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dsMemorandum of Understanding between theDepartment of Labor and Emplolrment, Republic of the philippinesand the Ministry of Labor, Republic of Korea

on the Sending and Receiving of Wbrkers under theEmploy'rnent Permit System of Korea

The Department of Labor and Employment of ihe Republic of the philippines and theMinistry of Labor of the Republic of Korea (hereinafter referred to as the "parties").Respecting the principles o{ equality and mutual benefitiDesiring to enhance the existing {riendly relations between the two countries throuqhcooperation in the fields of labor affairs and human capacity buildingi andRecognizing the benefits to be derived Jrom such cooperation by both counlries;Have reached the following understanding:

Paragyaph /. PurposeThe purposes of this Memorandum of Understanding (hereinaiter referred to as "MOU") areto develop a more viable lramework lor coopemtion between the l%rties and to enhancetransparency and efficiency in the process of sending and receiving of Filipino workersunder the Employment Permit System for Foreign Workers (hereinafter referred to as the"EPS') of the Republic of Korea (hereina{ter referred to as "Korea).

t'Paragraph 2. Def initionsFor the ourooses oi this MOU :

(a) the term "employer' refers to a business owner who obtains permission from theMinistry of Labor of Korea (hereinafter re{erred to as the "lvlOf') to employ loreignworkers pursuant to the Act on Foreign Workers' Employment of Korea (hereinalterre{erred to as the "Foreign Employment Ac{') or a person who carries out specifictasks as a proxy ol the business owner;

(b) the term 'ljobseekei' refers to a Filipino national who has passed the EPS Korean

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Language Test (KLT) and the medicar examination, pursuant to the ForeiqnEmployment Acti(c) the term 'workei' refers to a Firipino nationar who has accepted the emproyment offeror signed a labor contract with a Korean employer, pursuant to the ForeiqnEmployment Acti(d) the term "sending agency' refers lo a government agency authorized to recrurt andsend workers to Korea, including pre-screening and pre-qualifying of jobseekes andcooperating in all matters with the receiving agency, pursuant to the Korean FcreignEmploymenl Acti(e) the term "receiving agency' refers to an agency whrch has the authority to managethe jobseekers' roster and to receive Filipino workers from the sending agency of theRepublic of the Philippines (hereinafter referred to as "philippines"), pursuant to the

Foreign Employment Acti(f) the term '1est agency' referc to an agency authorized and entrusted by the MoL withthe overall management ol the EPS-Korean Language Test (hereinafter referreo ro asthe "EPS-KLT"), including making test announcements, receiving applications,

preparing test questions and conducting the test, pursuant to the Foreign EmploymentAct; and(g) the term "resident officer' relers to a representative of the MoL or the recervrng

agency, who is dispatched to the Philippines, on behalJ of the MoL and the receivingagency, pursuant to the Foreign Employment Act, to provide support for the processof sending, receiving and promoting the reintegration of Filipino workers.

/\Parasraph3. Sending Agency and Receiving Agency1. The Department of Labor and Employment of the Philippines (hereinafter referred to asthe "DOLE') is the government agency primarily responsible for sending Filipino workers toKorea under the EPS.

2. The Ministry of Labor is the government agency primarily responsible for receivingFilipino workes who are senl to Korea under the EPS. The MOL will activelv excludeemployers not qualified under the Foreign Employment Act.

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3' Upon agreement of the parties, the DoLE designates the phirippine overseasEmployment Administration (hereinafter referred to as the "POEN), an attached agencythereol, to exclusively serve as the sending agency.4' The MoL designates the Human Resources Development Service of lfurea (hereinafterreferred to as the "HRD Korea"), an affiliated agency thereof, to exclusively serve as thereceiving agency.

Para/raph4. Sending and On-site Fees1. The POEA, in consultation with the MOL, undertakes to publicly inform the workers of thelegitimate fees to be paid on the following:

(a) Sending tues1) Application tues

a) EPS-KLT Feeb) Medical Examination Fee

2) Prelrmtnary Training fue3) Re-Medical Examinaiion Fee (only lor those with lapsed medical certification)4) Processing and other FeesU VISA reE6) Airfare

\o,| un-srte rees1) Relurn Cost lnsurance Premium2) Casualty lnsurance Premium

2. The PoEA will consult the MoL in advance when changes in fees, which have beenpreviously agreed upon by the DOLE and the MOL, are inevitable due to inflation or otherreasons, and the DOLE will inform the MOL of its decision on the matter.

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ii /--\ lii] "r rafiupn5. lmplementation of the EPS-KLT iil] - lnates the HRD Korea as tho fpqt A.rAn.\/ tn.nn.lr r.i lho trPQ-t(tT Jnr cn liii .1 The MOL designates the HRD Korea as the test agency to conduct the EPS-KLT {or an lllt{i,,.[.o..,''...=

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obiective serection of jobseekers, purcuant to the Forergn Emproyment Act.2. The DoLF and the poEA wiil provide assistance and support in the foilowing areas forthe smooth implementation of the EpS_KLT:(a) distributing and receiving the EPS_KLT application form,(b) providing the sites for receiving and conducting the tests and maintaining order atlhe sites;

(c) requesting expeditious clearance by the Bureau of customs of EpS-KLT materials andendorsing the request of HRD Korea for their exemption from duties, in accordancewith appjicable laws,(d) supporting request for visa issuance for personner imprementing Eps-KLT, asnecessary;(e) supporting the request lor tax exemption of EPS-KLT fee and facilitating remittancewithin the framework of existing laws and(f) other assistance as may be agreed upon by the l%rties"

3. The HRD Korea will provide assistance and support, especially when requested by thePOEA, for the fair and efficient conduct of the EpS-KLT.4. The following are the qualification and disqualifications for those who may regrster withthe POEA to be qualified to take the EPS-KLT:Qualification:

(a) Fersons aged 18 to 38 (inclusive, based on reckoning of birthdates in the philippines)Disqualilications:(a) P.ersons who have been convicted of a crime punishable by imprisonmenr, or(b) Persons who have record of deportation or departure orders {rom the Reoublic ofKorea, or(c) Pesons who are restricted from departure from ihe philippines, or(d) Pesons with derogatory record as defined by the regulations of the poEA.

5. The EPS-KLT certificate will be valid for two years from the date when the tesl result isannounced. The tbrties will consult on possible measures to reduce unnecessary burdento workers related to the EPS-KLT, such as exemption from the Eps-KLT of workers whohave satisfactorily worked for at least three (3) years under ihe EpS.6. The HRD Korea and the POEA will hereinafter sign an EPS-KLT Service Commitment

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Agreement which will regulate specific matters regarding the implementation of the EpS-KLT,7. The HRD Korea, after prior consultation, may designate a pubric agency ro carry outEPS-KLT related work decided upon by the HRD Korea and the pOEA.8. lf there is any disruption in implementing the Eps-KLT, or if the Eps-KLT cannot beimplemented for any reason, the MoL and the DoLE may, after'thorough consultation, takenecessary measures, including the suspension of the EpS-KLT.

IParagyaph 6. Recruitment of Jobseekers'1. The POEA will prepare jobseekers' roster (hereinafter referred io as the "roster'), whichwill include jobseekers who have passed the EPS-KLT and the medical check-uodetermined by the MOL and send to the HRD Korea. lf the number of qualified jobseekersexceeds the allrcated number of the Filipino jobseekers in the roster, the selection will bemade according to a methodology jointly decided upon by the l%rties2. The roster prepared by the POEA will include the following information:

(a) Jobseekers personal information (including name, nationality, gender, date of birth,EPH identilication number and physical condition)

(O) Copy of the jobseekei s passport(c) Desired employment conditions (including wage and type of occupation)(d) Personal and career background (including education, work experrence and

certificates) and(e) lnformation on the EPS-KLT taken by the jobseeker (including test date and score)

3. The POEA will inform the jobseekers that their inclusion in the roster will not guaranteethem any job in Korea.4. The POEA will maintain the lntormalion Technology (lT) infrastructure of Sending publicAgency System (SPAS) for sending the roster to lhe receiving agency.

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I'Paragraph Z. Management of Jobseekers' Rosterl. The roster will be valid for one (j) year.2. when changes are made in the information on the roster, including jobseekers'willingness lo find jobs, their contact addresses, etc., the sending agency will inlorm thereceiving agency of such changes and the reason for the chanqes.3. The HRD Korea will return the roster to the POEA 1or correction if there is any error. ThePoEA will correct lhe error and send the corrected rosler back to the HRD Korea.4. The MOL will inform the POEA at the beginning ol the year of the ceiling of the allocatednumber of Filipino jobseekers that can be included in the roster and the tvpes ofoccupations that may be oflered to foreign workers.

Paragraph B. Labor Contractl. There will be a Standard Labor Contract (SLC) to be used by employers and workersunder lhe EPS, as provided for under the Foreign Employment Act. Each employer willdraw up a labor contract alter selecting a worker on the roster and the receiving agencywill send the contract to the sending agency. The MOL and the DOLE will make efforts toensure observance of foreign workers' legitimate rights.

2. The POEA will, upon receipt of the labor contract otfered by the employer from the HRDKorea, review the terms and conditions, and if the same are compliant with the minimumstandards, explain lo the jobseeker so that he/she can fully understand it and decidewhether or not lo accept the ofier based on his/her own free will.3. The POEA will inform HRD Korea that the worker has accepted the iob offer so thesystem could allow the POEA to print the contract for signature of ihe worker. After theworker has signed the contracl, the POEA will prepare the worker lor sending to Korea.

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4' The PoEA will, within 14 days lrom the date oi receipt of the labor contract, rnlorm theHRD Korea, wheiher the contract has been signed by the worker, or if not signed, thereason why it was not signed. The HRD Korea may decrare the contact not concruded.after consultation with the emplover.5. The HRD Korea can excrude from the roster any jobseeker who cancers an accepredlabor contract or does not accept a labor contract twice without any valid reason. The HRDKorea will notify ihe PoEA of the list of lobseekers who have been excluded from the roster.6. The POEA will provide the worker with the original copy of the labor,contract, whichhe/she will bring to Korea.7. The Parties will exert sustained efforts through close mutual coopention to lind workablesolution(s) to minimize labor contract cancellations by either employers or loreign workersand inform each other of measures that lhev have taken.

\t\Paragyaph 9. Preliminary Education

1. The POEA will conduct a preliminary education prcmptly for the workers who have signedlabor contracts so that they can enter l(orea in a timelv fashion.2. The POEA will decide the content and length of education through prior consultation withthe MOL.

3. The POEA will either conduct the preliminary education by itself or select a public agencyto be entrusted with the preliminary education through prior consultation with the MoL.4. The Philippine Overseas Labor Office (POLO-l(orea) may conduct orientation activity for,or provide informalion materials, to Korean employers to help them understand andappreciate the Filipino culture and to promote friendship and cooperation between Koreaand the Philippines.

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/\paragraph /0. Visa lssuance'l' lmmediately after receiving the certificate lor confirmation of Visa lssuance (hereinafterreferred to as the "ccVr") from the HRD Korea, the poEA wiil inform the workers of itsavarlability and will apply for their visas at the Korean Embassy in the philippines aftersecuring from the workers all the required drcumenis.2. The HRD Korea may cancer the rabor contract of any worker who does not appry ror avisa within three (3) months of the validity period of the CCVI.3. lf the worker issued with ccVl decides not to go to Korea, or unable to go to Korea dueto reason such as the employer's cancellation of the labor contract, the poEA willcooperate in taking measures to cancel the co/l as requesled by the HRD Korea.4. .The PoEA, under the Eps, is the only organization authorized to assisi in visaapplications.

I'Paragpaph 11. Enlry, Receiving and Re-entry of Workersl. The PoEA will inpul the required information in the EpS Network, as necessary, to keepemployers informed on the progress ol the workers' preparation for their entry to Korea.2. The POEA and lhe HRD Korea will con{irm the expected entry date for worxers, wno areissued the ccVl, at least one (i) week prior to their entry, taking into account theemployment training schedule in Korea.3. The POEA will take necessary measures, including flight reservations, lo ensure thatworkerc enter Korea on the scheduled date.4. The POEA and ihe HRD Korea will continuously improve the process of sending andreceiving of workers in an effort to shorten the period before workers mav enter Korea.

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5. The PoEA and the HRD Korea wiil work crosery together to raciritate the re-entry olFilipino workers who are being re-emproyed, pursuant to the Foreign Emproyment Act.

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o^,u{} Placement and Repatriation of Workersl' The MOL will conduct employment training and medical check-up for workers belore theyslart work The organrzation(s) in charge of lhe employment training and medical check-ups will be determined by the MOL2. The lbrties will exert earnest efforts to promote good faith compliance with the contractand address problems at the worksite to prevenl repatriation of workers before expiration ofcontract, as much as possible.3. The HRD Korea will immediately inform the poEA and the polo of the name of workeswho must be repairiated due lo medical problems discovered during the medrcal check-upin Korea.4. The worker will bear the general expenses, including the airfare for his/her departuref rom Korea if he/she reiurns to the Philippines prior to the termination of the labor contractperiod for reasons such as problems in the medical check-up or unreasonable Jailure ofadjusting to the workplace.5. The HRD Korea or the MOL will actively cooperate with the Labor Attach? when workercreport cases of illegal ireatment by employer that makes repatriation inevitable, for the iustresolution of the case.

IParagraph /3. Employment and Sojourn Management1. The POEA will educate the workerc on the proper observance of Korean Laws, includingthe Foreign Employment Act and the lmmigration control Act. The MoL and the HRD Koreawill protect foreign workers' rights in accordance with the related labor laws of Korea.2. The l%rties will strongly cooperate to effectively manage the employmenl and sojourn ofthe Filipinos to prevent unnecessary absence without leave (AWoL) and absconding(running away) and to encourage their voluntary departure from Korea upon the expirv oltheir employment to reduce the number of irregular workers in l(orea.

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3. The Fbrties wiil cooperate to ensure the smooth imprementation of the Returnee supporlln:fl"r of Korea in the phirippines. The detairs of cooperation wi, be agreeo ,pon oy4' The MOL may take necessary measures, such as reducing the ailocated number ofobseekers in the roster or suspending participation in the Eps, if the number of Firipinoworkers absenting without reave or staying iilegaily in Korea exceeds the average for arlsendtng couniries.

Iparasraph /4. Support in the Sending and ReceivingProcess1' The MoL, in order to herp improve the process of sending Firipino workers to Korea. mavdrspatch resident officers o{ the MoL or HRD Korea to the phirippines.2 The POEA, in close coorclination with HRD Korea, may drspatch representatrves to Koreain order to herp improve the process of emproyment and sojourn management. specifics,such as the date and process concerning their dispatch, as welr as their rores, wi, bedetermined through consultations between the hrties.3. In order to lacililate the tasks of the dispatched representatives, the senorng andrecervrng agencies wiil cooperate in areas such as securing visa, providinq reratedmaterials and responding to interview requesis.

Paraghaph /5. Ensuring the Transparency, Efficiency andIntegrily of the Sending and ReceivingProcess

1. The l%rties will maintain and support their respective complaints and assistance cenrers,where concerns and irregularities can be reporled and acted upon, as appropnate.

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2. The PoEA wiil advertise the key contents and emproyment procedures of the Eps andthe sending fee. Specifics such as the advertising method and dates, will be decidedthrough consultations with the MoL and the HRD Korea or resident otficer.3' The POEA will assist the HRD Korea resident officer in advertising the Eps throuqhmeans such as holding presentations in the philippines.

General Provisions.1. The status of Filipino workers who have entered Korea under the Industrial TraineeSystem of l(orea will be decided by the Korean government in view of the aboljtion of thesystem as of January 1,2007.2. The l%rties will make effort to promote availment oi benefits by the workers under theDeparture Guarantee lnsurance and Relurn Cost Insurance, through lhe regular procedures,before they leave Korea.3. The POEA and the HRD Korea may sign an implementing instrument regulating specificmatterc regarding lhe process of sending and receiving Filipino workers.4. Upon prior agreement, the l%rties may, with the participation of relevant organizations,visit each others organization to assess the implementation of this MOU.5. Any difference or dispute, which may arise from the interpretation or implementation ofthis MOU, will be resolved by good laith consultation between the l%rties.6. The l%rties may amend or revise ihis MoU by mutual, written consent, as necessary.

IParasyaph 17. Enlry into Effect and Term of Validity1. This MOU will come into effect on the date of signing by the Parties and supersedes allolher agreements inconsistent therewith.

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2' As soon as this MoU takes effect, the Mou signed on october 20, 2006, together with itsexlensions, and the rmprementing Agreement on the Eps-KLT signed between the r%rties inAugust 2005 are deemed terminated.3 This MOU wirr remarn in effect for two (2 years. However, this Mou may be suspendedor terminated by either party, if there is any justifiable reason, such as the vioration of thisN/ou. The suspension or termination wiil be effective upon the mutuar consent ot theParties.4 The effectivity of this MoU may be extended upon the mutuar written consent by theParties.signed in dupricate at the seour, Korea on this 30th day of May , 2009, in the EngrishLanguage.

For the Department of Laborand Employment

of the Republic of the philippinesFor the Ministry of Laborof the Republic of Korea