II.

RECRUITMENT & PLACEMENT

1. Article 13 (b): Definition of Recruitment & Placement
2. Article 13 (b): When there is a presumption of Recruitment & Placement People v. Panis, L-58674-
77, July 11, 1986
3. Illegal Recruitment
a. Definition of Illegal Recruitment under Labor Code
b. Definition of Illegal Recruitment under the Migrant Worker’s Act (R.A. No. 8042)
Constitutionality – Lazo v. Salac, G.R. No. 152642, November 13, 2012
c. Article 13: License v. Authority
License – a document authorizing a person or entity to operate a private employment agency (with a fee)

Authority – means a document issued by the Department of Labor authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity (no fee)

d. Article 34: Prohibited Acts (Ungos reviewer, p.29)

e. Additional grounds (prohibited acts) added by Migrant Worker’s act, apart from Art. 34
(Red Notes, p.238)
f. Illegal recruitment as economic sabotage
g. Differences: Simple Illegal recruitment, illegal recruitment in large scale, illegal recruitment by
a syndicate
h. Illegal Recruitment v. Estafa
i. Liabilities of the local employment agency and the employer
j. Theory of Imputed Knowledge Sunace International vs. NLRC G.R. No. 161757, January 25,
2006
k. Rule on the pre-termination of contract of a migrant worker Serrano v. Gallant, G.R. No.
167614, March 24, 2009 Yap v. Thenamaris, G.R. No. 179532, May 30, 2011
4. Regulation and Enforcement
a. Article 35: Suspension or cancellation of license or authority
b. Penalties of Illegal Recruitment under R.A. No. 8042
Sec. 7. Imprisonment of not less than 6 years and 1 day but not more than 12 years
and a fine of not less than 200k and not more than 500k
c. Rule on remittance of foreign exchange earnings
Article 22 of the LC makes it MANDATORY for all overseas Flipino workers to remit a portion of
their foreign exchange earnings to their families, dependents and beneficiaries.
 The amount to be remitted shall be as follows:
(a) 80% of basic salary – for seamen and mariners;
(b) 70% of basic salary – for workers of Filipino contractors and construction companies;
(c) 70% of basic salary – for doctors, engineers, teachers, nurses and other professional workers
whose employment contracts provide for free board and lodging faculties;
(d) 50% of basic salary – for other professionals whose employment contracts do not provide for
free board and lodging
(e) 50% of basic salary – for domestics and other service workers; and
(f) 50% of basic salary – for other workers not falling under the aforementioned categories.
Exceptions to remittance requirement
The following are NOT OBLIGED to remit a portion of their foreign exchange earnings:
(a) Workers whose immediate family members, dependents or beneficiaries are residing with him
abroad;
(b) Filipino servicemen working in U.S. military installations; and
(c) Immigrants and Filipino professionals and employees working with the United Nations agencies
and bodies.
5. Article 18: Direct Hiring, and Rules & Regulations Governing Overseas Employment: Exceptions