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POEA Rules and Regulations

Governing the Recruitment and Employment

of Land-based Overseas Workers

PART I

GENERAL PROVISIONS

RULE I

STATEMENT OF POLICY

It is the policy of the Administration:

a.To uphold the dignity and fundamental human rights of Filipino migrant workers and promote full employment and equality of employment opportunities for all;

b.To protect every citizen desiring to work overseas by securing the best possible terms and conditions of employment;

c.To allow the deployment of Filipino migrant workers only in countries where their rights are protected;

d.To provide an effective gender-sensitive mechanism that can adequately protect and safeguard the rights and interest of Filipino migrant workers;

e.To disseminate and allow free flow of information which will properly prepare individuals into making informed and intelligent decisions about overseas employment;

f.To ensure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippines abroad;

g.To institute a system to guarantee that migrant workers possess the necessary skills, knowledge or experience for their overseas jobs;

h.To recognize the participation of the private sector in the recruitment and placement of overseas workers to serve national development objectives;

i.To deregulate recruitment activities progressively taking into account emerging circumstances which may affect the welfare of migrant workers;

j.To support programs for the reintegration of returning migrant workers into Philippine society; and

k.To cooperate with duly registered non-government organizations, in a spirit of trust and mutual respect, in protecting and promoting the welfare of Filipino migrant workers.

RULE II

DEFINITION OF TERMS

For purposes of these Rules, the following terms are defined as follows:

1.Accreditation – shall refer to the grant of authority to a foreign principal to recruit and hire Filipino workers through a licensed agency for overseas employment.

2.Administration – shall refer to the Philippine Overseas Employment Administration (POEA).

3.Administrator – shall refer to the Administrator of the POEA.

4.Agency – shall refer to a private employment agency as defined herein.

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5.Corporate Recruitment – shall refer to the act of providing the required manpower for all facets of an overseas project.

6.Department – shall refer to the Department of Labor and Employment (DOLE).

7.Derogatory record – refers to the existence of negative information such as, but not limited to, illegal recruitment, falsification, swindling or estafa, and/or conviction for crimes involving moral turpitude.

8.Documentation cost – shall refer to actual cost incurred in the documentation of an applicant- worker in relation to his/her application for overseas employment, such as, but not limited to passport, NBI/ Police/Barangay clearance, authentication, birth certificate, Medicare, PDOS, trade test, inoculation and medical examination fees.

9.Employment Contract – shall refer to an individual written agreement between the foreign principal/employer and the worker which is based on the master employment contract.

10.Foreign Placement Agency – shall refer to a foreign principal indirectly engaging the services of Overseas Filipino Workers.

11.Joint and Solidary Liability – refers to the nature of liability of the principal/employer and the recruitment/placement agency, for any and all claims arising out of the implementation of the employment contract involving Filipino workers for overseas deployment. It shall likewise refer to the nature of liability of officers, directors, partners with the company over claims arising from employer-employee relationship.

12.License – shall refer to the document issued by the Secretary or his duly authorized representative authorizing a person, partnership or corporation to operate a private employment agency.

13.Master Employment Contract – shall refer to the model employment agreement submitted by the foreign principal for verification and approval which contains the terms and conditions of employment of each worker hired by such principal.

14.Name Hire – shall refer to a worker who is able to secure an overseas employment opportunity with an employer without the assistance or participation of any agency.

15.New Market – shall refer to a principal or a foreign placement agency which is not in the active list of registered of accredited principals/foreign placement agencies for the past six months or more or which has never been registered or accredited to any licensed landbased agency; Provided that in the case of a foreign placement agency, its direct employer(s) are identified and are likewise not in the active list of registered or accredited employer of any licensed landbased agency for the past six months or more or has not been registered or accredited to any licensed landbased agency;

16.NLRC – shall refer to the National Labor Relations Commission.

17.Non-Licensee – shall refer to any person, partnership or corporation who has no valid license to engage in recruitment and placement of Overseas Filipino Workers or whose license is suspended.

18.Overseas Employment – shall refer to employment of a Filipino worker outside the Philippines covered by a valid contract.

19.Overseas or Migrant Filipino Worker – shall refer to any person, eighteen years of age or above, as provided in RA 8042, who is to be engaged, or is engaged or has been engaged in a remunerated activity in a state of which the worker is not a legal resident;

20.Placement Fee – shall refer to the amount charged by a private employment agency from a worker for its recruitment and placement services, as prescribed by the Secretary.

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21.Principal – shall refer to a foreign person, partnership, or corporation hiring Filipino workers through a licensed agency.

22.Private Employment Agency – shall refer to any person, partnership or corporation engaged in the recruitment and placement of workers for a fee, which is charged, directly or indirectly, from the workers or employers or both.

23.Provisional License – refers to a license issued to a new agency with a limited period of one (1) year within which an applicant shall comply with its undertaking to deploy 100 workers to its new market.

24.Recruitment Agreement – shall refer to an agreement by and between the principal and the private employment agency or the Administration defining their rights and obligations.

25.Recruitment and Placement – shall refer to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referrals, contract services, promising or advertising for employment abroad, whether for profit or not; provided that any person or entity which, in any manner, offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement.

26.Registration - shall refer to the act of recognizing and entering in the official records of the Administration the existence of a foreign principal/employer or project whose documents have been verified in the job site by the appropriate officials of the Philippine government. It shall also refer to the act of entering in the official records of the Administration the names of name hires and workers on leave who will depart for overseas employment.

27.SEC – shall refer to the Securities and Exchange Commission.

28.Secretary – shall refer to the Secretary of Labor and Employment.

29.Service Contractor – shall refer to any person, partnership or corporation duly licensed by the Secretary of Labor and Employment to recruit workers for its accredited projects or contracts overseas.

30.Service Fee – shall refer to the amount charged by a licensee from its foreign principal as payment for actual services rendered in relation to the recruitment and placement of workers.

31.Special Recruitment Authority – shall refer to the authority granted to an agency to conduct recruitment outside its registered business address approved by the Administration.

32.Valid Employment Contract – shall refer to an individual written agreement between the foreign principal/employer and the worker which is based on the master employment contract approved by the Administration.

33.Verification - shall refer to the act performed by a Philippine Overseas Labor Officer, or any other officer designated by the Secretary of Labor and Employment in the Philippine Embassy or Consulate, in reviewing and verifying the recruitment documents of foreign principals, including the employment contracts of Filipino nationals, with the view to establish the existence of the

employing person, company or project, its capability to hire workers at the acceptable rates, and at desirable working conditions in conformity with the minimum standards prescribed by the Administration and taking into consideration the labor laws and legislations of the host government.

34.Worker-on-Leave – shall refer to an overseas worker who is on vacation or on leave and is returning to the same employer.

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PART II

LICENSING AND REGULATION

RULE I

PARTICIPATION OF THE PRIVATE SECTOR IN THE

OVERSEAS EMPLOYMENT PROGRAM

Section 1. Qualifications. Only those who possess the following qualifications may be permitted to engage in the business of recruitment and placement of Filipino workers:

a.Filipino citizens, partnerships or corporations at least seventy five percent (75%) of the authorized capital stock of which is owned and controlled by Filipino citizens;

b.A minimum capitalization of Two Million Pesos (P2,000,000.00) in case of a single proprietorship or partnership and a minimum paid-up capital of Two Million Pesos (P2,000,000.00) in case of a corporation; PROVIDED that those with existing licenses shall, within four years from effectivity hereof, increase their capitalization or paid up capital, as the case may be, to Two Million Pesos (P2,000,000.00) at the rate of Two Hundred Fifty Thousand Pesos (P250,000.00) every year.

c.Those not otherwise disqualified by law or other government regulations to engage in the recruitment and placement of workers for overseas employment.

Section 2. Disqualification. The following are not qualified to engage in the business of recruitment and placement of Filipino workers overseas:

a. Travel agencies and sales agencies of airline companies;

b. Officers or members of the Board of any corporation or members in a partnership engaged in the business of a travel agency;

c.Corporations and partnerships, when any of its officers, members of the board or partners, is also an officer, member of the board or partner of a corporation or partnership engaged in the business of a travel agency;

d.Persons, partnerships or corporations which have derogatory records, such as but not limited to the following:

1)Those certified to have derogatory record or information by the National Bureau of Investigation or by the Anti-Illegal Recruitment Branch of the POEA;

2)Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other related cases exists;

3)Those convicted for illegal recruitment or other related cases and/or crimes involving moral turpitude; and

4)Those agencies whose licenses have been previously revoked or cancelled by the Administration for violation of RA 8042, PD 442 as amended and their implementing rules and regulations as well as these rules and regulations.

All applicants for issuance/renewal of license shall be required to submit clearances from the National Bureau of Investigation and Anti-illegal Recruitment Branch, POEA, including clearances for their respective officers and employees.

e.Any official or employee of the DOLE, POEA, OWWA, DFA and other government agencies directly involved in the implementation of R.A. 8042, otherwise known as Migrant Workers and Overseas Filipino Act of 1995 and/or any of his/her relatives within the fourth civil degree of consanguinity or affinity; and

f.Persons or partners, officers and Directors of corporations whose licenses have been previously cancelled or revoked for violation of recruitment laws.

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RULE II

ISSUANCE OF LICENSE

Section 1. Requirements for Licensing. Every applicant for license to operate a private employment agency shall submit a written application together with the following requirements:

a.A certified copy of the Articles of Incorporation or of Partnership duly registered with the Securities and Exchange Commission (SEC), in the case of corporation or partnership or Certificate of Registration of the firm or business name with the Department of Trade and Industry (DTI), in the case of a single proprietorship;

b.Proof of financial capacity: In the case of a single proprietorship or partnership, verified income tax returns of the proprietors or partners for the past two (2) years and a savings account certificate showing a maintaining balance of not less than P500,000.00, provided that the applicant should submit an authority to examine such bank deposit.

c.In the case of a newly organized corporation, savings account certificate showing a maintaining balance of not less than P500,000.00 with authority to examine the same. For an existing corporation, submission of a verified financial statement, corporate tax returns for the past two

(2)years and savings account certificate showing a maintaining balance of not less than P500,000.00 with the corresponding authority to examine such deposit.

d.Proof of marketing capability

1. A duly executed Special Power of Attorney and/or a duly concluded. Recruitment/ Service Agreement;

2. Manpower request(s) or visa certification from new employer(s)/ principal(s) for not less than one hundred (100) workers; and

3. Certification from Pre-Employment Services Office of POEA on the existence of new market.

e.Clearance of all members of the Board of Directors, partner, or proprietor of the applicant agency from the National Bureau of Investigation (NBI) and other government agencies as may be required; appropriate clearance in case of persons with criminal cases; provided that where the member or partner concerned is a foreigner, clearance from his country of origin shall be required.

f.A verified undertaking stating that the applicant:

1.Shall select only medically and technically qualified recruits;

2.Shall assume full and complete responsibility for all claims and liabilities which may arise in connection with the use of the license;

3.Shall assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection with the implementation of the contract, including but not limited to payment of wages, death and disability compensation and repatriations;

4.Shall guarantee compliance with the existing labor and social legislations of the Philippines and of the country of employment of the recruited workers;

5.Shall assume full and complete responsibility for all acts of its officials, employees and representatives done in connection with recruitment and placement;

6.Shall negotiate for the best terms and conditions of employment;

7.Shall disclose the full terms and conditions of employment to the applicant workers;

8.Shall deploy at least 100 workers to its new markets within one (1) year from the issuance of its license;

9.Shall provide orientation on recruitment procedures, terms and conditions and other relevant information to its workers and provide facilities therefor; and

10.Shall repatriate the deployed workers and his personal belongings when the need arises.

For the purpose of compliance with item (1), the agency may require the worker to undergo trade testing and medical examination only after the worker has been pre-qualified for employment.

g.In case of corporation or partnership, verified undertaking by its officers, directors, partners that they will be jointly and severally liable with the company over claims arising from employer- employee relationship.

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h.Individual income tax return of the proprietor, partners, stockholders/incorporators, as the case may be, for the past two (2) years.

i.Proof of possession by the sole proprietor, partner or chief executive officer, as the case may be, of a bachelor’s degree and three years business experience.

j.List of all officials and personnel involved in the recruitment and placement, together with their appointment, bio-data and two (2) copies of their passport-size pictures as well as their clearances from the National Bureau of Investigation and the Anti-illegal Recruitment Branch of the Administration.

k.Copy of contract of lease or proof of building ownership, indicating the office address, providing for an office space of at least one hundred (100) square meters.

l.Proof of publication of notice of the application with the names of the proprietor, partners, incorporators and officers.

m.Certificate of attendance of owner and/or chief executive officer in a pre-application seminar conducted by the Administration.

Only applications with complete supporting documents shall be processed.

Section 2. Payment of filing fee. Upon receipt of an application with complete requirements, the Administration shall require payment of a non-refundable filing fee of P10,000.00 and submission of proof of payment thereof.

Section 3. Action upon the application. Within fifteen (15) calendar days from receipt of an application with complete requirements including proof of payment of the filing fee of P10,000.00, the Administration shall evaluate the pertinent documents, inspect the offices and equipment and determine whether or not to grant or deny the application. Denial of an application will result in the forfeiture of the filing fee.

Section 4. Payment of Fees and Posting of Bonds. Upon approval of the application, the applicant shall pay a license fee of P50,000.00. It shall submit an Escrow Agreement in the amount of P1,000,000.00, confirmation of escrow deposit with an accredited reputable bank and a surety bond of P100,000.00 from a bonding company acceptable to the Administration and accredited with the Insurance Commission.

Agencies with existing licenses shall, within four years from effectivity hereof, increase their Escrow Deposit to One Million Pesos .

The bonds and escrow shall answer for all valid and legal claims arising from violations of the conditions for the grant and use of the license, and/or accreditation and contracts of employment. The bonds and escrow shall likewise guarantee compliance with the provisions of the Code and its implementing rules and regulations relating to recruitment and placement, the Rules of the Administration and relevant issuances of the Department and all liabilities which the Administration may impose. The surety bonds shall include the condition “that notice to the principal is notice to the surety and that any judgment against the principal in connection with matters falling under POEA’s/NLRC’s jurisdiction shall be binding and conclusive on the surety. The surety bonds shall cover the validity period of the license.

Section 5. Provisional License. Applicants for new license shall be issued a provisional license which shall be valid for a limited period of one (1) year within which the applicant should be able to comply with its undertaking to deploy 100 workers to its new principal. The license of a complying agency shall be upgraded to a full license entitling them to another three years of operation. Non-complying agencies will be notified of the expiration of their license.

Section 6. Validity of the License. Except in case of a provisional license, every license shall be valid for four (4) years from the date of issuance unless sooner cancelled, revoked or suspended for violation of applicable Philippine law, these rules and other pertinent issuances. Such license shall be valid only at the place/s stated therein and when used by the licensed person, partnership or corporation.

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Section 7. Non-Transferability of License. No license shall be transferred, conveyed or assigned to any person, partnership or corporation. It shall not be used directly or indirectly by any person, partnership or corporation other than the one in whose favor it was issued.

In case of death of the sole proprietor and to prevent disruption of operation to the prejudice of the interest of legitimate heirs, the license may be extended upon request of the heirs, to continue only for the purpose of winding up business operations.

Section 8. Change of Ownership/Relationship of Single Proprietorship or Partnership. Transfer or change of ownership of a single proprietorship licensed to engage in overseas employment shall cause the automatic revocation of the license.

A change in the relationship of the partners in a partnership duly licensed to engage in overseas employment which materially interrupts the course of the business or results in the actual dissolution of the partnership shall likewise cause the automatic revocation of the license.

Section 9. Upgrading of Single Proprietorship or Partnerships. License holders which are single proprietorships or partnerships may, subject to the guidelines of the Administration, convert into corporation for purposes of upgrading or raising their capabilities to respond adequately to developments/changes in the international labor market and to enable them to better comply with their responsibilities arising from the recruitment and deployment of workers overseas.

The approval of merger, consolidation or upgrading shall automatically revoke or cancel the licenses of the single proprietorships, partnerships or corporations so merged, consolidated or upgraded.

Section 10. Derogatory Record After Issuance/Renewal of License. The license of a single proprietorship or a partnership shall be suspended until cleared by the Administration should any derogatory record be found to exist against the single proprietorship or any or all of the partners, as the case may be. The appointment of any officer or employee of any licensed agency may be cancelled or revoked at any time with due notice to the agency concerned, whenever said officer or employee is found to have any derogatory record, as herein contemplated.

Section 11. Appointment/Change of Officers and Personnel. Every appointment of agents or representatives of a licensed agency shall be subject to prior approval or authority of the Administration. The acknowledgment or approval may be issued upon submission of or compliance with the following:

a.proposed appointment or special power of attorney;

b.clearances of the proposed representative or agent from National Bureau of Investigation (NBI)/Anti-Illegal Recruitment Branch, POEA; and

c.sworn or verified statement by the designating or appointing person or company assuming full responsibility for all acts of the agent or representative done in connection with the recruitment and placement of workers.

Every change in the composition of the Board of Directors of a corporation, appointment or termination of officers and personnel shall be registered with the Administration within thirty (30) calendar days from the date of such change. The agency shall be required to submit the minutes of proceedings duly certified by SEC in case of election of new members of the Board of Directors with their bio-data, ID pictures and clearances.

The Administration reserves the right to deny the acknowledgment or appointment of officers, employees and representatives who were directly involved in recruitment irregularities.

Section 12. Publication of Change of Directors/Other Officers and Personnel/ Revocation or Amendment of Appointment of Representatives. In addition to the requirement of registration with and submission to the Administration, every change in the membership of the Board of Directors, termination for cause of other officers and personnel, revocation or amendment of appointment of representatives shall be published at least once in a newspaper of general circulation, in order to bind third parties. Proof of such publication shall be submitted to the Administration.

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Section 13. Transfer of Business Address. Any transfer of business address shall be effected only with prior authority or approval of the Administration. The approval shall be issued only upon formal notice of the intention to transfer with the following attachments:

a. In the case of a corporation, a Board Resolution duly registered with the SEC authorizing the transfer of business address; and

b. Copy of the contract of lease or proof of building ownership.

The new office shall be subject to the regular ocular inspection procedures by duly authorized representatives of the Administration.

A notice to the public of the new address shall be published in a newspaper of general circulation.

Section 14. Establishment of additional offices. Additional offices may be established subject to the prior approval of the Administration.

Section 15. Conduct of Recruitment Outside of Registered Office. No licensed agency shall conduct any provincial recruitment, jobs fair or recruitment activities of any form outside of the address stated in the license or approved additional office(s) without first securing prior authority from the Administration.

Section 16. Renewal of License. An agency shall submit an application for the renewal of its license on or before its expiration. Such application shall be supported by the following documents:

a.Surety bond duly renewed or revalidated;

b.Renewed escrow agreement in the amount of P1,000,000.00 with a commercial bank to primarily answer for valid and legal claims of recruited workers as a result of recruitment violations or money claims;

c.Audited financial statements for the past two years with verified corporate or individual tax returns. In case the equity of the agency is below the minimum capitalization requirement, it shall be given thirty (30) days from release of the renewed license to submit proof(s) of capital infusion, such as SEC certification of such infusion or bank certification corresponding to the amount infused and treasurer’s affidavit duly received by the SEC. Otherwise, the license shall be suspended until it has complied with the said requirement;

d.Clearances from the National Bureau of Investigation and the Anti-illegal Recruitment Branch for the Board of Directors and responsible officers; and

e.Other requirements as may be imposed by the Administration.

Section 17. Monitoring Compliance with Conditions of License. The Administration shall monitor the compliance of the agencies with their undertakings in connection with the issuance or renewal of the license. Appropriate sanctions shall be imposed for non-compliance with any of their undertakings.

Section 18. Non-expiration of License. Where the license holder has made timely and sufficient application for renewal, the existing license shall not expire until the application shall have been finally determined by the Administration. For this purpose, an application shall be considered sufficient if the applicant has substantially complied with the requirements for renewal.

Section 19. Action on Renewal of License. Within forty eight (48) hours from receipt of the application for renewal with the complete requirements, the Administration shall undertake evaluation and inspection and determine the grant or denial of the application. Licenses of agencies which fail to meet the requirements set by the Administration shall not be renewed.

Only applications for renewal submitted with complete requirements shall be processed.

Section 20. Late Filing of Renewal. Any agency which failed to file an application for renewal of license may be allowed to renew within thirty (30) days from expiry thereof but shall pay a fine of P10,000.00.

Section 21. Escrow Deposit as Garnished. As soon as an Order or Notice of Garnishment is served upon the Bank, and the same is correspondingly earmarked, the deposit in escrow of an agency shall no longer be considered sufficient. The Administration shall forthwith serve the agency a notice to replenish its escrow deposit.

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Section 22. Replenishment of Surety Bonds/Deposit in Escrow. Within fifteen (15) calendar days from date of receipt of notice from the Administration that the bonds/deposit in escrow, or any part thereof had been garnished, the agency shall replenish the same. Failure to replenish such bonds/deposit in escrow within the said period shall cause the suspension of the license.

Section 23. Release of Deposit in Escrow. A licensed agency which voluntarily surrenders its license shall be entitled to the release of the deposit in escrow, only after posting a surety bond of similar amount valid for four (4) years from expiration of license and submission of the necessary clearances from the National Labor Relations Commission (NLRC) and the Administration.

Section 24. Classification, Ranking and Incentives. The Administration shall undertake the classification and ranking of agencies. In recognition of their exemplary performance, the Administration shall issue guidelines for entitlement of agencies to schemes for incentives and rewards such as extension of validity of license, express processing and in-house documentation

RULE III

INSPECTION OF AGENCIES

Section 1. Inspection for Purposes of Establishment/Transfer of Office. Before issuance of a license, the Administration shall conduct an inspection of the premises and facilities including the pertinent documents of the applicant. Inspection shall likewise be conducted on the new premises in case of transfer of office.

Section 2. Routine/Regular Inspection. All agencies shall be subject to periodic inspection of offices, studios or pre-departure orientation seminar (PDOS) venues by the Administration to determine compliance with existing rules and regulations.

Section 3. Spot Inspection. Inspection may be conducted by the Administration upon receipt of a complaint or report of violation of existing rules and regulation.

Section 4. Authority to Inspect. An authority to inspect shall be issued by the Administration before any inspection may be conducted.

Such authority, stating the purpose and subject of inspection, shall be presented to the agency before inspection.

Section 5. Scope of Inspection. Depending on the purpose of inspection, the Administrator or his duly authorized representative may inspect the premises and require the presentation of necessary documents, records and books of accounts of the agency and examine the same.

Section 6. Inspection Program and Procedures. The Administration shall conduct inspection in accordance with the Inspection Program and Procedures of the POEA.

Section 7. Violations Found in the Course of Inspection. Violations found in the course of inspection such as non-compliance with the existing laws, rules and regulations, shall be grounds for the imposition of appropriate sanction or for the denial of application for issuance or renewal of license. A copy of the results of inspection shall be endorsed to the appropriate unit for the conduct of necessary proceedings.

RULE IV

LICENSING OF POCB - REGISTERED

COMPANIES

Section 1. Issuance of License. POCB-registered companies with overseas projects duly accredited by the POCB may apply for a license subject to the following requirements:

a.Articles of incorporation

b.A certified true copy of its POCB certificate of registration; and c.Proof of payment of non-refundable filing fee of P10,000.00.

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However, application for a license by POCB-registered companies without POCB-accredited overseas projects shall be subject to the usual requirements for issuance/renewal of license as prescribed in Rule II, Part 2 of these Rules.

Section 2. Payment of Fees. Upon approval of the application, the contractor company shall:

a.Pay a license fee of P50,000.00; and

b.Post a surety bond in the amount of P50,000.00 and escrow deposit of P200,000.00.

Section 3. Validity of License. The license shall be valid for four (4) years from date of issuance and co-terminus with the validity of the POCB registration, unless sooner cancelled, revoked by the Secretary of Labor and Employment, or suspended by the Administration for violation of the Labor Code and its rules relevant decrees, orders and issuances and rules and regulations of the Department of Labor and Employment. Such license shall be valid only at the place stated therein and when used by the licensee or authorized POCB registered company.

Section 4. Requisites for Renewal. Upon expiration of the license, the POCB registered company shall submit a written application together with the following requirements:

a.Certified copy of POCB Certificate of Renewal of Registration;

b.Proof of renewed surety bond of P50,000.00; and

c.Certificate from the bank that the escrow deposit of P200,000.00 is still intact.

RULE V

FEES, COSTS AND CONTRIBUTIONS

Section 1. Service Fee. Agencies shall charge from their principals a service fee to cover services rendered in the recruitment, documentation and placement of workers. The Administration shall provide incentives to agencies and employers who are able to comply with this rule.

Section 2. Fees and Costs Chargeable to Principals. Unless otherwise provided, the principal shall be responsible for the payment of the following:

a.visa fee;

b.airfare

c.POEA processing fee; and

d.OWWA membership fee

Section 3. Fees/Costs Chargeable to the Workers. Except where the prevailing system in the country where the worker is to be deployed, either by law, policy or practice, do not allow the charging or collection of placement and recruitment fee, a landbased agency may charge and collect from its hired workers a placement fee in an amount equivalent to one month salary, exclusive of documentation costs.

Documentation costs to be paid by the worker shall include, but not limited to, expenses for the following:

a.Passport

b.NBI/Police/Barangay Clearance

c.Authentication

d.Birth Certificate

e.Medicare

f.Trade Test, if necessary

g.Inoculation, when required by host country

h.Medical Examination fees

In the event that the recruitment agency agrees to perform documentation services, the worker shall pay only the actual cost of the document which shall be covered by official receipts.

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