Is Placement Fee and Processing Fee a necessary financial obligation on OFW's end?

Hello fellow kabayans,

Please enlighten me regarding Placement Fee and Processing Fee.

This is my first time applying thru local land-based agency's here in the Philippines. Eventually, I have 3 years UAE working experience, and my previous employment is a direct hiring from a registered UAE LLC Co. (North American Safety Consultants) for a Job Post: Fire Safety Inspector. Moreover, I was a visit-visa then.

Furthermore, for our perusal and guidance as further stipulated in POEA Rules and Regulations - Governing the Recruitment and Employment of Land-based Overseas Workers, as excerpted below:

>>>

RULE V
FEES, COSTS AND CONTRIBUTIONS

Section 1. Service Fee. Agencies shall charge from their principals a service fee to cover services
rendered in the recruitment, documentation and placement of workers. The Administration shall
provide incentives to agencies and employers who are able to comply with this rule.

Section 2. Fees and Costs Chargeable to Principals. Unless otherwise provided, the principal shall
be responsible for the payment of the following:
a. visa fee;
b. airfare
c. POEA processing fee; and
d. OWWA membership fee

Section 3. Fees/Costs Chargeable to the Workers. Except where the prevailing system in the
country where the worker is to be deployed, either by law, policy or practice, do not allow the
charging or collection of placement and recruitment fee, a landbased agency may charge and collect
from its hired workers a placement fee in an amount equivalent to one month salary, exclusive of
documentation costs.
Documentation costs to be paid by the worker shall include, but not limited to, expenses for the
following:
a. Passport
b. NBI/Police/Barangay Clearance
c. Authentication
d. Birth Certificate
e. Medicare
f. Trade Test, if necessary
g. Inoculation, when required by host country
h. Medical Examination fees

In the event that the recruitment agency agrees to perform documentation services, the worker
shall pay only the actual cost of the document which shall be covered by official receipts.

The above-mentioned placement and documentation costs are the only authorized payments that
may be collected from a hired worker. No other charges in whatever form, manner or purpose, shall
be imposed on and be paid by the worker without prior approval of the POEA.

Such fees shall be collected from a hired worker only after he has obtained employment through
the facilities of the recruitment agency.

>>>

The Local Agency is asking for both Placement Fee and Processing Fee which corresponds for my basic salary QR3500 plus PHP10,000 for the processing fee.

First, I don't have enough knowledge if Qatar Law supersedes it's registered Companies to require no placement fees.

Second, it's clearly stated that "The above-mentioned placement and documentation costs are the only authorized payments that
may be collected from a hired worker. No other charges in whatever form, manner or purpose, shall
be imposed on and be paid by the worker without prior approval of the POEA." - with this to wit, PROCESSING FEE is supposed to be shouldered by the Company/Employer/Principal w/c bears their cost on the ff: Visa, Airfare, POEA Processing Fee & OWWA Membership Fee.

Third, if the PROCESSING FEE they claim is for their Agency Documentation, Facilitation, Recruitment and others, this claim supersedes what is stipulated in Section 1: (Service Fee. Agencies shall charge from their principals a service fee to cover services
rendered in the recruitment, documentation and placement of workers. The Administration shall
provide incentives to agencies and employers who are able to comply with this rule.)

DETAILS OF THE AGENCY:

FRANCE ASIA INTERNATIONAL INC (FRANCE ASIA MANPOWER SERVICES) Landbased Agency
10 YAGUE ST BRGY SINGKAMAS MAKATI CTY
Tel No/s : 890-9212/897-4557/890-6462/897-5172
Email Address : franceasia@pacific.net.ph/franasia@pldtsl.net
Website : www.franceasia.net
Official Representative : JEAN D. GENIO
Status : Valid License
License Validity : 12/7/2010 to 11/15/2018

DETAILS OF THE EMPLOYER/PRINCIPAL:
Gulf House of Trade & Contracting Co. WLL
Doha-Qatar P.O. Box: 9328
Tel No: +974-436-0608 Fax No: +974-436-0609
Email Address: ghot@qatar.net.qa

DETAILS OF EMPLOYMENT:
Job Post: Safety Supervisor
Salary: QR3500 + QR220 (Food Allowance)
Accommodation: Single Status sharing accommodation provided by the Co.
Transportation: Free Transportation provided by the Co.
Contract Duration: Indefinite Contract

>>>

On my quest for truth and good governance, I am hopeful to received a response from POEA representative(s) thru my email inquiry with them.

If any of you could somehow enlighten me with these inquiries, that would be helpful as it wouldn't only shed light on individual(s) like me but also to other kabayans who have had similar case(s) like this.

Respectfully yours,

Safetyard

Comments

martin2doha

the agency under POEA rules, can solicit 1 month of salary offered (max)---there are agencies however that do not do this. best move-- visit POEA and check current regulations. further, the package you are being offered is on the lower side-shared accommodation may mean 2 to 10 people in a room, and 200 for food will normally cover you for days-- not a month (consider these) Although, a lot can make ends meet with less that you are being offered. best of luck.

anonymous

as far as i know, the processing fee should be paid by the applicant. with regards to the placement fee, some agency does not have a placement fee while others have. it depends on the company the applicant are applying.if it is about for the visa, plane ticket, it is paid by the company and not the applicant. by the way, for your information. the salary that you stated is a little bit low since you will be working as a safety supervisor but it depends if the company is a private or a government company. private company are giving low salary unlike government company in which they offer standard salary offer.

martin2doha

if you feel that the agency is not that honest at this stage, then talk to then upfront. by the way, indefinite contract sounds scary. no mention of air tickets, yearly leave days, option to convert these to cash should you prefer not to make use of tickets, medical/health care,

safetyard

Yes I agree with you martin2doha. It's a bit scary having indefinite contract. other details are: Offer Validity: Employee must resume to work within one week from the date of issuing the visa; otherwise this letter will not be valid. Probation Period: 3 Months from the day of starting the work. Notice Period: For Resignation 1 Month. Air Travel: Vacation & Free Economy Class Ticket, for the sector of Doha-Manila-Doha, upon completion of 24 months of service. Health Care: As per Qatar Labour Law. Effective Date: From the day of resuming the work. >>> jhonkarl, I also agree with you. my previous salary is a bit higher than this offer. And I also do believed, that this company (Gulf House of Trade...) is just a small time private firm involved in Qatar Oil & Gas Projects. Can you investigate on their Co. Profile? >>> There are also other offer(s) from 2 companies: 1) is National Catering Co. LLC, UAE with basic salary of AED3500 + AED550 (Mobile Allowance) working as QHSE Officer. Benefits: Free Accommodation, Transportation, Food, Laundry and Mobile. Standard Package: Vacation (yearly), Health Insurance Agency: MSS Talent International Agency Terms: 1 Month Basic Salary (Placement Fee) + PHP8000 Processing Fee. Agency Status: Preventive Suspension 2) is Kentz International Engineering & Construction - Project is based in KSA with basic salary of US$848 + standard overtime pay working as Safety Officer. Benefits: Free Accommodation, Transportation, Food. Standard Package: Vacation (yearly), Health Insurance Agency: East West Placement Center Inc. Terms: No Placement Fee and Medical Fee (reimbursed by the Co.) but Processing fee is PHP2500 Agency Status: Licensed and in full operation >>> However, my passport is still in France Asia that holds me back to process my other applications. Work Permit for Qatar (Sponsor: Gulf House of Trade...) has just arrived yesterday. Any inputs, Thank you.

safetyard

Yes I agree with you martin2doha. It's a bit scary having indefinite contract. other details are: Offer Validity: Employee must resume to work within one week from the date of issuing the visa; otherwise this letter will not be valid. Probation Period: 3 Months from the day of starting the work. Notice Period: For Resignation 1 Month. Air Travel: Vacation & Free Economy Class Ticket, for the sector of Doha-Manila-Doha, upon completion of 24 months of service. Health Care: As per Qatar Labour Law. Effective Date: From the day of resuming the work. >>> jhonkarl, I also agree with you. my previous salary is a bit higher than this offer. And I also do believed, that this company (Gulf House of Trade...) is just a small time private firm involved in Qatar Oil & Gas Projects. Can you investigate on their Co. Profile? >>> There are also other offer(s) from 2 companies: 1) is National Catering Co. LLC, UAE with basic salary of AED3500 + AED550 (Mobile Allowance) working as QHSE Officer. Benefits: Free Accommodation, Transportation, Food, Laundry and Mobile. Standard Package: Vacation (yearly), Health Insurance Agency: MSS Talent International Agency Terms: 1 Month Basic Salary (Placement Fee) + PHP8000 Processing Fee. Agency Status: Preventive Suspension 2) is Kentz International Engineering & Construction - Project is based in KSA with basic salary of US$848 + standard overtime pay working as Safety Officer. Benefits: Free Accommodation, Transportation, Food. Standard Package: Vacation (yearly), Health Insurance Agency: East West Placement Center Inc. Terms: No Placement Fee and Medical Fee (reimbursed by the Co.) but Processing fee is PHP2500 Agency Status: Licensed and in full operation >>> However, my passport is still in France Asia that holds me back to process my other applications. Work Permit for Qatar (Sponsor: Gulf House of Trade...) has just arrived yesterday. Any inputs, Thank you.

safetyard

jhonkarl, I also agree with you. my previous salary is a bit higher than this offer. And I also do believed, that this company (Gulf House of Trade...) is just a small time private firm involved in Qatar Oil & Gas Projects. Can you investigate on their Co. Profile? >>> There are also other offer(s) from 2 companies: 1) is National Catering Co. LLC, UAE with basic salary of AED3500 + AED550 (Mobile Allowance) working as QHSE Officer. Benefits: Free Accommodation, Transportation, Food, Laundry and Mobile. Standard Package: Vacation (yearly), Health Insurance Agency: MSS Talent International Agency Terms: 1 Month Basic Salary (Placement Fee) + PHP8000 Processing Fee. Agency Status: Preventive Suspension 2) is Kentz International Engineering & Construction - Project is based in KSA with basic salary of US$848 + standard overtime pay working as Safety Officer. Benefits: Free Accommodation, Transportation, Food. Standard Package: Vacation (yearly), Health Insurance Agency: East West Placement Center Inc. Terms: No Placement Fee and Medical Fee (reimbursed by the Co.) but Processing fee is PHP2500 Agency Status: Licensed and in full operation >>> However, my passport is still in France Asia that holds me back to process my other applications. Work Permit for Qatar (Sponsor: Gulf House of Trade...) has just arrived yesterday. Any inputs, Thank you.

kindred5228

I should mention that this is the first time I have worked overseas. I do not have answers to your questions but since you're still seeking overseas employment, you may also want to try applying for overseas jobs at www.eastwest.com.ph. They helped me land the job I have now. I am not in any way endorsing the agency. Being a first time OFW, they helped ease the process. Also, they did not charge me any placement fees of any sort. Hope this helps and good luck.

jpa

From where do you expect the recruitment agencies to earn their revenues? No processing and placement fees are collected if the applicants are hired thru government to government hiring. For your information, the Philippine government is putting a lot a conditions to the prospective employers which are detrimental to future employment of OFW's. Take note that Filipinos do not have the monopoly of being proficient in English language, which some people are presuming to be their advantage over other nationalities.

anonymous

Gulf House of Trade is a contracting company and not a consulting company. They only get their project thru sub-contractual to other company. that's the reason why their salary offer is lower compare to other company. if you have a stable job in the philippines at present, maybe it's better to wait or apply to other company abroad that has a much higher offer or if you don't have work, you can accept it then after a year or two, resign then find another job....

safetyard

Eventually, kindred5228 is correct! Been to East West Agency and got a Final Interview & was selected for a job post: HSE Supervisor with an Irish Owned Co. for 90 years in the EPC business for Oil & Gas, Petrochemical & Refinery Sectors all throughout 28 countries. The employer is Kentz Int'l Eng'g. & Const. Co. The Local Agency (http://www.eastwest.com.ph) is not charging me any Placement Fee but I have to pay them Php2,500 for the Processing Fee. Medical Fee c/o of Kentz as well. I firmly believed now that it all depends on the Employer/Principal/Co. if they're capable of financing those fees for the OFW's end.
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