Placement Fee Ban for New Zealand Deployment

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POEA Memorandum Circular No. 09: Placement Fee Ban for New Zealand Deployment

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Title Supreme Court: Placement Fee Ban for New Zealand Deployment

Law: Poea Memorandum Circular No. 09

Decision Date: Dec 12, 2014

Recruitment agencies are prohibited from charging placement fees to workers deployed to New Zealand, aligning with the country's Wages Protection Act, which ensures no premiums are sought for employment.

recruitment agency

overseas workers

A

Prohibition Under New Zealand Law

According to New Zealand's Wages Protection Act 1983, no employer shall charge or receive any premium or fee for employment
Applies whether the premium is from the employee or a third party

Remedies for Illegal Fees

Any amount received in violation can be recovered by the worker as a debt
Recovery can be pursued through the Employment Relations Authority or by a designated Labour Inspector

Effect on Philippine Recruitment Agencies

Recruitment and placement fees are prohibited to be charged or collected from Filipino workers deployed to New Zealand
Agencies must comply strictly with this prohibition

Implementation and Enforcement

The policy is effective immediately as per POEA Memorandum Circular No. 09, s. 2014
Emphasizes the responsibility of recruitment agencies to adhere to New Zealand’s wage protection laws

Key Legal Concepts

Placement fee: Amount typically charged by recruitment agencies, usually equivalent to one month salary
Premium in employment: Any fee or amount charged by employers to secure employment, prohibited under New Zealand law
Recovery of fees: Legal means available to workers to reclaim improperly charged fees
Compliance: Mandatory adherence by recruitment agencies based on both Philippine and New Zealand laws

END