LABOR LAW REVIEW SYLLABUS NOTES
of evidence, where the fee is collected because of the
II. RECRUITMENT AND PLACEMENT
Government regulatory agencies
 Bureau of Local Employment
 Philippine Overseas Employment Administration
A. Definition of Recruitment and placement
Article 13. Definitons
(a) Worker – any member of the labor force, whether
employed or unemployed
(b) Recruitment and Placement
- Refers to any act of: [CECTUHP]
o Canvassing
o Enlisting
o Contracting
o Transporting
o Utilizing
o Hiring
o Procuring workers and includes [RCP]
 Referrals
 Contract services
 Promising or advertising for
employment, locally or abroad
whether for profit or not. Provided
that any person or entity which, in
any manner, offers or promises for
a fee employment to two or more
persons shall be deemed engaged
in recruitment or placement
(c) Private fee-charging employment agency – any person or
entity engaged in the recruitment and placement of workers
for a fee which is charged directly or indirectly from the
workers, employers or both
(d) License – document issued by the DOLE authorizing a
person or entity to operate a private employment agency
(e) Private recruitment entity – any person or association
engaged in the recruitment and placement of workers,
locally or overseas , WITHOUT charging directly or
indirectly any fee from workers or employers
(f) 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
(g) Seaman – refers to any person employed in a vessel
engaged in maritime navigation
(h) Overseas employment – employment of a worker outside
the Philippines
(i) Emigrant – means any person, worker or otherwise, who
emigrates to a foreign country by virtue of an immigrant
via or resident permit or its equivalent to the country of
destination
NOTES
 The definition of recruitment and placement is applicable to
both local and overseas employment
 Any activity done without the required license from BLE or
POEA is punishable as illegal recruitment
 Even if only one person is recruited, so long as the 11 acts
performed are done, there is illegal recruitment
 The phrase “two or more persons” merely lays down a rule
promise or offer of employment -> the word “shall” is
deemed to create that presumption
 The presumption is that the individual or entity is engaged
in recruitment and placement whenever he or it is dealing
with two or more persons to whom, in consideration of a
fee, an offer or promise of employment is made in the
course of canvassing, enlisting, contracting, utilizing, hiring
or procuring workers” [It just creates a stronger prima
facie presumption, thus the burden of evidence is on the
accused????]
DEFINITION OF ILLEGAL RECRUITMENT APPLIES TO
BOTH LOCAL AND OVERSEAS
 There is a distinction between local and overseas
 For local employment -> the sole basis is article 38
o The IRR also expanded this to apply to both
licensed and non-licensed violators
 Overseas -> new laws have been passed
o RA 8042 as amended by RA 10022 Migrant
worker’s acts
o Article 38
o Both licensed and unlicensed can commit the acts
of illegal recruitment
LICENSE v AUTHORITY
 License – issued by the DOLE authorizing a person,
partnership or corporation to operate a private recruitment
or manning agency
 Authority – document issued by the DOLE secretary
authorizing the officers, personnel, agents or
representatives of a licensed recruitment/manning agency
to conduct recruitment and placement activities in a place
stated in the license or a specified place
NON-LICENSEE or NON-HOLDER OF AUTHORITY
 A recruiter may be a natural or juridical person
 Refers to the former with no valid license or whose license
is revoked, terminated, expired or otherwise delisted from
the roll of licensed agencies.
B. Regulation of recruitment and placement activities
Article 14 Employment Promotion
The Secretary of Labor shall have the power and authority:
(a) To organize and establish new employment officer in
addition to the existing employment offices under the
DOLE as the need arises
(b) To organize and establish a nationwide job clearance and
information system to inform applicants registering with a
particular employment office of job opportunities; in other
parts of the country as well as job opportunities abroad
(c) To develop and organize a program that will facilitate
occupation, industrial and geographical mobility of labor
and provide assistance in the relocation of workers from
one area to another; and
(d) To require any person, establishment, organization or
institution to submit such employment information as may
be prescribed by the secretary of labor
DOLE
- Primary policy-making, programming, coordinating,
and administrative entity of the Executive Branch of
the government in the filed of labor and employment
- DOLE has the primary responsibility for
o The promotion of gainful employment
opportunities and the optimization of the
development and utilization of the country’s
manpower resources
o The advancement of worker’s welfare by
providing for just and humane working
conditions and terms of employment
Article 15. Bureau of Employment Services
(a) The bureau of employment services shall be primarily
responsible for developing and monitoring a
comprehensive employment program. It shall have the
power and duty:
1. To formulate and development plans and programs to
implement the promotion objectives of this title
2. To establish and maintain a registration and/or
licensing system to regulate private sector
participation in the recruitment and placement of
workers and compliance therewith under such rules
and regulations as may be issued by the DOLE.
3. To formulate and development employment programs
designed to benefit disadvantaged groups and
communities
4. To establish and maintain a registration and/or work
permit system to regulate the employment of aliens
5. To develop a labor market information system in aid
of proper manpower and develop planning;
6. To develop a responsible vocational guidance and
testing system in aid of proper human resources
allocation; and
7. To maintain a central registry of skills, except seamen
NOTE: Overseas recruitment is now pertained to the POEA
AUTHORIZED ENTITIES TO PLACE WORKERS FOR
LOCAL OR OVERSEAS EMPLOYMENT
 Public employment offices
 Private employment agencies
 Shipping or manning agents or representatives
 POEA
 Consruction contractors if authorized to operate by DOLE
and the Construction Industry Authority
 Members of the diplomatic corps although hirins done by
them have to be processed through the POEA
 Other entities as authorized by the DOLE secretary
1. Regulatory authorities
a. Philippine Overseas Employment
Administration
Article 17 Overseas Employment and Development Board
An overseas employment and development board is hereby created to
undertake, in cooperation with relevant entities and agencies, a
systematic program for overseas employment of filipino workers in
excess of domestic needs and to protect their rights to fair and
equitable employment practices [So this was created para may board
na nakikipag communicate doon sa ibang bansa kung meron bang
fair and equitable working environment para doon sa mga filipinos if
ever they would choose to work there  omg tama ba!?!?!?!]
1. To promote the overseas employment of filipino workers
through a comprehensive market promotion and
development program
2. To secure the best possible terms and conditions of
employment of filipino contract workers on a government
to government basis and to ensure compliance therewith
3. To recruit and place workers for overseas employment on a
government – to – government arrangement and in such
other sectors as policy may dictate.
4. To act as secretariat for the Board of Trustees of the
welfare and training fund for overseas workers
NOTES:
 Many laws were passed, but at the moment it is R.A. 8042
as amended by R.A. 10022 “Migrant workers and Overseas
Filipino act of 1995” -> higher standard of protection and
promotion for the welfare of migrant workers, their families
OVERSEAS EMPLOYMENT POLICY
 Protects both the documented and undocumented migrant
workers
Policies on Migrant workers
- The state shall, at all times uphold the dignity of its
citizen whether in the country or overseas, in general
and Filipino migrant workers, in particular and
endeavor to enter into bilateral agreements with
countries hosting overseas workers
- The state shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities
for all
- While recognizing the significant contributions of
filipino migrant workers to the national economy
through their foreign exchange remittances, the state
does not promote overseas employment as a means to
sustain economic growth and achieve national
development. The state, therefore shall continuously
create local employment opportunities and promote
the equitable distribution of wealth and the benefits of
development
- Gender sensitive criteria must be taken into account in
the creation of policies
- Poverty is not a problem, free access to courts and
quasi-judicial bodies and free legal assistance must be
given
- Regular/documented or irregular/undocumented shall
be adequately protected and safeguarded [So walang
distinction, basically lahat sila kailangan na
mabigyan ng protection]
- Right to participate in the democtratic decision making
processes of the state and to be represented in
institututions relevant to overseas employment
- Government must provide free and accessible skills
development and enhancement programs
- The state recognizes that non-governmental
organizations, trade unions, workers associations,
 recruitment and manning agencies and similar entities
duly organized as legitimate are partners of the state in
the protection of filipino migrant woorkers and in the
promotion of their welfare.
OFWs: Land Based or Sea-Based
 Sea Based: usually seamen: navigation, engineering,
maintenance including a variety of occupations from
kitchen staff to on-board entertainment
 Land-Based: all skills from house cleaners to entertainers
to managers
Selective deployment [Basically, hindi pwede na itapon nalang yung
OFW kung saan saang country, kailangan yung country na
lalanding-an niya has the following]
a) It has exsting labor and social laws protecting the rights of
workers including migrant workers
b) Signatory to conventions protecting workers & migrant
workers
c) Bilateral agreement with the government on the protection
of the rights of overseas Filipino workers
NOTE: These conditions must be present, otherwise no
deployment shall be allowed. The members of the POEA board
who voted for the allowance of deployment of workers to certain
areas that do not have the three shall suffer the penalties of
removal and dismissal from service with disqualification to hold
any appointive public office for five years
POEA with the help of the DFA may terminate or impose a ban
on the deployment of migrant workers
THE POEA; OVERVIEW OF ITS FUNCTIONS AND POWERS
Principal functions
(a) Formulation
(b) Implementation
(c) Monitoring of policies and programs on overseas
employment of filipino workers
(d) Protector of overseas worker, rights to fair and equitable
(e) Deployment of filipino workers through government to
government hiring
(f) Performs administrative, regulatory and enforcement as
well as adjudicatory functions
REALIGNMENT OF JURISDICTION
 POEA retains jurisdiction over (a) all cases which are
administrative in character, involving or arising out of
violations of rules and regulations relating to licensing and
registration of recruitment and employment agencies or
entities (b) disciplinary action cases and other special cases
which are administrative in character, involving employers,
principals, contracting partners and Filipino migrant
workers
 DECISIONS are appealable to the Secretary of Labor
 Grounds for disciplinary action
o Submission of false information or documents
o Unjustified refusal to continue his/her application
after signing the employment contract
o Commission of a felony punishable by Philippine
law or laws of the host country
o Possession or use of prohibited drugs
o Embezzlement of company funds or of moneys
and properties of a fellow worker entrusted for
delivery to kins or relatives in the Philippines
o Unjust refusal to depart for the worksite after all
employment and travel documents have been
duly approved by the appropriate government
agency/ies
o Violation of the laws and cultural practices of the
host country
b. Regulatory and Visitorial powers of the
Department of Labor and Employment
Secretary
Regulatory Power
- Power to restrict and regulate the recruitment and
placement activities of all agencies within the
coverage of this title
- Issue orders and promulgate rules and regulations to
carry out the objectives and implement the provisions
of this title
Visitorial Power
- The Secretary of Labor or his duly authorized
representatives may at any time, inspect the premises,
books of accounts and records of any person or entity
covered by the title, require it to submit reports
regularly on prescribed forms and act on violations of
any provision of this title
2. Ban on direct hiring
Article 18. No employer may hire a filipino worker for overseas
employment except through the boards and entities authorized by the
DOLE. Direct-hiring by members of the diplomatic corps,
international organizations and such other employers as may be
allowed by DOLE is exempted.
XPN: Name Hirees.
NAME HIREES individual workers who are able to secure contracts
for overseas employment on their own efforts and representation
without the assistance or participation of any recruitment agency,
they are still required to register with POEA. They must submit:
(a) Employment contract
(b) Valid passport
(c) Employment via/work permit/equivalent document
(d) Certificate of medical fitness; and
(e) Certificate of attendance to the required employment
orientation/briefing
The national seamen board has been abolished, and is now POEA. It
must secure the best possible terms of employment for contract
seamen workers and secure compliance therewith.
In Wallem: pretermination of seamen contracts without valid cause
amounts to breach of contract and renders the employer liable for
DAMAGES
In Vir Jin: The NSB nor NLRC (now POEA) should as a matter of
official policy, legitimize and enforce dubious arrangements where
shipowners and seamen enter into fictitious contracts similar to
addendum or agreements or side contracts which the purpose is to
deceive
EMPLOYMENT CONDITIONS
 National A works in Country B, an enterprise owned and
managed by nationals of Country C.
o Jurisdiction -> selected by the parties if none;
o The law of the country which is mostly connected
with the contract shall apply
 Lex loci laboris: where the employee
carries out the work
 The labor code and the IRR cover a filipino working
abroad.
MINIMUM PROVISIONS OF POEA-SEC (Standard
employment contract)
a. Complete name and address of the
employer/company
b. Position and jobsite of the overseas filipino
worker
c. Basic monthly salary, including the benefits and
allowances and mode of payment. The salary
shall not be lower than that prescribed by
minimum wage in the host country or prevailing
minimum wage in the NCR, whichever is higher
d. Food and accommodation or the monetary
equivalent, which shall be commensurate to the
cost of living in the host country, or off-setting
benefits
e. Commencement and duration of contract
f. Free transportation from and back to the point of
hire, or off-setting benefits and free inland
transportation at the job site or off-setting
benefits
g. Regular works and hours and day off
h. Overtime pay for services rendered beyond the
regular working hours, rest days and holidays
i. Vacation leave and sick leave for every year of
service.
j. Free emergency medical and dental treatment
(j) Just/valid/authorized causes for termination of the contract
or of the services of workers, taking into consideration the
customs, traditions, norms, mores, practices, company
policies and the labor laws and social legislation in the host
country
(k) Settlement of disputes
(l) Repatriation of worker in case of imminent danger due to
war, calamity and other analogous circumstances, at the
expense of the employer; and
(m) In case of worker’s death/repatriation of the OFW human
remains and personal belongings, at the expense of the
employer
NOTE: These are just minimum standards for employment, thus,
parties are free to stipulate but should be way above these terms. The
licensed recruitment agency should give the OFW the full terms of
the contract before letting them sign, and should be in accordance
with these minimum standards.
DISABILITY BENEFITS
 The injury/illness is work related
 It occurred during the term of the seafarer’s contract
PERMANENT/TOTAL DISABILTY
 Permanent disability: inability of the worker to perform
his job for more than 120 days, regardless of w/not he loses
the use of any part of his body.
o The 120 days of total and temporary disability
may be extended by a maximum of 120 days or
up to 240 days, should the seafarer require further
medical treatment
 Total disability: The disablement of an employee to earn
wages in the same kind of work of similar nature that he
was trained for, or accustomed to perform, or any kind of
work which a person of his mentality and attainments could
do. A total disability does not require that the employee be
completely disabled, or totally paralyzed. What is necessary
is that the injury must be such that the employee cannot
pursue his or her usual work and earn from it.
o A total and temporary disability becomes
permanent when so declared by the company
designated physician within 120 days or 240
days, as the case maybe or upon the expiration of
the period without declaration of either fitness to
work or permanent disability and the seafarer is
still unable to resume his regular seafaring duties.
In Crystal v. Shipping Lines it was rules that it is of no consequence
that he recovered, for what is important is that he was unable to
perform his customary work for more than 120 days and this
constitutes permanent disability.
In Alpha ship: An employee’s disability becomes permanent and
total when so declared by the company-designated physician, or in
case of absence upon the lapse of the 120-or 240 day treatment
period, while the employee’s disability continues and he is unable to
engage in gainful employment during such period, and the company
designated physician fails to arrive at a definite assessment of the
employee’s fitness or disability.
 So within the period, there must be a definite assessment
 120-240, kasi pwede lang iextend yung treatment period ng
120 days.
THIRD DOCTOR REFERRAL
 If there are conflicting medical decisions, a third doctor
must be consulted and such decision of the third doctor will
be valid and binding upon the parties.
SEAFARER’S DEATH BENEFIT
 The death need not have occurred during term of
employment. It is enough that the seafarer’s work-related
injury or illness which eventually causes his death should
have occurred during the term of his employment
SEAFARER’S PROTECTION: NEW LAW AGAINST
AMBULANCE CHASING
 Ambulant chasing: (1) a person or his agent solicits from
a seafarer or his heirs, the pursuit of a claim against the
employer of the seafarer (2) such claims for the purpose of
recovery of monetary award or benefits arising from the
accident, illness or death including interest (3) the pursuit
of the claim is in exchange of an amount or fee which shall
be deducted from the monetary award or benefit granted to
the seafarers or their heirs
  NOTE: compensation of the person handling must not
exceed 10% of the compensation or benefit awarded to the
seafarer/his heirs
INVALID SIDE AGREEMENT
 An agreement that diminishes an employee’s pay and
benefits as contained in a POEA-approved contract is
VOID, unless such subsequent agreement is approved by
the POEA.
PERIOD TO FILE OFW CLAIMS: Three years from employer-
employee relations.
EMPLOYMENT CONDITIONS: SECURITY OF TENURE
 They can only be removed for causes allowed under
Philippine law
 In Maersk-Filipinas crewing: An erring seaman is given a
written notice of the charge against him and is afforded an
opportunity to explain or defend himself. Should sanctions
be imposed, then a written notice of penalty and the reason
for it shall be furnished the erring seafarer. It is only in the
exceptional case of clear and existing danger to the safety
of the crew or vessel that the required notices are dispensed
with; but just the same, a complete report should be sent to
the manning agency, supported by substantial evidence of
the findings.
EMPLOYMENT AT WILL MAY BE VALID
OVERSEAS EMPLOYMENT
 EAW: contract wherein the employee can be terminated,
with or without cause.
 This is valid, if freely entered into by an OFW and the
employee and the termination should be done in good faith
but is not valid in local employment
PRETERMINATION OF EMPLOYMENT: Relief
 Full reimbursement of his placement fee with interest 12%
o The BSP circular changing every thing to a flat
rate of 6% is inapplicable because a mere circular
cannot repeal a law
 Unexpired portion of his employment contract
TERMINATION OF EMPLOYMENT OF SEAFARER
 Commencement/Duration of contract
o Departure from point of hire + POEA approved
contract
o Valid until arrival in pursuant to termination
o It shall not exceed 12 months, except when the
contract is subject to mutual consent of both
parties
 Termination of employment
o Completes period of contract, signs off from the
vessel and arrives at the point of hire.
o When seafarer is disembarked for medical
reasons
o (1) termination due to expiration or other causes
(2) signing off from the vessel (3) arriving at the
point of hire
NOTE: Seafarer’s are contractual employees but Domestic
seafarer’s may be considered as regular employees
PROTECTION AND ASSISTANCE BY GOVERNMENT
AGENICES
1. DFA – represents filipinos aabroad, LAMWA was created
under DFA to give legal assistance to filipinos in distress
2. DOLE – labor and social laws in the foreign countries are
fairly applied to migrant workers
3. POEA – licensing and registration system
4. OWWA – under DOLE, welfare programs
REPATRIATION
 Going home of the OFW
 All costs attendant to repatriation shall be borne by or
charged to the agency concerned and/or its principal
 No bond or cash deposit from the worker is needed to
guarantee the repatriation of the worker
 Remains: principal/local agency
 Worker at fault: The principal/agency is not responsible
[So I am assuming, yung worker na yung mag sshoulder
dapat]
 In case of disasters: GR: OWWA, subject to
reimbursement to the principal or agency, if the principal or
agency, cannot be identified, it will be solely the OWWA
who is liable.
OFW CANNOT BE LEFT STRANDED
IN
- Placement agency may establish that it was the
worker’s fault but must still repatriate the OFW
- So kailangan pa din ibalik yung OFW dito sa pilipinas
agad, even if fault niya
MANDATORY REPATRIATION OF UNDERAGE WORKER
 The worker must be repatriated ASAP
 Refund of all fees
 Indemnification
 Recruitment agency’s license is revoked
 Fine: 500,000 [min] to 1,000,000 [max]
 Paid within 30 days from date of mandatory repatriation
MANDATORY REMITTANCE OF FOREGN EXCHANGE
EARNINGS: The percentages of foreign exchange remittance
ranging from 50-80% of the basic salary depending on the worker’s
job
COMPOSITION OF THE BOARDS
(a) Secretary of Labor and Employment – CHAIRMAN
(b) The administrator
(c) Third member – well versed in the field of overseas
employment [appointed by the president for a term of
2 years]
3. Entities prohibited from recruiting
Agencies licensed to recruit for local employment but intending to
recruit for overseas employment has to apply for a separate license.
The following are disqualified from engaging in the business of
recruitment and placement for domestic employment of the
following:
 (a) Persons convicted of illegal recruitment, trafficking in
persons, violation child labor laws, or crimes involving
moral turpitude
(b) Agencies whose licenses have been previously been
cancelled or revoked
(c) Cooperatives whether or not registered under the corporate
act of the Philippines
(d) Law enforcers and any official or employee of DOLE
NOTE: Agencies licensed to engage in recruitment and placement
for local employment are prohibited from engaging in job contracting
or sub-contracting activities
ANNOTATIONS
 The private sector should participate in the recruitment and
placement of workers, locally and overseas under such
guidelines as prescribed by the Secretary of Labor
 TRAVEL AGENCIES ARE PROHIBITED TO RECRUIT
o Travel agencies, sales agencies, airline companies
are prohibited to recruit whether for profit or not
 Any official or employee of DOLE, POEA, OWWA, DFA
and other government agencies involved in the
implementation of R.A. 8042 or their relatives in the fourth
civil degree
CITIZENSHIP REQUIREMENT
 75% of the authorized voting capital stock which is owned
and controlled by filipino citizens shall be permitted to
participate in the recruitment and placement of workers,
locally or overseas.
CAPITALIZATION
 LOCAL
o Networth -1M in case of sole proprietorship
o Minimum Paid Up capital: 1,000,000 in the
case of a corporation
 OVERSEAS
o Minimum capitalization: 5,000,000 – sole
proprietorship
o Minimu paid up capital: 5M in case of
corporation or partnership
PAID UP CAPITAL: amount of money a company has
received from shareholders in exchange for shares of
stock
Net worth is the value the assets a person or corporation
owns, minus the liabilities they owe
DISQUALIFICATIONS
1. LOCAL EMPLOYMENT
(a) Those who are convicted of illegal recruitment, trafficking
in persons, anti-child labor violation, or crimes involving
moral turpitude
(b) Those against whom probable cause or prima facie finding
of guilt for illegal recruitment or other related cases exist
particularly to owners or directors of agencies who have
committed illegal recruitment or other related cases
(c) Those agencies whose licenses have been previously
revoked or cancelled by the Department under Section 54
(d) Cooperatives whether registered or not under the
cooperative act of the Philippines
(e) Law enforcers and any official and employee of the DOLE
(f) Sole proprietors of duly licensed agencies are prohibited
from securing another license to engage in recruitment and
placement
(g) Sole proprietors, partnerships or corporations licensed to
engage in private recruitment ad placement for local
employment are prohibited from engaging in job
contracting or sub-contracting
WHO ARE DISQUALIFIED FROM OVERSEAS
EMPLOYMENT
a. Travel agencies and sales agencies of airline companies
b. Officers or members of the Board of any corporation or
partners in a partnership engaged in business or a travel
agency
c. Corporation and partnerships where any of its officers,
members of the board or partners is also an officer, member
of the board or partner of a corporation or partnership
engaged in the business of a travel agency
d. Individuals, partners, officers or directors of an insurance
company who make propose or provide an insurance
contract under the compulsory insurance coverage for
agency-hired overseas filipino workers
e. Sole proprietors, partners or officers and members of the
board with derogatory records, such as but not limited to
1. Those convicted or against whom probable cause or prima
facie finding of guilt is determined by a competent
authority, for illegal recruitment, or for other related crimes
or offenses committed in the course of, related to or
resulting from, illegal recruitment or for crimes involving
moral turpitude.
2. Those agencies whose license has been revoked for
violation of RA 8042
3. Those agencies whose licenses have been cancelled or
those, who in pursuant to the order of the administrator
were included in the list of persons with derogatory record
for violation of recruitment laws and regulations
4. Suspension or cancellation of license or authority
SUSPENSION/CANCELLATION OF LICENSE
 Engaging in act/s of misrepresentation for the purpose of
securing a license or renewal thereof, such as giving false
testimonies or falsified documents;
 engaging in the recruitment and placement of workers in
jobs harmful to public health or morality or to the dignity of
the republic of the Philippines;
 charging of any fee before employment is obtained for an
applicant worker; charging of a fee in amount exceeding
the allowable rate
 POEA ADMINISTRATOR and DOLE secretary has the
concurrent jurisdiction to revoke and suspend the license
To recruit for local employment
VALIDITY OF LICENSE: Three years from issuance, unless
sooner revoked or cancelled
RENEWAL OF THE LICENSE: Filed not earlier than 60 days but
not later than 30 days before its expiration
 Validity of the new license shall only start after the
expiration of the previous license
To recruit for overseas employment
 Provisional License: 2 years
o Can be upgraded after the recruiter has deployed
at least 100 workers to its new principal/s.
o There must be a certificate stating that the escrow
deposit remains at 1,000,000.
 To answer for all valid claims arising
from employment contracts and
violations of conditions of the license
 If provisional license is upgrades -> 4 YEARS VALIDITY
from date of issuance of the provisional license
o The application for upgrade should be filed
within 3 months before expiration of the
provisional license
LIABILITY UNDERTAKINGS OF THE RECRUITMENT
AGENCY
 Important pre-qualification: The sole proprietor, managing
partner or the president of the corporation that the applicant
shall
o Negotiate for the best terms and conditions for
the employment of thee workers
o Select and deploy only medically fit and
competent workers as tested by the employers or
certified by TESDA or by other competent
authority
o Provide orientation to the workers on recruitment
procedures as well as the country profile and the
working and living conditions and other relevant
information about the host country and work site
o Obtain compulsory insurance coverage for its
hired workers for the duration of the contract of
employment at no cost to the workers
o Provide the worker of the contract upon signing
and provide the OEC upon issuance [OEC:
overseas employment certificate: valid for 60
days from issuance]
 This means it has been processed by the
POEA
 The OFW must be deployed within 60
days if not, the recruitment agency
must report it to the POEA within 15
days from expiry date of the OEC
o Guarantee that there is no officer or employee of
the recruitment agency related within the 4 th civil
degree of consanguinity or affininty to any
official or employee of any government agency
engaged, directly or indirectly in the
implementation of R.A. 8042 as amended;
o Assume full and complete responsibility for all
claims and liabilities which may arise in
connection with the use of the license
o Assume joint and several liability with the
employer for all the claims and liabilities which
may arise in connection with the implementation
of the contract, including but not limited to
unpaid wages, death and disability compensation
and repatriation
o Assume full and complete responsibility for all
acts of its officers, employees and representatives
done in connection with recruitment and
placement
o Adhere to the ethical standards a prescribed in the
code of conduct for ethical recruitment as
endorsed by recruitment industry associations and
the administration; and
o Guarantee compliance with existing labor and
social legislation of the Philippines and of the
country of employment of the recruited workers
NON- TRANSFERABILITY OF LICENSE OR AUTHORITY
 It cannot be transferred, and the authority (which is the
place where you can exercise recruitment and placement)
cannot be changed
 If anything can be changed, it is subject to the approval of
the secretary of labor.
 Provincial recruitment of Metro Manila addressed licensees
is allowed only if POEA allows
REGISTRATION FEES -> need to be paid
BONDS: bonds for application of license, appeal bonds
APPEAL BOND
 223: it is intended to insure the payment of the monetary
award if the judgment is affirmed on appeal; for perfection
of an appeal
 Bonds under 31: intended to guarantee payment for all
valid and legal claims of an employer, but these are not
limited to monetary awards and also applicable to
employees whose contracts of employment have been
violated
o Violations by the recruiter of the conditions for
its license, the provisions of the Labor Code, the
rules of the POEA as well as the settlement of
other liabilities the recruiter may incur.
o Garnishment: violation of the conditions for the
grant and use of the license or authority and
contracts of employment, and should arise from
labor laws.
o EFFECT OF GARNISHMENT: The escrow
deposit is no longer enough and a new escrow
deposit should be made 15 days from date of
receipt of notice from the POEA that the bonds
or deposits in escrow, or any part had been
garnished, the recruitment or manning agency
shall replenish the same.
 FAILURE = SUSPENSION OF LICENSE ]
CHARGEABLE FEES
 No fees shall be deducted from the salaries/wages of the
employee
 Service fee & Transporation fee shall be shouldered by the
employer
 ORs must be issued
REPLACEMENT OF WORKER WITHOUT COST
  Employer shall be entitled to the replacement of the worker
without additional costs or a refund of 75% of the service
fee and transportation expenses subject to the ff:
o If the worker is sick/mental illness certified by a
competent/government physician -> within 1
month
o If the worker abandons the job, voluntarily
resigns or does anything prejudicial to the
employer or his family -> within 3 months
 If the loss is due to causes, replacement
of worker with no cost. If cannot be
replaced, refund
o Entitled to refund within 1 month from the
receipt of the request
FEES AND COSTS CHARGEABE TO PRINCIPALS OR
EMPLOYER, unless otherwise provided
a. Visa, including stamping fee
b. Work permit and residence permit
c. Round trip airfare
d. POEA processing fee
e. OWWA membership fee
f. Transportation from airport to jobsite
g. Additional trade test or assessment if it is required by the
principal/employer
FEES CHARGEABLE TO THE OFW
 Placement fee – equivalent to one month basic salary
specified in the POEA approved contract
o Xpns
 Domestic worker
 Workers to be deployed to countries
where the prevailing system, either by
law, policy or practice do not allow,
directly or indirectly the charging and
collection of recruitment/placement fee
 Signing of POEA approved contract before payment of
placement fee, and must issue an O.R.
It shall be unlawful for any individual, entity or licensee or holder of
authority
(a) To charge, accept, directly or indirectly any amount greater
than that specified in the allowable fees prescribed by the
SOL or to make a worker pay any amount greater than that
actually received by him as loan or advance
(b) To furnish or publish any false notice or information or
document in relation to recruitment or employment
(c) To give false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of
securing a license or authority
(d) To induce or attempt to induce a worker already employed
to quit his employment in order to offer him to another
unless the transfer is designed to liberate him from
oppressive terms and conditions of employment
(e) To influence or attempt to influence any person or entity
not to employ any worker who has not applied for
employment through his agency
(f) To engage in recruitment/placement of workers in jobs
harmful to public health or morality or to the dignity of the
Republic of the Philippines
(g) To obstruct or attempt to obstruct inspection by the SOL or
by his duly authorized representatives
(h) To fail to file reports on the status, employment, placement,
vacancies, remittances of foreign exchange earnings,
separation from jobs, departures and such other matters or
information as may be required by the SOL
(i) To substitute or alter employment contracts approved and
verified by the DOL from the time of actual signing thereof
by the parties up to and including the periods of expiration
of the same without the approval of the SOL
(j) To become an officer or member of the Board of any
corporation engaged in travel agency or to be engage
directly or indirectly in the management of a travel agency
(k) To withhold or deny travel documents from applicant
workers before departure for monetary or financial
considerations other than those authorized under this code
and its IRR
C. Illegal recruitment
ILLEGAL RECRUITMENT IN LOCAL EMPLOYMENT

DOCUMENTATION COSTS SHOULDERED BY THE OFW  When any of the following acts are undertaken by a non-
licensee or non-holder of authority: any act of canvassing,
1. Passport enlisting, contracting, utilizing, hiring or procuring workers
2. NBI/Police/Barangay Clearance and includes referrals, contract services, promising or
3. NSO authenticated birth certificate advertising for local employment whether for profit or not
4. TOR and Diploma  When any of the following acts which have been declared
5. Professional license from PRC by law as prohibited are committed by: any person, whether
6. Certificate of competency from TESDA or any other or not a holder of a license or authority
competent body
7. DOH prescribed medical/health examination a) To charge or accept directly or indirectly any amount
8. Membership with Philhealth, Pagibig, SSS. or to make a worker pay the agency or its
representatives any amount than that actually loaned
or advanced to him
NOTE: POEA has the power to order refund of illegally collected b) To furnish or publish any false notice or information
fees in relation to recruitment or employment
c) To give any false notice, testimony, information or
5. Prohibited Practices document or commit any act of misrepresentation for
the purpose of securing a license or authority
Article 34. d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
 worker from oppressive terms and conditions of  There must be an offer and promise of jobs, whether locally
employment or abroad
e) To influence or attempt to influence any person or  Lack of receipts, is okay so long as can be proven by
entity not to employ any worker who has not applied testimony
for employment through his agency 2. Types
f) To engage in the recruitment or placement of worker (a) ILLEGAL RECRUITMENT AS ECONOMIC
sin jobs harmful to public health or morality or to the SABOTAGE
dignity of the Republic of the Philippines  When committed by a syndicate – group of 3 or more
g) To obstruct or attempt to obstruct inspection by the  When committed large scale – committed against 3 or more
DOLE secretary or by his/her duly authorized o Kailangan yung complainants lahat magfifile, or
representatives basta aabot sila ng 3 to constitute large scale
h) To substitute or alter to the prejudice of the worker, (b) SIMPLE ILLEGAL RECRUITMENT
employment contract prescribed by DOLE from the  All elements are present, but it is not large scale or done by
time of actual signing thereof by the parties up to and a syndicate
including the period of the expiration of the same 3. Illegal Recruitment distinguished from estafa
without DOLE approval ELEMENTS OF ESTAFA
TWO KINDS OF ILLEGAL RECRUITMENT (1) That the accused defrauded another by abuse of
confidence or by means of deceit
 Licensee (2) That damage or prejudice capable of pecuniary
 Non-licensee estimation is caused to the offended party or third
o Even if there is no license, it is still considered as person
illegal recruitment so long as any of the activities
WHO ARE LIABLE?
of recruitment is done.
 Principals, accomplices and accessories
OTHER ILLEGAL RECRUITMENT ACTS BY EITHER A
 Juridical persons – officers having control, management or
NON-LICENSEE OR A LICENSEE: LOCAL EMPLOYMENT
directors IF they have knowledge of illegal recruitment
1. Overcharging  Employee
2. False notice o GR: not liable if wala siya alam sa pinag gagawa
3. Misrepresentation to secure license ng employer niya
4. Inducing worker to quit  Xpn: when it is proven na he actively
5. Inducement not to employ and consciously participated sa acts
6. Recruitment in harmful jobs nung employer niya
7. Obstructing inspection  FOREIGN EMPLOYER – in case of judgment,
8. Contract substitution disqualified na siya without further proceedings from
participating in POEA
ILLEGAL RECRUITMENT RELATING TO OVERSEAS
EMPLOYMENT PENALTIES

 8 acts +  12 years and 1 day to 20 years & fine of 1M-2M -> illegal
 Misreprersentation in documentation recruitment
 Nonsubmission of reports – status of employment,  Life imprisonment + fine 2M-5M -> IR with economic
placement vacancies, remittance of foreign exchange sabotage
earnings, separation from jobs, departures and such other o Maximum: if the one who committed is a non-
matters or information as may be required by the secretary licensee/non-holder or if the person recruited is
under the penalty of law underage
 Involvement in travel agency or insurance  6 yrs & 1 day => 12 years + 500k-1M -> guilty of any of
 Withholding of documents for monetary considerations the prohibited acts
 Failure to deploy without valid reason as determined by the  ALIEN: deported (after serving sentence)
DOLE  Conviction shall carry: revocation of license
 Failure to reimburse
 Non-filipino manager VENUE: RTC, where it was committed or where the offended party
resides -> where it first filed & acquired jurisdiction, to the exclusion
 Excessive interest
of all courts
 Specifying a loan entity
 Non-renegotiation of a loan MANDATOR PERIODS
 Specifying a medical entity
 Specifying a training entity  Preliminary investigation: 30 days
 Violation of suspension  Prima facie evidemce: 24 hours filing (prosec)
 Prima facie evidence finding: 48 hours to file (judge)
1. Elements
PRESCRIPTIVE
 Deceit or misrepresentation
 The accused gave complainants the impression that he had  Local: 3 years
the power or ability to send them abroad for work, but they  Foreign: 5 years
did not
  Economic sabotage: 20 years

D. Liability of local recruitment agency and foreign

employer
1. Solidary liability
 Unpaid salaries
o Recruitment agency is solidarily liable with the
foreign principal
 Even if RA and FP severed ties, RA is
still SL with the FP, if no notice was
given to the worker
 But the obligation extends
only up to the expiration of
employment contracts of the
employees recruited and
employed pursuant to the said
recruitment agreement
2. Theory of imputed knowledge: What the agent
knows, the principal knows.
 AGENT: Recruitment Agency
 SUABILITY OF A FOREIGN CORPORAATION
WHICH HIRES FILIPINO WORKERS: The corporation
was domiciled outside the Philippines, but it was ordered to
pay the worker unpaid salaries because it was in the
business of hiring Filipinos.

E. Termination of contract of migrant worker

F. Employment of non-resident aliens
 Employment permit must be gotten from DOLE
o NRA or the applicant employer is issued only
after the determination that there is no other
person in the Philippines who is competent, able
and willing at the time of application to perform
the services for which the alien is desired

PROHIBITION AGAINST TRANSFER OF EMPLOYMENT

 After issuance of EP -> alien cannot transfer jobs without

prior approval of SOL
 If for any violation -> serve sentence + deportation

SUBMISSION LIST

 Any employer employing NRFN on the effective date of

this code shall submit a list of such nationals to the SOL
within 30 days after such date indicating names,
citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The SOL
shall then determine if they are entitled to an employment
permit. i