News Release
www.poea.gov.ph
23 October 2012

The Philippine Overseas Employment Administration cancelled the license of another recruitment agency that was found violating the government’s placement fee policy. Administrator Hans Leo J. Cacdac ordered the cancellation of the license of Morthy International Recruitment Services for collecting placement fee from a Filipino household service worker it deployed to Hong Kong in 2008, which is prohibited under POEA rules and regulations.

The complainant alleged that Morthy International charged her an amount of Php20,000 supposedly for visa fee, but in essence a placement fee because the foreign principal or employer pays for the worker’s visa.

The worker also said Morthy International required her to borrow PhP60,000 as additional placement fee from a lending company, which she actually did not receive but transmitted directly to the recruitment agency.

In his Order, Cacdac noted that the complainant paid a placement fee of Php80,000 to respondent Morthy which is totally prohibited by Governing Board Resolution No. 6, Series of 2006 considering that the agency deployed her as a household helper. Cacdac said that aside from the penalty of cancellation of license, the officers and directors of Morthy International at the time of the omission of the offense are disqualified to engage in the business of recruitment and placement of Filipino workers overseas.

He also ordered Morthy International and its insurer Country Bankers Insurance Corporation to pay the complainant Php80,000, the amount unlawfully collected from her.

Cacdac had previously warned recruitment agencies that they shall be held accountable for recruitment violations, incidents of abuse, exploitation, or breach of contract committed against our household service workers. ###