Recruitment agencies in the Philippines need to keep their POEA-license active in order to legally operate and hire Filipino applicants for overseas work. Please check the following steps below on how you can renew your license.
Also Read: List of POEA Services for Licensed Recruitment Agencies (LRA)
Same as the requirement of any business establishment, recruitment agencies also need to renew their license from POEA. The license is proof that the recruitment agency is legitimate. But the question is, why should recruitment agencies renew their license? Well, it’s because it is basically illegal to be doing recruitment business without a license. That’s why it is important that you renew your license in order to continue hiring Filipino workers for overseas employment.
Table of Contents
Overview
The POEA is the Philippine Overseas Employment Administration, which is tasked with regulating and supervising recruitment services in the Philippines. As part of its mandate, the POEA is responsible for approving licenses, permits, or accreditations for occupational licensure.
This does not only apply to recruitment agencies but also to manpower suppliers like factory owners (to be able to hire foreign workers) and job orders (for hiring candidates on behalf of employers). The license may lapse if it has not been renewed upon issuance
Why are recruitment agency required to renew their license?
Recruitment agencies need to renew their license for the continuity of operations. The license is the proof that the recruitment agency is legitimate and it should always be up to date because recruiters are required to do so by POEA.
Benefits
The benefits of this service is to give a license for the recruitment agency to continue as well as giving more jobs opportunities for the workers. After all, it is not right for an employment agency to continue operating without a license. For the recruitment agency to continue operating, it has already paid the necessary fees and bonding amount which is part of their responsibility.
This service will be beneficial to both recruitment agencies and workers because this would lead them to have more job opportunities aside from the continuous operations of employment agencies. It also benefits workers because they can see how legitimate recruitment agencies are through the license given by POEA.
Qualifications
Recruitment agencies who are qualified to renew their POEA-license are those whose license to operate is expiring.
Requirements
Here are the requirements for the renewal of the license.
- Renewal of License Information Sheet for Applicants
- For all Directors, Officers, and Staff, Valid NBI Clearance and Anti-Illegal Recruitment Branch Clearance.
- For previously reported foreign Director, if any, a photocopy of valid passport.
- In the event of new Board of Directors:
- Notarized Resolution of the Board of Directors and Corporate Officers on the Election of New Directors and Officers
- Assignment of Corporate Shares Deed
- Book of Transfers and Stocks
- The Securities and Exchange Commission has received an updated General Information Sheet (SEC)
- The new Directors’ Income Tax Returns (ITRS) for the last two (2) years
- Two (2) passport-sized photos with biographical information
- In the event of a foreigner, a police clearance or an equivalent document from the country of origin(s)
- Evidence of the Investment’s Source(ss
- Registered property copies (copy/copies)
- For New President or Chief Executive Officer:
- Proof of Pre-Licensing Orientation Seminar Attendance
- Evidence of a Bachelor’s Degree
- New personnel’s bio-data information and two (2) passport-sized photos.
- Notice of termination/resignation with proof of publishing in a general circulation newspaper for terminated employees if there are any.
- With an original copy of the official receipt from a bonding company acceptable to the POEA, a surety bond in the amount of P100,000.00. The bonding company’s certificate of accreditation with the Insurance Commission, as well as the Board Resolution/Certificate Secretary’s on the bonding company’s authorized signatory, should be included (ies).
- Three (3) copies of a bank certificate of escrow deposit and a duly notarized renewed escrow agreement.
- With verified business or individual income tax returns and confirmation of payment receipt, audited financial statements for the last two (2) years. Evidence of capital injection, such as a DTI/SEC certificate of capital increase or bank certification corresponding to the amount of capital infusion, with the SEC’s Treasurer’s affidavit, if the equity is less than P2M.
- A notarized affidavit of undertaking in accordance with the POEA Rules and Regulations, Section 1 (f) for land-based and Section 1€ for sea-based. Under Section 1 (g) for Landbased or Section 1 (f) f for Seabased of the same Rules, a notarized affidavit of undertaking.
- A bank certificate on a savings account with a balance of at least P500,000 and the right to inspect the account.
- Cases involving alleged violations of recruitment and repatriation are on the books.
- The President/CEO and a Technical Staff Member’s Certificate of Attendance to the Continuing Agency Education Program (CAEP)
- Yearly deployment record for the last four (4) years.
- License Fee P50,000.00 Other conditions as may be imposed by the Administration.
How to Renew License of Recruitment Agency
Here is the comprehensive guide on the renewal of the license.
1. Prepare a folder with all of the required documents and submit it to the Licensing Branch’s Officer of the Day at Window 9 for evidence of filing. Only applications that meet all of the conditions will be considered. A month before the license expires, applicants should submit a renewal application.
2. Return to the Licensing Branch’s Window 9 after two (2) working days to check the results of the evaluation. Wait for the approval notice if everything is deemed to be in order. (Receive the notice of deficiency(ies) along with the filed documents to ensure that the missing requirements are met if determined to be incomplete.)
3. Go to Window 9, Licensing Branch, and get an Order of Payment when you’ve received the application’s approval notice.
4. Pay the P50,000.00 license fee to the POEA Cash Division, POEA Bldg., 5th Floor.
5. Get the Certificate of License Renewal by presenting an original and a scanned copy of the Official Receipt.
Summary
Renewal of license is one of the processes a recruitment agency has to undergo in able to continue their operations and to remain licensed. This shows that the recruitment agency is responsible and does its best to provide good services for the recruits, staff, and those who are affiliated with the recruitment agency.
Renewing a recruitment agency’s license is an important process that ensures the responsible and ethical operation of the agency. The comprehensive guide provided in this article will help you through the entire process, from preparing the required documents to getting the POEA license.