Note on terminology. The agency formerly known as the Philippine Overseas Employment Administration (POEA) now operates as the Department of Migrant Workers (DMW). However, the industry and many contracts still refer to the “POEA license.” In this article, “POEA license” means a valid DMW/POEA recruitment agency license.

What “ESW” means here. In Philippine outbound placement to Canada, “ESW” is commonly used by recruiters to mean employer-specific work—i.e., a job-offer–based, employer-tied pathway that typically relies on a Canadian Labour Market Impact Assessment (LMIA) under the Temporary Foreign Worker Program (TFWP), or on an LMIA-exempt employer-specific permit under the International Mobility Program (IMP). The core legal question is the same: if you are being recruited in the Philippines for employment in Canada, Philippine law requires that recruitment to be done by—or through—a Philippine agency with a valid POEA/DMW license, unless a narrow statutory exemption applies.

1) Why a POEA (DMW) License Matters

Legality of recruitment. Any person or entity that offers, promises, or arranges overseas employment in the Philippines is engaging in recruitment and must hold a current POEA/DMW license. Operating without one constitutes illegal recruitment, a criminal offense.
Protection mechanisms. Licensed agencies are bonded, subject to audits, and can be sanctioned. They are the legal counterpart that:
- registers and accredits the Canadian employer,
- files job orders and standard employment contracts,
- obtains the Overseas Employment Certificate (OEC) authorizing departure as an OFW,
- enrolls you in OWWA and the mandatory insurance for agency-hired workers, and
- ensures you complete PEOS/PDOS (pre-employment and pre-departure orientation).

2) When a POEA License Is Required for Canada “ESW” Hires

A POEA/DMW-licensed Philippine recruitment agency must be involved if:

You are in the Philippines and are being sourced, screened, promised, or processed for a Canadian job (ESW/TFWP or IMP).
A foreign recruiter or Canadian employer uses any representative in the Philippines to recruit or collect documents/fees. Foreign firms cannot recruit directly in the Philippines without partnering with a POEA-licensed local agency and completing DMW accreditation.
You will depart as an OFW on an employer-specific work permit (LMIA-based or LMIA-exempt), including caregivers, trades, hospitality, food service, agriculture, logistics, health care, and most NOC categories.

Result: Without a licensed Philippine agency in the chain (or a valid exemption), DMW will not issue an OEC, and airline/immigration exit controls will prevent deployment.

3) Limited Exemptions (Direct-Hire Rules)

Direct hire (no Philippine agency) is generally prohibited, with narrow exceptions that still require DMW clearance. Historically recognized categories include:

Certain employers exempted by law (e.g., international organizations, diplomatic corps)
Name hires in limited numbers and subject to documentary proof, where the employer directly hires the worker without a third-party recruiter and undertakes to shoulder costs and comply with DMW rules
Rehires/returning workers with the same employer under specified conditions

Important: Even in exempt cases, DMW processing (verification of contract, compliance with host-country protections, OEC issuance) is typically still required. Using an unlicensed “consultant,” “training center,” or “coordinator” in the Philippines voids the exemption and may constitute illegal recruitment.

4) Canada-Side Prerequisites that Affect Philippine Processing

LMIA (if TFWP). Most ESW pathways require a positive LMIA naming the worker, job, wage, and location.
IMP/LMIA-exempt codes. Some employer-specific permits (e.g., intra-company transferees, certain trade agreements, research/academia) use LMIA-exempt categories but still tie the worker to a named employer.
Provincial recruiter rules. Several Canadian provinces require recruiter licensing/registration and ban worker-paid recruitment fees. Philippine agencies must coordinate with Canada-licensed partners where required.
Standard employment terms. Wages/benefits must meet or exceed the prevailing provincial/territorial standards and LMIA conditions.

These Canada-side documents are not optional in Philippine processing; the DMW will match them against the Philippine standard employment contract and job order.

5) Who Must Hold What License?

Role	Philippine Requirement	Canada-Side Considerations
Philippine recruiter	POEA/DMW license (active status), escrow & surety bonds, compliance officers	Must observe Canada’s ban on charging recruitment fees to workers in many provinces
Foreign recruiter (if any)	Accreditation with DMW via a licensed PH agency; may not recruit in PH without the PH agency	Often must hold provincial recruiter license/registration
Canadian employer	Accreditation with DMW through the PH agency; undertakings on wages, housing (if applicable), insurance	LMIA (if required) or valid IMP offer; compliance with employment standards

6) The Accreditation → Job Order → OEC Pipeline

Agency–Employer Agreement. A licensed PH agency signs a recruitment agreement with the Canadian employer or its authorized foreign recruiter.
Accreditation at DMW. Submission of corporate proofs, LMIA/IMP offer, specimen contracts, and employer undertakings.
Job Order Approval. DMW registers positions, salaries, and site of work; aligns with LMIA/offer.
Selection & Contracting. Candidates sign DMW-vetted standard contracts (no substitution/downgrades allowed).
Worker Compliance. Medical exam, PDOS/PEOS, OWWA membership, mandatory insurance, visa/work-permit issuance.
OEC Issuance. Final check; release of the Overseas Employment Certificate authorizing departure.

No OEC → no lawful deployment from the Philippines.

7) Fees: What Can Be Charged (and What Cannot)

Recruitment/placement fees. Philippine rules generally cap placement fee at one (1) month basic salary unless the host country prohibits worker-paid fees or the employer assumes all costs. Many Canadian provinces and employer programs prohibit worker-paid recruitment fees; in such cases, the agency may not collect a placement fee in the Philippines.
Processing and pass-throughs. Only itemized, official-receipt costs allowed by both PH and Canadian law may be passed to the worker (e.g., medicals, visa fees if not employer-paid, government clearances).
Absolute prohibitions. No “training fees” disguised as placement charges, no “marketing,” “coordination,” or “slot” payments, no contract substitution, and no salary deductions to recoup banned fees.

8) Red Flags (Indicative of Illegal Recruitment)

The “agency” cannot provide a POEA/DMW license number or shows a photo of an expired certificate.
They ask you to sign abroad or route you through a tourist visa first to avoid DMW processing.
They say “Canada doesn’t need OEC” or “POEA processing is optional.”
Fees are “refundable if denied” but paid in cash or to a personal account; receipts are informal or generic.
They refuse to issue a standard DMW employment contract aligned with the LMIA/offer.

9) Special Scenarios and How the POEA License Rule Applies

Express Entry / Permanent Residence (PR) pathways (FSW/CEC/PNP). If you migrate as a permanent resident before employment and no one recruited you in the Philippines for a job, DMW/POEA deployment processing is not required. You may instead complete CFO emigrant guidance.
Open work permits (e.g., spouses of students/workers). If your employment is not pre-arranged from the Philippines and you will look for work after arrival, there is no recruitment in the Philippines, so the POEA license requirement does not trigger.
Intra-company transferees (IMP). If a Philippine employee is assigned by a multinational to its Canadian affiliate and no third-party recruitment occurred in the Philippines, this can be handled under corporate mobility plus DMW rules for exemptions/clearances applicable to rehires or direct corporate deployments—coordinate early; documentation is still scrutinized.
Rehires/renewals. Returning workers to the same employer often qualify for streamlined processing but still require OEC issuance.

10) Worker’s Due Diligence Checklist

Get the POEA/DMW license number and license validity dates of the Philippine agency.
Ask who the Canadian partner is and whether they hold the provincial recruiter registration (if applicable).
Request copies or references to the LMIA or IMP offer, and the standard Philippine employment contract; check that wages, hours, benefits, and location match.
Confirm who pays which fees (recruitment, medical, visa, biometrics, airfare, housing if applicable).
Ensure the agency will process your OEC, OWWA, mandatory insurance, and PDOS/PEOS.
Keep official receipts for every payment; avoid cash to personal accounts.
Refuse contract substitution or any request to sign a different version “for Canada only.”

11) Employer & Foreign Recruiter Compliance (Philippine Side)

Do not recruit in the Philippines (job fairs, online ads targeting PH residents, interviews) without a DMW-licensed Philippine agency.
Execute a Recruitment/Service Agreement with the Philippine agency, including no-worker-fee undertakings where required.
Submit a complete accreditation package (corporate documents, LMIA/offer, contract templates) and obtain job order approval before advertising or conducting selection in the Philippines.
Align all offer letters with the DMW standard contract—no clawbacks, liquidated damages, or deductions that would violate PH or Canadian law.

12) Penalties and Liability

For individuals/companies recruiting without a license: criminal liability for illegal recruitment, administrative fines, blacklisting, and possible immigration holds on worker departures connected to the scheme.
For licensed agencies: suspension/cancellation of license, forfeiture of bonds, fines, and liability for full worker repatriation and monetary claims if violations occur.
Civil exposure: restitution of illegal fees, wage differentials, and damages; enforcement may be pursued in the Philippines and, where applicable, in Canada under provincial statutes.

13) Practical Timelines & Document Flow (Typical ESW/LMIA Track)

Canadian employer obtains LMIA →
Accreditation and job order with DMW via a licensed PH agency →
Recruitment & selection in PH (interviews, trade tests) →
Contract signing (DMW standard) →
Visa/work-permit application at Canada visa office →
PDOS/PEOS, OWWA, insurance →
OEC issuance →
Departure.

Starting step 2 without a POEA-licensed agency blocks steps 6–7 and exposes everyone to sanctions.

14) Frequently Asked Questions

Q1: My relative’s Canadian employer sent a job offer. Can we process directly? Only if you fall within a direct-hire exemption and secure DMW clearance. If any recruiter in the Philippines is involved, a POEA-licensed agency must handle it.

Q2: The agency says OEC is unnecessary if we fly via another country. False. Circumventing DMW processing is illegal recruitment. You risk offloading at Philippine exit controls and loss of protection/benefits.

Q3: Canada bans worker-paid recruitment fees. Can a Philippine agency still charge a placement fee? No. Philippine rules recognize host-country bans. If Canada/province/employer assumes fees, the agency cannot charge a placement fee in the Philippines.

Q4: We are using Express Entry (PR) and job search after landing. Do we need a Philippine agency? No Philippine agency is required because there is no recruitment in the Philippines for employment. Philippine emigrant guidance (CFO) may apply instead of DMW/POEA deployment.

Q5: The foreign recruiter will interview via Zoom; they’re not in the Philippines. If the targeted recruitment is for Philippine-based candidates, it is treated as recruitment in the Philippines. A POEA-licensed local agency and DMW accreditation are still required.

15) Key Takeaways

For employer-specific work pathways to Canada (LMIA-based or LMIA-exempt with a named employer), Philippine law requires that recruitment conducted in the Philippines be handled by/through a POEA-licensed (DMW-licensed) agency, with DMW accreditation, job order approval, and OEC issuance before departure.
Direct hire is heavily restricted and still needs DMW clearance; using any unlicensed intermediary in the Philippines defeats the exemption.
Worker-paid recruitment fees are frequently prohibited in Canada; Philippine agencies must honor those bans—no placement fee where prohibited or employer-paid.
Verify licenses, insist on the standard DMW contract, and never skip OEC and pre-departure requirements.