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POEA cancels license of overcharging recruitment agency

POEA cancels license of overcharging recruitment agency
News Release from poea.gov.ph
2 May 2013

The Philippine Overseas Employment Administration recently cancelled the license of Lifeline International Philippines, Inc. for collecting excessive placement fee from an applicant for a job in Taiwan.

Administrator Hans Leo J. Cacdac said the applicant complained that Lifeline International asked him to pay PhP120,000 as placement fee. He was able to pay PhP50,000 but was not issued a receipt.

Cacdac said the amount required by the agency or the money actually paid by the applicant was way bigger than the prevailing wage of PhP27,000.00 in Taiwan. POEA rules limit the payment of placement fee to an amount equivalent to one month salary of the worker.

The applicant alleged that he was able to sign a contract but was not actually deployed to Taiwan, hence the filing of the complaint.

Cacdac said that for violating the rule on payment of placement fee (Section 2 (b) Rule I, Part VI of the POEA Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Workers), the agency was meted the penalty of cancellation of license. The officers of the agency at the time of the commission of the offense were also disqualified from participating in the business of recruitment of Filipino overseas workers.

The POEA also found Lifeline International liable for pre-mature collection of fees and was meted the penalty of suspension of license for four months or payment of PhP200,000 fine.

For not issuing a receipt, the recruitment agency was meted another penalty of 4-month suspension of license or fine of PhP200,000.

Cacdac also ordered the respondent agency and Country Bankers Insurance Corporation to refund to the complainant the amount of PhP50,000 which was paid as placement fee. /END