ART. 13.

DEFINITIONS

(a) “Worker” 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.

(c) “Private fee-charging 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.

(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. 14. EMPLOYMENT PROMOTION

The Secretary of Labor shall have the power and authority:

(a) To organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor 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 occupational, 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.

ART. 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 develop plans and programs to implement the employment

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, locally
and overseas, and to secure the best possible terms and conditions of
employment for Filipino contract workers and compliance therewith under such
rules and regulations as may be issued by the Department of Labor and
Employment;

3. To formulate and develop 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

development 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.

ART. 16. PRIVATE RECRUITMENT

Except as provided in Chapter II of this Title, no person or entity, other than the public
employment offices, shall engage in the recruitment and placement of workers.

ART. 17. OVERSEAS EMPLOYMENT DEVELOPMENT BOARD

An Overseas Employment 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. It shall have the power and duty:

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;
and

4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for
Overseas Workers.

ART. 18. BAN ON DIRECT-HIRING

No employer may hire a Filipino worker for overseas employment except through
the Boards and entities authorized by the Department of Labor and Employment.
Direct-hiring by members of the diplomatic corps, international organizations and such
other employers as may be allowed by the Department of Labor and Employment is
exempted from this provision.

ART. 19. OFFICE OF EMIGRANT AFFAIRS

(a) Pursuant to the national policy to maintain close ties with Filipino migrant
communities and promote their welfare as well as establish a data bank in aid of national
manpower policy formulation, an Office of Emigrant Affairs is hereby created in the
Department of Labor. The Office shall be a unit at the Office of the Secretary and shall
initially be manned, and operated by such personnel and through such funding as are
available within the Department and its attached agencies. Thereafter, its appropriation
shall be made part of the regular General Appropriations Decree.

(b) The office shall, among others, promote the well-being of emigrants and
maintain their close link to the homeland by:

1) serving as a liaison with migrant communities;

2) providing welfare and cultural services;

3) promoting and facilitating re-international of migrants into

the national mainstream;

4) promoting economic, political and cultural ties with the communities; and

5) undertaking such activities as may be appropriate to enhance such cooperative

links.

ART. 20. NATIONAL SEAMEN BOARD

(a) A National Seamen Board is hereby created which shall develop and maintain a
comprehensive program for Filipino seamen employed overseas. It shall have the power
and duty:

1. To provide free placement services for seamen;

2. To regulate and supervise the activities of agents or representatives of shipping

companies in the hiring of seamen for overseas employment; and secure the best
possible terms of employment for contract seamen workers and secure
compliance therewith;
3. To maintain a complete registry of all Filipino seamen. (b) The Board shall have
original and exclusive jurisdiction over all matters or cases including money
claims, involving employer-employee relations, arising out of or by virtue of any
law or contracts involving Filipino seamen for overseas employment. The decision
of the Board shall be appealable to the National Labor Relations Commission
upon the same grounds provided in Article 223 hereof. The decisions of the
National Labor Relations Commission shall be final and unappealable.
ART. 21. FOREIGN SERVICE ROLE AND PARTICIPATION

To provide ample protection to Filipino workers abroad, the labor attaches, the
labor reporting officers duly designated by the Secretary of Labor and the Philippine
diplomatic or consular officials concerned shall, even without prior instruction or advice
from the home office, exercise power and duty:

(a) To provide all Filipino workers within their jurisdiction assistance on all
matters arising out of employment;

(b) To insure that Filipino workers are not exploited or discriminated against;

(c) To verify and certify as requisite to authentication that the terms and
conditions of employment in contracts involving Filipino workers are in accordance with
the Labor Code and rules and regulations of the Overseas Employment Development
Board and National Seamen Board;

(d) To make continuing studies or researches and recom- mendations on the

various aspects of the employment market within their jurisdiction;

(e) To gather and analyze information on the employment situation and its
probable trends, and to make such information available to the Department of Labor and
Employment and the Department of Foreign Affairs; and

(f) To perform such other duties as may be required of them from time to time.

ART. 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. 23. COMPOSITION OF THE BOARDS

(a) The Overseas Employment Development Board shall be composed of the

Secretary of Labor as Chairman, the Undersecretary of Labor as Vice-Chairman, and a
representative each of the Department of Foreign Affairs, the Department of National
Defense, the Central Bank, the Department of Education and Culture, the National
Manpower and Youth Council, the Bureau of Employment Services, a workers’
organization and an employers organization, and the Executive Director of the OEDB as
members.

(b) The National Seamen Board shall be composed of the Secretary of Labor as
Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant of the
Philippine Coast Guard, and a representative each of the Department of Education and
Culture, the Central Bank, the Maritime Industry Authority, the Bureau of Employment
Services, a national shipping association and the Executive Director of the NSB as
members. The members of the Boards shall receive allowances to be determined by the
Boards which shall not be more than P2,000 per month.

(c) The Boards shall be attached to the Department of Labor for policy and
program coordination. They shall each be assisted by a Secretariat headed by an
Executive Director who shall be a Filipino citizen with sufficient experience in manpower
administration, including overseas employment activities. The Executive Director shall
be appointed by the President of the Philippines upon the recommendation of the
Secretary of Labor and shall receive an annual salary as fixed by law. The Secretary of
Labor shall appoint the other members of the Secretariat.

(d) The Auditor General shall appoint his representative to the Boards to audit
their respective accounts in accordance with auditing laws and pertinent rules and
regulations.

ART. 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.

ART. 26. TRAVEL AGENCIES PROHIBITED TO RECRUIT

Travel agencies and sales agencies of airline companies are prohibited from
engaging in the business of recruitment and placement of workers for overseas
employment whether for profit or not.
ART. 27. CITIZENSHIP REQUIREMENT

Only Filipino citizens or corporations, partnerships or entities at least seventy-five

percent (75%) of the authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in the recruitment and
placement of workers, locally or overseas.

ART. 28. CAPITALIZATION

All applicants for authority to hire or renewal of license to recruit are required to
have such substantial capitalization as determined by the Secretary of Labor.

ART. 29. NON-TRANSFERABILITY OF LICENSE OR AUTHORITY

No license or authority shall be used directly or indirectly by any person other

than the one in whose favor it was issued or at any place other than that stated in the
license or authority, nor may such license or authority be transferred, conveyed or
assigned to any other person or entity. 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. 30. REGISTRATION FEES

The Secretary of Labor shall promulgate schedule of fees for the registration of all
applicants for license or authority.

ART. 31. BONDS

All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms and conditions of employment
as may be appropriate.

ART. 32. FEES TO BE PAID BY WORKERS

Any person applying with a private fee-charging employment agency for

employment assistance shall not be charged any fee until he has obtained employment
through its efforts or has actually commenced employment. Such fee shall be always
covered with the appropriate receipt clearly showing the amount paid. The Secretary of
Labor shall promulgate a schedule of allowable fees.

ART. 33. REPORTS ON EMPLOYMENT STATUS

Whenever the public interest requires, the Secretary of Labor may direct all
persons or entities within the coverage of this Title to submit a report on the status of
employment, including job vacancies, details of job requisitions, separation from jobs,
wages, other terms and conditions, and other employment data.

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;

(b) To furnish or publish any false notice or information or document in relation to

recruitment or employment;

(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;

(d) To induce or to 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;

(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;

(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;

(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by

his duly authorized representatives;

(h) To fail to file reports on the status of employment, placement, vacancies,

remittances of foreign exchange earnings, separation from jobs, departures and such
other matters or information as may be required by the Secretary of Labor;
 (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;

(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; 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.

ART. 35. SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY

The Minister of Labor 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 Ministry of Labor, the Overseas Employment Development
Board, and the National Seamen Board, or for violation of the provisions of this and other
applicable laws, General Orders and Letters of Instructions.

ART. 36. REGULATORY POWER

The Secretary of Labor 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.

ART. 37. 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
this Title, require it to submit reports regularly on prescribed forms, and act on violations
of any provisions of this Title.

ART. 38. ILLEGAL RECRUITMENT1

(a) Any recruitment activities, including the prohibited practices enumerated

under Article 34 of this Code, to be undertaken by non-licensees or non-holders of
authority shall be deemed illegal and punishable under Article 39 of this Code. The
Department of Labor and Employment or any law enforcement officer may initiate
complaints under this Article.

(b) Illegal recruitment when committed by a syndicate or in large scale shall be

considered an offense involving economic sabotage and shall be penalized in
accordance with Article 39 hereof. Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three (3) or more persons conspiring and/or
confederating with one another in carrying out any unlawful or illegal transaction,
enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is
deemed committed in large scale if committed against three (3) or more persons
individually or as a group.

(c) The Secretary of Labor and Employment or his duly authorized representatives
shall have the power to cause the arrest and detention of such non-licensee or
non-holder of authority if after investigation it is determined that his activities constitute
a danger to national security and public order or will lead to further exploitation of
job-seekers. The Minister shall order the search of the office or premises and seizure of
documents, paraphernalia, properties and other implements used in illegal recruitment
activities and the closure of companies, establishments and entities found to be engaged
in the recruitment of workers for overseas employment, without having been licensed or
authorized to do so.

ART. 39. PENALTIES

(a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos
(P100,000) shall be imposed if illegal recruitment constitutes economic sabotage as
defined herein;

(b) Any licensee or holder of authority found violating or causing another to

violate any provision of this Title or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than two years nor
more than five years or a fine of not less than P10,000 nor more than P50,000, or both
such imprisonment and fine, at the discretion of the court;

(c) Any person who is neither a licensee nor a holder of authority under this Title
found violating any provision thereof or its implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of imprisonment of not less than four years
nor more than eight years or a fine of not less than P20,000 nor more than P100,000 or
both such imprisonment and fine, at the discretion of the court;

(d) If the offender is a corporation, partnership, association or entity, the penalty

shall be imposed upon the officer or officers of the corporation, partnership, association
or entity responsible for violation, and if such officer is an alien, he shall, in addition to
the penalties herein prescribed, be deported without further proceedings; and

(e) In every case, conviction shall cause and carry the automatic revocation of the
license or authority and all the permits and privileges granted to such person or entity
under this Title, and the forfeiture of the cash and surety bonds in favor of the Overseas
Employment Development Board or the National Seamen Board, as the case may be,
both of which are authorized to use the same exclusively to promote their objectives.

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.

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 [now 303 and 304] of the Labor
Code.

In addition, the alien worker shall be subject to deportation after service of his sentence.

ART. 42. SUBMISSION OF LIST

Any employer employing non-resident foreign nationals on the effective date of

this Code shall submit a list of such nationals to the Secretary of Labor within thirty (30)
days after such date indicating their names, citizenship, foreign and local addresses,
nature of employment and status of stay in the country. The Secretary of Labor shall then
determine if they are entitled to an employment permit.