Scope and Parties Concerned
- The memorandum circular applies to all licensed recruitment agencies operating within the Philippines.
- It includes the foreign employers (foreign principals) who engage the services of these agencies to employ OFWs.
Protection of Workers’ Rights
- The rule aims to protect OFWs from reduced salaries and diminished benefits caused by substitution of contracts.
- Ensures that the employment contract agreed upon initially is honored throughout the duration of its validity.
Penalties for Violation
- First Offense: Suspension of the recruitment agency’s license for a period ranging from two months to six months.
- Second Offense: Suspension of the license for a period starting from six months and one day to one year.
- Third Offense: Cancellation of the agency’s license, effectively barring them from recruitment activities.
Preventive and Investigative Measures
- The Administration is authorized to place the recruitment agency and the foreign principal under preventive suspension while investigating allegations of contract substitution.
- This measure aims to prevent further harm to the workers pending the outcome of the investigation.
Obligations of Recruitment Agencies
- Recruitment agencies must ensure they provide workers with copies of their employment contracts.
- Such contracts must be duly verified and approved by the DOLE and the Philippine Overseas Employment Administration (POEA).
- This promotes transparency and safeguards workers’ rights from the outset.
Immediate Compliance
- The memorandum circular was adopted on 30 April 2009 and requires immediate adherence by all concerned recruitment agencies and foreign principals.
- Non-compliance will prompt enforcement actions as detailed above.