No placement fee countries mean that this list of countries prohibits the collection of placement fees for their incoming Foreign Workers.
OFWs can consider these countries when applying for jobs bound for overseas so they do not have to worry about where to get the budget for the placement fees.
On the other hand, those OFWs bound to these countries, who were charged by their employers or recruitment agencies with such fees should report the matter to the Philippine Embassy assigned to these countries.
Here is what we know so far about the list of countries that has no placement fees for Overseas Foreign Workers.
1. New Zealand
New Zealand has the Wage Protection Act of 1983 which states that the country prohibits the collection of placement fees or premium fees to any person in exchange for employment or for retaining employment in their country.
Meanwhile, The Embassy of the Republic of the Philippines in Wellington New Zealand released an Advisory number JSD-2018-19 on November 23, 2018, reiterating that New Zealand still prohibits the collection of placement fees.
The Embassy released the advisory due to reports that numerous OFWs are charged with placement fees. It is done either by their licensed manpower agencies or employers in exchange for employment in New Zealand. Furthermore, the Embassy advises Filipinos to report such occurrences to them.
Canada is another no placement fee country for OFWs. The Philippine Overseas Labor Office (POLO) Toronto branch (www.facebook.com/MWOToronto) released a public advisory on October 12, 2022, through its official Facebook page (https://www.facebook.com/photo?fbid=474392901381509&set=a.243118351175633).
The advisory is a reminder to aspiring Overseas Filipino Workers that Canada is a “no placement fee country.” The labor office also explained that Canadian employers are the ones who will shoulder the expenses incurred during the recruitment process of foreign workers bound to Canada.
3. The United States of America under the H-2B Visa Category
Foreign workers deployed to the USA under the H-2B visa will NOT be charged a placement fee. On September 1, 2009, POEA (now DMW) released a Memorandum Circular No. 10 Series of 2009. It states that the No Placement Fee policy will be implemented for foreign workers who will be deployed in the USA under the H-2B visa.
4. United Kingdom
The United Kingdom is another country stated by POEA as a no placement fee country. According to nidirect.gov.uk, recruitment agencies are prohibited from charging placement fees (except in the entertainment industry) in exchange for finding or trying to find a job for foreign workers.
However, the website states that the agency may charge the job applicant for other offered services such as training, and transport. That is if the applicant availed them. Nonetheless, when applicants availed of such services. The recruitment agency has to provide the applicant with the complete details of the services. The agency also has to inform applicants that they can cancel it as long as they notify the agency.
According to POEA/DMW, Ireland is another country that prohibits the collection of placement fees for Overseas Foreign Workers.
According to www.recruiters.ie, recruitment agencies in Ireland work closely with their clients (employers) to find suitable job applicants for them. As a result, the employers are the one that pays the recruitment agency a “finder’s fee” for every successful applicant the agency refers to them. The finder’s fee is usually equivalent to a certain percentage of the successful applicant’s salary.
6. The Netherlands
The Netherlands is on the list of no placement fee countries. This is based on the POEA News Release for August 2010, and also in the News Advisory for December 2014. It is Irish employers who will shoulder the cost of both the recruitment services and the placement fee.
According to the www.ilo.org document titled “A global comparative study on defining recruitment fee and related costs” page 50. It states that The Netherlands is one of the European Union (EU) countries that prohibits Private Employment Agencies (PEAs) from charging placement fees to workers.
Are there Recruitment Agencies that do not collect placement fees in the Philippines?
Yes, there are many. The recruitment agency states on its Facebook page, FB posts, and on its website that they do not collect such fees. You should verify it with them by sending them a message or giving them a call.
*I hope this helps