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Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO. __________ 
Introduced by Representative Lordan G. Suan 
EXPLANATORY NOTE 
This bill seeks to prohibit the imposition of excessive recruitment or 
placement fees against Overseas Filipino Workers (OFWs) and provide penalties 
for violations thereof.  
The latest data from the Social Weather Stations (SWS) showed that 51%, 
or 14 million households, considered themselves poor in the first quarter of 2023, 
higher than the 12.9 million in the fourth quarter of 2022. Moreover, according 
to the Philippines Statistics Authority (PSA) report, the Philippines inflation rose 
to 5.3% in August 2023 from the 4.7% inflation rate recorded last July 2023. 
Based on these economic indicators, many Filipinos are motivated to migrate and 
work overseas to improve their living conditions.  
While many Filipinos are optimistic about seeking greener pastures, some 
have fallen victim to unfair and unethical recruitment practices to secure a chance 
to work abroad. According to a report from the International Consortium of 
Investigative Journalists (ICIJ), certain Filipinos looking for jobs abroad were 
falling victim to deceitful practices by recruitment agencies and loan companies. 
These practices involved a combination of exploiting their labor, engaging in 
predatory lending and charging exorbitant and unreasonable placement fees. 
Under the present system, licensed recruitment agencies can charge 
placement fees for services equivalent to one (1) month basic salary of the OFW 
as specified in the Department of Migrant Workers (DMW) approved contract. 
In reality, however, some recruitment agencies collect the worker's monthly basic 
salary twice or thrice. In their desire to work abroad, OFWs are left with no choice 
but to overlook the excessive recruitment or placement fees and take out loans 
from loan sharks to pay for these fees.  
This bill asserts the State's commitment to uphold the rights and welfare of 
OFWs. It recognizes their invaluable contribution to the national economy by 
ensuring they are safeguarded from unscrupulous recruitment practices, including 
the imposition of excessive recruitment or placement fees.  
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In addition to prohibiting the imposition of excessive recruitment or 
placement fees, this bill also prohibits certain illicit practices, such as the 
premature collection of payments, non-issuance of official receipts for fees 
collected, non-disclosure of fees in contracts and the use of deceptive methods to 
force OFWs to pay these fees.   
To enforce the provisions of the proposed measure, imprisonment, fines, 
and license revocation, may be imposed against any employee or officer of 
recruitment or placement agency who is found guilty of any of the prohibited act. 
The bill also emphasizes the duty of recruitment or placement agency to explain 
to OFWs the terms and conditions of their employment contract, including the 
amount of placement fees to be paid, and right of OFWs to seek assistance from 
DMW and other migrant workers organization for any doubt or concern regarding 
the terms and conditions of the employment contract. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought.  
LORDAN G. SUAN 


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Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO. ___________ 
Introduced by Representative Lordan G. Suan 
AN ACT 
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PROHIBITING THE IMPOSITION OF EXCESSIVE RECRUITMENT 
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OR PLACEMENT FEES AGAINST OVERSEAS FILIPINO WORKERS 
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AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF 
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Be it enacted by the Senate and the House of Representatives of the Philippines 
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in Congress assembled: 
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SECTION 1. Short Title. – This Act shall be known as the “Overseas 
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Filipino Workers Fair Placement Fee Act.” 
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SEC. 2.  Declaration of Policy. –  It is the policy of the State to uphold the 
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rights and welfare of Overseas Filipino Workers (OFWs) and recognize their 
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significant contribution to the national economy. Towards this end, the State shall 
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protect OFWs from unscrupulous recruitment practices, including the imposition 
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of excessive recruitment or placement fees. 
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SEC. 3. Prohibited Acts. – It shall be unlawful for any employee or officer 
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of recruitment or placement agencies to commit the following acts: 
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a) Charging and collecting recruitment or placement fee more than the
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equivalent of one (1) month basic salary of the OFW specified in the
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Department of Migrant Workers (DMW) approved contract;
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b) Charging and collecting recruitment or placement fee from the
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following OFWs:
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1) Domestic workers;
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2) Government hired workers and workers hired through government
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placement agencies; and
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3) Workers to be deployed where the prevailing system, either by law,
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policy or practice, does not allow, directly or indirectly, the charging
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and collection of recruitment or placement fees.
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c) Charging and collecting recruitment or placement fee before the OFW
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signed a valid employment contract;
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d) Failing to indicate in the employment contract the amount of the
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recruitment or placement fee; 
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e) Using deceptive or fraudulent practices to force an OFW to pay an
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excessive recruitment or placement fee, including withholding an OFW’s 
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passport, government-issued identification and other travel documents; 
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f) Failing to issue the Bureau of Internal Revenue registered receipts for
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any recruitment or placement fee collected; 
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g) Retaining any recruitment or placement fee collected when deployment
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does not materialize; 
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h) Coercing an OFW to issue post-dated checks to guarantee payment of
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any recruitment or placement fee; and 
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i) Coercing an OFW to borrow money only from designated persons or
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lending institutions to pay the recruitment or placement fee. 
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SEC. 4. Penalties. – In addition to any criminal liability under existing 
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laws, any employee or officer of recruitment or placement agencies who commits 
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any of the prohibited acts under Section 3 of this Act shall suffer the penalty of 
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imprisonment of not less than six (6) years and one (1) day but not more than 
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eight (8) years or a fine of not less than One hundred thousand pesos 
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(P100,000.00) but not more than Five hundred thousand pesos (P500,000.00), or 
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both, at the discretion of the court. 
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If the employee or officer of a recruitment or placement agency is found 
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guilty of any of the prohibited act under Section 3 of this Act, the license of the 
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recruitment or placement agency shall be automatically revoked. 
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SEC. 5. Duty and Right. – The recruitment or placement agency must 
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explain to the OFWs the terms and conditions of the employment contract, 
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including the recruitment or placement fees and charges to be paid, before signing 
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an employment contract. Any OFW may consult with or seek assistance from the 
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DMW or any other migrant workers organization for any doubt or concern on the 
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terms and conditions of the employment contract. 
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SEC. 6. Education and Awareness Program. – The Secretary of Migrant 
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Workers shall, in coordination with concerned agencies and stakeholders, 
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develop and implement an education and awareness program to provide OFWs 
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and potential OFWs with information about their rights and responsibilities under 
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this Act. 
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SEC. 7. Reporting. – The DMW shall establish a mechanism for OFWs 
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and their families to report any of the prohibited act under Section 3 this Act. The 
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DMW shall confidentially and promptly act on the report and ensure the 
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protection of complainant from any retaliation from the employee or officer of 
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recruitment or placement agency. 
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SEC. 8. Implementing Rules and Regulations. – Within sixty (60) days 
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from the effectivity of this Act, the Secretary of Migrant Workers shall issue the 
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necessary rules and regulations for the effective implementation of this Act. 
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SEC. 9.  Repealing Clause. – All laws, executive orders, issuances, rules 
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and regulations inconsistent with the provisions of this Act are amended or 
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modified accordingly. 
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SEC. 10.  Effectivity. – This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette, in a newspaper of general circulation or a 
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website provided for by law. 
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Approved, 
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