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All Jurisprudence based

0 tracked cards Labor and Social Legislation

Raysun Enterprises, a licensed private recruitment agency in Cagayan de Oro, handles domestic recruitment for 18 workers as hotel staff for a resort in Boracay. It collects from each applicant a nonrefundable processing and placement fee of 20,000 pesos before any deployment, claiming that the fee covers all pre-employment processing. After payment, the Boracay posting is canceled by the employer, and Raysun refuses to refund the fees, stating that the workers will be offered another posting instead. Which statement best describes the controlling rule under Article 34 of the Labor Code and Raysun’s conduct?

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The cancellation by the employer relieves the agency of any refund obligation since it is the employer who withdrew the job order. Charging pre-deployment processing and placement fees from job applicants is a prohibited practice under Article 34; upon cancellation of the job order, the agency must refund the full amount to the applicants, and it may be subject to DOLE sanctions. A written waiver by the applicant allowing nonrefundable charges may validate the agency’s collection of fees. DOLE has no jurisdiction to intervene in fee disputes between applicants and recruitment agencies; the remedy would be civil action.

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