Why does the POEA require cash and surety bonds from recruitment and placement agencies?
Cash and surety bonds are required by the POEA from recruitment and employment companies precisely as a means of ensuring prompt and effective recourse against such companies when held liable for applicants or workers claims. The cash and surety bonds shall answer for all valid and legal claims arising from violations of the conditions for the grant and use of the license, and/or accreditations and contracts of employment. The bonds shall likewise guarantee compliance with the provisions of the Code and its implementing rules and regulations relating to recruitment and placement, the POEA Rules and relevant issuances of the Department and all liabilities which the POEA may impose. How is the existence of an employer-employee relationship determined by law? To determine the existence of an employer-employee relationship, the Supreme Court in a long line of decisions has invariably applied the following four-fold test: [1] the selection and engagement of the employee; [2] the payment of
