For lack of better opportunities at the home front, workers are induced to leave for
abroad with a promise of stable work and good pay.
The ILO Private Employment Agencies Convention 181 (C181, 1997) 54 provides that
private employment agencies shall not charge directly or indirectly, in whole or in part, any
fees or cost to workers. The Philippines is not a signatory to the ILO Convention No. 181, but
under Section 51 of Rule V of the Revised POEA Rules and Regulations Governing the
Recruitment and Employment of Land based Overseas Filipino Workers of 2016, no
placement fee may be charged against: (a) domestic workers; and (b) workers to be deployed
to countries where the prevailing system, either by law, policy or practice do not allow,
directly or indirectly, the charging and collection of recruitment/placement fees. Placement
fees are also not allowed to be collected from OFW seafarers. Notwithstanding the foregoing
however, private recruitment agencies in the Philippines and/or recruitment agency in the
host country continue to charge recruitment fees from migrant workers, the domestic
workers, in particular.
Fees collected by private recruitment agencies for jobs abroad cover the cost of the
recruitment itself, visa consultations, airfare and administrative costs. According to a study
on Filipino domestic workers in Hong Kong by Varona (2013), majority 2/3 or (68%) had to
take some kind of loan (from banks, financing agency, relatives or friends, or advanced by
recruitment agency) to pay the recruitment costs, which can be substantial amounts.55 For
marginal workers who do are unable to raise money from their own sources, they are often
referred by recruitment agencies to financing companies for easy loans with exorbitant
interests. Thus, even before deployment the worker is already deeply buried in debt and is
required to issue post-dated checks as loan security, or pledge a portion of their expected
wages for debt repayment. This happens through contract substitution, an illegal practice by
placement agencies wherein workers are coerced into signing a non-state approved contract at
the last minute. In the same survey by Varona, debt bondage was identified as a major
concern, next only to violations of recruiters to the “no placement fee” policy for domestic
workers.
Although debt bondage per se was not one of the legal issues directly addressed in the
cases decided by the Supreme Court in the period 2015-2019, there were several cases
reviewed that indicated the existence of its practice.
In the case of “Aldovino, et. al. vs. Gold and Green Manpower Management and
Development Services, Inc.”,56 the findings of facts show that the workers applied for work
with a local manning agency whose foreign principal is based in Taiwan. Eventually, they
were hired with a fixed monthly salary and other entitlements. Before deployment, each
worker was required to pay the amount of PhP72,000.00 as placement fee. Unable to
54
C181-Private Employment Agencies Convention 1997 (No. 181). International Labor Organization.
https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:
312326
55
Rex Varona, “LICENSE TO EXPLOIT: A Report on the Recruitment Practices and Problems
Experienced by Filipino Domestic Workers in Hong Kong,” (2013)
https://idwfed.org/en/resources/license-to-exploit-a-report-on-recruitment-practices-and-problemsexperienced-by-filipino-migrant-domestic-workers-in-hong-kong/@@display-file/attachment_1
56
G. R. No. 200811, June 19, 2019
29
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