Quantcast
Latest Stories

Hong Kong recruiters warned against charging placement fees

By

MANILA, Philippines—The Philippine Overseas Employment Administration warned Hong Kong-based recruitment agencies on Friday that they could lose their accreditation for collecting placement fees from Filipino household service workers.

Overseas Filipino Workers in Hong Kong. INQUIRER.net FILE PHOTO

The warning came after the POEA received information that some Philippine-accredited agencies in Hong Kong collect placement fees from household workers through an “imaginary loan” or an ATM account, said POEA chief Hans Leo Cacdac.

The Philippine Consulate in Hong Kong has already issued a memorandum to all accredited Hong Kong agencies with a warning that the Philippine government will not tolerate these malpractices, he added.

“Any violation committed by the Hong Kong agency will be dealt with seriously and this office (Consulate General of the Philippines) will apply the full force of Philippine laws,” said Labor Attaché Manuel Roldan of the Philippine Overseas Labor Office in Hong Kong.

He said penalty includes suspension or cancellation of the agency’s accreditation with the Philippine Consulate and the POEA.

Roldan reported that through the “imaginary loan,” a worker is brought to a lending company either in the Philippines or Hong Kong to sign a loan agreement but does not receive the loan proceeds.

The worker is then issued a card and advised to pay the loan on installment basis through a convenience store.

“The agency keeps the worker’s passport or employment contract and this is returned to the worker upon full payment,” Roldan said.

In an ATM account, the agency assists the worker in opening a savings account and keeps the ATM card. The employer is then advised to deposit the salary of the worker to that account.

The agency, however, withdraws the worker’s salary, and gets its share as placement fee, then gives the remaining cash to the worker.

“These practices are highly irregular and illegal as they violate the ‘no placement fee policy’ of the Philippine government,” Roldan said.

He added that this also violates the legally allowed agency commission in Hong Kong which is only 10 percent of the monthly salary of the worker.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Hong Kong , migrant worker , OFW , overseas Filipino worker , POEA



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Pope sends condolences for S.Korea ferry victims
  • Drone kills 15 ‘Qaeda,’ 3 civilians in Yemen – security
  • Palace expects Gigi Reyes to tell all on pork scam
  • MH370 search at ‘critical juncture’–Malaysia
  • 16 workers in Batangas sugar cane factory hurt over toxic chemical shower
  • Sports

  • MLB pitcher donates $100,000 for Sewol ferry victims
  • Hamilton takes pole at Chinese Grand Prix
  • Duke’s Rodney Hood joining Jabari Parker in NBA draft
  • Phelps entered in 3 events at comeback meet
  • Boston prepares for huge wave of marathon visitors
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • Fiat-Chrysler to produce iconic Jeep in China from 2015
  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • 5 Filipinos with MERS in UAE reported in stable condition
  • PH boosts MERS monitoring after UAE nurse scare
  • Canadians back PH plea to take back waste
  • We treasure our Sierra Madre
  • OFW from UAE tests negative for MERS-Cov–health chief
  • Marketplace