Agency loses license for charging placement fee

Posted at 10/25/2012 5:07 PM | Updated as of 10/25/2012 5:07 PM

MANILA, Philippines - The license of a recruitment agency was revoked after it was found violating the government's placement fee policy, the Philippine Overseas Employment Administration (POEA) said.

POEA Administrator Hans Leo Cacdac ordered the cancellation of license of Morthy International Recruitment Services for collecting placement fee from a Filipino household service worker it deployed to Hong Kong in 2008.

The complainant said the agency charged her P20,000, which was supposedly for visa fee. Cacdac said it was actually a placement fee because the employer pays for the worker's visa.

The agency also required the worker to borrow P60,000 as additional placement fee from a lending company. However, the complainant said the money was transmitted directly to the recruitment agency.

Aside from the penalty of cancellation of license, Cacdac said the officers and directors of Morthy International at the time of the omission of the offense are disqualified from engaging in the business of recruitment and placement of Filipino workers overseas.

He also ordered the agency and its insurer, Country Bankers Insurance Corporation, to pay the complainant P80,000, the amount unlawfully collected from her.