c 
13'h CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
FIRST REGULAR SESSION 
1 
S. BILL NO. 
INTRODUCED BY HONORABLE RALPH G. RECTO 
EXPLANATORY NOTE 
This bill seeks to amend RA 8042 otherwise h o r n  as the Migrant Workers and Overseas 
Filipinos Act of 1995 thereby allowing contract workers to rationalize the payment of placement 
fees. It is proposed that contract workers will directly pay the manpower broker a placement fee 
equivalent to one month salary proportionate to one year of service or employment as opposed to 
the prevailing practice of paying the placement fee prior to the deployment of the OCW thus, 
situating the OCWs in a very uncompromising financial situation vulnerable to nefarious 
practices of illegal recruiters. 
Records showed that in January to August 2002 a total of 636,024 landbased and seabased OFWs 
were deployed to different countries around the world. According to the Bangko Sentral ng 
Pilipinas, the OCWs remitted for the first quarter of 2002 a total of $1.96 B and such contribution 
reportedly has helped stabilize the peso and contributed greatly to the GNF' growth earning them 
the stature of 'Ang Bagong Bayani'. 
There is the phenomenon of overseas contract workers that has left homes without a father or a 
mother or sadly both for a significant period of time. It is a delicate balance that confronts the 
families: to be able to survive the economic crises and dream of every parent to see their children 
become achievers through good education and to be able to contribute in the society. The 
Commission on Filipinos Overseas reported that 7.29M overseas Filipinos, 2.98 M are overseas 
Filipino workers,'2.37 M are permanent residents and 1.94 M are classified as undocumented. 
Under this bill, an equitable amount shall be charged by a private employment agency from an 
OCW for its recruitment and placement services, exclusive of documentation cost, which is 
equivalent to the following: 
For those earning less than $1000 - 
% monthsalary 
$1000 - $2000 
- 
75% monthly salary 
$2000 above 
1 month's salary 
This bill also set sights on institutionalizing help desks introducing new provisions in the ceiling 
on placement fees imposed upon Filipino overseas contract workers 


13TH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
1 
) 
’an 
JUL -0 ~ i i  
:A6 
OF THE PHILIPPINES 
‘IECEI\/ED k3Y:,”- 
S E N A T E  
S. BILLNO. 
Introduced bv SENATOR RALPH G. RECTO 
AN ACT 
RATIONALIZING THE PAYMENT OF PLACEMENT FEES OF OVERSEAS 
FILIPINO WORKERS AND INSTITUTIONALIZING HELP DESKS ABROAD 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1 Placement Fees. 
- 
An 
equitable amount shall be 
2 
charged by a private employment agency i?om an OCW for its recruitment and placement 
3 
services, exclusive of documentation cost, which is equivalent to the following: 
4 
5 
6 
For those earning less than $1000 - 
!h monthsalary 
7 
$1000 - $2000 
- 
75% monthly salary 
9 
8 
$2000 above 
- 
1 month’s salary 
10 
SEC. 2. 
Sewice Desk. - 
Institutionalizing help desks located abroad 
11 
providing appropriate and suitable provisions in the ceiling on placement fees imposed 
12 
upon Filipino overseas contract workers 
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15 
16 
SEC. 4. 
Repealing Clause. - 
All other laws, decrees, orders, issuances 
17 
and rules and regulations or parts thereof inconsistent with this Act are hereby amended 
18 
or repealed accordingly. 
19 
SEC. 5. 
Separability Clause. - 
The provisions of this Act are hereby 
20 
declared to be separable and, in the event any of such provisions is declared 
21 
unconstitutional, the order provision which is not affected thereby shall remain in full 
22 
force and effect. 
SEC. 3. 
Implementing Rules and Reguhlions. - The Department of Labor 
and Employment (DOLE), and other appropriate government agencies shall promulgate 
rules and regulations necessary for the effective implementation of this Act. 
I 


1 
2 
3 
Approved, 
SEC. 6. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
2