Labor Law 1

Atty. Ronic Treptor

Recruitment and Placement of
Workers
Module 2
General Provisions
Art. 13. Definitions. (LC)
• (a) “Workers” means any member of the labor force, whether
employed or unemployed.
• (b) “Recruitment and placement” refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes 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 and placement.
Art. 13. Definitions. (LC)
• (c) “Private employment agency” means any person or entity engaged in
the recruitment and placement of workers for a fee which is charged,
directly or indirectly, from the workers or employers or both.
• (d) “License” means a document issued by the Department of Labor
authorizing a person or entity to operate a private employment agency.
• (e) “Private recruitment entity” means any person or association engaged
in the recruitment and placement of workers, locally or overseas, without
charging, directly or indirectly, any fee from the 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.
Art. 13. Definitions. (LC)
• (g) “Seaman” means any person employed in a vessel engaged in
maritime navigation.
• (h) “Overseas employment” means 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 visa or
resident permit or its equivalent in the country of destination.
Art. 13. Definitions. (LC)
• What is the definition of recruitment and placement activities?
• “Recruitment and placement” refers to any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring workers, and includes
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 and placement.

• Note: Memorize this!

Art. 13. Definitions. (LC)
• Is it required that the acts of recruitment and placement be done to
two or more persons to constitute recruitment and placement?
• No. The phrase “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 and placement.” does not give an element of
recruitment and placement.

• This phrase creates a presumption that such person or entity is engaged in

recruitment and placement. This is not an element.

• Note also that this presumption only arises if the offer for employment is for a
fee.
Art. 13. Definitions. (LC)
• License vs. Authority

• A License is given to a Private fee-charging employment agency.

• An Authority is given to a Private recruitment agency.

Art. 13. Definitions. (LC)
• Private employment agency vs. Private recruitment entity
• A private employment agency can charge a fee, whether directly or
indirectly, from the workers or employers, or both. A private
recruitment entity cannot charge any fees.

• A private employment agency is issued a license, so it can operate. A

private recruitment entity on the other hand is issued an authority.
Art. 14 (LC)
• Article 14. Employment promotion. The Secretary of Labor and Employment shall
have the power and authority to:
• (a) Organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor as the need arises;
• (b) 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) Develop and organize programs that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation of workers
from one area to another; and
• (d) Require any person, establishment, organization or institution to submit such
employment information as may be prescribed by the Department of Labor and
Employment.
Art. 14 (LC)
• Why is there a need for employment promotion?
• This is to ensure that the protection to labor clause which provides that the
state shall promote full employment is implemented. If there is full
employment, the citizens will be more productive resulting to economic
improvement of the individual and the state.
Art. 14 (LC)
• How is this implemented?
• The DOLE is given the powers under Art. 14 of the Labor Code.
• Ex: Require any person, establishment, organization or institution to submit such employment
information as may be prescribed by the Department of Labor and Employment.

• Under Sec. 9, Rule II, Book I of the IRR of the Labor Code: At the end of each month,
every employer with at least six (6) employees shall submit to the nearest public
employment office the following:
• (a) List of existing job vacancies or openings;
• (b) List of new employees, if any;
• (c) Terminations, lay-offs or retirements;
• (d) Total number of employed workers for the period; and
• (e) Request for assistance, if needed, to fill vacancies or openings.
Art. 15
• Art. 15 created the Bureau of Employment Services.
• However, this bureau was abolished by virtue of E.O. 797 which
created the Philippine Overseas Employment Administration.
• The functions of the Bureau of Employment Services was transferred
to the POEA and the Bureau of Local Employment.
Art. 16
• Article 16. Private recruitment. Except as provided in Chapter II of this
Title, no person or entity, other than the public employment offices
and the OEDB for overseas employment, shall engage in the
recruitment and placement of workers.

• This simply means that generally, recruitment and placement

activities are limited to public employment offices. It is the
government that should engage in recruitment and placement,
subject to exceptions.
• What are the exceptions?
• Private fee charging employment agency, and private recruitment entity.
Art. 17
• Article 17 of the Labor Code created the Overseas Employment
Development Board.
• However, this office is already abolished because of the creation of
the POEA under E.O. 797. The powers and functions of the OEDB was
transferred to the POEA.
POEA
• Powers and Functions of the POEA:
1. Protection of the right of Filipino workers to fair and equitable employment
practices.
2. Regulation of private sector participation in the recruitment and overseas
placement of workers by setting up a licensing and registration system.
3. Deployment of Filipino workers through Government to Government hiring.
4. Formulation, implementation, and monitoring of overseas employment of Filipino
workers taking into consideration their welfare and domestic manpower
requirements.
5. Shall inform migrant workers not only of their rights as workers but also of their
rights as human beings, instruct and guide the workers how to assert their rights
and provide the available mechanism to redress violation of their rights.
6. Implementation, in partnership with other law-enforcement agencies, of an
intensified program against illegal recruitment activities (Sec. 14, R.A. 10022).
POEA
• Adjudicatory functions of POEA:
a. Administrative cases involving violations of licensing rules and regulations
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
migrants (RA 8042, IRR, Rule X, Sec. 6).

• POEA has the power to:

• Suspend or cancel licenses
• Order the refund or reimbursement of illegally collected fees
POEA
• Recruitment and placement activities by POEA:
• This is limited to government-to-government arrangements.

• In relation to this, the POEA is empowered to assist in the processing of travel

documents that will be required of the worker.
POEA
• Deployment of workers shall be allowed by the POEA only:
• In countries where the rights of Filipino migrant workers are protected.
• To vessels navigating the foreign seas or to installations located offshore or on
high seas whose owners/employers are compliant with international laws and
standards that protect the rights of migrant workers.
• To companies and contractors with international operations: Provided, That
they are compliant with standards, conditions and requirements, as
embodied in the employment contracts prescribed by the POEA and in
accordance with internationally-accepted standards.
POEA
• What are the guarantees on the part of the receiving state that the
rights of Filipino migrant workers are protected?
• The government recognizes any of the following as a guarantee on the part of
the receiving country for the protection of the rights of overseas Filipino
workers:
• (a) It has existing labor and social laws protecting the rights of workers, including migrant
workers;
• (b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or
resolutions relating to the protection of workers, including migrant workers; and
• (c) It has concluded a bilateral agreement or arrangement with the government on the
protection of the rights of overseas Filipino Workers:
POEA
• NOTE: In the absence of a clear showing that any of the guarantees
exists in the country of destination of the migrant workers, no permit
for deployment shall be issued by the POEA.
POEA
• However…
• The POEA may at any time terminate or impose a ban on employment of
migrant workers, to do so, in consultation with the DFA based on the
following grounds:
1. In pursuit of the national interest; or
2. When public welfare so requires (Sec. 4, R.A. 10022)

• Ex: the POEA may impose a ban on employment of migrant workers to a

country with an on-going widespread armed conflict.
• POEA ban on deployment of migrant workers to Northern Iraq.
http://www.poea.gov.ph/gbr/2020/GBR-02-2020.pdf
Art. 18 (LC)
• Article 18. Ban on direct hiring. No employer may hire a Filipino
worker for overseas employment except through the Boards (now
POEA) and entities authorized by the Department of Labor and
Employment. Direct hiring by members of the diplomatic service,
officials and employees of international organizations and such other
employers as may be allowed by the Department and Labor and
Employment is exempt from this provision.
• General rule:
• No direct hiring of Filipino workers for jobs abroad.

• Exceptions; as allowed by the DOLE:

• Direct hiring by members of the diplomatic service
• Direct hiring of officials and employees of international organizations
• Such other employers as allowed by the DOLE.
• Name hires
• Why is there a ban on direct hiring?
• The purpose is to regulate employment of Filipinos abroad.

• Why regulate?
• To ensure protection of Filipino workers abroad
• To protect the labor supply of the Philippines abroad by ensuring that those deployed
abroad are possessed with the necessary skills to perform the work they are hired to do.
• To enforce compliance with the solidary liability of private employment and recruitment
agencies
• To enforce the mandatory remittance requirement
• Who are name hires?
• Name hires are individual workers who are able to secure contracts for
overseas employment opportunities with employers without the assistance or
participation of any agency.

• Note that they are still required to pass through the POEA for processing
purposes and should be registered under POEA for protection. (after they
have acquired employment)
Art. 19
• Article 19 of the Labor Code created the Office of Emigrant Affairs.

• However, this is already abolished by the creation of Commission on

Filipinos Overseas. This commission is tasked to promote and uphold
the interests, rights and welfare of overseas Filipinos and strengthen
their ties with the Motherland.
Art. 20
• Art. 20 created the National Seamen Board. This is repealed by EO
797 creating the POEA.
Art. 21
• Art. 21 is another provision to ensure that the rights of Filipino
workers abroad are protected.

• It also requires the labor attaches, the labor reporting officers duly
designated by the Department of Labor and Employment and the
Philippine diplomatic or consular officials concerned to make
continuing studies and gather information regarding situations of
Filipino workers. This is to assist the DOLE in formulating policies
concerning Filipino workers abroad.
Art. 22
• Article 22. Mandatory remittance of foreign exchange earnings. It
shall be mandatory for all Filipino workers abroad to remit a portion
of their foreign exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance with rules and
regulations prescribed by the Secretary of Labor and Employment.
Art. 22
• SECTION 2 (Rule XIII, Book I, IRR of LC). Obligation to remit. — It shall
be mandatory for a worker or seaman to remit regularly a portion of
his foreign exchange earnings abroad to his beneficiary, through the
Philippine banking system. This obligation shall be stipulated in the
following documents:
a) Contract of employment and/or service between foreign
based employer and a worker;
b) Affidavit of undertaking whereby a worker obligates himself to
remit a portion of his earnings to his beneficiaries; and
c) Application for a license or authority to recruit workers.
Art. 22
• Amount to be remitted: (E.O. 857, as amended)
1. Seamen and mariners – 80% of the basic salary
2. Construction companies and their workers – 70%
3. Professional workers (doctors, nurses, teachers) whose employment
contract provide for free board and lodging – 70%
4. Professionals without free board and lodging – 50%
5. Domestic and other service workers – 50%
6. All other workers – 50%
Art. 22
• What happens if the worker fails to remit:
• Worker shall be suspended or excluded from the list of eligible workers for
overseas employment. Subsequent violations shall warrant his repatriation.
• Employers who fail to comply shall be excluded from the overseas
employment program.
• Private employment agencies or entities shall face cancellation or revocation
of their licenses or authority to recruit, without prejudice to other liabilities
under existing laws and regulations.
Art. 22
• Exception to mandatory remittance:
1. The worker’s immediate family members, beneficiaries and dependents are
residing with him abroad
2. Immigrants and Filipino professionals and employees working with the UN
agencies or specialized bodies
3. Filipino servicemen working in U.S. military installations (Resolution No. 1-
83, Inter-Agency Committee for Implementation of E.O. 857).
Regulation of Recruitment and
Placement Activities
Regulation of Recruitment and Placement
Activities
• Article 25. Private sector participation in the recruitment and
placement of workers. Pursuant to national development objectives
and in order to harness and maximize the use of private sector
resources and initiative in the development and implementation of a
comprehensive employment program, the private employment sector
shall participate in the recruitment and placement of workers, locally
and overseas, under such guidelines, rules and regulations, as may be
issued by the Secretary of Labor and Employment.
Regulation of Recruitment and Placement
Activities
• Are private entities allowed to engage in recruitment and placement
of workers?
• As a general rule, no. recruitment and placement activities can only be done
by public employment offices.

• By way or exception, private entities are allowed subject to rules and

regulations as may be issued by the Secretary of Labor and Employment.
• This is regulated by the issuance of licenses and authorities.
Regulation of Recruitment and Placement
Activities
• What are the requirements for private entities for participation in
recruitment and placement activities (for the issuance of a license or
authority)?
1. Citizenship requirement
2. Capitalization requirement
3. Should not be otherwise disqualified by law or other government
regulations to engage in the recruitment and placement of workers for
overseas employment
4. Payment of registration fees
5. Posting of surety or cash bonds
Regulation of Recruitment and Placement
Activities
1. Citizenship requirement
• For individuals who want to engage in recruitment and placement activities,
that individual must be a Filipino.

• For corporations or partnerships, at least 75% of the authorized and voting

capital stock of which must be owned and controlled by Filipinos.
Regulation of Recruitment and Placement
Activities
2. Capitalization requirement
• For local employment, the capital requirement is Php1,000,000.00 (Revised
rules and regulations governing recruitment and placement for local
employment; D.O. No. 141-14 series of 2014)

• For overseas employment, the capital requirement is Php5,000,000.00

(Revised POEA rules and regulations governing the recruitment and
employment of landbased overseas Filipino workers of 2016)
Regulation of Recruitment and Placement
Activities
3. Should not be otherwise disqualified by law or other government
regulations to engage in the recruitment and placement of
workers for overseas employment
Regulation of Recruitment and Placement
Activities
• Persons and Entities Disqualified to Engage in the Business of
Recruitment and Placement of Workers:
1. Travel agencies and sales agencies of airline companies(LC, Art. 26)
2. Officers or members of the board of any corporation or members in a
partnership engaged in the business of a travel agency
3. Corporations and partnerships, when 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
Regulation of Recruitment and Placement
Activities
• Persons and Entities Disqualified to Engage in the Business of
Recruitment and Placement of Workers:
4. Persons, partnerships or corporations which have derogatory records, such
as but not limited to those:
a) Certified to have derogatory record or information by the NBI or by the Anti-Illegal
Recruitment Branch of the POEA;
b) Against whom probable cause or prima facie finding of guilt for illegal recruitment or
other related cases exists;
c) Convicted for illegal recruitment or other related cases and/or crimes involving moral
turpitude; and
d) Agencies whose licenses have been previously revoked or cancelled by the POEA for
violation of R.A. 8042, P.D. 442 as amended and their IRRs.
Regulation of Recruitment and Placement
Activities
• Persons and Entities Disqualified to Engage in the Business of
Recruitment and Placement of Workers:
5. Any official or employee of the DOLE, POEA, OWWA, DFA and other
government agencies directly involved in the implementation of R.A. 8042
and/or any of his/her relatives within the 4th civil degree of consanguinity
or affinity
6. Persons or partners, officers and directors of corporations whose licenses
have been previously cancelled or revoked for violation of recruitment laws
(Sec. 2, Rule I, 2002 Rules and Regulations on the Recruitment and
Employment of Land-Based Workers).
Regulation of Recruitment and Placement
Activities
4. Payment of registration fees

• Local employment = Php5,000

• Overseas = Php25,000
Regulation of Recruitment and Placement
Activities
5. Posting of surety or cash bonds

• Bond requirement (Art. 31)

• All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor, including escrow deposits.

• NOTE: the purpose of the bond is to guarantee compliance with the

prescribed recruitment procedures, rules and regulations, and terms and
conditions of employment.
Regulation of Recruitment and Placement
Activities
• Note: The bond is exempted from garnishment
• Cash bond filed by applicants for license or authority is not subject to
garnishment by a judgment creditor of the agency.

• Should the bond/deposit in escrow or any part thereof be garnished, the

same should be replenished by the agency within 15 days from notice from
the POEA. Failure to replenish the same within the said period shall cause the
suspension of the license. [in case it was validly executed against; ex. An
employee was successful in a case against a foreign principal, and the bond
answered for the amount]
Regulation of Recruitment and Placement
Activities
• The surety bond required of recruitment agencies is intended for the
protection of our citizens who are engaged for overseas employment
by foreign companies. The purpose is to ensure that if the rights of
these overseas workers are violated by their employers, recourse
would still be available to them against the local companies that
recruited them for the foreign principal. The foreign principal is
outside the jurisdiction of our courts and would probably have no
properties in this country against which an adverse judgment can be
enforced. This difficulty is corrected by the bond, which can be
proceeded against to satisfy that judgment. (STRONGHOLD
INSURANCE COMPANY, INC. vs. CA and ADRIANO URTESUELA, G.R.
No. 88050, January 30, 1992)
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• Note that Local employment agencies are solidarily liable with their
foreign principal for any violation of the recruitment agreement and
violation of contracts of employment.

• Before recruiting, the agency is required to submit a document

containing its power to sue and be sued jointly and solidarily with the
principal or foreign-based employer for any of the violations of the
recruitment agreement, and the contracts of employment.
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• The recruitment agency may still be sued even if agency agreement
between recruitment agency and principal is already severed if no
notice of the termination was given to the employee based on Art.
1921 of the New Civil Code (Catan v. NLRC, GR No. 77297, April 15,
1988).
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• Exemption from solidary liability:
• Where the workers themselves insisted for the recruitment agency to send
them back to their foreign employer despite their knowledge of its inability
to pay their wages, the Court absolved the agency from liability (Feagle
Construction Corp. v. Gayda, GR No. 82310, June 18, 1990).
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• Note: If the recruitment/placement agency is a juridical being, the
corporate officers, directors or partners as the case may be, shall
themselves be jointly and solidarily liable with the corporation or
partnership for the claims and damages (Becmen Service Exporter
and Promotion v. Cuaresma, G.R. Nos. 182978-79, April 7, 2009).

• Note also that a foreign employer which through unlicensed agents

recruits workers in the country may be sued in and found liable by
Philippine courts.
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• Theory of Imputed Knowledge
• The theory of imputed knowledge ascribes the knowledge of the agent, to the
principal employer not the other way around. The knowledge of the principal-
foreign employer cannot, therefore, be imputed to its agent. (Sunace
International Management Inc. vs. NLRC, G.R. No. 161757, January 25, 2006)
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• Pretermination of contract of migrant workers without just or valid
cause; relief:
• Full reimbursement of his placement fee with 12% interest per annum.
• Plus salaries for the unexpired portion of his employment contract.
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• BUT: In case of termination of overseas employment without just,
valid or authorized cause as defined by law or contract, or any
unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement if his placement fee
and the deductions made with interest at twelve percent (12%) per
annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the
unexpired term, whichever is less.
• RA 8042 (Migrant Workers Act)
Regulation of Recruitment and Placement
Activities; Solidary liability of employment agecny
• The three-month option is declared unconstitutional for violating the equal
protection clause and the substantive due process rule in the Constitution
(Serrano vs. Gallant Maritime Services Inc. and Marlow Navigation
Company, Inc., GR 167614, March 24, 2009).

• However in 2010, RA 10022 was passed, amending RA 8042. RA 10022

reiterated the provision concerned.

• Then the SC once again declared the same provision as unconstitutional

(Sammer Overseas Placement Agency, Inc. v. Cabiles, 2014)
Regulation of Recruitment and Placement
Activities
• Once the license or authority is issued, the recruitment entity may now engage in
recruitment and placement activities. Note however that there are limitations to
the use of this license or authority.

• Limitations on License or Authority (Art. 29)

• Can only be used by the person or entity in whose favor it was issued
• Can only be used in the place stated in the license
• It cannot be transferred, conveyed, or assigned
• Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in
writing.

• Note: Any transfer of business address, appointment or designation of any agent or

representative including the establishment of additional offices anywhere shall be subject to
the prior approval of the Department of Labor
Art. 34. Prohibited Acts
• Art. 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:
a) To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor, or to make a worker pay any amount greater than that actually
received by him as a loan or advance (Overcharging);
b) To furnish or publish any false notice or information or document in
relation to recruitment or employment (False Notice);
c) To give any false notice, testimony, information or document or commit
any act of misrepresentation for the purpose of securing a license or
authority under this Code (Misrepresentation to Secure License);
Art. 34. Prohibited Acts
• Art. 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of 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 the worker from oppressive terms and conditions of
employment (Inducing Worker to Quit);
e) To influence or to attempt to influence any person or entity not to
employ any worker who has not applied for employment through his
agency (Inducement not to Employ);
f) To engage in the recruitment or placement of workers in jobs harmful to
public health or morality or to the dignity of the Republic of the
Philippines (Recruitment for Harmful Jobs);
Art. 34. Prohibited Acts
• Art. 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:
g) To obstruct or attempt to obstruct inspection by the Secretary of Labor
or by his duly authorized representatives (Obstructing Inspection);
h) To fail to file reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs,
departures and such other matters or information as may be required by
the Secretary of Labor (Non-submission of Reports);
i) To substitute or alter employment contracts approved and verified by the
Department of Labor 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 Secretary of Labor (Contract Substitution);
Art. 34. Prohibited Acts
• Art. 34. Prohibited practices. It shall be unlawful for any individual,
entity, licensee, or holder of authority:
j) To become an officer or member of the Board of any corporation
engaged in travel agency or to be engaged directly or indirectly in
the management of a travel agency (Involvement in Travel Agency);
and
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 implementing rules
and regulations (Withholding of Travel Documents).
Art. 34. Prohibited Acts
• Art. 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:
l) Failure to actually deploy a contracted worker without valid reason as
determined by the Department of Labor and Employment (Failure to Deploy);
m) Failure to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the worker's fault. Illegal
recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage (Failure to Reimburse); and
n) Allowing a non-Filipino citizen to head or manage a licensed
recruitment/manning agency (Non-Filipino Manager) (as amended by RA
10022).
Additional Prohibited Acts under RA 10022
1. Granting a loan to an OFW which will be used for payment of legal
and allowable placement fees ;
2. Refusing to condone or renegotiate a loan incurred by an OFW after
his employment contract has been prematurely terminated through
no fault of his or her own (Non-Renegotiation of Loan);
Additional Prohibited Acts under RA 10022
3. For a suspended recruitment/manning agency to engage in any kind
of recruitment activity including the processing of pending workers'
applications (Violation of Suspension);
4. For a recruitment/manning agency or a foreign principal or
employer to pass on the OFW or deduct from his or her salary the
payment of the cost of insurance fees, premium or other insurance
related charges, as provided under the compulsory worker's
insurance coverage (Collection of Insurance Premium); and
Additional Prohibited Acts under RA 10022
5. Imposing a compulsory and exclusive arrangement whereby an
OFW is required to:
a) Avail a loan only from specifically designated institutions, entities or
persons (Specifying a Loan Entity).
b) To undergo health examinations only from specifically designated medical,
entities or persons, except seafarers whose medical examination cost is
shouldered by the shipowner (Specifying a Medical Entity).
c) To undergo training of any kind only from designated institutions, entities
or persons, except for recommendatory trainings mandated by principals or
shipowners (Specifying a Training Entity) (Sec. 6, R.A. 8042, Migrant
Workers and Overseas Filipino Act, as amended by R.A. 10022).
Art. 35. Suspension or Cancellation of License
or Authority
• Article 35. Suspension and/or cancellation of license or authority. The
Secretary of Labor and Employment shall have the power to suspend
or cancel any license or authority to recruit employees for overseas
employment for violation of rules and regulations issued by the
Secretary of Labor and Employment, the Overseas Employment
Development Board, and the National Seamen Board, or for violations
of the provisions of this and other applicable laws, General Orders
and Letters of Instructions.
Suspension or Cancellation of License or
Authority
• Grounds for cancellation:
1. Incurring an accumulated 3 counts of suspension by an agency based on final
and executory orders within the period of validity of its license;
2. Violations of the conditions of license;
3. Engaging in acts of misrepresentation for the purpose of securing a license or
renewal; and
4. Engaging in the recruitment or placement of workers to jobs harmful to the
public health or morality or to the dignity of the country (Sec. 3, Rule I, Book VI,
Rules and Regulations Governing Overseas Employment).
Suspension or Cancellation of License or
Authority
• Grounds for suspension or cancellation:
1. Commission of prohibited acts under Art. 34 of LC
2. Publishing job announcements w/o POEA’s approval
3. Charging a fee which may be in excess of the authorized amount before a
worker is employed
4. Deploying workers w/o processing through POEA
5. Recruitment in places outside its authorized area (Sec. 4, Rule II, Book IV,
POEA Rules).
Suspension or Cancellation of License or
Authority
• Who suspends or cancels the license or authority?
• The Secretary of Labor and Employment is empowered to suspend or cancel a
license or authority.

• Overseas employment: SOLE and POEA can suspend or cancel.

• NOTE: there must be a hearing before the cancellation or suspension

of the license or authority to observe due process.
Arts. 36 and 37
• Article 36. Regulatory power. The Secretary of Labor and Employment shall
have the power to restrict and regulate the recruitment and placement
activities of all agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and regulations to carry
out the objectives and implement the provisions of this Title.

• Article 37. Visitorial power. The Secretary of Labor and Employment or his
duly authorized representatives may at any time inspect the premises,
books of accounts and records of any person or entity covered by this Title,
require it to submit reports regularly on prescribed forms, and act on
violations of any provision of this Title.
Illegal Recruitment
Illegal Recruitment
• Definition:
• (1st) Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,
or procuring workers and includes referring, contract services, promising or
advertising for employment abroad, whether for profit or not, when
undertaken by non-licensee or non-holder of authority: Provided, That any
such non-licensee or non-holder who, in any manner, offers or promises for a
fee employment abroad to two or more persons shall be deemed so engaged
(RA 10022, Sec. 5).
• (2nd) It shall likewise include the following acts, whether committed by any
person, whether a non-licensee, non-holder, licensee or holder of authority:
(see prohibited activities)
Illegal Recruitment
• Elements: (1st)
• The offender is not a holder of a license of authority
• He performs any of the act of recruitment and placement

• Element: (2nd)
• The offender performs any of the prohibited activities. (being a holder of a
license or authority in this case is immaterial)
Illegal Recruitment
• Types of illegal recruitment:
• SIMPLE illegal recruitment – no qualifying circumstance (not economic
sabotage)
• Penalty – 12y1d to 20y and a fine of 1M to 2M
• Prescriptive of the offense – 5 years

• Illegal recruitment as ECONOMIC SABOTAGE –

• Syndicated – carried out by a group of 3 or more persons in conspiracy or confederation
with another.
• Large scale or qualified – committed against 3 or more persons individually or as a group.

• Prescription of the offense – 20 years

• Penalty – life Imprisonment and a fine of 2M to 5M
Illegal Recruitment
• Aggravating circumstance:
• The maximum penalty shall be imposed if the person illegally recruited is less
than 18 years of age OR if committed by a non-licensee or non-holder of
authority.

• Persons criminally liable:

• The persons criminally liable for the above offenses are the principals,
accomplices and accessories. In case of juridical persons, the officers having
control, management or direction of their business shall be liable (Sec. 6, R.A.
8042).
Illegal Recruitment
• Consequence of Conviction
1. Automatic revocation of the license or authority
2. Forfeiture of the cash and surety bonds
3. Conviction for the crime of estafa, if found guilty therefor.
Illegal Recruitment
• Note:
• It is important that there must at least be a promise or offer of an
employment from the person posing as a recruiter, whether locally or
abroad (People v. Laogo, G.R. no. 176264, January 10, 2011).
Illegal Recruitment
• Illegal recruitment vs. Estafa
ILLEGAL RECRUITMENT ESTAFA
Malum prohibitum Malum in se

It is not required that it be shown that the recruiter Accused defrauded another by abuse of confidence or
wrongfully represented himself as a licensed recruiter. by means of deceit.

Ex: accused represents that he is a license holder to

deceive his victims to part with their money to
process their employment abroad.

It must be shown that the reason why the victims

parted with their money is because of the
misrepresentations of the accused.
Illegal Recruitment
• Note: Illegal recruitment and estafa cases may be filed simultaneously
or separately. The filing of charges for illegal recruitment does not bar
the filing of estafa, and vice versa.
Employment Permit of Non-
Resident Aliens
• An Alien Employment Permit is a document issued by the Department
of Labor and Employment which authorizes a foreign national to work
in the Philippines.
• Art. 40. Employment permit of non-resident aliens. Any alien seeking admission
to the Philippines for employment purposes and any domestic or foreign
employer who desires to engage an alien for employment in the Philippines shall
obtain an employment permit from the Department of Labor.

• The employment permit may be issued to a non-resident alien or to the applicant

employer after a determination of the non-availability of a 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.

• For an enterprise registered in preferred areas of investments, said employment

permit may be issued upon recommendation of the government agency charged
with the supervision of said registered enterprise.
• Persons not required to acquire an Alien Employment Permit:
1. Members of the diplomatic services and foreign government officials
accredited by the Philippine government;
2. Officers and staff of international organizations of which the Philippine
government is a cooperating member, and their legitimate spouses
desiring to work in the Philippines;
3. Foreign nationals elected as members of the Governing Board who do
not occupy any other position, but have only voting rights in the
corporation;
4. All foreign nationals granted exemption by special laws and all other laws
that may be promulgated by the Congress;
• Persons not required to acquire an Alien Employment Permit:
5. Owners and representatives of foreign principals, whose companies are
accredited by the Philippine Overseas Employment Administration
(POEA), who come to the Philippines for a limited period solely for the
purpose of interviewing Filipino applicants for employment abroad;
6. Foreign nationals who come to the Philippines to teach, present and/or
conduct research studies in universities and colleges provided that the
exemption is on a reciprocal basis; and
7. Resident foreign nationals and temporary or probationary resident visa
holders employed or seeking employment in the Philippines (DO 97-09,
Series of 2009).
• NOTE: Art. 41. Prohibition against transfer of employment.

a) After the issuance of an employment permit, the alien shall not transfer
to another job or change his employer without prior approval of the
Secretary of Labor.
b) Any non-resident alien who shall take up employment in violation of the
provision of this Title and its implementing rules and regulations shall be
punished in accordance with the provisions of Articles 289 and 290 of
the Labor Code.
In addition, the alien worker shall be subject to deportation after service of
his sentence.
• Duration of Permit:
• 1 year

• Unless if the employment contract provides otherwise, but it cannot exceed 5

years.