Canada-Philippines deal prohibits recruitment fees for Filipinos

First-ever federal-level bilateral labour cooperation agreement also creates new credential-recognition, worker-protection rules

Canada-Philippines deal prohibits recruitment fees for Filipinos

Canada has just signed a deal that would prohibit the charging of recruitment fees for workers coming out of the Philippines.

The two countries signed their first-ever federal-level bilateral labour cooperation agreement banning recruitment fees and creating new credential-recognition and worker-protection rules, The Joint Declaration of Intent was signed during President Ferdinand Marcos Jr.'s official visit to Vancouver, where he met with Prime Minister Mark Carney, ABS-CBN reported. Philippine Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac confirmed the signing at a press conference on Friday.

Cacdac said the agreement replaces the country's previous approach of negotiating labour arrangements separately with individual Canadian provinces.

"We had our first ever federal level bilateral labour cooperation agreement with Canada. [Before], the bilateral discussions and agreements were done with the different provinces such as Alberta and Saskatchewan among others," Cacdac said, per ABS-CBN.

Previously, one court found that an employer was not liable for violations committed by a recruiter against temporary foreign workers.

Recruitment fee ban targets overcharging

The agreement prohibits recruitment agencies from charging fees or related costs to workers and job seekers, a provision Cacdac linked directly to complaints against immigration consultancies and travel agencies in the Philippines accused of overcharging or illegally recruiting workers for Canadian jobs, according to ABS-CBN.

"No such recruitment fees and related costs shall be charged against the workers and job seekers. Kasama na dito iyong dinadaing natin na iyong mga pananaga na ginagawa, overcharging na ginagawa ng mga immigration consultancies dito sa Pilipinas with the intent to hire a particular job seeker," Cacdac said, as quoted by ABS-CBN.

The DMW said some immigration consultancies and travel agencies illegally recruiting workers for Canada have already been shut down through enforcement by the Migrant Workers Protection Bureau, ABS-CBN reported.

Credential recognition, licensing mechanisms 

The agreement also establishes licensing and registration mechanisms meant to promote fair and ethical recruitment practices, along with a framework for mutual recognition of professional credentials, according to the ABS-CBN report.

Cacdac said this could prevent Filipino professionals from having to repeat education or certification requirements after already earning degrees and licences in the Philippines.

"After obtaining a degree here and getting a certification from the PRC, for instance, Professional Regulation Commission, hindi na siya kailangan mag-aral muli o mag-secure ng panibagong sertipikasyon sa Canada," Cacdac said.

Worker protections cover pre-departure stage

The agreement further includes provisions on freedom of movement, protection against coercion and deceptive recruitment, voluntary employment contracts, informed consent, and access to pre-departure information, ABS-CBN reported.

Cacdac said workers must be properly informed about what to expect before travelling to Canada, with the Canadian Embassy in Manila also providing information to prospective migrants.

The Joint Declaration of Intent does not include implementation timelines or enforcement mechanisms specific to Canadian-based employers and recruiters; further details from Immigration, Refugees and Citizenship Canada or provincial labour ministries would clarify how the agreement affects day-to-day recruitment practice.

According to the amended Immigration and Refugee Protection Regulations (IRPR) – which took effect Sept. 26, 2022 – employers cannot charge or recover from the temporary foreign worker, directly or indirectly, any fees relating to recruitment, as noted by Gowling WLG.

Also, employers must ensure that any person recruiting on their behalf has not and will not charge or collect prohibited fees either. Fees tied to seasonal agricultural worker agreements between Canada and partner countries are exempted, as was detailed in the Canada Gazette Workers still pay their own visa, permit, and biometric fees.

Recently, Kevin Kielty – sole owner of an employment agency called One Team – was fined $70,000 and handed a two‑year probation order after a joint Canada Border Services Agency (CBSA) and Royal Canadian Mounted Police (RCMP) immigration investigation into illegal foreign worker placements at Banff‑area hotels, the federal government announced.

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