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Microsoft Word crm-ptmt el Salvador 2009[final]. doc

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Regional Conference on Migration

 

 

59

workers. While such efforts have yet to be reflected as a policy through amendment of laws, 

clarification has been provided as to how the issue of licensing systems can proceed: Congress 

clarified that deregulation only means streamlining of processes to remove bureaucratic red-tape and 

reduce the cost of transactions.  

The current licensing policy restricts the entry of new interested parties in recruitment by 

making them compliant with more stringent conditions, compared to existing licensing holders. Once 

they get the license, however, government makes it easy for them to operate by streamlining the 

processes of recruitment and deployment. Should violations of recruitment rules occur, the 

government makes no distinction in canceling or suspending the licenses of recruiters – be these new 

or long standing. 

Among the stiff conditions for licensing are high capitalization requirement of 2 million, escrow 

deposit of 1 million pesos with a commercial bank, surety bond of 100,000 pesos and deployment of 100 

workers during the first year to a “virgin market” or an employer who has never been registered to 

another agency. The escrow deposit and surety bond are financial guarantees to ensure compliance by 

the agency and its principal employers with contractual obligations and to answer for fines or restitution 

of placement fees illegally collected from the workers. Under the joint and solidary liability principle 

between the foreign employer and the Philippine agent, both are liable for claims and awards in favor of 

the workers and the escrow and bond can be levied to answer for the claims.  

As part of its regulatory functions, the government continues to control the collection of 

placement fees from the workers. As a general rule, licensed landbased agencies can collect a 

placement fee from the workers in the maximum amount of one month salary except in countries 

where the host government prohibits the charging of such fee. For Taiwan, on-site service fees are 

allowed to be collected from the workers. The government also allows the collection of documentation 

fee from workers to pay for medical examination, passport, police clearances, trade test and 

authentication of documents. Employers are required to pay the cost of airfare and visa fees.  

The regulations provide a table of offenses and penalty that defines the offenses and 

violations and provides the corresponding penalties, the maximum punishment is cancellation of 

license plus payment of fines to the government and refund to the workers of excess fees. With stricter 

penalties imposed on violations of recruitment agencies, especially on overcharging of placement fees, 

the cancellation of licenses increased sharply. The Philippine Overseas Employment Administration 

(POEA) also has a conciliation mechanism to resolve complaints on recruitment malpractices. 

The penalty system is balanced with a reward and incentive system for agencies with good 

track record of performance. Incentives include the grant of in-house processing facility for workers 

who are customers to these agencies, and the exemption from verification of contracts for selected 

workers, among others. 

Pre-Deployment Services 

Prior to deployment, particularly at the recruitment and pre-departure stage, Philippines has a 

set of clear provisions on the rules and regulations regarding the licensing and regulation of 

recruitment agencies for land-based workers and of manning agencies. 

Measures against illegal recruitment and human trafficking through the Anti-Illegal 

Recruitment (AIR) Campaign have been instituted and continuously strengthened. The AIR is 

composed of a nationwide media campaign about the realities of migration, information on the 

dangers of illegal recruitment and several remedial programs that are designed to help victims of 

illegal recruitment. Preventive action against illegal recruitment is done in cooperation with law 

enforcement agencies such as the Philippine National Police (PNP) and the Department of Justice 

(DOJ), particularly in the prosecution of illegal recruiters as well as in the cancellation of licenses of 

violating recruiters.  

Applicants for overseas employment are required to submit authenticated certificates from 

any of the network of trade testing centers that serve as proof of their competency and acquired work 



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