Title
POEA Penalties for Employment Agency Offenses
Law
Poea Memorandum Circular No. 9 S. 1985
Decision Date
Apr 13, 1985
The POEA establishes a comprehensive schedule of penalties for licensed employment and manning agencies, imposing fines and license suspensions for various offenses against workers, including unauthorized fees, false documentation, and failure to deploy workers.
penalties
employment agencies
manning agencies

Purpose and policy of penalties

  • The circular requires the POEA to impose standardized penalties for specified employment agency/manning agency and contracting company offenses.
  • The penalty schedule covers violations categorized as offenses against workers, offenses related to securing or using a license, offenses against POEA operational procedures, and other offenses.
  • The penalty system includes license suspension, license cancellation, monetary fines, and restitution/refunds.
  • The circular provides rules on cumulative counting and escalation to cancellation in specified circumstances.

Scope: covered entities and contexts

  • The penalty schedule applies to licensed employment agencies, shipping/manning agencies, and contracting companies.
  • The offenses are framed in the context of recruitment, deployment, and overseas employment of workers.
  • The penalty categories include acts occurring in connection with:
    • collection of fees/bonds for overseas employment,
    • use of false documents or deceit,
    • handling of workers’ salaries/remittances,
    • handling of travel and employment documents,
    • deployment refusal without valid reasons,
    • influence to prevent employment,
    • acts related to licensing and license use,
    • acts related to POEA operational procedures,
    • recruitment for jobs harmful to health, morality, dignity, and
    • similar violations handled under the POEA’s regulatory and adjudicatory powers.

Definitions and offense counting rules

  • The circular treats a violation under Offenses Against Workers items #1, #2, and #3 as constituting one count of violation for each complainant/worker.
  • The circular requires that the penalties under items #1, #2, and #3 be imposed cumulatively where applicable for each complainant/worker count.
  • If the suspension period exceeds 24 months, the penalty of cancellation shall instead be imposed.
  • The circular provides that in cases where two or more violations or offenses are established, the penalties carried by the offenses shall be imposed cumulatively.
  • The circular sets a specialized escalation rule for repeat offenses after an order or decision imposing one of the listed penalties (handled under Other Offenses).

Offenses against workers: penalties

  • (A.1) Unauthorized collection/charging/receiving fees or bonds
    • The circular penalizes collecting, charging, imposing, or receiving any amount—fees, bonds, or other charges—not authorized by the Administration, or charges greater than authorized fees from workers, or requiring workers to render services in consideration of overseas employment.
    • The penalty is suspension of license for one (1) month and until settlement of the claims or a fine equal to the amount collected or received but not less than PHP 10,000.00, together with restitution of the amount collected or received (in both instances).
  • (A.2) False documents, false representation, deceit, or illegal machination
    • The circular penalizes recruitment or deployment of workers under false documents or through false representation, or by using deceit or other illegal machination.
    • Examples of punishable falsities include using fake WTEP, passports, airline tickets, accreditation, job orders, causing publication of false advertisement, making false statements as to job availability, substitution or altering of employment contracts duly approved by POEA, deploying workers to principals/projects/vessels other than those for which they were processed, and other falsities and deceitful acts.
    • The penalty is suspension of license for two (2) months or fine of PHP 10,000.00.
  • (A.3) Withholding salaries or remittances
    • The circular penalizes withholding workers’ salaries or remittances without justifiable reason.
    • The penalty is suspension of license for two (2) months or fine equal to the salary withheld but not less than PHP 10,000.00, together with restitution of the amount withheld (in both instances).
    • The circular requires that a violation against every complainant or worker under A.1, A.2, and A.3 constitutes one count and imposes penalties cumulatively, with escalation to cancellation when the suspension exceeds 24 months.
  • (A.4) Withholding travel and employment documents
    • The circular penalizes withholding travel and employment documents of workers for reasons not authorized by the Labor Code.
    • The penalty is suspension of license until return of document.
  • (A.5) Refusal or failure to deploy without valid reasons
    • The circular penalizes refusal or failure to deploy workers without valid reasons within the prescribed period.
    • The penalty is suspension of license for two (2) months and until either:
      • (a) deployment of the worker, or
      • (b) return of the worker’s documents and refund of the worker’s expenses for documentation and placement fee, or
      • fine equal to the amount collected from the worker but not less than PHP 10,000.00, together with refund of documentation and placement fee expenses.
  • (A.6) Influencing to prevent employment
    • The circular penalizes influencing or attempting to influence any person or entity to prevent the employment of any worker.
    • The penalty is suspension of license for six (6) months or fine of PHP 50,000.00.

Offenses relating to license: penalties

  • (B.1) Misrepresentation in securing a license
    • The circular penalizes acts of misrepresentation or giving false notice, information, statements, or documents in connection with securing a license or authority without which no license or authority could have been issued.
    • The penalty is cancellation of the license.
  • (B.2) Allowing others to use a license
    • The circular penalizes allowing other persons or entities to use the license or authority issued by the Minister.
    • The penalty is suspension of license for six (6) months or fine of PHP 50,000.00.
  • (B.3) Operating outside authorized office / without prior approval
    • The circular penalizes appointing or designating agents or representatives or operating outside an authorized office without prior approval of the POEA.
    • The penalty is suspension of license for six (6) months or fine of PHP 50,000.00.
  • (B.4) Failure to post/replenish cash bond or renew surety bond
    • The circular penalizes failure to post or replenish cash bond or to renew surety bond.
    • The penalty is suspension of license until compliance.
  • (B.5) Other misrepresentation connected to licensing or renewal
    • The circular imposes suspension of license for two (2) months or fine of PHP 10,000.00 for other acts of misrepresentation connected with securing a license, authority, or renewal thereof.

Offenses against POEA operational procedures

  • (C.1) Obstructing inspection
    • The circular penalizes obstructing or attempting to obstruct inspection by the Minister or the Minister’s duly authorized representative.
    • The penalty is suspension of license for two (2) months or fine of PHP 10,000.00.
  • (C.2) Recruiting/deploying in violation of accreditation and processing
    • The circular penalizes recruiting or deploying workers in violation of POEA accreditation and processing procedures.
    • The penalty is suspension of license for two (2) months or fine of PHP 10,000.00.
  • (C.3) Failure to file required reports
    • The circular penalizes failure to file reports as required or as may be required by the POEA.
    • The penalty is suspension of documentary processing until compliance.
  • (C.4) Failure to conduct PDOS
    • The circular penalizes failure to conduct PDOS for workers sent overseas.
    • The penalty is suspension of license for two (2) months or fine of PHP 10,000.00.
  • (C.5) Disregard of lawful orders, summons, or notices
    • The circular penalizes disregard of lawful orders, summons, or notices.
    • The penalty is suspension of documentary processing until compliance.

Other offenses and escalation rules

  • (D.1) Recruitment/placement for jobs harmful to health, morality, or dignity
    • The circular penalizes engaging in recruitment and placement of workers to jobs harmful to health, morality, dignity of the Republic of the Philippines.
    • The penalty is suspension of license for six (6) months or fine of PHP 50,000.00.
  • Escalation: cancellation plus confiscation
    • Offenses or violations of the same foregoing nature committed after issuance of an order or decision carrying any of the foregoing penalties are penalized with cancellation of the license plus confiscation of the cash and surety bond.
  • Cumulative penalties across multiple violations
    • When two or more violations or offenses are established, the circular requires that the penalties for each offense be imposed cumulatively.
  • Penalties for offenses not listed
    • Offenses or violations of a similar nature are penalized according to the specific regulations or policy issuances that penalize them or other rules the POEA may subsequently issue.
  • Adjudicatory function
    • Offenses or violations taken cognizance of by the POEA in its adjudicatory function are penalized in accordance with the Labor Code or the rules the POEA may promulgate.

Repeal/modification and application of penalties

  • The circular repeals or modifies accordingly all issuances of the Administration on penalties that are inconsistent or contrary to the circular’s penalty provisions.
  • The circular applies the listed penalty scheme to the enumerated offenses committed by the covered licensed recruitment/placement and related entities.

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