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Pursuant to Department Order No. 28, Series of 1991 and in compliance with the memorandum of the Acting Secretary of Labor and Employment dated 08 May 1992 requiring the posting of repatriation bond by all re-hired or re-contracted land-based overseas contract workers (OCWs) as a pre-requisite for processing of employment documents and re-exit clearances by the POEA, the following guidelines are hereby issued:

A
General Statement

The provision of this Memorandum Circular shall apply to all the following classification of OCWs with an employment contract duration of at least six (6) months under the following classifications:

1. vacationing land-based OCWs who have been re-hired or re-contracted by their employers and are returning to the same country of employment;

2. vacationing land-based OCWs who have been re-hired or re-contracted by employers other than their previous employers provided the country of employment remains the same;

3. land-based OCWs who are on emergency leave and have not previously posted a repatriation bond or whose previous bond has expired;

4. land-based OCWs who have not been previously documented by the POEA but qualify as re-hired or re-contracted OCW.

B
Exemptions

The provisions of this Memorandum Circular shall not apply to the following classifications:

1. Seafarers;

2. Land-based OCWs who are on mid-contract leave provided the repatriation bond remains valid and in effect.

C
Amount of Coverage

The amount shall guarantee the reimbursement of the actual costs of repatriation including air fare from the jobsite and other reasonable expenses connected therewith. The bond coverage shall in no case exceed P20,000.00. However, for specific countries like Japan, Hongkong, Singapore, Malaysia, Brunei, Thailand, India the Trust Territories and other similar areas where return airfares does not exceed P10,000.00, the coverage shall be at least P10,000.00.

D
Standard Premium Rate and Payment

The posting of the repatriation bond shall be provided by/purchased out of the personal funds of the worker an shall be in addition to the payment of the processing fee for Balik-Manggagawa for the issuance of the Overseas Employment Certificate (OEC).

The premium of the repatriation bond shall be a maximum of 1.75% per annum of P350.00 per year exclusive of tax and notarial fee for a P20,000.00 cover as established by the Insurance Commission.

The Premium shall be paid at the repatriation bond center established for this purpose. A corresponding proof of payment and copy of the repatriation bond shall be issued to the worker.

E
Functions of the Repatriation
Bond Center

1. To accept premium payments and issue corresponding receipt therefore and individual certificates of cover. The certificate shall be prepared in three copies distributed as follows:

original     -      POEA
duplicate  -      worker
triplicate   -      Administering Company

2. To keep a computerized central file of all the names of worker who posted repatriation bonds and the validity of their bonds;

3. To submit reports on the number of repatriation bonds issued per week and number of insurance claims filed and settled per month to the POEA and the monthly list of covered OCWs to the Central Records Division of the POEA and the OWWA.

4. To settle any and all claims within fifteen (15) working days after submission of all required documents.

F
Effectivity of the Bond

The effectivity of the bond and/or certificate of Coverage shall commence upon departure of the worker and shall be extended worldwide for the duration of the worker's employment contract.

G
Liability and Qualified Insurers

To ensure continuity and efficient delivery of services and benefits, the same surety companies presently servicing the bonding program under Department Order No. 28, Series of 1991, provided their Certificates of Authority and Administrative Order to conduct surety business remains valid, shall provide the coverage for the re-hired of re-contracted workers under this Circular. These surety companies shall be jointly and solidarity liable for any claims under a bond issued by the Administering Company designated by them.

H
Documentation Requirements

Individual Certificates of Coverage shall be secured from the Repatriation Bond Center and presented to the Balik-Manggagawa Processing Division. Upon completion of processing, the Balik Maggagawa Processing Division shall forward the Individual Certificates of Coverage to the Central Records Divisions for recording and storage. The certificates shall be endorsed formally together with the list of workers covered by the bond.

I
Claims

In the event that a need for repatriation arises, OWWA shall advance the cost of repatriation upon receipt of advice therefor.

The undertaking shall cover all requests for repatriation of workers for whatever cause without prior determination of ultimate responsibility.

Formal claims of OWWA shall be filed with the Administering Company. The following documents shall accompany and support the claim:

1. Copy of the employment contract;

2. Statement showing the actual repatriation expenses incurred by the contract worker together with the following documents;

2.1. Used Airline Tickets for the return flight to the Philippines; and

2.2. All other documents that will support the amount being claimed.

3. Photocopy of the passport showing date of departure and arrival of the worker and his/her personal data.

Adopted: 16 June 1992