Fair Placement Fees for Overseas Filipino Workers (OFWS) Act

Other of tee w TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AUG -5 P2:06 First Regular Session RECEIVED BY: SENATE S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PENALIZING CERTAIN ACTS IN THE IMPOSITION OF EXCESSIVE PLACEMENT FEES AGAINST OVERSEAS FILIPINO WORKERS EXPLANATORY NOTE The number of overseas Filipino workers (OFWs) who worked abroad was estimated at 2.16 million' in 2023. Their contributions to their families and keep the economy afloat are undeniable. In 2024, OFWs remittances totaled $38.34 billion, a 3% increase from the previous year, and represented 8.3% of the country gross domestic product. While many Filipinos decide to go abroad to seek for greener pastures, they face challenges when it comes to pre-employment expenses, including exorbitant and arbitrary placement fees. This bill proposes a fixed placement fee and prohibits collecting or "advancing" the placement fees before any job availability abroad. Also, appropriate official receipts shall be issued to the OFW concerned and it mandates the refund if a job does not materialize. 1 https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos

Moreover, it shall be prohibited to force an OFW to issue post-dated checks to guarantee the payment of the placement fee and it shall be unlawful to force an OFW to borrow money only from designated persons or lending institutions which the agency may have connections with. This measure is part of ongoing effort to protect the welfare of OFWs and ensure fair labor practices before they get deployed aboard. In view of the foregoing, the approval of this measure is earnestly sought. JINGGQY EJERCITO ESTRADA

potts of sin TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -5 P2:06 SENATE RECEIVED БY S. No. 896 Introduced by Senator Jinggoy Ejercito Estrada AN ACT PENALIZING CERTAIN ACTS IN THE IMPOSITION OF EXCESSIVE PLACEMENT FEES AGAINST OVERSEAS FILIPINO WORKERS Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the " Fair Placement Fees for

•Overseas Filipino Workers (OFWs) Act.

Sec. 2. Statement of Policy. - It is hereby declared the policy of the State of

prioritize the dignity and human rights of OFWs, ensure their safety and welfare, and promote full employment. Towards this end, OFWs are protected from exploitation by regulating placement fees charged by recruitment agencies. This policy ensures that placement fees do not exceed a certain limit, prohibits premature collection of fees, and requires agencies to disclose fees to OFWs. The law also penalizes agencies that engage in illicit practices, such as deceptive methods to force OFWs to pay fees.

Sec. 3. Definition of Term. - For purposes of this Act, placement fee shall refer

to the amount charged by a Private Recruitment and Placement Agency (PRPA) or any person from a recruit as payment for placement services which shall not exceed the equivalent of one (1) month salary of the job for which an OFW has been recruited.

Sec. 4. Prohibited Acts. - The following acts committed by any person involving

and relating to the imposition of placement fees against OFWs, are hereby prohibited: a) Collecting placement fee above the legitimate placement fee fixed and determined by the Philippine Overseas Employment Agency (POEA) without prejudice to Section 5 hereof;

b) Collecting placement fee in advance of the job's availability overseas; c) Not issuing the appropriate receipts for any placement fee collected; d) Not returning any placement fee collected when deployment does not materialize; e) Forcing an OFW to issue post-dated checks to guarantee payment of any placement fee; and f) Forcing an OFW to borrow money only from designated persons or lending institutions.

Sec. 5. Penalties. - Commission of any of the following acts in the immediately

preceding Section shall be punished by six (6) years imprisonment or a fine of One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00), or both, at the discretion of the court. The penalties herein provided shall be treated as separate and distinct from any liability arising from the same punishable acts in Section 4 hereof. If any of the acts in Section 4 is committed by a corporation, its officers and directors shall be made liable in the same manner as the employee or person related in any capacity to the corporation who actually committed the same. Moreover, if any of the acts is committed by a licensed recruitment agency, its agent or representative, such agency's license shall be automatically revoked with finality and no longer eligible for reinstatement.

Sec. 6. Implementing Rules and Regulations. - The POEA is hereby mandated

to promulgate the schedule of placement fees abroad together with the implementing rules and regulations within thirty (30) days from the effectivity of this Act.

Sec. 7. Separability Clause. - If any provision or part hereof is held invalid or

unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid and subsisting.

Sec. 8. Repealing Clause. - All laws, presidential decrees, executive orders,

proclamations and/or administrative regulations which are inconsistent with the provisions of this Act are hereby amended, modified, superseded or repealed accordingly.

Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days from its

publication in the Official Gazette or at least three (3) newspapers of general circulation. Approved,