The DMW approved employment contract: clauses that cannot be reduced
Under RA 8042 and RA 10022, any clause below the DMW Standard Employment Contract is void; the DMW has approved every overseas contract since 2021.
Every overseas employment contract signed by a Filipino worker is approved and registered by the Department of Migrant Workers (DMW). Its minimum content comes from RA 8042 of 1995, as amended by RA 10022 of 2010. An employer may offer more than the standard. It may not offer less. A clause that reduces the floor is void and the standard provision replaces it.
Who approves the contract and which document is read
RA 11641 of 2021 created the DMW, which took over from the former POEA as the office that approves and registers each contract. DMW Department Circular 01-2023, the implementing rules of RA 11641, sets out how and where verification happens, including the role of the Migrant Workers Office (MWO) in the destination country. In practice a contract is not finished when both parties sign it. It is finished when the MWO covering the worksite country has verified it and the DMW has registered it.
The DMW Standard Employment Contract is not one document. There is a separate version for each worker category: household service worker, seafarer, health worker and construction worker. Each carries its own minimum wording on pay, working hours and benefits. So the first question on a new job order is not what the salary is but which version of the standard contract the position falls under. An employer that files a construction template for a health worker gets the file back before anyone reads the salary line.
Two documents usually differ in content and have to be reconciled: the company contract drafted by the employer and the DMW standard contract. In law they do not compete. The company contract may add a housing allowance, longer leave or a higher wage. But if it sets pay below the approved job order, removes the rest day or shifts the cost of repatriation onto the worker, that clause has no effect and the standard provision governs. Under RA 8042 this does not depend on the worker objecting. It is automatic.
The five provisions that cannot be reduced
Five items are checked before the DMW releases a registration, and they are the most common reason a file goes back to the employer.
| Provision | Minimum required | Common company contract error |
|---|---|---|
| Wage | Stated in the destination currency and not below the approved job order | Written in pesos or left to company policy |
| Overtime | A written computation formula, not a general undertaking | Treated as covered by the monthly salary |
| Leave | Paid annual leave stated in days | Leave written as per local law with no figure |
| Repatriation | Employer cost on illness or termination without worker fault | Deducted from the final salary |
| Insurance | Accident and life insurance for the whole contract term | Listed as an optional benefit |
Repatriation is the clause most often argued over. Under RA 8042 as amended by RA 10022, where employment ends through no fault of the worker, or the worker falls ill and cannot continue, the employer and the licensed agency carry the cost of the return, including personal effects. A clause assigning that cost to the worker is not a final bargain. It is void from the first day.
When verification happens and what a mismatch costs
Verification happens before deployment, not after. The MWO in the destination country reviews the employer, its capacity to pay and the content of the contract; only then does DMW processing continue and the Overseas Employment Certificate follow. That final step is set out in the OEC and OFW Travel Pass, and the mechanics of verification at a European post are covered in MWO contract verification in Italy. A wrong clause is therefore found weeks ahead of the flight, not at the airport, and each refile pushes the start date back.
For workers bound for Europe there is a second clock. The destination permit has its own queue, and the work permit timeline by country shows how much buffer belongs between signature and departure. A contract changed after MWO verification needs fresh verification. Changing the site, the position or the country after registration is a new file, not a small correction.
When the contract copy arrives, read three things before signing: which version of the standard contract is attached, the wage figure and currency against the job order, and who is named as paying for the return home. If the company contract is silent on any of them, that silence is not a loss of rights; the standard contract fills the gap. Our employers page sets out how the chain is mapped from job order to first working day.
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