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Beware of Employment Contract Substitution

Mar 29, 2009

The employment contract is an important document for overseas Filipino workers (OFWs) as it specifies their rights and privileges while working in a foreign country.  But what if the work contract one signed while still here in the Philippines is replaced or altered with another work contract that puts a worker to a disadvantage?

 

Contract substitution is one of the most common problems of OFWs and it usually leaves them underpaid and extended contract duration. Usually the altered contract indicates a much lower salary compared to what is indicated in the original contract. It also lengthens the duration of the stay of the OFW in the country. 

 

Rolando Coquia, Welfare Officer of the Philippine Overseas Labor Office (POLO), Philippine Embassy in Riyadh, advised OFWs to avoid signing new employment contract if it is still not verified by the Philippine Embassy.

 

“Contract substitution is widely imposed by employers and is always to the disadvantage of expatriate workers,” said Coquia during the forum organized by the Filipino Overseas Workers Association (FOWA).

 

He also said that upon signing the altered employment contract, the original work contract which they signed prior to their arrival in their host country is considered null and void.

 

“Saudi labor laws recognize the new substituted contract. So if you file a labor case against your employer citing a claim that your salary was reduced and the duration of your contract extended, the labor court will pass its ruling based on the substituted contract,” he said.

 

To prevent alteration of the employment contract, foreign embassies, including the Philippines, are trying to find ways to fight this kind of violation and protect the welfare of the workers. Workers from Asian countries are the ones that are most often victimized by contract substitution.

 

Even if OFWs have placement agencies who set requirements and terms of recruitment prior to their deployment, once the employee signed the substituted contract, the agency will not be able to protect the worker.

 

The Philippines aims to create a bilateral labor agreement with the Kingdom of Saudi Arabia, where most cases of contract substitution happen. The agreement includes banning and non-recognition of substituted contract and that the original work contract must prevail in case of employee-employer dispute.

 

Newly arrived workers are usually forced to sign the new contract as their employer threatens to have them deported.  They don’t have a choice but to sign it since they need the job and needs to earn money.

 

“In any such case, foreign workers must first seek the assistance of their respective embassies. This is the first line of protection against the rampant tactic of contract substitution,” Coquia added.

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Reader Comments
 by the way, sa kasalukuyan po ay nangyayari ngayon samin ito, 7 po kaming mga pilipino dito na pinilit na pumirma dito sa qatar...ang nangyari po ay hindi nila sinusunod ang nasa kontrata, 4 months na po ako dito 1month palang ang natatanggap ko...before kami pumunta dito ay binigyan kami nang kontrata na hindi namin inakala na peke pala yung pinapirma nila samin sa pilipinas. please po tulungan ninyo kami kung ano po ang dapat naming gawin dito para naman po kahit papano ay magawan na nang paraan habang maaga. saka ang nangyari pa po ay hindi ayon sa inaplayan namin ang trabahong binigay nila pagdating dito...crosswind international manpower services, yan po ang agency namin djan sa pilipinas...please po responce kayo sa mail ko.... - Richard Sanchez

 and by the way,they said we have free food and accomodation.i agreed even the salary is lo.but when i came here,everything they've said is a lie!!! - Mitch02

 wow....ur page really interest me..im here un riyadh and my contract says i am a domestic helper.but when i came here in riyadh,i work as a beautician.i work long hours..i work 10-12 hours of duty without any privileges...no rest day,no ikama.
i feel maltreated at times especially when the customer complains.they put the blame on me even though its thier mistake.i tell them i dont speak arabic..and they were the only ones who know how to speak arabic.i sometimes eat once a day.i hate the way they treated at me.they think im stupid and dumb!no im not!they are....i just hate them when they put the blame on me and because of that they dont treat me right.i tell them bout my day off,she suddenly shouted at me and telling me i dont need one!!where's the justice? - Mitch02

 wow this note is very frightening. I am a first timer and bound to work in the Middle East too. May I just reiterate what was asked in the previous post, what is the best thing to do regarding this? - Joy

 PLs beware of this CO.- REDECO -Saudi Arabia Operations( Sub-Contractor of SAUDI-OGER) very rampant in Contract substitution,Upon arrival of workers,he change contracts,insisting lower salary,extended contract ,we dont have choice upon arrival because he treaten us to deport if we dont sign contract- Counter part recruitment agency in the Philppines..East West Agency,UNited Global,Concept Placement Agency..There front is SAUDI OGER COMPANY..(Leigitimated Saudi Oger Contract but policy of Sub COntractor is Very Different to Saudi Oger..REDECO dont have Chamber of Commerce..Operating Illegally under SAUDI LAW!!.pls Help US..POEA - Jerico Dela Cruz

 hi, my problem is the contract that i have has 3 versions, one with poea stamped, one with 8hours duty from the agency, and my employer said he had contracts too stating 10hrs duty. but i havent signed any new contracts when i arrived hir n ksa, how wud i know which is to follow? now my problem is dat my contract that i have signed is violated and im planning to breach the contract, but my employer wants me to pay 5000sr because of i am breaching the contract,, its not fair. please i wud like to state my detailed problems, where can i seek legal advise? my employer dont want to release me.
thanx - Raquel

 i've been here in riyadh for 10mos,working as dental assistant,the problem is they haven't let me sign yet the contract. My co-assistants here signed a new contract extending their stay here instead of 2 years our employer forced them to sign the 3yr-contract. Additional agreement is to raise the salary from 2250riyals to 2450riyals after the 2 yrs of stay. one more thing is that we also pay for our insurance costing 28riyals every month.What can our embassy do about this? they had visited this center because one assistant complained already but they said the Phil embassy did nothing. - Air

 My contract was terminated by my employer after I've been with the company for 6mos. and 12 days. They wanted to reduce my salary in which I did not agree. They made saome reports against me and I refuted all their allegations against me. I filed my case here in the Philippines in POEA and intending to file also to NLRC. This is a mere violation of my contract. To all my colleagues beware of the Saudi Building Technics & Manintenance Company Ltd. - Joel C. Locsin

 My contract was terminated by my employer after I've been with the company for 6mos. and 12 days. They wanted to reduce my salary in which I did not agree. They made saome reports against me and I refuted all their allegations against me. I filed my case here in the Philippines in POEA and intending to file also to NLRC. This is a mere violation of my contract. To all my colleagues beware of the Saudi Building Technics & Manintenance Company Ltd. - Joel C. Locsin

 gud day to all my mates in meddle east . its realy frustrating that you agree and sign a contract and when you arrive in your distanation especially in meddle east all this promising contract was changes. my brother told me he signed a contract stated the sallary is 1700US dollar a month.He is very excited not knowing that his contract was change instead he recieve 1200sr a month what a big miss ins't it ? hope our goverment is doing thier job especially philippines embassy in saudi please help our kabayan.they are hardworking and they deserve a good commpensation. ALL FILIPINOS REMEMBER YOUR CONTRACT IS YOUR RIGHTS... - Joehinaut

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