Legal basis and governing rules
- The advisory is issued pursuant to Section 2-C, Rule I, Part VI of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Workers.
- The advisory also cites POEA Memorandum Circular No. 10 (s. 2009) as part of the controlling framework.
- The advisory operationalizes the H2B recruitment fee rule through the POEA’s enforcement mechanism under Section 1-A (5), Rule IV, Part VI of the 2002 POEA Rules and Regulations.
Prohibition: no placement fees charged
- Licensed recruitment agencies are strictly prohibited from charging any placement and recruitment fees to Filipino workers bound for the United States, including Guam under the H2B program.
- The prohibition covers any placement and recruitment fees charged to workers for these destinations.
- The advisory treats the “no placement fee policy” as an enforcement mandate for recruitment activities under the H2B visa category.
H2B regulatory requirement on recruitment costs
- The United States Department of Homeland Security implemented regulatory changes on 18 January 2009 to the H2B visa classification used for foreign workers seeking employment in the United States and Guam.
- Under the new H2B rules, the cost of recruitment of these workers must be borne by employers.
- Under the new H2B rules, the charging or collection of a placement fee by an employer, agent, facilitator, recruiter, or similar employment service provider from H2B workers is illegal.
Administrative offense and penalty
- A violation of the no placement fee policy is a serious administrative offense.
- The penalty for such violation is cancellation of license under Section 1-A (5), Rule IV, Part VI of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Workers.
Implementation purpose and effect
- The advisory is issued for the information and guidance of all concerned.
- The advisory directs strict compliance by licensed recruitment agencies involved in recruiting Filipino workers under the H2B program for the United States, including Guam.
- The advisory establishes fee charging as the prohibited conduct and license cancellation as the consequence for violation.