The Philippine Overseas Employment Administration (POEA) issued a reminder that

the “no placement fee policy” for household service workers (HSWs) bound to Taiwan is still in effect.

This is in response to the call of some recruitment agencies to abolish the rule and make household workers pay. Pilipino Manpower Agencies Accredited to Taiwan (Pilmat) wants HSWs to shoulder the placement fee because of the financial meltdown that are currently faced by Taiwanese employers.

The economic crisis forced may companies in Taiwan to closed down its operation and lay off workers. The president of Pilmat, Jackson Gan said that the job orders for Filipino HSWs might disappear as a result of this rule. Taiwanese employers might just choose to hire HSWs from other countries that do not require employers to shoulder the fee such as Vietnam, Thailand or Indonesia.

Approved by the POEA Governing Board in 2006, the policy is part of the new requirement for hiring HSWs. It aims to improve the skills of HSWs, strengthen the protective mechanisms at their host country, increase minimum wage and exempt them from paying placement fee. Gan noted that caretakers are categorized under HSWs and there are 20,000 job vacancies for them in Taiwan.

PILMAT wrote a letter to Labor Secretary Marianito Roque and the POEA Governing Board, saying that an existing agreement between the Manila Economic and Cultural Office (MECO) and Taiwan’s Council of Labor Affairs (CLA) oblige OFWs to pay placement fee ( equivalent to one month salary) to recruitment agencies. The said agreement was signed in 2001.

Gan quoted GBR No. 1 and No. 2, series of 2001 that a Memorandum of Understanding (MOU) between MECO and CLA on which Memorandum Circular-5, 2001 of the POEA was issued stating that expenses to be shouldered by all Taiwan-bound workers regardless of any category shall cover the one-month placement fee, the usual documentation cost which includes visa, food and accommodation (for factory worker only), ticker, including on-site broker’s fee.

Jennifer Manalili, POEA Chief said that Gan’s suggestion is “under consideration," but the decision of the Governing Board about it would not be immediate. Manalili wants Pilmat to produce a copy the 2001 MECO and CLA agreement in 2001.

Manalili said, “We don’t have the file so we asked him, ‘can you give us a copy?’ Sabi nya ‘Basta meron yun (He just said there is).’"

Viveca Catalig, POEA deputy administrator for employment said that failure to show a copy of the said agreement would require agencies to follow the rules.