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Recruitment agencies in Kuwait to pay $10,000 deposit for OFW protection

The Philippine Embassy in Kuwait announced that foreign recruitment agencies hiring domestic helpers in Kuwait are required to pay $10,000 escrow deposit to protect overseas Filipino workers (OFWs).

Assistant Labor Attache to Kuwait Ma Teresa Olgado said that each recruitment agency hiring Filipino domestic helpers is required to pay the $10,000 deposit (Dh36,700; Php534,800) to the Philippine Central Bank, reported Kuwait Times.

Contrary to previous reports, Olgado clarified that the deposit is required for every foreign recruitment agency and not for every domestic helper hired by the foreign recruitment agency.

“This is to protect the interests of our workers and provide better protection, especially to household service workers, but is not required for each and every Filipino hired. The escrow deposit will primarily be for the settlement of all valid and legal claims and satisfaction of all judgment awards arising from violation of contracts of employment,” Olgado said.

Many foreign recruitment agencies, however, refuse to pay for the deposit since they have already paid a bond of KD40,000 (Dh485,340; Php7,066,400) to the Kuwaiti government.

The rule is included in the guidelines released by the Philippine Overseas Employment Administration (POEA) on hiring and deployment of OFWs to Kuwait.

Through this new rule, FRAs will be forced to monitor the status of OFWs.

Earlier, POEA administrator Bernard Olalia explained that the 2016 POEA rules state that the escrow deposit should be $50,000, however, it was reduced to $10,000.

The POEA Welfare and Employment Office will monitor if Kuwaiti recruiters and employers follow the rules included in the guidelines and the signed Memorandum of Understanding (MOU) between the Philippines and Kuwait.

Olalia added that local recruitment agencies will also be required to pay an escrow deposit separate from the FRA’s.

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