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Philippines – Companies not workers should pay placement fees

11 February 2014

International recruitment firm EDI-Staffbuilders International has called on other recruitment agencies to follow ethical recruitment hiring practices and not charge workers placement fees, and instead pass the cost on to the employer, reports sunstar.com.ph.

Cesar A. Averia Jr., President and CEO of EDI-Staffbuilders, said he has been advocating this ‘no pay’ policy since the agency was established 35 years ago: “In EDI, we strongly believe that the best available Filipino will never pay any single centavo to the recruitment agency. Decent companies know this.”

Recruitment agencies in the Philippines are allowed by the Philippine Overseas Employment Agency (‘POEA’) to charge a placement fee equivalent to the maximum of one month’s salary of the worker.

“It is the [multi-national corporation’s] responsibility to pay the recruitment company and hire the staff that they need and they know that,” he said.

According to Mr Averia Jr., agencies are reluctant to remove placement fees for fear that it would negatively impact the company’s profits. However, Mr Averia Jr. is adamant that recruitment agencies can still be profitable without passing on the burden to workers.

“[EDI-Staffbuilders] have been doing this for 35 years and we are still here,” he said.

While personal documents; such as passports and National Bureau of Investigation (‘NBI’) clearance are still the responsibility of the job applicant, Mr Averia Jr. added that many applicants often express disbelief that they don’t have to pay a fee to EDI-Staffbuilders.  


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