POEA and US Embassy: No Recruitment Fee Policy For Guam-bound OFWs

The Philippine Overseas Employment Administration (POEA) releases an advisory in its official website to inform the public that the United States of America (USA) is implementing a no-placement fee policy for workers under the H2B visa category. This is the type of visa given to short-term or seasonal workers in non-agricultural positions such as construction, cleaning, hotel, restaurant and landscape. Foreign workers who enter the USA under this category can stay up to 10 months.

The Philippine Embassy in Guam alerted the POEA because of several reports that Philippine recruitment agencies continue to collect fees from applicants for the said visa category.   Prior to the advisory, the US State Department disclosed that they are processing applications of possible Filipino workers for the Guam construction projects that said they have paid placement fees to the Philippine recruitment agencies.   According to Bayani S. Mercado, Philippine Consul General, he had a meeting with Clay Allen, acting manager of US State Department’s Fraud Prevention and they discussed joint measures to make the public aware that US has a “no recruitment fee" policy for the H2B visa.

In the said meeting, Clay Allen, reinstated that his office is receiving applications for job openings in Guam and the Filipino applicants admit that the recruitment agencies have collected placement fees from them.   The American official also pointed out that the recruitment agency found to be guilty of violating the no-placement fee policy of the H2B visa, the Topline Manpower Services is still operating as a licensed agency even after the US Embassy in Manila sends a notice to the POEA.   Allen also said that he is willing to meet with the Philippine media and other government officials to launch an information campaign on the US policy. He also said that applications of H2B workers are now being closely monitored by his office.   In connection with this, the POEA issued a warning to all licensed recruitment agencies that it is illegal to charge placement fees to applicants falling under the H2B category.

In a separate POEA advisory, it said “The policy, contained in POEA Memorandum Circular No. 10 Series of 2009 issued in September last year, is in line with US Government regulations which forbids the charging of recruitment or placement fees from a worker as a condition for employment under an H-2B visa."   The advisory also said that the POEA has adopted a policy that prohibits agencies from collecting recruitment fees to applicants bound to countries that do not allow it and the policy has been in effect since 2001.   Aside from USA, other countries that has a no-placement fee policy are Ireland, United Kingdom, , Israel, some provinces of Canada like Alberta, Manitoba, British Columbia, and Saskatchewan, and the Netherlands.

The POEA Chief, Jennifer Manalili said, “Administrative charges carrying a penalty of cancellation of license shall immediately be filed against recruitment agencies found violating the no-placement fee policy in these countries."   Manalili also encouraged applicants to check out the website of POEA or call their hotline numbers 722-1144/7221155 or text 2917 to be updated on the latest developments on the Guam labor market.