Recruitment firm losses license for overcharging workers

MANILA – A recruitment firm lost its license to send overseas Filipino workers (OFWs) to Taiwan after it was found guilty of overcharging.

Hans Cacdac, Philippine Overseas Employment Administration (POEA) administrator, said Prime Stars International Promotion Corporation collected excessive fees from 18 OFWs sent recently to Taiwan.

"In the case of factory workers in Taiwan, the regulation allows only NT$17,280 or more or less P26,000.00 as stated in their signed contract," Cacdac said.

The OFWs said in their complaint that they were made to pay placement fees ranging from P80,000 to P120,000. They also complained of unpaid overtime pay and other benefits provided in their employment contract.

Under POEA rules, recruitment agencies can charge and collect from its hired workers a placement fee but only in an amount equivalent to one month salary.

With the cancellation of its license, the labor official noted that the officers and directors of Prime Stars are disqualified from engaging in the business of recruitment and placement of OFWs.

Cacdac had also ordered the recruitment agency's covering surety, Country Bankers Insurance Corporation, to refund to the complainants the excess placement fees amounting to more than P1.5 million that were illegally collected by Prime Stars International Promotion Corporation. (HDT/Sunnex)