Requirements for Overseas Secondment of Philippine Employees to Saudi Arabia
(Philippine legal perspective, June 2025)
1. What “secondment” means in Philippine practice
| Feature | Secondment (temporary posting) | Overseas recruitment/placement |
|---|---|---|
| Employer of record | Stays Philippine-based (home entity continues to pay salary, keep the worker on its rolls) | Shifts to foreign employer |
| Purpose | Deliver a project, give in-country support, transfer know-how | Fill a regular manpower need abroad |
| Governing rules | Same POEA/DMW rules for any land-based Overseas Filipino Worker (OFW) because the employee will work abroad | Same |
Bottom line: Even when your company keeps the employment relationship, the person is still an OFW and must pass through the Department of Migrant Workers (DMW, formerly POEA). Failure to do so is illegal deployment (Art. 34, 36, 38 RA 8042, as amended).
2. Philippine legal framework you must satisfy
| Source | Key obligations for secondment to KSA |
|---|---|
| RA 8042 (Migrant Workers and Overseas Filipinos Act) + RA 10022 + RA 11641 (created DMW) | • Deployment only through DMW-licensed recruiters or direct-hire exemption with DMW approval. • Verified/attested employment contract following POEA Standard Terms. • Compulsory OFW insurance (Section 37-A RA 8042). |
| DMW Rules on Direct Hiring (2018 & 2023 revisions) | Philippine corporations may second their own staff under “employer-initiated in-company transfer” → must obtain a Certificate of Exemption, then process like regular agency-hire (e-Registration, e-Contract, PDOS, OEC). |
| DOLE Department Order 228-22 (Rules on Occupational Safety for OFWs) | Employer (home + host) jointly liable for ensuring KSA’s OSH standards, PPE, and repatriation for injury. |
| SSS Law (RA 11199) | Mandatory SSS coverage continues; employer must remit both shares or designate a Philippine agent to do so. |
| PhilHealth Universal Health Care Act (RA 11223) & Pag-IBIG | Contributions remain mandatory; many firms use automatic deductions from peso “home salary.” |
| RA 10022 mandatory insurance | Minimum USD 15 000 accidental death, USD 7 500 repatriation cost, etc.; buy from Philippine-accredited insurer. |
| Tax (NIRC, Sec. 23) | • If presence abroad > 183 days in a taxable year → non-resident citizen; Philippine tax only on income from PH sources. • No KSA personal income tax, but check Zakat exposure if secondee is an equity partner. |
| Data Privacy Act (RA 10173) | Cross-border transfer of employee data requires compliance with NPC Circular 2022-01 on Standard Contractual Clauses. |
3. Saudi Arabia’s host-country requirements (as seen from PH side)
| Stage | Saudi document | Notes for PH employers |
|---|---|---|
| Visa quota | Block Visa approval issued by Ministry of Human Resources & Social Development (MHRSD) | Often arranged by Saudi client/affiliate. Must match gender, nationality, job title. |
| Work permit + residence | Iqama | Issued after arrival; Philippine worker cannot self-sponsor. The Saudi entity will be the kafeel (sponsor) even in secondment scenarios. |
| Pre-arrival | Visa slip (MOFA number) | Needed for stamping at Saudi Embassy in Manila; must match data in verified contract. |
| Medical | GCC-approved clinics (GAMCA) | Results uploaded to MOFA system; also required by DMW. |
| Professional licensure | e.g., Saudi Council of Engineers, Saudi Commission for Health Specialties | Secure before or shortly after arrival; employer should budget fees and exam costs. |
| Exit/re-entry | Employer issues electronic exit-re-entry permit; employee now allowed to leave KSA without paper exit visa (post-2021 reforms). | Keep copy for OWWA/DMW records in case of emergency repatriation. |
4. Step-by-step deployment checklist
4.1 Corporate side (Philippine company)
Board Resolution approving the secondment and authorizing signatories.
Secondment Agreement between PH company (lender) and Saudi host (borrower) covering:
- duration, scope of work, supervision and performance appraisal
- salary split (home vs. host), allowances, tax equalisation
- who pays end-of-service award under Saudi law
- OSH, insurance, repatriation, dispute forum
- intellectual-property and data privacy clauses
Accreditation with DMW:
- Submit corporate papers, secondment agreement, and Job Order Request (JO).
- Secure Employer’s Certificate of Registration & Verification from Philippine Overseas Labor Office–Riyadh (POLO).
4.2 Employee side
| Stage | Requirement | Where secured |
|---|---|---|
| e-Registration | Creates OFW e-record | DMW online |
| POEA e-Contract | Standard form populated with project-specific salary & benefits | Uploaded for POLO verification |
| Medical Exam | GAMCA clinic | Manila |
| Pre-Employment Orientation Seminar (PEOS) | Online, certificate auto-tagged | DMW |
| Pre-Departure Orientation Seminar (PDOS) | 4-hour in-person session | OWWA |
| OEC (Overseas Employment Certificate) | Presented to PH Immigration on departure; validity 60 days | DMW |
| OFW Insurance Policy | Submit copy to DMW window | Any accredited insurer |
5. During the assignment: rights and obligations
| Topic | Philippine rule | Saudi counterpart | Practical tip |
|---|---|---|---|
| Wages | Must equal or exceed POEA-mandated minimums (USD 400 for general workers; USD 800 for engineers is common practice) | Saudi Labor Law Art. 90 – pay at least monthly in bank via WPS | Maintain two pay slips (peso home pay + SAR local pay) for tax & SSS audit. |
| Working hours | RA 8042 Sec. 23 (no placement in jobs that violate human dignity) | 8 hrs/day, 48 hrs/week; overtime 150 % | Friday/Saturday weekend; Ramadan hours shorter. |
| Leave | Return airfare at contract end (DMW standard) | Art. 109 – 21 days paid annual leave (<5 data-preserve-html-node="true" yrs service) | Align with Philippine Service Incentive Leave if counting home benefits. |
| Dispute | May lodge complaint with POLO; conciliation first | Labor courts under MHRSD | Keep copies of contract and iqama; report serious issues within 10 days to POLO. |
| Repatriation | Joint and solidary liability of PH and Saudi employers (RA 8042 Sec. 37(b)) | Exit clearance and final settlement per Art. 84 | Build a repat fund in secondment agreement. |
6. Post-secondment wrap-up
Clearances in KSA
- Final settlement, End-of-Service Benefit (half-month salary for each of first 5 yrs, one-month per year thereafter).
- Cancel iqama and exit permit.
DMW reporting: Submit arrival report in PH within 30 days for monitoring.
Tax: File BIR Form 1704 (information return of non-resident citizen) if applicable.
SSS/PhilHealth: Update member’s records to reflect overseas period to avoid contribution gaps.
Knowledge-transfer return-service (optional but common): Many PEZA, BOI-registered firms require 6-12 months local service after coming home; document this in the original board resolution.
7. Special categories & common pitfalls
| Scenario | Extra rule |
|---|---|
| Female domestic workers | PH–KSA 2018 MOA: min SAR 1 500 salary, rest day weekly, no placement fee, passport kept by worker. |
| Minors (< 18 yrs) | Absolute deployment ban (POEA Governing Board Resolution 09-2006). |
| Seafarers on offshore rigs | Governed by Maritime Labor Convention & POEA “Shipboard Employment Contract,” not land-based secondment. |
| Government-to-government projects (e.g., NEOM) | Use DMW Government Placement Branch (GPB); different processing queue. |
| “Fly-in/fly-out” arrangements | Still need OEC each rotation unless worker holds Multiple-Use OEC (Pilot Program 2024). |
| Contract substitution on arrival | Criminal offense in PH; employee should refuse and contact POLO. |
8. Practical timeline (realistic)
| Week | Action |
|---|---|
| 0-1 | Draft and sign secondment & service agreements; board approval. |
| 2-3 | DMW accreditation & JO approval (online + POLO Riyadh verification). |
| 4-6 | Employee medical, e-Registration, PEOS, e-Contract upload. |
| 7 | Visa slip issued; passport stamped by Saudi Embassy. |
| 8 | PDOS, insurance purchase, OEC release. |
| 9 | Departure from Manila. |
| 10-12 | Iqama issuance; SSS/insurance premium remittance begins. |
Total lead time: ≈ 2 months if documents are complete; longer if block visa still pending.
9. Penalties for non-compliance (Philippine side)
| Violation | Statute | Penalty |
|---|---|---|
| Deploying without POEA/DMW processing | RA 8042 Sec. 6 (illegal recruitment) | 6-12 yrs imprisonment + ₱ 2–3 M fine; perpetual disqualification from recruitment. |
| Contract substitution or collection of placement fee in company-initiated transfer | DMW Rules Part VII | Suspension/revocation of accreditation; ₱ 250 000 fine per worker. |
| Failure to remit SSS contributions | RA 11199 Sec. 28-e | 6 yrs-1 day to 12 yrs imprisonment; 3 % monthly penalty on unremitted amount. |
10. Key take-aways for HR & Legal teams
- Secondments are not exempt from the full OFW deployment regime; treat them like any other land-based overseas placement.
- Dual compliance is necessary: Philippine protective rules + Saudi immigration/labor law.
- Build clear cost-sharing provisions for insurance, taxes, end-of-service benefits, and repatriation to avoid disputes between home and host entities.
- Keep meticulous document trails (contracts, visas, OECs). They are your defence in audits and employee claims.
- Start early; the block-visa stage in KSA is often the bottleneck.
Always consult accredited counsel
Saudi labor regulations are updated frequently (e.g., 2021 kafala reforms, 2024 Wage Protection amendments). Meanwhile, the Philippine DMW posts new deployment policies almost every quarter. Before each secondment batch, verify that no new Governing Board Resolutions or host-country advisories impose additional conditions or bans.
(Prepared June 25 2025; for general information only, not legal advice.)