QuestionsQuestions (POEA ADVISORY NO. 19)
The advisory cites Section 2-C, Rule I, Part VI of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Workers, plus POEA Memorandum Circular No. 10, s. 2009, as the basis for prohibiting licensed recruitment agencies from charging placement/recruitment fees for workers bound for the USA (including Guam) under the H2B program.
Filipino workers recruited under the H2B program for employment in the United States, including Guam, are covered. Any recruitment/deployment under this H2B category falls within the advisory’s prohibition.
The advisory prohibits licensed recruitment agencies; it also references the U.S. rule that it is illegal for an employer, agent, facilitator, recruiter, or similar employment service provider to charge/collect placement fee from H2B workers.
While the advisory specifically states licensed recruitment agencies are strictly prohibited from charging placement and recruitment fees, it also recognizes that under U.S. rules the charging is illegal for any employer/agent/facilitator/recruiter or similar employment service provider—thereby indicating broader coverage of parties involved.
The advisory prohibits any charging/collection of placement and recruitment fees. In practical POEA compliance context, these typically include amounts paid by the worker for recruitment/processing/placement services, whether labeled as placement fees, recruitment fees, or similar charges—so long as they are in the nature of payment for recruitment/placement.
On 18 January 2009, DHS implemented regulatory changes to the H2B visa classification. The cost of recruitment for these workers must be borne by employers, and charging/collecting placement fees from workers under the H2B category became illegal.
The recruitment cost must be borne by employers, and charging/collection of placement fees by any employment service provider from H2B workers is illegal.
A violation is a serious administrative offense with the penalty of cancellation of license under Section 1-A (5) of Rule IV, Part VI of the POEA Rules.
It means POEA will treat the act as a grave breach of regulatory compliance, triggering a stringent administrative sanction—specifically, cancellation of the recruitment agency’s license under the cited POEA rules.
It identifies the specific POEA penalty provision applicable to serious administrative offenses, establishing that the proper consequence for charging placement fees (contrary to the policy) is license cancellation.
Agencies must ensure they do not charge or collect any placement or recruitment fees from the worker for H2B deployment to the USA/Guam, and must align their recruitment costs to be borne by the employer consistent with the policy and the referenced U.S. rule.
Most likely yes, if the “processing fee” is effectively a placement or recruitment fee connected to recruitment/placement services. The policy’s substance controls—charging amounts from workers for recruitment/placement in this category is what is prohibited.
It faces serious administrative action, including cancellation of its recruitment license under the applicable POEA penalty provision cited in the advisory.
Because the H2B visa regulatory rules and the recruitment cost/placement fee restrictions apply to the U.S. context that includes Guam; thus the POEA policy extends the no-fee requirement to deployments to Guam as well.