Memorandum Circular No.

10 Series of 2003
TO : All Concerned : Recruitment and Placement Activities of Immigration Consultancy Agencies and Other Similar Entities.

RE

Pursuant to Sec.23 (b.1) of R.A. 8042, otherwise known as the Migrant Workers and Overseas Filipino Act of 1995, providing that the POEA shall regulate private sector participation in the recruitment and placement of workers through a licensing and registration system, and consistent with the provisions of Section 6 of the same Act defining illegal recruitment as recruitment and placement activities undertaken by a non-license or non-holder of authority and Article 18 of the Labor Code, as amended, prohibiting direct hiring except in those cases allowed by the Secretary of Labor and Employment, the following guidelines are hereby issued for the guidance of all concerned: I. COVERAGE

This Circular shall cover all immigration consultancy agencies, whether foreign or local based, and other similar entities which do not limit themselves to document facilitation and visa assistance for immigrants, but engage in recruitment and placement activities as defined under Part I, Rule II of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Workers. II. LICENSING

Immigration consultancy agencies and similar entities as above referred to, which are based locally, are required to obtain a license in accordance with the guidelines governing the requirements and procedure for issuance of a landbased license as provided in Part II, Rule I, Sections I and 2 and Rule II, Sections 1 to 5 of the 2002 POEA Rules and Regulations, before they may engage in recruitment and placement activities, regardless of the visa under which deployment shall be made eventually. III. VERIFICATION OF DOCUMENTS REGISTRATION / ACCREDITATION OF EMPLOYERS / PRINCIPALS / PROJECTS, AND PROCESSING OF DOCUMENTS FOR DEPLOYMENT. Foreign employers / principals / projects of immigration consultancy agencies and other similar entities covered under this circular shall be registered or accredited in accordance with the guidelines governing the requirements and procedures prescribed under Part III, Rules I to III of the 2002 POEA Rules and Regulation. A special registration facility shall be set up to facilitate the documentation and deployment of EB3 visa holders. IV. FOREIGN-BASED IMMIGRATION CONSULTANCY AGENCIES AND OTHER SIMILAR ENTITIES. Foreign-based immigration consultancy agencies and other similar entities are not allowed to engage in recruitment and placement activities, except through licensed agencies to which they may seek accreditation or registration. V. FEES CHARGEABLE TO WORKERS

A.

Worker's

Deployed

on

Worker's

Visa/Permit

Entities subject of this circular may charge and collect fees and documentation costs from a hired worker in accordance with Section 3, Rule V, Part II of the 2002 POEA Rules and Regulations. B. Visa Workers Deployed on Employment Based Immigrant

Entities subject of this circular, in addition to the fees mentioned in the preceding paragraph, may likewise charge fees for other services rendered and other incidental costs/expenses incurred which are allowed and/or imposed under immigration laws of the host country. Such fees shall be duly covered with official receipts and may be collected only after a worker has been issued the necessary EB3 Visa. VI. APPLICABLE RULES AND REGULATIONS

The operation/participation of immigration consultancy agencies and other similar entities covered under the circular shall be governed by the 2002 POEA Rules and Regulations, unless otherwise expressly provided under this circular or any other issuance. VII. SANCTIONS

Immigration consultancy agencies and other similar entities who engage in the recruitment and placement of workers, whether on worker's visa or employment-based immigrant visa, without a license or authority issued by this Administration, shall be subjected to prosecution for illegal

recruitment and such other appropriate action as may be necessary pursuant to the pertinent provisions of RA 8042 and its Implementing Rules and Regulation. All issuances and policies inconsistent herewith are deemed modified or repealed accordingly. This Circular shall take effect immediately. For strict compliance. ROSALINDA Administrator DIMAPILIS-BALDOZ

March 25, 2003