In a three-page decision, Quezon City Regional Trial Court Judge Jose Paneda granted the petition of recruitment agencies for the issuance of a temporary restraining order.
The Asian Recruitment Council, Philippine Chapter Inc. (ARCOPHIL) had asked the court to stop the Department of Labor and Employment (DOLE) and the POEA from enforcing new regulations which they claimed were "oppressive and unconstitutional."
The group further claimed that the issuance of the new regulations was unreasonable and illegal since POEA is supposed to be phased out effective Feb. 23 and therefore will have no authority to regulate licensed recruitment agencies anymore.
Acting on the petition of the recruitment agencies, Paneda stopped the Department of Labor and Employment (DOLE) and POEA from enforcing the new regulations for the next 20 days.
DOLE and POEA were supposed to start implementing the new regulations requiring a recruitment agency to put up a minimum capital of P2 million and a P1 million escrow deposit to secure a license from the government.
Under the same new rules, POEA can suspend the license of a recruitment agency found collecting placement fees of more than the equivalent of the worker’s one month salary.
Judge Paneda ordered the DOLE and POEA to temporarily preserve a status quo to avoid irreparable injury to the recruitment agencies.
Labor officials, however, expressed disappointment over the court’s decision which they said would be more disadvantageous for the overseas Filipino workers (OFWs) than to the government.
"The government considers this is a blow to the government‘s effort to protect the welfare of OFWs," Labor Secretary Patricia Sto. Tomas said, adding that "it will only leave the OFWs at the mercy of the recruiters."