DMW/POEA Claims When a Recruitment Agency Fails to Deploy a Worker (Philippine Law)

This guide explains your rights and remedies when a licensed Philippine recruitment/manning agency collects fees or processes you for an overseas job but does not deploy you. It’s written for land-based and (where noted) sea-based workers under the Department of Migrant Workers (DMW), formerly the POEA. It’s general information—not legal advice.

1) The Legal Backbone (what rules apply)

Migrant Workers and Overseas Filipinos Act (RA 8042), as amended by RA 10022
- Sets workers’ rights, illegal recruitment offenses, penalties, and liability of agencies/principals.
RA 11641 (2021) created the DMW, absorbing POEA’s licensing/adjudication functions.
POEA/DMW Rules and Regulations (licensing, standards, schedule of offenses/penalties).
Labor Code & Civil Code (money claims, damages, prescription).
Standard Employment Contracts (land-based; POEA-SEC for seafarers).
Legal interest on money judgments has generally been 6% per annum (per Supreme Court doctrine since mid-2013).

2) What counts as “failure to deploy”?

Any agency-side or principal-side lapse that prevents your departure after you were processed/recruited (often after you’ve signed or been issued a job offer/POEA-verified contract, paid fees, or completed requirements). Common examples:

No actual employer/job order (ghost job), revoked job order, or withdrawn offer.
Visa/entry permit not pursued diligently or negligently mishandled.
No available ticket, medical/fit-to-work or contract authentication not secured due to agency lapses.
Agency suspensions, closures, or license problems that derail departure.

Key test: Were you ready, willing, and qualified to depart, and the non-deployment happened for reasons not your fault?

When the agency is usually not liable for refund beyond what the law/contract specifically requires

You backed out voluntarily after the agency already incurred legitimate, receipted expenses because of your change of mind.
You were medically unfit, failed exams, presented falsified documents, or breached pre-departure obligations.
Force majeure (e.g., sudden war/ban) may affect what’s refundable, but agencies still cannot keep unlawful or excess fees.

Even in these cases, unlawful fees and overcharges must be returned.

3) What must be refunded if you’re not deployed (reasons not attributable to you)

Placement fee (if legally chargeable to your category)
- For many land-based jobs, the ceiling is one month basic salary;
- Some categories (e.g., household service workers) are no-placement-fee.
Documentation & processing costs, typically including:
- Medical exam, NBI/clearance, passport (if paid through agency), TESDA/NC, PDOS/PEOS, visa fees, authentication, OEC, and similar.
Other receipted payments collected by the agency “because of” the deployment process (e.g., required trainings, translation, courier).
Legal interest on amounts due (commonly 6% per annum from default until full payment).
Administrative fines/sanctions are payable by the agency to the government (you won’t receive these) but help enforce compliance.

Bottom line: If it wasn’t your fault, expect full refund of all agency-collected amounts tied to your deployment, plus interest. The agency can later recover from the foreign principal—that’s not your problem.

4) Where and how to file (procedural roadmap)

A) DMW (Administrative) – fastest path to refunds and agency sanctions

What you can get:
- Order to refund fees and costs, with interest;
- Administrative penalties (fines, suspension/cancellation of license, escrow draw) against the agency;
- Blacklisting/discipline of foreign principals.
Where to file:
- DMW Adjudication/Licensing or the nearest DMW Regional Office;
- If you’re abroad (rare in non-deployment cases), coordinate with the MWO (labor office) in the host country.
Process (typical):
1. Prepare a verified complaint (see checklist below).
2. Docketing & summons; the agency files an Answer.
3. Mandatory conciliation/mediation (settlement attempts).
4. Position papers + evidence; resolution by adjudicator/administrator.
5. Appeal within DMW system; then Rule 43 petition to the Court of Appeals, if needed.

Escrow & surety bonds: Licensed agencies maintain escrow deposits/bonds precisely to satisfy refunds and money awards. DMW may draw on these to pay you if the agency refuses.

B) Criminal complaint for illegal recruitment (if facts fit)

File with NBI/PNP/DOJ (often after or alongside DMW case).
Illegal recruitment includes recruiting without a license, collecting fees for non-existent jobs, or overcharging.
Large-scale (≥3 victims) or by a syndicate (≥3 offenders) = economic sabotage with heavier penalties.

C) Civil action (regular courts) for damages

Use this to pursue moral/exemplary damages and other civil remedies (e.g., bad faith, deceit).
Can run parallel to administrative/criminal cases.

D) NLRC (Labor Arbiter)

Generally handles employment-related money claims after deployment.
For non-deployment, DMW administrative action is usually the proper venue for refunds and agency sanctions.

5) Evidence checklist (build a “refund-ready” file)

Identity & recruitment: Government ID; PEOS/PDOS certificates; agency name & license no.; recruiter names; office address.
Job & deployment proofs:
- Job offer/contract, POEA/DMW-verified contract, Job Order number;
- Employer/principal details; any emails/messages promising deployment;
- Visa application/approval trail, medicals and fit-to-work results; OEC request/receipt (if any).
Fees paid: Official receipts (ORs), invoices, deposit slips, screenshots, e-wallet records, promissory notes.
Timeline docs: Schedules, training attendance, booking attempts, airline holds, embassy appointments.
Communication records: SMS, messenger, emails showing follow-ups and assurances given.
Non-deployment proof: Notices of cancellation, “no flights,” “visa not filed,” suspension notices, etc.

No receipt? Submit any proof (texts, screenshots, affidavits). Agencies are required to issue ORs—failure to issue is itself a violation.

6) How much can you recover? (typical computation)

Example (land-based, non-HSW):

Placement fee collected: ₱45,000
Medical: ₱2,500
Training: ₱3,000
Visa fee: ₱8,000
OEC & authentication: ₱2,000
Total principal: ₱60,500

If the agency defaulted one year ago and you promptly demanded payment, add legal interest (6% p.a.):

Interest: ₱60,500 × 6% = ₱3,630 for the first year (then pro-rated until fully paid).
Total due today: ₱64,130 (plus running interest until payment).

If you are a no-placement-fee category (e.g., HSW), the entire placement fee collected must be refunded and may support an illegal recruitment theory if the collection violated the no-fee rule.

7) Special notes for seafarers

Seafarers are processed through manning agencies under POEA-SEC and maritime rules.
No placement fee policy effectively applies—most costs are on the principal.
For failure to deploy, pursue DMW administrative remedies for refund/sanctions, and consider NLRC only when the dispute is already employment-related (e.g., post-embarkation claims).

8) Overcharging & prohibited fees

Cap on placement fee (where allowed): generally one month basic salary for land-based workers; prohibited for several categories (e.g., household service workers) and in some destination countries/sectors.
Recruitment red flags: “processing fee” disguising a placement fee, “training packages” that are compulsory and overpriced, non-issuance of ORs, or demands for kickbacks after deployment.

9) Timelines & prescription (don’t wait)

Administrative recruitment violations/refund claims: File as soon as practicable; short time bars can apply in labor-related claims (often 3 years for money claims).
Illegal recruitment (criminal): Ordinary cases generally prescribe in 5 years; economic sabotage cases have a much longer prescriptive period (commonly understood to be up to 20 years).
Civil actions: Different clocks (e.g., breach of written contract vs. quasi-delict).
When in doubt—file early and stop the clock.

10) Practical playbook (step-by-step)

Write a demand to the agency (email + hard copy) listing all amounts and giving a deadline (e.g., 10 days) to refund. Attach copies of receipts and say you’ll file at DMW and pursue criminal/civil cases if unpaid.
Prepare a verified complaint for DMW:
- Parties, facts, timeline, fees paid (attach ORs), legal bases, and prayer (refund + interest + sanctions).
File at the DMW office with jurisdiction (or nearest Regional Office). Keep your docket number.
Attend conciliation; accept full payment only if it includes interest and no unlawful offsets. Get a receipt and acknowledgment of settlement.
If no settlement, pursue adjudication to decision. Ask DMW to draw on escrow/bond if the agency evades payment.
Consider parallel remedies:
- DOJ/NBI complaint for illegal recruitment, especially when there are multiple victims;
- Civil suit for damages if there’s deceit/bad faith.

11) FAQs

Can I claim “lost salary” for the months I waited? Usually no; you were not yet an employee. Focus on full refund + interest; pursue damages only when facts support deceit/bad faith.
Visa denial—do I still get a refund? If you were qualified and the denial wasn’t your fault, you can still pursue refund of fees the agency collected for deployment. The agency bears the business risk of non-deployment and may recoup from the principal—not from you.
The agency shut down—am I stuck? No. DMW can draw on the agency’s escrow/bond, and the owners/officers may face administrative and criminal liability.
We are a group of victims—should we file together? Yes. Group complaints are practical and may support an economic sabotage theory if 3+ victims.
Is there a filing fee? DMW administrative complaints are accessible; any minimal fees (if applicable) are far lower than court costs. Ask the receiving office.

12) Simple templates (you can adapt)

A) Short Demand Letter

Date

Agency Name & Address

Subject: DEMAND FOR FULL REFUND DUE TO NON-DEPLOYMENT

I was recruited for [position] with [principal/country], processed by your agency under [Job Order/DMW ref no.]. I completed all requirements and paid the following (attach receipts): [list with amounts]. Despite repeated follow-ups, I was not deployed for reasons not attributable to me.

I hereby demand full refund of ₱[total] within ten (10) days from receipt, plus legal interest, failing which I will file a complaint with the DMW and pursue criminal/civil action.

Sincerely,
[Name, address, contact]

B) DMW Complaint – Prayer (sample)

Order full refund of all amounts paid (list) with 6% legal interest from demand until full payment;
Declare respondents liable for recruitment violations;
Impose appropriate administrative penalties (fines, suspension/cancellation), and draw on escrow/bond as needed;
Other reliefs just and equitable.

13) Prevention & red flags

Verify the agency’s DMW license number and the Job Order before paying anything.
Pay only through official receipts; avoid “cash only” and unreceipted fees.
Read the contract; beware of “processing packages” that disguise placement fees.
Keep copies of everything; use email or written communications for follow-ups.

14) One-page cheat sheet (pin this)

If not deployed and it’s not your fault → Demand full refund of all agency-collected fees + 6% interest.
File at DMW for refund and agency sanctions; ask to draw on escrow/bond if needed.
Consider criminal (illegal recruitment) and civil (damages) actions in parallel.
Move fast; time limits apply.
Document everything (ORs, chats, emails, schedules).

If you want, tell me your scenario (job type, fees paid, dates, what the agency said), and I’ll draft a complaint tailored to your facts and a clean refund computation you can print.