A practical legal guide for jobseekers, OFWs, and clients of manpower/service contractors

1) Know what kind of “agency” you are dealing with

Verification depends on the agency’s legal category. In the Philippines, people often use “agency” to mean very different entities:

A. Recruitment and placement agencies (hiring you for a job)

Overseas recruitment (land-based OFWs) — agencies must be licensed/authorized by the Department of Migrant Workers (DMW) (which took over major functions previously handled by POEA).
Seafarer recruitment/crewing — also under DMW/POEA-derived regulatory rules and requires proper authority.
Local recruitment (within the Philippines) — typically regulated by DOLE (and related rules on private recruitment and placement).

B. Service agencies / manpower contractors (they supply workers to a client company)

Examples: janitorial, housekeeping, logistics, promoters, office staff augmentation, maintenance, messengerial, certain BPO staffing, etc. These are usually governed by DOLE rules on contracting/subcontracting (e.g., anti–labor-only contracting standards) and must meet registration and labor compliance requirements.

C. Special industries that require additional licensing

Security agencies (guards) — require separate authority (commonly under PNP regulatory oversight).
Construction contractors — often require industry licensing (commonly via construction regulatory bodies). If an agency claims to operate in these areas, you should verify the special license in addition to general business registrations.

2) The legal baseline: what “legitimate” generally means

An agency is “legitimate” only if it is:

Properly registered as a business entity (SEC for corporations/partnerships, DTI for sole proprietors, CDA for cooperatives), and
Properly licensed/authorized for the regulated activity (DMW license for overseas recruitment; DOLE registration/compliance for contractors; special permits where applicable), and
Actually operating within the scope of its authority (correct name, address, officers, and permitted activity), and
Following labor and recruitment rules (contracts, fees, wage standards, social protection, no misrepresentation, no prohibited practices).

A business can be legally registered with SEC/DTI and still be illegal as a recruiter if it lacks the specific license for recruitment/placement.

3) Step-by-step verification for overseas recruitment (DMW context)

If you are being recruited for work abroad, treat licensing verification as non-negotiable.

Step 1 — Confirm the agency is DMW-licensed

A legitimate overseas recruitment agency should be able to provide, and you should be able to match:

Exact registered business name (spelling matters; scammers use similar names)
DMW license number
License validity dates
Official business address covered by the license

Best practice: Only transact at the licensed office address. Many scams happen through “satellite offices,” hotel interviews, or meetups in cafés with no formal office.

Step 2 — Confirm the job is backed by an authorized overseas employer/principal

Legitimate overseas recruitment generally requires that the Philippine agency is recruiting for a real foreign employer/principal with an approved hiring authority/job order or equivalent authorization under DMW rules.

Request:

Employer/principal name and address
Position title, salary, benefits, and work location
Proof the agency is authorized to recruit for that employer/principal (not just a “job posting” screenshot)

Step 3 — Demand a complete written offer and contract before paying anything

At minimum, you should see:

Job title and job description
Country and exact worksite/location
Salary (basic + guaranteed allowances), work hours, rest days
Overtime rules, deductions (if any), benefits
Contract duration, termination terms, repatriation terms
Medical insurance / social insurance details (as applicable)

Red flag: “Pay first, contract later” or “We’ll give the contract at the airport.”

Step 4 — Check fee rules carefully (and insist on receipts)

Overseas recruitment is heavily regulated. While exact allowable fees can vary by worker category and prevailing DMW rules, many categories prohibit placement fees entirely, and where fees are allowed, they are typically strictly capped and should come with official receipts.

Red flags:

Excessive “processing fee,” “slot fee,” “reservation fee,” “VIP lane,” “training fee” that looks like placement fee in disguise
Requests for payment to personal accounts/e-wallets without official receipts
Pressure to borrow money through the agency’s “partner lender”

Step 5 — Watch for visa and deployment red flags

A legitimate pathway typically does not require you to:

Enter on a tourist/visit visa to “convert later”
Leave the country without proper deployment documentation
Submit your passport permanently to the recruiter (temporary submission for processing is one thing; withholding it to control you is another)

High-risk indicator: Any instruction to misrepresent your purpose of travel to immigration.

Step 6 — Validate the agency’s identity (anti-“name borrowing” checks)

Scammers sometimes “borrow” a real agency’s name and license number.

Do this:

Call the agency using contact details from official sources, not from the recruiter’s message
Confirm the recruiter is an authorized employee/representative
Verify the office address and transact there
Verify that receipts, documents, and email domains match the legitimate entity

4) Step-by-step verification for local recruitment (Philippine-based jobs)

For local recruitment/placement, use a similar approach:

Verify business registration (SEC/DTI/CDA) and local permits (Mayor’s Permit, BIR registration).
Verify DOLE-related authority if they are acting as a private recruitment/placement entity or if required under applicable rules.
Check the legitimacy of the employer (company existence, address, HR contact, job posting consistency).
Insist on a written job offer with salary, benefits, location, schedule, and employment status.
No “application fee” scams: Charging jobseekers for “guaranteed hiring,” “priority slot,” or large “processing” amounts for local jobs is a major red flag.

5) Step-by-step verification for service agencies / manpower contractors (DOLE contracting context)

If the agency is not “recruiting you for direct employment” but deploying you to a client company (contracting/subcontracting), legitimacy is not just about business registration—it’s also about labor compliance.

Step 1 — Confirm the contractor is a real operating business

Ask for:

SEC/DTI registration documents
BIR registration
Mayor’s Permit
Office address and contact details

Step 2 — Confirm DOLE contractor registration/compliance (where applicable)

Contractors should be able to show proof of compliance with DOLE rules on contracting/subcontracting (commonly requiring registration and labor standards compliance).

Step 3 — Check for “labor-only contracting” red flags

Even if a contractor has papers, the arrangement may still be illegal if it amounts to labor-only contracting (in simplified terms: the contractor is merely supplying people with little real business independence, shifting employer duties to evade labor rights).

Practical red flags:

Contractor has no real equipment/tools/supervision; client controls everything
Contractor cannot pay wages on its own (client pays workers directly or funds payroll day-to-day)
Workers are doing the client’s core work under the client’s direct supervision with the contractor acting as a “payroll pass-through”
Contract “ends” repeatedly to avoid regularization; continuous renewals without genuine project basis

Step 4 — Verify worker protections (if you’re the worker)

A legitimate service contractor should:

Pay at least minimum wage and lawful benefits (e.g., 13th month pay, premium pay, holiday pay where applicable)
Remit SSS, PhilHealth, Pag-IBIG
Provide payslips and maintain clear timekeeping
Have written employment terms and clear assignment details
Have OSH compliance and provide required protective equipment where necessary

Step 5 — Verify client-side compliance (if you’re the client hiring the agency)

If you’re a company engaging a service contractor, your risk is real: you may face claims if the contractor violates labor standards.

Due diligence items:

Contractor registration/compliance documents
Proof of remittances (SSS/PhilHealth/Pag-IBIG)
Payroll summaries and proof of wage payments
Safety and training records where needed
A contract with clear scope, supervision structure, and compliance warranties
Indemnity clauses (useful, but not a shield if the arrangement is truly unlawful)

6) The clearest scam signals (Philippine patterns)

Treat these as “stop signs” until verified:

Identity & licensing red flags

Won’t provide license/registration details, or provides blurry screenshots only
License number/name does not match the entity collecting money
Uses a name extremely similar to a known agency (one letter off)
Recruiter refuses in-office transactions and insists on meetups

Money red flags

Upfront “reservation/slot” fee to secure the job
Payments routed to personal bank accounts/e-wallets
No official receipts, or “acknowledgment receipts” without BIR details
“Training/medical” bundled into inflated fees with no itemization

Process red flags

Tourist visa path for overseas work
No written contract before payment
Contract substitution: what you sign differs from what you’re later told abroad
Pressure tactics: “You must pay today; only 2 slots left”

Communication red flags

Only communicates via social media chat; refuses video calls or office verification
Uses free email accounts with inconsistent names; no verifiable office line
Avoids giving the foreign employer’s real details

Control/trafficking risk red flags

Wants to keep your passport “for safekeeping”
Wants you to live in a dorm immediately, isolated, while “processing”
Threats, intimidation, or debt bondage language (“You owe us; you can’t back out”)

7) Documents you should ask for (by scenario)

If you’re an OFW applicant (land-based)

DMW license details of the agency
Written job offer and draft contract
Proof of authorized recruitment for that foreign employer/principal
Official receipts for any lawful payments
Clear breakdown of costs (government fees vs. agency fees)

If you’re applying locally

Employer identity documents (company name, address, HR contact)
Written job offer with employment status and pay details
Receipts for any lawful charges (be skeptical—most “fees” to applicants are suspicious)

If you’re being deployed by a service contractor

Written employment terms
Assignment details and worksite rules
Payslips, time records
Proof of SSS/PhilHealth/Pag-IBIG enrollment and contributions (at least your membership/coverage info)

If you’re a client hiring a contractor

SEC/DTI/BIR/Mayor’s Permit
DOLE contractor compliance proof
Proof of payroll and statutory remittances
OSH program and insurance where applicable
Contract that requires compliance, audit rights, and remediation obligations

8) What the law commonly treats as “illegal recruitment” (practical meaning)

In Philippine legal practice, “recruitment and placement” is broadly defined—activities like canvassing, enlisting, contracting, transporting, or promising employment for a fee can fall under it. Illegal recruitment commonly includes:

Recruiting for overseas work without the required license/authority
Misrepresentation: fake jobs, fake employers, false salaries/benefits
Charging prohibited or excessive fees
Using deceptive documents or fake travel/work arrangements
Contract substitution and other abusive practices

Some cases become more serious (with harsher penalties) when committed by a group or against multiple victims (often described legally as syndicate/large-scale scenarios). In addition to illegal recruitment, facts may also support estafa (fraud) and, in severe cases, human trafficking indicators.

9) What to do if you suspect a scam or illegal agency

A. Stop the damage early

Stop paying; do not surrender original documents unnecessarily
Save evidence: chats, emails, receipts, account numbers, IDs, videos of meetings, job ads, contracts, call logs
Write a timeline while details are fresh (dates, names, amounts)

B. Report to the proper government offices

Depending on the scenario:

DMW — for overseas recruitment complaints and verification
DOLE — for local employment issues and contractor compliance
Law enforcement (PNP/NBI) — for criminal complaints and evidence handling
Prosecutor’s Office / DOJ — for filing criminal cases
Assistance/aid offices (including public legal assistance where available)

If you’re already abroad or about to depart and something feels wrong, prioritize immediate safety, document everything, and seek official assistance channels.

C. Consider both criminal and administrative remedies

Administrative: license suspension/cancellation, regulatory sanctions
Criminal: illegal recruitment, fraud/estafa, possibly trafficking-related offenses
Civil: recovery of money (often alongside criminal cases)

10) Quick verification checklist (copy/paste)

If overseas recruitment:

DMW-licensed agency (exact name, license number, validity)
Transaction only at licensed office
Verified foreign employer/principal and authorized job order
Written offer + contract reviewed before payment
Fees (if any) are lawful, itemized, receipted (official receipts)
No tourist-visa “conversion” scheme
Recruiter identity confirmed via official agency contact channels

If service contractor/manpower agency:

SEC/DTI + BIR + Mayor’s Permit verified
DOLE contracting compliance proof (where required)
Payslips + SSS/PhilHealth/Pag-IBIG compliance visible
Contractor has genuine supervision, tools, and independent operations
No labor-only contracting red flags

11) Common scenarios and the right response

“They said they’re accredited, but they can’t show a license.”

Treat as not legitimate until independently verified. Lack of verifiable authority is itself a major warning sign.

“They’re legit on paper, but the job details keep changing.”

That’s a classic pathway to contract substitution. Pause immediately; do not pay more; preserve evidence.

“They want a ‘reservation fee’ today to secure a slot.”

High probability scam tactic. Legit processes rarely require panic payments to personal accounts.

“The recruiter is on Facebook/TikTok only.”

Online marketing is not automatically illegal, but recruitment authority and process must still be verifiable. Social media alone is not proof.

12) Practical rule of thumb

For overseas work: No verifiable DMW authority + no verifiable employer authorization + pressure to pay or travel = walk away. For service agencies: Papers are not enough—labor compliance and the true nature of control/supervision determine legitimacy.

13) A careful note on using this guide

This is a general legal-information guide in Philippine context. Rules and agency procedures can change, and the correct verification step is always to rely on the latest official registry and guidance from the relevant regulator (DMW/DOLE and, when applicable, industry regulators).

If you want, share the agency name, claimed license number, and the exact “deal” they offered (fees, visa type, country, timeline), and this guide can be applied to it in a structured risk assessment checklist format.