Foreign placement agencies recruiting Filipino domestic workers for Kuwait are now required to deposit US$10,000 or equivalent to P530,000 in a reputable bank as a guarantee for money claims of household workers who would breach a contract.
The Philippine Overseas Employment Administration said it has issued POEA Memo Circular 10-A requiring foreign placement agencies hiring domestic workers for Kuwait to deposit a minimum $10,000 as escrow deposit in a bank authorized by the Bangko Sentral ng Pilipinas in the country.
Under the memorandum circular, all FPA hiring domestic workers to Kuwait requesting for accreditation with the Philippine Recruitment Agency (PRA) including those renewing their accreditation shall comply with the escrow requirement, the POEA said.
“If the FPA is accredited or to be accredited to more than one PRA, it needs to put up only one escrow deposit. The escrow deposit shall answer for all valid and legal claims arising from the violation of the employment contracts with the workers,” the agency said.
“The escrow deposit of FPA and the escrow of the PRA shall be equally applied to answer for the awards to the workers,” the POEA said.
However, if the FPA has a pending disciplinary action during the renewal of its accreditation, the FPA shall be required to put up an additional escrow deposit which shall not exceed US$50,000.
The POEA issued the new order after a three-month suspension of the deployment of OFWs to Kuwait on the instruction of President Rodrigo Duterte due to abuses committed against OFWs.