re-hires (as well
as other workel`s such as direct-hires and workers hired under the Government to
Government arrangement) should be covered by the mandatory insurance for OFWs
in order to fully protect them while they are working overseas.

Be that as it may, this Administration would like to manifest a few minor

comments and/or recommendations on the subject bills for the consideration of the
Honorable Committee as follows:

Insofar as Section 1 of House Bill No. 143o which accordingly amends

Section 37-A of R.A. No. 8o42, as amended by R.A. No. 1oo22, the
pertinent portion of which provides:
"8) FOR BALIK-MANGGAGAWA OR REHIRES - BY THE FOREIGN
EMPLOYER OR THE WORKER, AS AGREED UPON BETWEEN THEM;

C) FOR DIRECT-HIRE WORKER - BY THE FOREIGN EMPLOYER, AT

NO COST TO THE SAID WORKER

D) FOR GOVERNMENT T0 GOVERNMENT HIRED WORKERS - BY

THE FOREIGN EMPLOYER, AT NO COST TO THE SAID WORKER"

Item C above (direct-hire worker) categorically imposes the responsibility of

shouldering the cost of insurance on the foreign employer alone unlike in item 8
(returning wol`kers or balik-manggagawa) wherein the cost of the insurance may be
shouldered either by the foreign employer or by the worker himself/herself
depending on their agreement or arrangement. We submit that the same leeway be
extended with respect to direct-hire workers as they stand on a similar footing to
returning workers or balik-manggagawa. Having no palticular recruitment agency
or entity facilitating their overseas employment, direct-hire workers communicate
openly with the foreign employer wherein they should also be given the opportunity
to bargain for the said benefits being imposed in the proposed law but the same
should not be a hindrance in securing overseas employment.

Item D (Government to Government Hired Workers), in the same manner,

mandates that such insul.ance coverage shall be secured by the foreign employer at
no cost to the worker. In line with this, may we just express that there are host
countries which already provides a comprehensive insurance coverage for the
overseas workers who are being deployed under the Government to Government
hiring facility. It should be noted in the proposed law there is a provision allowing
the POEA to accept certificates or other proof of insurance coverage with respect to
 seafarers who are insured under policies issued by foreign insurance companies2
which we would like to quote below for reference:
"In the case of seafarers who are insured under policies issued by foreign
insurance companies, the POEA shall accept certificates or other proofs of
cover from recruitment/manning agencies: Provided, That the minimum
coverage under sub-SECTION 1.(a) to 1.(i) are included therein."

Considering that the same is allowed for seafarers, we submit that the same
flexibility may be extended in favor of Government-to-Government hired workers
who are being provided by the host country government with a comprehensive
insurance provided that the minimum coverage mentioned in the proposed law are
included. Accordingly, we would like to propose the inclusion of the following
paragraph for your consideration and approval:
"In the case of Government to Government Hired Workers who are
insured under policies issued by foreign insurance companies, the POEA
may accept such certificates or other proofs of cover: Provided, That the
minimum coverage under sub-SECTION 1.(a) to 1.(i) are included
therein."

With respect to Section 4 of House Bill No. 32173 and Section 4 of

House Bill No. 469o4 which provides that the funding for the premium of the
"free insurance" provided therein shall be sourced partly from the budget of the
Philippine Overseas Employment Administration (POEA), we would like to make our
reservations over such fiscal matter considering that this Administration currently
does not have the necessary budget for such purpose.

On a final note, we would like to suggest that the foregoing House Bills be
consolidated considering the similarity in its provisions regarding insurance
coverage for OFWs. Again, this Administration fully supports the foregoing House
Bills, subject to our comments and recommendations mentioned above.

For your guidance and consideration.

2 Section 4 of House Bill No.1430

3 Section 4. Funding. The payment for the premium of the insurance provided under this Act shall be funded

partly by the budget of the Department of Foreign Affairs (DFA) earmarked for the Assistance to Nationals and
partly by the appropriations in the General Appropriations Act as included in the budget of the POEA. For the
first year of the implementation of this Act, an initial amount of Thirty Million Pesos (P30,000,000.00) is hereby
appropriated. Thereafter, such amount necessary for its continued implementation shall be included in the
annual General Appropriations Act.
4 Same with Section 4 of House Bill No.3217