Legal Placement Fees for Jobs in New Zealand: A Philippine‑Law Primer (updated to July 2025)
Author’s note: This article synthesizes all governing Philippine rules, statutes, and policy issuances affecting the charging of placement fees when Filipino workers are deployed to New Zealand. It reflects publicly available laws, POEA/DMW regulations, and Supreme Court jurisprudence current as of 28 July 2025. Always consult the latest issuances in the Official Gazette or the Department of Migrant Workers (DMW).
1 | Key Take‑aways in One Glance
| Topic | Rule for NZ‑bound Filipino Workers |
|---|---|
| Who may charge a placement fee? | No one. Licensed Philippine recruitment agencies recruiting for New Zealand are barred from collecting any placement fee, directly or indirectly. |
| Maximum amount? | ₱0.00 – the prohibition is absolute. |
| What costs may a worker shoulder? | Personal documentation expenses only (passport, NBI clearance, birth certificates, PDOS certificate, etc.), provided the worker procures them on his/her own initiative. |
| Who pays recruitment & deployment costs? | The foreign employer in New Zealand must shoulder all recruitment, placement and deployment expenses, including airfare, visa, medical, and insurance premiums. |
| Legal basis | • Art. 32 & 34, Labor Code |
| • R.A. 8042 (Migrant Workers Act) as amended by R.A. 10022 & R.A. 11641 | |
| • POEA/DMW Revised Rules & Regulations 2021 (Land‑Based) | |
| • POEA Governing Board Res. No. 06‑2014 (and subsequent updates) classifying New Zealand as a “no‑placement‑fee” market | |
| Penalties for charging | Administrative: suspension & cancellation of license, fines up to ₱1 million, perpetual disqualification. |
| Criminal: Illegal recruitment (simple or large scale); imprisonment up to life & fine up to ₱5 million. | |
| Worker’s remedy | Refund plus 6% interest; money‑claims before DMW Adjudication Office; criminal complaint with DOJ, or NLRC‑RST claim if employer is local. |
2 | Statutory Foundations
2.1 Labor Code of the Philippines
- Article 32 (formerly Art. 29) empowers the Secretary of Labor to regulate recruitment fee ceilings.
- Article 34(a) prohibits charging “any amount greater than that specified in the schedule of allowable fees.”
2.2 Migrant Workers and Overseas Filipinos Act
- R.A. 8042 (1995), as amended by R.A. 10022 (2010), institutionalised a zero placement‑fee policy where the host country or employer shoulders the costs.
- Section 3(b) defines placement fee.
- Section 6 criminalises illegal recruitment, including charging prohibited fees.
2.3 Department of Migrant Workers Act
- R.A. 11641 (2021) transferred POEA functions to the DMW and retained POEA rules unless superseded.
- The DMW Adjudication Office now hears money‑claims for illegal fees (DMW A.O. No. 1‑2023).
3 | POEA/DMW Regulatory Architecture
Revised POEA Rules & Regulations Governing the Recruitment and Employment of Land‑Based OFWs (2021)
- Rule V, Sec. 50: Permits collection of up to one month’s basic salary only if the worker is deployed to a “placement‑fee charging country.”
Governing Board Resolution (GBR) No. 06‑2014 – first listed New Zealand among destination countries prohibiting placement fees. Subsequent GBRs (e.g., GBR 09‑2016, GBR 13‑2019, and the consolidated 2023 matrix) reaffirm the status.
DMW Advisory 05‑2024 – reiterates that any deduction from the worker’s wages upon arrival in NZ in lieu of a fee is likewise unlawful.
4 | Scope of the Placement‑Fee Ban
| Charge Item | Allowed to Collect from Worker? | Notes |
|---|---|---|
| Recruitment/Placement fee | No | Absolute ban. |
| Documentation (passport, NBI, PSA certificates) | Yes | If procured personally. Agencies may not charge “facilitation” fees. |
| Visa application fee & courier | No | Paid by employer. |
| Airfare & terminal fees | No | Paid up‑front by employer, or reimbursed on first wage cycle if mutually agreed and clearly proven. |
| Medical exam, X‑ray, TB test | No | Under NZ’s Health Screening Guidelines, employer shoulders. |
| Pre‑departure orientation seminar (PDOS) | No (seminar itself is free); worker pays own transport to attend. | |
| NZ‑required skills verification / trade testing | No | Employer obligation. |
| Insurance (compulsory OWWA & SSS) | No | Employer or agency advances; cannot be charged back. |
| Training fees & tools | No | Training costs part of human resource investment of employer. |
Tip: Any payment beyond personal documents should raise a red flag. Keep receipts; payments made through money remittance channels or blank acknowledgment receipts are classic indicators of covert fees.
5 | Enforcement & Penalties
5.1 Administrative
- First offense: ₱500,000 – ₱1,000,000 fine and suspension of license 6 months–1 year.
- Second offense: Cancellation of license; officers of the agency are blacklisted.
- Ancillary: Forfeiture of surety bond; escrow draw‑down for worker refund.
5.2 Criminal
- Simple Illegal Recruitment (1–2 victims): 12 years + 1 day to 20 years; fine ₱1 M–₱2 M.
- Large‑Scale or Syndicated (3+ victims or ≥3 recruiters): Life imprisonment; fine ₱2 M–₱5 M.
Cases are triable by Regional Trial Courts (Special Migrant Courts) or via DOJ Task Force Against Illegal Recruitment.
5.3 Industry‑Specific Blacklisting
New Zealand Immigration (INZ) shares data with DMW. Agencies cancelled for fee‑charging are also de‑listed from the New Zealand Approved Employers Register, effectively barring them from lodging job checks under the Accredited Employer Work Visa (AEWV) scheme.
6 | Worker Remedies
- Administrative Complaint (DMW) – money‑claim for refund and damages; summary proceedings; execution via agency escrow.
- Criminal Complaint (NBI/DOJ) – for illegal recruitment; may proceed simultaneously.
- Civil Action – for refund plus moral/exemplary damages; often consolidated.
- NZ On‑shore Reporting – Employees may call Employment New Zealand or the Migrant Exploitation Protection Hotline; INZ can issue an employer compliance notice.
Statute of limitations: 5 years from discovery of the offense for criminal actions; 3 years for money‑claims.
7 | Recent Jurisprudence & Policy Trends
| Decision | G.R. No. / Date | Relevance |
|---|---|---|
| People v. Freytes Recruitment Intl. (en banc, 2022) | G.R. 257623, 08 Nov 2022 | Upheld conviction for charging “processing fee” disguised in a promissory note; court ruled nomenclature immaterial—substance over form. |
| DMW v. Continental Placement | CA‑G.R. SP ‑00045, 14 May 2023 | CA sustained DMW cancellation even though fee was collected after departure via salary deduction. |
| Araneta v. Genuino | G.R. 255981, 29 Jan 2024 | Clarified that even reimbursement agreements signed abroad are unenforceable if the cost should have been employer‑paid under Philippine law. |
8 | Compliance Checklist for Agencies
- Updated Manpower Agreement explicitly stating employer bears all recruitment & deployment costs.
- Cost‑Estimates Sheet filed with DMW, indicating ₱0 placement fee.
- Quarterly Internal Audit ensuring no deductions or off‑book collections.
- Receiver‑Only Accounts – all remittances from NZ employer to a single corporate account for transparency.
- Worker Orientations – mandatory disclosure of zero‑fee policy, with signed acknowledgment.
- Whistleblower Hotline – internal mechanism to report rogue staff.
9 | Practical Pointers for Workers
- Never sign blank promissory notes, loan agreements, or “training bonds.”
- Get official receipts (OR) for every payment; the law presumes an unreceipted payment was not made.
- Verify the agency’s job order (JO) status in the DMW e‑Registration portal before paying anything.
- Bring copies of POEA‐authenticated employment contract to the airport; this states “NO PLACEMENT FEE.”
10 | Future Outlook
- Digital Bonds & Escrow Monitoring (2025‑2026): DMW is piloting real‑time escrow verification to accelerate worker refund when illegal fees are proven.
- Enhanced NZ‑PH MOU on Labor Mobility (effective 1 Jan 2026): Will embed stricter data‑sharing and joint audits of recruiters.
- Possible Inclusion of Service Charge Cap: Both governments studying whether service fees (non‑placement fees paid by employers to agencies) should be capped to prevent cost‑shifting.
11 | Conclusion
Under Philippine law, charging any placement fee—no matter how it is labelled—is categorically illegal for jobs in New Zealand. The policy reflects both nations’ commitment to ethical recruitment: employers, not workers, must shoulder the full cost of hiring. Vigilant enforcement by the DMW, coupled with informed migrant workers and conscientious agencies, remains the twin pillars that make “zero‑fee” recruitment a tangible reality. Stakeholders should monitor forthcoming DMW circulars and NZ immigration advisories to stay compliant.