Study shows overcharging of Filipino domestic workers still rampant

PLU members punch a picture representing illegal fees

Although employment agencies in the Philippines are prohibited from collecting placement fees, many Filipino domestic workers still pay up to more than P50,000 to land a job in Hong Kong, a research study showed.

The study, dubbed Between a Rock and a Hard Place, showed that 84 percent of the Filipino domestic workers who were interviewed paid an average of P52,644, said Shiella Estrada, chair of the Progressive Labor Union of Domestic Workers in Hong Kong (PLU).

“Our research clearly demonstrates that significant numbers of agencies are systematically charging Filipino migrant workers fees well in excess of he legal maximum,” Estrada said.

The study further showed that Philippine agencies frequently force experienced domestic workers to undergo unnecessary training in order to increase their profits.

“Many migrant domestic workers have little choice but to pay these exorbitant fees and are heavily indebted, making it difficult to leave exploitative and abusive employers,” a PLU statement said.

It said employment agencies in Hong Kong collected from the FDHs interviewed an average of $11,321 in fees or “the equivalent of more than 25 times the legal limit.”

Hong Kong laws allow agencies here to charge FDHs only 10 percent of their first months salary or only HK$431.

“The charging of illegal fees by Hong Kong agencies leaves Filipino migrant domestic workers with huge debts. This in turn makes it even more difficult for them to challenge exploitative practices that they frequently experience,” said Phobsuk Gasing, chair of the Hong Kong Federation of Asian Domestic Workers Union (FADWU).

“Although our research focused on Filipino domestic workers, other nationals experience similar, even worse, treatment,” Gasing added.

The PLU said the Philippine and Hong Kong government failed to prosecute agencies that collect illegal fees.

“Between 2014 and 2015, Hong Kong’s Labor Department only secured 10 convictions for overcharging. Agencies convicted of overcharging or unlicensed operation were fined HK$1,500 to HK$45,000,” the group said.

“It is not surprising then that a significant number of Hong Kong agencies are blatantly charging illegal fees with little fear of reprisal,” it added.

The group said it was common for employment agencies in Hong Kong to send Filipino domestic workers to Macau to wait for their new work visa.

“These agencies exploit this situation by charging, once again, illegal agency fees,” the group said.

The group added that its members went to 10 employment agencies across Hong Kong and discovered that some agency staff “openly state fees above the legal maximum” to migrant workers who need their help.

“These illegal practices have been going on for far too long. The Philippine and Hong Kong governments are fully aware but so far have lacked the political will to act. They must now take concerted action to stop these illegal and unethical activities,” Gasing said.

Estrada said the government system meant to police employment agencies “are not fit for purpose.”

“The agencies now that they are unlikely to get caught charging illegal fees. They hide their criminal activities by using loan companies to collect the fees and refusing to issue receipts to the domestic workers. Even for those few who are caught, the fine is insignificant so it does not act as an effective deterrent,” Estrada said.

The research study was conducted between October 2015 and June 2016. PLU conducted in-depth interviews with 68 Filipino domestic workers in Hong Kong and Macau and conducted secret recordings at 10 different Hong Kong employment agencies.

The report and an accompanying film were produced in partnership with the Hong Kong Confederation of Trade Unions and the International Domestic Workers Federation. The project was supported by Rights Exposure.