POLITICAL

P1. Establishment of the Department of Migrant Workers (DMW) in the Philippines

The creation of the Department of Migrant Workers is due to the enactment of Republic
Act No.11641 dated on December 30, 2021. It was a consolidation of seven government agencies
into one entity. In the case of manpower agencies, this leads to an opportunity for more
coordination with the government. It reduces significant delays in the deployment process of
every worker. It also provides better protection for overseas Filipino Workers. On the other hand,
in the recent report from Philippine News Agency (2025), DMW prohibits the deployment of
first-time OFWs or those without previous overseas work experience to Kuwait due to stricter
regulatory compliance. This prohibition in deployment of DMW imposes recruitment challenges
to manpower agencies like JPM88 as it may lead to difficulties in filling positions and managing
client expectations.

P2. Stricter Enforcement of Anti-Illegal Recruitment Laws

The government of the Philippines has raised stricter policies and procedures for foreign
hiring as shown by the recent headlines from the supreme court of the Philippines (2023) about a
man who was found guilty of estafa and illegal recruitment, sending him to prison with a one
million peso penalty due to a scheme of false promises of getting a job abroad. This lends
credibility to the government's push to protect Overseas Filipino Workers (OFWs) from any such
scam of phony recruitment. This emphasizes the necessity for the strict compliance of all
manpower agencies with ethical and legal recruitment methods. While it calls for extra vigilance
in documentation and reporting, it greatly enhances the credibility of the industry since it
encourages public trust in legitimate agencies such as the JPM88 International Manpower
Agency.

P3. Bilateral Labor Agreements with Middle Eastern Countries

International manpower agencies in the Philippines deploys workers to various countries

specifically in Middle East such as Saudi Arabia, Kuwait, and Jordan. In 2023, the Department
of Migrant Workers (DMW) recorded an all-time high in overseas employment, with 1,752,094
land-based workers and 578,626 seafarers deployed, of which 49.8% were female, primarily
working as domestic helpers (Philstar, 2024). Saudi Arabia was the leading destination with
419,776 Filipino workers, followed by the United Arab Emirates with 282,896 (Philstar, 2024). .
The renewed and established bilateral labor agreements (BLAs) with Middle Eastern countries
enhances OFWs working conditions and rights which includes better wages, regulated working
hours, and a strengthened dispute resolution strategies may foster more attractive employment
options for OFWs. This is a great way for boosting deployment services of manpower agencies
in the Philippines. However, this recent change means a requirement of strict and continuous
monitoring as it demands agencies to stay updated on specific country regulations to ensure that
employment contracts are up to date with the current standards.

P4. Amendments to the Overseas Employment Certificate (OEC) Processing

One of the critical deployment documents needed by every OFWs is the Overseas
Employment Certificate (OEC) which serves as an exit clearance. In the recent press release of
the Bureau of Immigration and Department of Migrant Workers (DMW), OFWs can expect
faster processing procedures which means faster deployment schedules. They now have a new
system that has real-time data sharing capabilities. This significantly improves satisfaction on the
part of clients and workers. Although, this is a positive impact for both agencies and workers as
it speeds up their deployment process, because of the new system, agencies need to ensure that
all documents are accurately prepared and well-documented.

P5. OFW Sovereign Fund

According to news from Philstar global (2023), lawmakers proposed the Sovereign Fund
for Overseas Filipino Worker (OFW) which aims to provide security financially and investment
opportunities for returning OFWs. This was proposed by the Philippine government as a way to
encourage OFWs to invest their earnings in government-supported programs. It aims to promote
the economic reintegration of OFWs investment alternative that is more secure and profitable.
This paves way to attract OFWs for manpower agencies as this is an additional incentive which
will attract potential candidates as it presents long-term financial benefits and not just
employment opportunities. Ultimately, the OFW Sovereign Fund adds value to the services
offered by agencies like JPM88, contributing to the financial well-being of OFWs while
supporting their reintegration into the Philippine economy.

ECONOMIC

EC1. Exchange Rates and Remittances in the Philippines

Exchange rate volatility adds considerable impact to the remittances of Overseas Filipino
Workers (OFWs), as an appreciating host currency hikes the peso equivalent of such remittances
in favor of OFW families. Remittances totaled a record $38.34 billion in 2024, increasing 3%
year on year, buoyed by economic recovery in top markets like the US and Middle East, spurring
demand for Filipino health workers and information technology personnel. December alone
added $3.73 billion, a festive season contribution for holiday purchases. In addition, the
weakened peso in the first half of the year spurred higher remittance values, and the wider use of
digital channels allowed for faster and lower-cost transfers. Remittances accounted for 8.3% of
the Philippine economy in 2024, proving their irreplaceable role in household income. For
JPM88 International Manpower Agency Inc., these forces are both a blessing and a curse: the
ongoing demand for skilled workers can enhance recruitment efforts, but potential exchange rate
fluctuations and geopolitical tensions can imperil future growth.

EC2. Employment Demand in Foreign Markets

The demand for overseas Filipino workers is determined primarily by the economic
situation in the host nations, whereby economic upswings can cause more job opportunities to
open up, whereas recessions or policy shifts, such as nationalization of the labor force, might cut
down on demand, affecting placement rates for manpower agencies directly. According to
Alexander (2024), This 2024, the international labor market is witnessing dramatic changes
fueled by technological revolution and remote work trends that reshape the kind of jobs in
demand and the skills needed. Such changes may create a more competitive market for
manpower agencies since they are expected to keep up with changing market needs and
accommodate growing demand in certain skill sets. As a result, JPM88 International and others
like it in the Philippines can struggle to sustain placement rates when the economy is uncertain,
as well as to leverage new opportunities in developing industries.

EC3. Wage Trends

Higher remunerations in targeted markets can result in higher demand for agency
services, as firms seek economically efficient recruitment solutions to compete against inflation.
For example, the Department of Migrant Workers (DMW) made increased wages in Taiwan and
Hong Kong that would allegedly reach thousands of overseas Filipino workers (OFWs) (DMW,
2023). According to DMW (2023), the Taiwan Ministry of Labor (MOL) new wage order
imposes a 4.05% raise on the monthly minimum pay from NT$26,400 (P46,378.70) to
NT$27,470 (P48,223.43). The same order also raises the minimum hourly wage by NT$7 from
NT$168 (P295.14) to NT$183 (P321.48)., making these positions more attractive to migrant
workers. Conversely, sagging or declining wages elsewhere can reduce job desirability,
impacting placements. Where salaries are competitive, such as in Taiwan and Hong Kong, the
agencies will experience higher demand since employers will look for effective recruitment
strategies to attract skilled workers.

EC4. Global Economic Conditions

Global economic conditions, including oil price movements and financial crises, have a
strong impact on the demand for migrant workers. For example, one study shows that a 10% rise
in oil prices would result in an increase of 3.5% in the demand for labor in oil-reliant economies
such as Middle Eastern economies (Aldhabi et al., 2024). On the other hand, during economic
crises, like the one caused by the COVID-19 pandemic, demand for migrant labor can drop
dramatically, with some nations facing a decrease of as much as 30% in employment
opportunities for foreign workers (Mastrorillo et al., 2023). These changes require manpower
agencies to adjust their strategic planning to conform to these economic realities, targeting areas
and industries that are growing.

EC5. Inflation rates

The increasing levels of inflation rates, as depicted by the increases in the Philippines'
Consumer Price Index (CPI), currently at levels registering higher living expenses (Philippine
Statistics Authority, 2023), also have important implications to manpower agencies. More
inflation generally also translates to stronger wage demands for workers, to which businesses
usually respond by finding the services of the agency as an effective way of recruiting without
the added recruitment costs. On the other hand, high inflation can lead to economic instability,
and firms will postpone hiring or reduce workforce expansion, thus negatively impacting the
demand for the services of the agency. Additionally, the differential impacts of inflation across
sectors can affect manpower agencies since it focuses on industries with persistent hiring
requirements in the face of inflationary pressures, while possibly extending its services to
training and upskilling in order to suit employer needs better.

SOCIAL

S1. Ageing Population in Developed Countries

According to the Health at a Glance report (2023) from the OECD, in 2021 there were
more than 242 million people aged 65 and over in OECD countries, of which more than 64
million were aged 80 and over. The increasing elderly population mismatch is forecast to achieve
a double expansion. This is from 4.8% to 9.8% of the total population in the latter half of this
developing epoch. As individuals become older, they tend to encounter problems with their
physical and psychological health, thereby making it difficult for them to be able to accomplish
day-to-day tasks such as bathing and controlling finances. The above scenario opens a huge gap
for foreign employees in key fields such as health and elder care.

Thus far, the rising demand for homes for the elderly regards provisioners as common
actors in the labor market in South Korea. Lack of care workers has led to the recruitment
procedures for Filipino caregivers, while there is a projected 190,000 gap which could extend to
710,000 by 2032 and as many as 1.55 million in 2042 without any intervention (Equal Times,
2024). On the Seoul Metropolitan Government's part, the Foreign Housekeepers Pilot Program
was launched in September 2024, recruiting 100 Filipino caregivers to assist South Korean
families (Equal Times, 2024). Such increasing demand has vindicated the need for professional
workers in such fields as well as a promising opportunity for manpower agencies in the
Philippines to match the demands of their professional labor force with the needs of an ageing
population.
S2. Cross-Cultural Training for OFW

Pre-departure training is the backbone of preparations for employment abroad, being

aimed at equipping migrant workers with what will help them in adapting to their host countries.
As stated in the World Bank (2023), mandatory pre-departure orientation seminars (PDOS) were
instituted by the Philippine government mainly to familiarize overseas Filipino workers (OFWs)
with foreign laws, workplace norms, and cultural expectations. They will thereby reduce the
barriers to employment and security and ensure their safety and well-being before they leave the
Philippines. A paper from the International Labour Organization (2024) has also stated that
comprehensive training before deployment will materially increase OFW's resilience and
adaptability in novel settings. Cross-cultural training considerably enhances the capacity of
migrant workers to approach and blend into varied working environments. Research from Penn
State University (2024) adds credence to the argument that cultural sensitivity within the
workplace promotes inclusivity and minimizes misunderstandings between the employees and
employers.

Cultural awareness is linked to favorable relationships among fellow workers and

reduced chances of conflicts of interest in the workplace or workplace discrimination. A survey
of Nepalese migrant workers in which some were trained revealed that the latter easily adapted
and were more aware of their rights while working abroad (Arman et al., 2024). Migrant workers
are still afflicted by numerous challenges, including cultural adjustment, discrimination, and lack
of social protection in spite of their training. Agencies offering well-resourced training have
ended up with happier employers and longer jobs for the workers (World Bank, 2023). Besides
moderating conflicts between migrant workers and employers, this cultural training fosters stable
employee-employer relationships (LinkedIn, 2024). With an increasing demand for overseas
labor, those agencies that focus on the workers' cultural readiness are most likely to develop
long-standing partnerships with foreign employers.

S3. Rising Demand for Skilled Workers

The global shift toward skilled labor migration is forging new potentials and challenges
in the rebuilding of the workforce system, particularly in sectors such as IT, engineering, and
healthcare, posing unique challenges to manpower agencies. As indicated by the Asian
Development Bank (2024), changes in technology and labor market restructuring are fuelling a
demand for trained professionals in Asia, prompting agencies to rethink their recruitment
approach. Ignoring the potential skill gaps and workforce shortages: There remains unfilled jobs
in key sectors globally because of these skill mismatches between labor demand and supply as
per the International Labour Organization (ILO, 2024). The continuous upgrading of skills
articulated by the Society for Human Resource Management (2025) is vital for building capacity
in countries. Agencies that successfully deploy these skilled workers would gain further profit, as
stated by the ManpowerGroup (2025), where companies emphasizing skilled labor placements
registered increased revenues and long-time business partnerships. Further, as underlined by the
World Economic Forum (2025), skilled labor migration contributes significantly to the economic
growth of recruitment agencies, as host nations have increasingly relied on foreign skills to fill
labor shortages over time.This has been beneficial for manpower agencies as it provides market
opportunities and revenue streams, but meeting the dynamic skill needs and global labor policies
is the emerging challenge.

S4. Increasing Female Workforce Participation

The expanding presence of women in the labor market, especially in foreign employment,
signals a noteworthy trend both in gender relationships and labor markets. PSA reports indicate
that in the total number of OFWs employed abroad during April to September 2023, 1.20 million
or 55.6 percent were female. Similarly, in 2022, women had a greater proportion of the OFWs
employed abroad during the same period at 1.14 million, or 57.8 percent (PSA, 2024). A very
large proportion of these women are migrating to care-related jobs, where female dominance is
especially marked. Women comprise 67 percent of the world's care labor, with major
contributions to the essential care work including childcare, nursing, and household work (ILO,
2023). In nations such as Seychelles, Belarus, and Slovakia, a minimum of four out of five care
employment workers are women.This is an indicator of greater dependence on women workers
in caregiving professions which can contribute to a stronger talent pool that enables agencies to
cater to the growing demand for skilled staff in these industries.

S5. Demand for Inclusive Practices

The growing focus placed on diversity, equity, and inclusion (DEI) within the workplace
represents a pivotal culture and practice change in the recruitment process. According to the
World Economic Forum, organizations that focus on DEI prioritize fostering an inclusive
atmosphere that also drives organizational performance and potential for innovation (World
Economic Forum, 2025). Other recent research also states that employees are more likely to
remain working for firms that consciously foster diversity, driving retention rates and overall
employee satisfaction levels (Pew Research Center, 2023). This further allows businesses to take
an inclusive strategy to recruiting, with a broader pool of talent resulting in diverse perspectives
and better problem-solving. This would significantly impact the way manpower agencies
position their recruitment strategy in alignment with DEI principles, upholding their legal and
ethical requirements, thereby adhering to the Philippines' non-discrimination laws. By
developing an infrastructure that integrates inclusive practice, agencies receive applications from
a broader pool, increasing their competitiveness in the market. This not only makes it easier for
them to abide by legal structures but also aids them in being viewed as a visionary employer
creating more positive channels in recruitment and corporate performance.

TECHNOLOGICAL FACTORS
T1 - Cybersecurity Threats

As we live in modern society, the digitalization in the Philippines is gradually progressing.

According to Detros (n.d.), the Philippines is one of the fastest-growing digital economies in
Southeast Asia, reaching a value of $17 billion USD in 2021. This transformation continues to
reshape the operations of business, particularly the Philippine Recruitment Agencies (PRAs), as
their reliance on online platforms, cloud-based storage, and digital communication increases
daily. However, in recent years, the Philippines has become one of the most vulnerable
countries to cyber attacks, targeting government agencies, educational institutions, and
corporations with thousands of threats (Ornedo, 2024). PRAs handling the applicants' sensitive
information including details, passport number, and employment contracts which are at high risk
to be exposed to data breaches, phishing scams, and ransomware attacks. Both recruitment
agencies and the applicants may be affected by these incidents and could lead to financial fraud
and identity theft which may result in disruption in recruitment operations.

T2 - The Use of Automation

Many tasks in the recruitment industry are repeatedly performed by the employees which
often leads to exhaustion and disorganized work. According to Fajardo (2024), the recruitment
process plays an important role in acquiring talent that will drive innovation and growth to an
organization, which is a key factor for organizational success. Various industries including the
recruitment sector, have significantly transformed because of the rapid advancement of
automation. Automation refers to automatic execution tasks that were manually done by an
individual, particularly in processes of recruitment and selection. In Philippine Recruitment
Agencies (PRAs), automation can greatly enhance the operation of the organization efficiently
as it can streamline the selection for best candidates for the job position. However,
advancement in technology may offer better opportunities but it remains a challenge because it
increases the operational cost of the PRAs.

T3 - Artificial Intelligence

Artificial intelligence (AI) enables computers to perform advanced functions, such as analyzing
problems, making recommendations, and generating letters similar to human-like written
(UNESCO, n.d.). Recruitment is a crucial stage which requires to attract the best talent pool and
to effectively communicate with the candidates. In modern society, traditional communication
methods are no longer effective in meeting the organization’s goals. According to Zaborowski
(2024), adopting tools which are based on conversational AI becomes more essential in the
human resources, particularly in the recruitment industry. AI transforms the hiring process,
improves the candidate selection, and enhances the decision making which allows the
recruitment team to adapt to the digital age. Numerous tasks handled by the Philippine
Recruitment Agencies which includes responding to applicants’ inquiries about the job hiring
and evaluates the resumes. AI significantly impacts the PRAs by reducing the daily workload of
agencies and enabling them to focus on more strategic tasks. However, investing in AI may lead
to increased operational cost for the agency, as advanced technology remains expensive these
days.

T4 - The Advanced Digital Platforms

Digital platforms are used by businesses to facilitate interactions between different people. The
platform includes social media channels, online marketplaces, and crowdsourcing websites, and
with various features, it enhances the functionality and appeal. According to Gibson (2024),
organizations prioritized digital transformation and created value through technology. In 2023,
the digital economy in the Philippines amounted to $35.4 billion and contributed 8.4% to the
country’s Gross Domestic Product (Philippine Statistics Authority, 2024). With the advancement
of digital platforms, Philippine recruitment agencies (PRAs) have significantly transformed the
organization operations as these technologies allow agencies to improve the efficiency of their
hiring and it expanded their reach for a broader talent pool. Beyond Facebook, PRAs now utilize
platforms such as iApply and WorkAbroad to source candidates and job orders. Additionally,
some recruitment agencies have started to develop company's websites to facilitate seamless
job matching and hiring. Overall, the integration of digital platforms positively impacted the
operation of PRAs by making the recruitment faster, more accessible and data-driven.

T5 - Digital Skills Gap

As we continue to live in modern society, technological advancements reshape the corporate

world (Tamaray, 2024). However, the Philippines is significantly facing skill gaps across different
sectors. According to the Philippines Institute for Development Studies (2024), Filipino workers
mostly lack essential soft skills such as adaptability and collaboration, leaving them unprepared
for the challenges by the emerging technologies. In addition, about 90 percent of the Philippine
population lacks basic ICT skills such as word processing and email skills (Economist Impact,
2023). Today, Philippine recruitment agencies (PRAs) are gradually transitioning into digital
operations, requiring employees to have at least basic digital skills for administrative and
technical roles. However, this significantly impacted PRAs because some agencies preferred to
have traditional processing methods rather than to invest in digital training programs for their
employees, possibly increasing the operation cost. As a result, the operation slows down the
hiring processes which reduces the competitiveness in the job market.

ENVIRONMENTAL FACTORS

EN1 - Several disaster due to climate change in the Philippines

According to NASA (2024), climate change is about the shift of temperature and weather
patterns which defines the local, regional and global climate. Burning fossil fuel like oil and gas
are the main drivers of climate change. Twenty typhoons hit the Philippines per year as it is
located at the Pacific Typhoon Belt (Destination Earth Europe, 2023). Based on the report of
GMA Integrated News (2024), In 2024, Philippines experienced extreme heat or El Niño
phenomenon, dealt with volcanic eruptions and battled with several tropical cyclones and
typhoons. The situation might affect the operation of Philippine Recruitment Agencies (PRAs) by
having increased migration demand due to economic struggles because of the climate change
in the Philippines as it disrupts local livelihoods particularly in agriculture and other labor
sectors. As stated by Edwine Carrie, A Philippines deputy resident representative of the United
Nations Development Program (UNDP), climate change poses a threat to the Philippines’
human development because it is among the most exposed to climate and disaster risks. With
this, PRAs will face challenges since extreme disasters such as typhoons may postpone
recruitment agency operations causing delays in documentation, processing of visa, and
deployment.

EN2 - Health crisis in the Philippines

As part of the employment process of every company, candidates must undergo the
pre-employment medical examinations before the deployment. According to the Indeed Editorial
Team (2024), this examination helps to determine how qualified the candidates are to physically
perform his duties and responsibilities that are required to his applied role. In the Philippines,
the Department of Migrant Workers (DMW) had strict rules for examinations to ensure that
workers are physically fit before the deployment. Foreign employers may also require additional
requirements such as immunization vaccines, these depend on the country’s health policies.
Tuberculosis (TB) was considered as the deadliest infectious disease in the Philippines before
COVID-19 pandemic occurred.

As stated by the World Health Organization (WHO) in their Global Tuberculosis Report (2024),
the Philippines was in the top five countries that had TB cases in the world. Based on the report,
in 2023, 739,000 of Filipinos contracted TB and 5,400 of this coinfection of TB and Human
Immunodeficiency Virus (HIV). Meanwhile, In 2024, the Department of Health (DOH) included
MPOX in the list of most dangerous communicable diseases in the Philippines. In addition, DOH
reported more than 5,000 influenza-like cases this January 2025 which highlight the growing
health risk in the Philippines. This increases the impact for overseas deployment as workers
who fail the pre-employment medical examination may face delays or job cancellation which
may cause financial setbacks to the PRAs since countries like the Middle East enforces strict
health screening process. ​

EN3 - The Carbon Footprint of Philippine Recruitment Agencies

Based on the article “From Emissions to Efficiency: Embrace Green Building Practices in
the Philippines” of Climate Change Commission (2024), commercial buildings in the Philippines
are the largest contributors of greenhouse gas (GHG) emissions. Green building practices
transition is urgent as the country continues to experience extreme impacts of climate change.
According to Albay (2023), despite the commitment of the Philippines to peak emission by 2030
because of the Nationally Determined Contribution (NDC) under the Paris Agreement, there’s
still a lack of concrete net zero target. Beaufils (2023), UK ambassador to the Republic of the
Philippines, stated that for a commitment to be credible, there should be effective planning and
implementation. PRAs mainly operate in the office spaces, which consume electricity and
generate carbon emissions through paper-based processes and electronic device usage.
Additionally, printing resumes, contracts and other documents, and overseas deployment
increases the GHG emissions and fuel consumption. In light of this, recruitment agencies can
adopt renewable energy sources such as solar panels and implement energy-efficient practices
in operations to lower the electricity usage. Lastly, transitioning to digital documentation not only
reduces paper waste but also minimizes the emissions from document transportation. Overall,
this has the positive impact on PRAs, as it will help to reduce electricity costs in the long run by
using energy-efficient appliances. In addition, PRAs sustainability reputation will improve, and
they will be prepared to comply with government-mandated law related to sustainability. By
minimizing the emissions, PRAs can contribute to corporate social responsibility (CSR) and
national sustainable goals.

EN4 - Solid Waste Management

In the Philippines, solid waste management has become a major challenge, especially in
urban areas such as Metro Manila and lack of disposal facilities, and proper disposal is among
the dominant concerns of the country. PRAs handle large volumes of paper-based documents
such as resumes submitted by the applicants significantly contributes to paper waste and
increases the operational costs. According to the Department of Environment and Natural
Resources (DENR, 2024), Former Secretary Citamu prioritized improving the quality of the
environment including addressing the solid waste problems. To support the goal, the National
Solid Waste Management Commission (NSWMC) and DENR implemented the Republic Act.
No. 9003, also known as Ecological Solid Waste Management Act. This law aims to provide a
systematic, comprehensive and ecological waste management program to ensure the protection
of public health and environment. In response to this, some recruitment agencies are starting to
transition to digital processing, such as online applications, and cloud-based storage systems.
However, international employers still require applicants for hard copies of their documents
which is challenging for PRAs to establish full-digitalization.

EN5 - Energy Conservation and Sustainability

The Philippines has the highest energy consumption in Southeast Asia, making the
electricity costs a major concern for every business entity. According to the report of Alvin
Elchico (2024), a reporter of ABS-CBN News, Energy Regulatory Commission (ERC) has
approved the collection of the remaining 70 percent of trading amounts that was incurred during
the early 2024 as part of the National Grid Corporation’s ancillary services. ERC acknowledged
that delaying the rate adjustment could lead to penalties and further impact the energy rates. As
a result, power rates this year are expected to rise and consumers should anticipate increases
by summer 2025. The increase in the electricity costs could not only impact the household
consumer but also the private sectors, including the PRAs, which relies on digital operations
and office-based processes. With higher power costs, this may result in additional operational
expenses, which affects the overall competitiveness and efficiency of the PRAs.
 LEGAL FACTORS

L1 - Republic Act No. 8042 Migrant Workers and Overseas Filipinos Act of 1995: POEA
License Renewal

In the Revised Rules and Regulations of Philippine Overseas Employment

Administration (POEA), a license is a document issued by the Secretary or its authorized
representative to authorize a person or corporation to operate a private employment agency.
According to the Department of Migrant Workers (DMW), the license renewal of a PRAs is every
four years by submitting necessary documents to POEA for eligibility to operate. The renewal
process ensures that the recruitment agency continuously and necessarily meets the standard
and regulations of recruitment and employment of workers abroad. Compliance with this,
agencies promote accountability and protect the rights of every Overseas Filipino Workers
(OFWs). Additionally, it fosters a sense of security and confidence in the recruitment process as
they are working with legitimate and compliant agencies that are dedicated to their welfare.
Failure to comply with the necessary documents to POEA, recruitment agencies will not be
permitted to renew their license and will not be able to operate in the following days.

L2 - DMW Advisory No. 24, Series of 2024 in compliance with Article No. 33, Qatar Law
No. 14 of 2004: No placement fee policy for workers to be deployed to Qatar

Placement fee is collected from workers which successfully found employment abroad.
Only POEA-licensed recruitment are permitted by law to collect fees. The collected fee of
Philippine recruitment agencies (PRAs) is equivalent to a worker's one month salary and shall
be collected upon signing of the employment contract. On August 30, 2024, the Department of
Migrant Workers (DMW) issued Advisory No. 24, series of 2024 in accordance with Article No.
33, Qatar Law No. 14 of 2004, which prohibits the PRAs from collecting fees from all types of
workers bound to Qatar. According to DMW Secretary Hans Cacdac (2024), collecting fees to
workers who are about to work in Qatar is considered illegal and will face penalty of cancellation
of license. The advisory impacts the every Philippine Recruitment Agencies due to the reason of
disrupted revenue which most agencies rely their operational cost on the fees to be collected.

L3 - Republic Act No. 10173: Data Privacy Act of 2012

​ Common practice in the hiring process is collecting the personal information of the
applicants. The documents that most agencies in the Philippines look at during the selection
period are Birth Certificate, Copy of Diploma, Certificate of Employment, anf National Bureau of
Investigation (NBI) Clearance. The said data are collected for legitimate purposes and with the
consent of the applicants. The Republic Act No. 10173 or Data Privacy Act of 2012 is
administered and implemented by the National Privacy Commission to monitor and to ensure
the compliance of the set international standard for data protection. It may result in penalties,
including fines and imprisonment when failing to comply. The law impacts the PRAs to establish
a proper safeguard of the applicants’ personal information while ensuring the data is collected
for the intended purposes only because non-compliance with the law could damage the
reputation of the recruitment agency and may face legal consequences.

L4 - Republic Act No. 8042 Migrant Workers and Overseas Filipinos Act of 1995: The joint
and solidary liabilities of Philippine Recruitment Agencies and Foreign Employers

According to the Rules and Regulations of Philippine Overseas Employment

Administration (POEA), both the Principal (Employer) and Placement (Recruitment) Agency
have a joint and solidary liability for any claims arising in employer-employee relationships. This
liability extends to various damages which includes actual, moral, exemplary and others. The
Republic Act No. 8042 Migrant Workers and Overseas Filipinos Act of 1995, ensures both
parties share responsibilities for the welfare and rights of the worker during his employment
period. The law may impact the Philippine recruitment agencies by facing a financial crisis when
the Overseas Filipino Worker encounters issues and claims related to their Foreign employer.
The PRAs will be held responsible alongside the Employer, which may discourage small
agencies from operating in the future.

L5 - Republic Act No. 10022 Amended Migrant Workers and Overseas Filipinos Act of
1995 (Republic Act No. 8042): Illegal Recruitment

According to the Philippine Statistics Authority (2025), the unemployment rate last
December 2024 reached 3.1 percent, a total of 1.63 million unemployed individuals. A study by
Jobstreet by Seek, et al., (Decoding Global Talent 2024) found that 80 percent of Filipinos are
strongly interested in working abroad despite the improved country's ranking as a global career
destination. Applicants are exposed to illegal recruitment as it continues to increase the demand
of working abroad. Due to desperation and lack of awareness, applicants fall into victim of
fraudulent practices which lead to exploitation and abuse. The Republic Act No. 10022 which
amended the Migrant Workers and Overseas Filipinos Act of 1995 to strengthen the provision
against the illegal recruitment which is a concern in the country that persists to this day. To
protect the rights of every worker from exploitation and fraud, and to ensure their rights and
welfare is prioritized is the sole purpose of the law. Imprisonment of not less than twelve years
and one day but not more than twenty years and fine of not less than one million pesos but not
more than two million pesos is the penalties for illegal recruitment. This impacts Philippine
Recruitment Agencies to be accountable while ensuring the legality and transparency of the
operations.