Wednesday, February 1, 2012

POEA cancels license of 2 recruitment agencies


The Philippine Overseas Employment Administration (POEA) ordered the cancellation of the licenses of two recruitment agencies for excessive collection of placement fees in violation of the POEA rules and regulations.

The two recruitment agencies were Lucky International Placement Services Inc. and Tai-Fil Manpower Services Inc.  according to Viveca Codamon Catalig, Officer-in-Charge of the POEA.

The applicant for caretaker in Taiwan of Lucky International complained that she was charged PhP101,000.00.

The POEA strictly prohibits Philippine recruitment agencies from collecting any placement fee from applicants for household service worker positions, including caregivers.


In a Notice of Order/Resolution issued on January 24, 2012, POEA Administrator Hans Leo J. Cacdac ordered the cancellation of the license of Lucky International, and as a consequence, its officers and directors as of April 2007 were disqualified from engaging in the business of recruitment of Filipino workers for overseas jobs.

Lucky International and its surety company were also ordered to reimburse to the complainant the amount of PhP79,060.00 representing the amount illegally collected. In the employment contract, the applicant has the obligation to pay for pre-departure expenses amounting to PhP21,940.00.

On the other hand, a food processor applicant of Tai-Fil Manpower Services Inc. in 2008 said that the agency collected a placement fee amounting to PhP100,000.000 for a job as a food processor, also in Taiwan.

Section 3 of Rule V, Part 2 of the POEA Rules and Regulations prescribes a placement fee ceiling equivalent to a hired worker’s one month salary. The prevailing salary in Taiwan in 2008 was NT$17,280.00, which is roughly equivalent to PhP23,000.00.

In a resolution signed on January 24, 2012, Administrator Cacdac also ordered Tai-Fil Manpower to pay a fine of PhP40,000.00, and to refund to the complainant the PhP77,000.00 excess of the placement fee collected by therecruitment agency. The officers and directors of Tai-Fil Manpower Services at the time of the commission of the offense were also barred from participating in the overseas employment program.

Catalig further explained that recruitment agencies with cancelled licenses are not allowed to engage in any recruitment activity.

“The public should be extra cautious when applying for work overseas and report to POEA any observed irregularity. Always check the status of your recruitment agencies for your own protection by visiting our website, www.poea.gov.ph or by calling POEA hotlines 722-1144 / 722-1155, and report those that are still recruiting despite the suspension or cancellation of their licenses,” Catalig concluded.

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