Illegal Passport Withholding and Recruitment Fees: POEA/DMW Rules for OFW Applicants (Philippine Context)

This article explains, in one place, how Philippine law and DMW (formerly POEA) rules treat (1) passport retention/withholding and (2) recruitment fees for overseas work—what’s allowed, what’s illegal, penalties, and practical remedies for workers.

1) Who regulates this—and why it matters

Department of Migrant Workers (DMW) now leads regulation of overseas recruitment and deployment (POEA’s core functions were absorbed by the DMW).
Key legal pillars
- Migrant Workers and Overseas Filipinos Act (commonly “RA 8042,” as amended by RA 9422 and RA 10022, and integrated into the DMW framework).
- Philippine Passport Act (RA 8239)—the passport remains property of the Philippine Government.
- Labor Code (illegal recruitment provisions, as amended).
- Expanded Anti-Trafficking in Persons Act (RA 10364)—confiscation of passports to exact labor or debt may constitute trafficking/forced labor.
- Maritime: Maritime Labour Convention (MLC 2006) and the POEA/DMW Standard Employment Contract for seafarers.
Bottom line: Overseas recruitment is a licensed activity. Agents must be DMW-licensed; job orders must be verified/approved; and worker protection standards—including no passport retention and limits on fees—are strictly enforced.

2) Passport retention/withholding

General rule

Agencies and employers are prohibited from withholding, confiscating, or keeping a worker’s passport (or original PSA certificates, PRC license, IDs, ATM cards, etc.) as leverage for payment, deployment, discipline, or control.

Narrow, practical exception

An agency may temporarily receive a passport only for a legitimate processing step (e.g., visa stamping) with the worker’s written consent, and it must:
1. Issue a dated acknowledgment/receipt naming the document and the specific purpose.
2. Return the passport immediately after that step or on a date certain.
3. Never condition return on fees, surrender of salary, or resignation.

Why it’s illegal to keep passports

The passport is government property; keeping it to restrict movement violates public policy and can be:
- an administrative offense (licensing sanctions);
- illegal recruitment when used to extract money or compel work;
- trafficking/forced labor where coercion or debt bondage is present.

Indicators of unlawful passport retention

“We’ll keep your passport until you pay the ‘placement balance.’”
“No return until you sign a new contract with lower salary.”
“We’ll hold it until you finish your two-year bond.”
“You can view it here, but it stays in our safe.”

Worker’s right: You may demand immediate return of your passport at any time. You are not required to leave it with an agency outside a documented processing step.

3) Recruitment fees: what’s allowed vs. illegal

Core principles

No fees beyond what the rules explicitly allow.
No “placement fee” for domestic workers/household service workers (HSWs) and seafarers—ever.
For many land-based, non-HSW jobs, a placement fee may be charged up to one (1) month basic salary, only if:
- The destination country’s law does not prohibit worker-paid fees; and
- The employer does not already shoulder that item under applicable norms; and
- The agency issues official receipts and discloses the fee in the approved contract.
If the host country bans worker-paid fees (e.g., “employer-pays” regimes), then zero placement fee applies regardless of occupation.

Usual cost-allocation (rule-of-thumb)

Employer must shoulder: visa and work permit fees, airfare (deployment and, where required, return), most recruitment/placement costs, mandatory insurance where employer-paying is required by law/policy, and overseas medicals if host-law requires employer payment.
Worker may lawfully pay (if not shouldered by employer and only at actual cost):
- Passport fee (DFA), NBI/Police clearance, PSA civil registry documents, local medical exam (only where policy allows worker-pay), training/certification genuinely required for the job (e.g., TESDA/PRC), and DMW/OWWA/e-card government charges when the rules designate worker-pay.
- All such payments must be officially receipted, at documented, reasonable, and published rates.

What’s illegal to charge or collect

Any placement fee from HSWs or seafarers.
Above-cap placement fee for non-HSWs (beyond 1 month basic salary).
“Conversion,” “facilitation,” “processing,” “training,” “exaction,” or “orientation” charges that duplicate required free services.
Kickbacks from salary, salary deductions, forced loans, or requiring the worker to buy goods/services (e.g., “agency medical,” “agency lodging”) at inflated rates.
Charging when the host country bans fees (many do).
Collecting any fee without official receipt or before DMW approval of the job order/contract.

4) Illegal recruitment and economic sabotage

Illegal recruitment includes, among others:
- Charging or accepting fees greater than allowed or in violation of DMW rules;
- Withholding passports or travel documents to compel payment/work;
- Contract substitution (deploying at terms lower than approved);
- Recruiting without a license or for non-existent/unapproved jobs.
When committed by a syndicate (≥3 persons) or in large scale (≥3 victims), it becomes economic sabotage—a non-bailable, more heavily penalized offense.

5) Administrative penalties (licensing sanctions)

DMW may impose, singly or cumulatively, depending on gravity and repetition:

Fines (often escalating for repeat offenses);
Suspension of license and cease-and-desist directives;
Cancellation of license or accreditation;
Permanent disqualification of officers and responsible staff;
Restitution/refund of illegally collected money to workers;
Blacklisting of principals/employers.

(Exact fine brackets and matrices are set out in DMW’s schedule of offenses; aggravating factors include number of victims, use of coercion, and concealment.)

6) Special notes by sector

Household Service Workers (HSWs)

Absolute zero placement fee.
Employers typically shoulder: visa/work permit, airfare, medical (where required), and government insurance where mandated.
Passport must remain with the worker.

Seafarers

No placement fees; only personal documentation costs at actual, receipted cost may be collected.
The POEA/DMW Standard Employment Contract requires unimpeded possession of personal documents and repatriation rights.

Countries with “Employer-Pays” Laws/Policies

If the host country prohibits worker-paid recruitment fees, Philippine agencies must follow host-country law + Philippine rules → no placement fee.

7) Practical protections for workers

Before paying anything

Verify: the agency’s license, the job order, and the approved employment contract (must match the offered salary, position, and benefits).
Get everything in writing: itemized fee disclosure; no-passport-retention acknowledgment; and receipt for every payment.
Red flags: “pay now, deploy soon”; “passport required to reserve a slot”; “cash only, no receipt”; “training package is mandatory and non-refundable.”

If an agency asks to hold your passport

Say no—or limit it to a short, specific processing step with:
- Written consent stating purpose and return date, and
- Official acknowledgment naming the document and serial number,
- Immediate return once the step is done.

If you already surrendered your passport

Demand return in writing (keep a copy/photo).
Document: messages, receipts, names, dates, and any threats.
Report/complain (see Section 8).

8) Remedies and how to file cases

A. Administrative (DMW)

What: Violations of DMW rules (illegal fees; passport retention; contract substitution; failure to deploy; etc.).
Who: Licensed agencies, their officers, and accredited foreign principals.
Relief: Fines, suspension/cancellation, refunds, cease-and-desist, and worker assistance.
Where/How: File a sworn complaint with annexes (IDs, receipts, messages, acknowledgment of passport, job offer/contract). DMW field offices and online portals accept filings.

B. Criminal (Illegal Recruitment)

Where: City/Provincial Prosecutor (for inquest/prelim. investigation).
Targets: Unlicensed recruiters; licensed recruiters committing prohibited acts (e.g., overcharging).
Tip: If ≥3 victims, highlight large-scale; identify all conspirators.

C. Trafficking/Coercion (RA 10364)

When: Passport confiscation, threats, or debt bondage to force work or movement.
Action: Report to IACAT units, police/WCPC, NBI-ATD, airport/port task forces.

D. Civil

Claims: Damages (moral/actual), specific performance, rescission and restitution.

E. At the Airport/Departure

If an escort/handler refuses to return your passport, seek assistance from airport DMW/OWWA/Immigration and IACAT desks immediately.

9) Documentation you should keep

Copies/photos of:
- Passport bio page and any acknowledgment receipts issued to the agency;
- Official receipts for every payment (amount, date, purpose);
- Employment contract and DMW Approval/Job Order reference;
- Chats/emails, call recordings (if lawful), and any threatening messages;
- Medical/training certificates, TESDA/PRC items, and visa paperwork.

10) FAQs

Q1: Can an agency require me to leave my passport “for safekeeping” while I wait for deployment? No. Safekeeping is not a lawful reason. Only a specific processing step with written consent and prompt return is acceptable.

Q2: I’m not a domestic worker. Can they charge one (1) month salary as placement fee? Only if host-country law allows, your contract shows it, receipts are issued, and no other rule allocates that cost to the employer. If the destination bans worker-paid fees or the employer shoulders them, zero placement fee.

Q3: They deducted my salary abroad to recover “recruitment costs.” Is that allowed? Generally no—salary kickbacks and deductions for recruitment costs are prohibited. Document it and file for refund/penalties.

Q4: My passport is with the foreign employer. Can I insist on holding it? Yes. Workers have the right to possession of personal documents. Ask for return in writing and seek help from the Philippine Overseas Labor Office / Migrant Workers Office and the nearest Philippine Embassy/Consulate.

Q5: Who pays the return airfare if I’m terminated without my fault? Typically the employer. Check your approved contract and host-country rules; DMW standards usually require employer-paid repatriation in such cases.

11) Sample templates you can copy

A. Short demand for passport return

Date

Agency/Employer Name

I respectfully demand the immediate return of my passport (No. ______). It was submitted for [specific process] on [date]. There is no legal basis to withhold it beyond that step. Please return it to me by [date/time].

Signature / Name / Contact

B. Receipt acknowledgment when you must temporarily hand it over

Received from [Worker] the Philippine Passport No. ______ solely for [visa stamping at Embassy of ___]. We will return it on or before [date] or immediately upon completion, whichever is earlier.

Agency Name, DMW License No., Authorized Signatory, Date/Time

C. Refund request for illegal fees

Kindly refund the following amounts illegally collected contrary to DMW rules: [itemize], totaling PHP _____. Please remit within five (5) days; otherwise I will file an administrative and criminal complaint.

12) Quick checklist for OFW applicants

Agency is DMW-licensed; job order approved.
No passport hand-over except for a clearly documented processing step.
No placement fee if HSW or seafarer; for others, never above 1 month salary and not where host law bans it.
Official receipts for every peso paid; keep copies.
Contract terms match what DMW approved.
Beware of salary deductions, forced loans, or training packages as a condition for deployment.
Know where and how to file complaints.

13) Takeaway

Passport retention is generally unlawful. Short, consent-based, documented handling for a specific process is the only narrow allowance.
Recruitment fees are tightly restricted, with zero-fee regimes for HSWs and seafarers and an upper cap (one month basic salary) for certain non-HSW roles only when not barred by host-country law and fully receipted.
Violations can trigger refunds, license cancellation, criminal liability, and trafficking charges in aggravated cases.

If you want, I can adapt this into a one-page printable checklist or add a worker-friendly “Know Your Rights” poster version.