MANILA, Philippines—Recruitment agencies collecting placement fees from household service worker (HSW) applicants are at risk of losing their licenses to operate, the Philippine Overseas Employment Administration (POEA) has warned.
Administrator Hans Leo Cacdac said POEA Governing Board Resolution No. 6 prohibits the charging of placement fees from Filipino HSWs prior to their departure or on site through salary deductions.
Violation of the prohibition on placement fee collection is a grave offense that carries a penalty of cancellation of license.
Cacdac said consistent with most host country regulations, employers pay the service fee and shoulder all the costs of hiring and deploying HSWs.
“Very clearly, licensed agencies can still collect placement fees or service fees, provided they are not shouldered by the worker but by the foreign principal,” he said.
Recently, 52 members of the Society of Hong Kong Accredited Recruiters of the Philippines, a group of licensed recruitment agencies deploying HSWs to Hong Kong, decided to scrap the collection of placement fees from applicants.—Tina G. Santos