POEA Cancels License of Two Recruitment Agencies
May 6, 2013
The Philippine Overseas Employment Administration (POEA) is serious with their pledge to monitor overseas recruitment agencies and file charges on those who will violate POEA rules and regulations.
POEA cancels the license of Lifeline International Philippines, Inc. for collecting excessive placement fee from an applicant who applied for a job in Taiwan. According to the complainant, he was asked to pay P120,000 as placement fee but he was only able to pay P50,000 but was not issued an official receipt. The complainant said that he was able to sign a contract but was not get deployed.
Administrator Hans Leo Cacdac reminded that placement fee should be equivalent to one month salary only. He added that Lifeline asked way bigger placement fee than the prevailing wage of Php27,000 in Taiwan.
Cacdac has ordered Lifeline and Country Bankers Insurance
Corporation to refund to the complainant the amount of PhP50,000 which was
paid as placement fee.
On the other hand, POEA also cancelled the license of ABC Manpower, Inc. for asking excessive fees to an applicant seeking for a job as household service worker (HSW) in Hong Kong despite the withdrawal of case if the complainant.
Department of Labor and Employment (DOLE) secretary cited that after investigation and due process proceedings found ABC Manpower Corporation liable of excessive charging of fees and other malpractices, in violation of Section 2 par. (b), and subparagraphs (d), and (e) of Rule I, Part VI of the POEA Rules and Regulations Governing the Recruitment and Employment of Land-based Workers. Sec. 2 par. (b) prohibits the charging or accepting directly or indirectly any amount greater than that specified in the schedule of prescribed allowable fees, or making a worker pay any amount greater than that actually received by him as a loan or advance.
“As a result of the cancellation of its license, the respondent’s officers and directors are disqualified from engaging in the business of recruitment of workers for overseas work.” Cacdac said. The POEA also ordered ABC Manpower, Inc. together with surety, Country Bankers Insurance Corporation, to refund to complainant Mary Jean Amistad the amount of P66,000 representing the placement fee she had actually paid to the agency.
Last March 9, 2012, Amistad file an affidavit to withdraw the case citing “lapses in judgement” against ABC Manpower when she filed the case. On March 14, 2012, ABC Manpwer has also denied the charges citing that complainant “failed to present evidence” and had “voluntarily retracted her allegations.”
Howeever, despite the withdrawal of the case, POEA decided to pursue the case, as their investigation concludes that the respondent was liable as charged.
The POEA also noted that Section 11, Rule III, Part VI of the 2002 POEA Rules and Regulations says : “The withdrawal of complaint/desistance shall not bar the Administration from proceeding with the investigation of the recruitment violation/s. The Administration shall resolve the case on the merits and impose the appropriate penalties.”
Cacdac noted that under Household Service Workers’ Reform Package Rules, particularly Governing Board Resolution No. 6, Series of 2006, POEA prohibits the collection of placement fee from household workers, whether collected prior to their deployment or on-site through salary deduction.”