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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
 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

 WHAT IF NO CONTRACT HAS BEEN SIGNED IN THE HOST COUNTYRY BUT THE CONTRACT SIGNED IN THE PHILIPPINES HAS BEEN ALTERED.I.E. IN THE PIHILIPPINES, THE QUOTA IS 20K SR BUT WHEN THE OFW REACHED 30K SR, HE WAS TOLD THE QUOTA WAS RAISED TO 25K SR,SO INSTEAD OF HAVING A 10% COMMISSION FOR 10K SR, SA 5000 SR LNG ANG 10% COMMISSION NIYA.MEANING INSTEAD OF 1000 SR ANG COMMISSION, 500 SR NLNG.can the embassy help the ofw with this problem without him being deported? - Ho.hey

 My co worker here is also a victim of contract subtition so kabayan be aware of this company CONSULTING ENGINEER'S OFFICE. I work here actually and were just finishing our contract here and leavd this company this company is sucks note the owner of this company is egyptian his name is SHEHAB EL DIN NASSIM. so if you here this name beware. - Radon86

 beware of the RTCC or rashid trading and contracting company,riyadh saudi arabia, they are stupid coz they extend to the maximun the stay of the employer and also practice substituion of contract usually to the low wage worker.fuck them!!they put employee to the verge of nowhere,,like for instance in exit.. if the employee has finished his contract they dont allow him to exit not even if the iqama or the residence permit has expired..they even dont process emergency vacation for those who needs it badly,,this company totally sucks!!!u can label them as "promises are made to be borken"...once u got in here in this company,,u will be doomed to get out..its like youve been trapped. also beware of NAWRAS Agency and YHMD agency - John

 gud day i just want to ask if how can i know if the working contract is verified by the philippine embassy in saudi arabia before i signed?
thank you
God Bless - Dennis Cabuso

 As POEA have said that 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. So what is the best thing to do? - Ren

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