If you’re hiring overseas talent or applying for a job abroad, you’ve likely asked yourself: What is a placement fee, and do I really need to pay it?
These charges often come up during recruitment, but they also create confusion and controversy. In many cases, agencies have charged workers excessive or illegal fees, leading to debt, delays, or even cancelled deployments. In worst cases, it may signal illegal recruitment of overseas Filipino workers.
To avoid these risks, you need to understand what the law allows and what it doesn’t. When you work with a DMW-licensed agency (previously POEA-licensed agency), you protect yourself through a legal and ethical process.
This guide breaks down which recruitment agency fees are legal and illegal, and how you can avoid scammers from start to finish.
Recruitment rules can vary depending on the job and destination country, but the Philippines has clear guidelines to protect its workers. Several countries also follow ethical hiring practices that support these standards. Here’s what you need to know about how the law works on both sides.
The Department of Migrant Workers (DMW) enforces a no placement fee policy for low- to mid-skilled jobs like domestic work, caregiving, and construction. These roles are covered by rules that require the employer—not the worker—to shoulder recruitment-related expenses, including:
Several countries enforce zero-fee recruitment policies as part of their commitment to protect OFWs. These countries are either part of official agreements or follow ethical hiring guidelines:
Agencies or employers that charge illegal or excessive fees face serious consequences, including:
Even with clear laws in place, some recruiters and third-party agents continue to take advantage of employers and job seekers. Here are some common red flags you should never ignore.
While the law protects overseas job seekers from being charged placement fees in most cases, some pre-deployment expenses are allowed, but only under strict conditions. Here’s what you need to know.
Some out-of-pocket expenses are legal if they relate directly to your documents. These include:
However, agencies must inform you of these costs clearly, and they can’t mark up the actual rates charged by government agencies or clinics.
Whether you’re paying for documentation or other allowable expenses, the agency must always give you an official receipt for accountability purposes and prove that they’re not charging unauthorized fees.
In jobs where placement fees are allowed—such as some professional or technical roles—agencies can only charge up to one month’s basic salary. Even then, they can only collect this amount after:
It’s easy to confuse placement fees with other costs. Placement fees go to the agency for “placing” you in a job, while pre-deployment costs cover personal requirements. Understanding this distinction helps you spot illegal charges disguised as documentation fees.
Illegal recruitment tactics can be hard to spot, especially when you’re eager to land a job abroad. But knowing your rights and taking the steps below can protect you from fraud and excessive recruitment agency fees.
Staffhouse is a DMW-licensed agency that champions ethical recruitment through a strict no placement fee policy. Since 1999, we’ve helped deploy over 40,000 Filipino workers abroad through a fair and transparent recruitment process.
Our team ensures full compliance with Philippine labor laws and destination country requirements, making international hiring easier and safer for everyone involved. Whether you’re an employer or job seeker, partner with Staffhouse to move forward confidently.
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