Workers Exempted from Paying PLACEMENT FEES:
- Sea-based recruitment (seafarers)
- Household Service Workers (caretaker, caregiver, DOMESTIC HELPERS)
Fees that Agencies/Employers should pay:
- Working Visa
- Air Ticket
- OWWA Membership Fee
- POEA PROCESSING FEES
About placement fees
Why do you need to pay placement fees?
It puts responsibility in the agency to coordinate with the counterpart which jobs are located. This is used to make agencies more accountable since WORKING ABROAD can be risky.
How much is the placement fee?
Equivalent to ONE MONTH SALARY (in some countries, like Taiwan, they charge more)
(Countries like New Zealand, doesn’t have placement fees). Placement fees should be paid in INSTALLMENTS. Some deploying countries such as USA (for those under H2B visa), United Kingdom (UK), Netherlands, Ireland and some parts of Canada (British Columbia, Alberta, Manitoba, Saskatchewan) prohibit collection of placement fees. Domestic helpers BOUND TO HONG KONG should not pay a single centavo.
When should it be paid?
It can be paid when the employee already SIGNED AN EMPLOYMENT CONTRACT. They can negotiate with the agency when they will pay the other half. Recruitment agencies SHOULD NOT collect placement fees BEFORE AN EMPLOYMENT CONTRACT is signed. The other half can be paid if the worker is already abroad.