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Recruitment and Placement of Workers (g) Such other persons or entities as may be authorized by the

Secretary.
Definition Rule IV, SECTION 1. Who may participate in the private sector.
Only the following persons or entities in the private sector may
LABOR CODE ART. 13 [B] engage in the recruitment and placement of workers either for local
or overseas employment:
Art. 13 [b] (a)Private employment agencies;
Recruitment and Placement refers to any act of canvassing, (b)Private recruitment entities;
enlisting, contracting, transporting, utilizing, hiring or procuring (c)Shipping or manning agents or representatives; and
workers, and includes referrals, contract services, promising or (d)Such other persons or entities as may be authorized by the
advertising for employment, locally or abroad, whether for profit or Secretary.
not: Provided, That any person or entity, which in any manner, offers Rule VII, SECTION 1. Registration of Filipino Construction
or promises for a fee, employment to two or more persons shall be Contractors. Subject to guidelines issued jointly by the Secretary
deemed engaged in recruitment and placement. and the Construction Industry Authority of the Philippines,
construction contractors shall be issued authority to operate as
private recruitment entities.
Employment Policies
Private Employment Agency
Employment Agencies/Entities LABOR CODE ART. 13 [C] & [D]

Allowed Entities Art. 13. [c.] Private fee-charging employment agency means any
LABOR CODE ARTS. 16, 18, 25, AND 12[F]; person or entity engaged in recruitment and placement of workers for
a fee which is charged, directly or indirectly, from the workers or
Art. 16. Private Recruitment. Except as provided in Chapter II of employers or both.
this Title, no person or entity other than the public employment [d.] License means a document issued by the Department of Labor
offices, shall engage in the recruitment and placement of workers. authorizing a person or entity to operate a private employment
Art. 18. Ban on Direct Hiring. No employer may hire a Filipino agency.
worker for overseas employment except through Boards and entities
authorized by the Secretary of Labor. Direct-Hiring by members of Private Recruitment Entity
the diplomatic corps, international organizations and such other LABOR CODE ART. 13 [E] & [F]
employers as may be allowed by the Secretary of Labor is exempted
from this provision. Art. 13. [e.] Private recruitment entity means any person or
Art. 25. Private Sector Participation in the Recruitment and association engaged in the recruitment and placement of workers,
Placement of Workers. Pursuant to national development objectives locally or overseas, without charging, directly or indirectly, any fee
and in order to harness and maximize the use of private sector from the workers or employers.
resources and initiative in the development and implementation of a [f.] Authority means a document issued by the Department of Labor
comprehensive employment program, the private employment sector authorizing a person or association to engage in recruitment and
shall participate in the recruitment and placement of workers, locally placement activities as a private recruitment entity.
and overseas, under such guidelines, rules and regulations as may
be issues by the Secretary of Labor. Public Employment Offices
Art. 12[f]. Statement of Objectives. It is the policy of the State: [f.] LABOR CODE ARTS. 12[F] & 14[A];
To strengthen the network of public employment offices and
rationalize the participation of the private sector in the recruitment Art. 12[f.] Authority means a document issued by the Department
and placement of workers, locally and overseas, to serve national of Labor authorizing a person or association to engage in recruitment
development objectives. and placement activities as a private recruitment entity.
Art. 14. Employment Promotion. The Secretary of Labor shall have
OMNIBUS RULES, BOOK I, RULE III, IV, VII SEC. 1 to power and authority: [a.] To organize and establish new
employment offices in addition to the existing employment offices
Rule III, SECTION 1. Private recruitment. No person or entity under the Department of Labor as the need arises.
shall engage in the recruitment and placement of workers either for
local or overseas employment except the following: E.O. NO. 247 [1987], SEC. 3[F]
(a)Public employment offices;
(b)Overseas Employment Development Board; EXECUTIVE ORDER NO. 247
(c) National Seamen Board; REORGANIZING THE PHILIPPINE OVERSEAS
(d) Private recruitment offices; EMPLOYMENT ADMINISTRATION AND FOR OTHER PURPOSES
(e) Private employment agencies; Section 3. Powers and Functions. In the pursuit of its mandate, the
Administration shall have the following powers and functions:
(f) Shipping or manning agents or representatives; and
(f) Recruit and place workers to service the requirement for trained amended and their implementing rules and regulations as well as
and competent Filipino workers by foreign governments and their these rules and regulations.
instrumentalities and such other employers as public interest may All applicants for issuance/renewal of license shall be required to
require; submit clearances from the National Bureau of Investigation and Anti-
illegal Recruitment Branch, POEA, including clearances for their
Prohibited Entity respective officers and employees.
LABOR CODE ARTS. 18, 16, 25 & 26; Any official or employee of the DOLE, POEA, OWWA, DFA and other
government agencies directly involved in the implementation of R.A.
Art. 18. Ban on Direct Hiring. No employer may hire a Filipino 8042, otherwise known as Migrant Workers and Overseas Filipino
worker for overseas employment except through Boards and entities Act of 1995 and/or any of his/her relatives within the fourth civil
authorized by the Secretary of Labor. Direct-Hiring by members of degree of consanguinity or affinity; and
the diplomatic corps, international organizations and such other Persons or partners, officers and Directors of corporations whose
employers as may be allowed by the Secretary of Labor is exempted licenses have been previously cancelled or revoked for violation of
from this provision. recruitment laws.
Art. 16. Private Recruitment. Except as provided in Chapter II of
this Title, no person or entity other than the public employment 2003 POEA RULES AND REGULATIONS GOVERNING THE RECRUITMENT
offices, shall engage in the recruitment and placement of workers. AND EMPLOYMENT OF SEAFARERS [2003 POEA RULES], PART II, RULE I
Art. 25. Private Sector Participation in the Recruitment and SEC. 2
Placement of Workers. Pursuant to national development objectives
and in order to harness and maximize the use of private sector PART II LlCENSING AND REGULATION
resources and initiative in the development and implementation of a RULE I
comprehensive employment program, the private employment sector PARTICIPATION OF PRIVATE SECTOR IN THE MARITIME
shall participate in the recruitment and placement of workers, locally EMPLOYMENT PROGRAM
and overseas, under such guidelines, rules and regulations as may
Section 2. Disqualification. The following are not qualified to
be issues by the Secretary of Labor.
engage in the business of recruitment and placement of Filipino
Art. 26. Travel Agencies Prohibited to Recruit. Travel agencies seafarers.
and sales agencies of airline companies are prohibited from
a. Travel agencies and sales agencies of airline companies;
engaging in the business of recruitment and placement of workers for
overseas employment whether for profit or not. b. Officers or members of the Board of any corporation or members
in a partnership engaged in the business of a travel agency;
2002 POEA RULES AND REGULATIONS GOVERNING THE RECRUITMENT c. Corporations and partnerships, when any of its officers, members
AND EMPLOYMENT OF LAND-BASED OVERSEAS WORKERS [2002 POEA of the board or partners, is also an officer, member of the board or
RULES], PART II, RULE 1, SEC 2; partner of a corporation or partnership engaged in the business of a
travel agency;
PART II LICENSING AND REGULATION d. Persons, partnerships or corporations which have derogatory
records, such as but not limited to the following:
RULE I
PARTICIPATION OF THE PRIVATE SECTOR IN THE OVERSEAS Those certified to have a derogatory record by the National Bureau of
EMPLOYMENT PROGRAM Investigation or by the Anti-Illegal Recruitment Branch of the POEA;
Section 2. Disqualification. The following are not qualified to Those against whom probable cause or prima facie finding of guilt for
engage in the business of recruitment and placement of Filipino illegal recruitment or other related cases exists;
workers overseas: Those convicted for illegal recruitment or other related cases and/or
a. Travel agencies and sales agencies of airline companies; crimes involving moral turpitude;
b. Officers or members of the Board of any corporation or members Those agencies whose licenses have been previously revoked or
in a partnership engaged in the business of a travel agency; cancelled by the Administration for violation of RA 8042, PD 442, as
amended, and their implementing rules and regulations as well as
c. Corporations and partnerships, when any of its officers, members
these rules and regulations.
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 All applicants for issuance/renewal of license shall be required to
travel agency; submit clearances from the National Bureau of Investigation and Anti-
illegal Recruitment Branch, POEA, including clearances for their
d. Persons, partnerships or corporations which have derogatory
respective officers and employees.
records, such as but not limited to the following:
Any official or employee of the DOLE, POEA, OWWA, DFA and other
1) Those certified to have derogatory record or information by the
government agencies directly involved in the implementation of R.A.
National Bureau of Investigation or by the Anti-Illegal Recruitment
8042 and/or any of his/her relatives within the fourth civil degree of
Branch of the POEA;
consanguinity or affinity; and
2) Those against whom probable cause or prima facie finding of guilt
Persons, partners, officers and directors of corporations whose
for illegal recruitment or other related cases exists;
licenses have been previously cancelled or revoked for violation of
3) Those convicted for illegal recruitment or other related cases recruitment laws.
and/or crimes involving moral turpitude; and
4) Those agencies whose licenses have been previously revoked or
cancelled by the Administration for violation of RA 8042, PD 442 as
Government Techniques of Regualtion Private Manpower request(s) or visa certification from new
Recruitment employer(s)/principal(s) for not less than one hundred (100)
workers; and
Licensing Certification from Pre-Employment Services Office of POEA on
LABOR CODE ARTS. 27, 28, 29, 30 & 31; the existence of new market.
Clearance of all members of the Board of Directors, partner, or
Article 27: Citizenship requirement. - Only Filipino citizens or proprietor of the applicant agency from the National Bureau of
corporations, partnerships or entities at least seventy-five percent Investigation (NBI) and other government agencies as may be
(75%) of the authorized and voting capital stock of which is owned required; appropriate clearance in case of persons with criminal
and controlled by Filipino citizens shall be permitted to participate in cases; provided that where the member or partner concerned is a
the recruitment and placement of workers, locally or overseas. foreigner, clearance from his country of origin shall be required.
Article 28: Capitalization. - All applicants for authority to hire or A verified undertaking stating that the applicant:
renewal of license to recruit are required to have such substantial
Shall select only medically and technically qualified recruits;
capitalization as determined by the Secretary of Labor.
Article 29: Non-transferability of license or authority. - No license Shall assume full and complete responsibility for all claims and
or authority shall be used directly or indirectly by any person other liabilities which may arise in connection with the use of the
than the one in whose favor it was issued or at any place other than license;
that stated in the license or authority be transferred, conveyed or Shall assume joint and solidary liability with the employer for all
assigned to any other person or entity. Any transfer of business claims and liabilities which may arise in connection with the
address, appointment or designation of any agent or representative implementation of the contract, including but not limited to
including the establishment of additional offices anywhere shall be payment of wages, death and disability compensation and
subject to the prior approval of the Department of Labor. repatriations;
Article 30: Registration fees. - The Secretary of Labor shall Shall guarantee compliance with the existing labor and social
promulgate a schedule of fees for the registration of all applicants for legislations of the Philippines and of the country of employment of
license or authority. the recruited workers;
Article 31: Bonds. - All applicants for license or authority shall post Shall assume full and complete responsibility for all acts of its
such cash and surety bonds as determined by the Secretary of Labor officials, employees and representatives done in connection with
to guarantee compliance with prescribed recruitment procedures, recruitment and placement;
rules and regulations, and terms and conditions of employment as
Shall negotiate for the best terms and conditions of employment;
may be appropriate.
Shall disclose the full terms and conditions of employment to the
2002 POEA RULES, PART II, RULE II, SECS. 1, 4, 6, & 7; applicant workers;
Shall deploy at least 100 workers to its new markets within one (1)
Section 1: Requirements for Licensing. Every applicant for year from the issuance of its license;
license to operate a private employment agency shall submit a Shall provide orientation on recruitment procedures, terms and
written application together with the following requirements: conditions and other relevant information to its workers and
A certified copy of the Articles of Incorporation or of Partnership provide facilities therefor; and
duly registered with the Securities and Exchange Commission Shall repatriate the deployed workers and his personal belongings
(SEC), in the case of corporation or partnership or Certificate of when the need arises.
Registration of the firm or business name with the Department of For the purpose of compliance with item (1), the agency may
Trade and Industry (DTI), in the case of a single proprietorship; require the worker to undergo trade testing and medical
Proof of financial capacity: In the case of a single proprietorship or examination only after the worker has been pre-qualified for
partnership, verified income tax returns of the proprietors or employment.
partners for the past two (2) years and a savings account In case of corporation or partnership, verified undertaking by its
certificate showing a maintaining balance of not less than officers, directors, partners that they will be jointly and severally
P500,000.00, provided that the applicant should submit an liable with the company over claims arising from employer-
authority to examine such bank deposit. employee relationship.
In the case of a newly organized corporation, savings account Individual income tax return of the proprietor, partners,
certificate showing a maintaining balance of not less than stockholders/incorporators, as the case may be, for the past two
P500,000.00 with authority to examine the same. For an existing (2) years.
corporation, submission of a verified financial statement, Proof of possession by the sole proprietor, partner or chief
corporate tax returns for the past two (2) years and savings executive officer, as the case may be, of a bachelor's degree and
account certificate showing a maintaining balance of not less than three years business experience.
P500,000.00 with the corresponding authority to examine such List of all officials and personnel involved in the recruitment and
deposit. placement, together with their appointment, bio-data and two (2)
Proof of marketing capability copies of their passport-size pictures as well as their clearances
A duly executed Special Power of Attorney and/or a duly from the National Bureau of Investigation and the Anti-illegal
concluded Recruitment/Service Agreement; Recruitment Branch of the Administration.
Copy of contract of lease or proof of building ownership, indicating Department of Trade and Industry (DTI), in the case of single
the office address, providing for an office space of at least one proprietorship.
hundred (100) square meters. Proof of financial capacity. In the case of a single proprietorship or
Proof of publication of notice of the application with the names of partnership, verified income tax returns of the proprietors or partners
the proprietor, partners, incorporators and officers. for the past two (2) years and a savings account showing a
Certificate of attendance of owner and/or chief executive officer in maintaining balance of not less than Five Hundred Thousand Pesos
(P500,000.00), provided that the applicant should submit an authority
a pre-application seminar conducted by the Administration.
to examine such bank deposit. In the case of a newly organized
Only applications with complete supporting documents shall be corporation, submission of a savings account showing a maintaining
processed. balance of not less than Five Hundred Thousand Pesos
Section 4: Payment of Fees and Posting of Bonds. Upon (P500,000.00), with authority to examine the same. For an existing
approval of the application, the applicant shall pay a license fee of corporation, submission of a verified financial statement, corporate
P50,000.00. It shall submit an Escrow Agreement in the amount of tax returns for the past two (2) years and a savings account showing
P1,000,000.00, confirmation of escrow deposit with an accredited a maintaining balance of not less than Five Hundred Thousand
reputable bank and a surety bond of P100,000.00 from a bonding Pesos (P500,000.00) with the corresponding authority to examine
company acceptable to the Administration and accredited with the such deposit.
Insurance Commission. Proof of marketing capability:
Agencies with existing licenses shall, within four years from A duly executed Special Power of Attorney authenticated by the
effectivity hereof, increase their Escrow Deposit to One Million Philippine Embassy/Consulate or verified by the Labor Attache in the
Pesos. place where the vessel owner/operator/manager holds its principal
Section 6: Validity of the License. Except in case of a office;
provisional license, every license shall be valid for four (4) years A duly concluded manning agreement authenticated by the Philippine
from the date of issuance unless sooner cancelled, revoked or Embassy/Consulate or verified by the Labor Attache in the place
suspended for violation of applicable Philippine law, these rules where the vessel owner/operator/manager holds his/its principal
and other pertinent issuances. Such license shall be valid only at office;
the place/s stated therein and when used by the licensed person, Crew order/s of not less than fifty (50) seafarers from its new market;
partnership or corporation. and
Section 7: Non-Transferability of License. No license shall Certification from Pre-Employment Services Office of POEA on the
existence of new market.
be transferred, conveyed or assigned to any person, partnership
or corporation. It shall not be used directly or indirectly by any Clearance of all members of the board of directors, partners and
person, partnership or corporation other than the one in whose proprietor of the applicant agency from the NBI, Anti-Illegal
Recruitment Branch of POEA and other government agencies as the
favor it was issued.
need may require; provided that where the member or partner
In case of death of the sole proprietor and to prevent disruption of concerned is a foreigner, clearance from his country of origin shall be
operation to the prejudice of the interest of legitimate heirs, the required.
license may be extended upon request of the heirs, to continue A verified undertaking stating that the applicant shall:
only for the purpose of winding up business operations.
Provide its seafarers orientation on recruitment policies and
procedures, terms and conditions of employment and other relevant
2003 POEA RULES PART II, RULE I [A] & [B], RULE II SECS. 1, 4, 6, & 7 information;
Ensure that any seafarer recruited or deployed by them is qualified
Part II, Rule I (a) & (b): Qualifications. Only those who possess and holds the documents necessary for the job concerned;
the following qualifications may be permitted to engage in the
Ensure that contracts of employment are in accordance with the
business of recruitment and placement of Filipino seafarers:
standard employment contract and other applicable laws, regulations
Filipino citizens, partnerships or corporations at least seventy-five and collective bargaining agreements;
percent (75%) of the authorized and voting capital stock of which is
Ensure that seafarers are informed of their rights and duties under
owned and controlled by Filipino citizens;
their contracts of employment and the articles of agreement prior to
A minimum capitalization of Two Million Pesos (P2,000,000.00) in or in the process of engagement;
case of a single proprietorship or partnership and a minimum paid-up
Ensure that proper arrangements are made for seafarers to examine
capital of Two Million Pesos (P2,000,000.00) in case of a corporation;
their contracts of employment and articles of agreement before and
Provided that those with existing licenses shall, within four years from
after they are signed and for them to receive a copy of the contract of
effectivity hereof, increase their capitalization or paid up capital, as
employment;
the case may be, to Two Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand (P250,000.00) every year; Ensure that the vessel/s and the crew are adequately covered by P &
I Club or similar insurance thru the submission of the certificate of
Rule II, Section 1: Requirements for Licensing. Every applicant
insurance coverage;
for license to operate a manning agency shall submit a written
application together with the following requirements: Assume full and complete responsibility for all claims and liabilities
which may arise in connection with the use of the license;
A certified copy of the Articles of Incorporation or of Partnership duly
registered with the SEC, in the case of a corporation or partnership or Assume joint and solidary liability with the employer for all claims and
Certificate of Registration of the firm or business name with the liabilities which may arise in connection with the implementation of
the employment contract, including but not limited to wages, death
and disability compensation and their repatriation;
Guarantee compliance with the applicable labor, social and maritime for violation of applicable Philippine law, these rules and other
legislations of the Philippines, and applicable regulations of the flag pertinent issuances. Such license shall be valid only at the place/s
state and international organizations such as the International stated therein, subject to the conditions of the subsequent paragraph,
Maritime Organization (IMO) and the International Labor and when used by the licensed person, partnership or corporation.
Organization (ILO) Section 7: Non-Transferability of the License. No license shall
Assume full and complete responsibility for all acts of its officials, be transferred, conveyed or assigned to any person, partnership or
employees and representatives done in connection with recruitment corporation. It shall not be used directly or indirectly by any person,
and placement; partnership or corporation other than the one in whose favor it was
Deploy at least fifty (50) seafarers to its new market within one-year issued.
from issuance of its license which shall also be a condition to the
accreditation of old principals; and
Repatriate the deployed seafarers when the need arises. Workers Fee
In case of corporation or partnership, verified undertaking by officers, LABOR CODE, ART. 32.
directors and partners that they will be jointly and severally liable with
the company over claims arising from employer-employee Article 32: Fees to be paid by workers. - Any person applying with
relationship. a private fee-charging employment agency for employment
Individual income tax return of the proprietor, partners, or board of assistance shall not be charged any fee until he has obtained
directors as the case may be, for the past two (2) years. employment through its efforts or has actually commenced
employment. Such fee shall be always covered with the appropriate
Proof of possession by the sole proprietor, partner or chief executive
receipt clearly showing the amount paid. The Secretary of Labor shall
officer, as the case maybe, of a bachelor's degree and three years
promulgate a schedule of allowable fees.
business experience.
List of all officials and personnel involved in the recruitment and
placement, together with their appointment, bio-data and two (2)
copies of their passport size pictures as well as their clearances from Reports/ Employment Information
the NBI and the Anti-Illegal Recruitment Branch, POEA. LABOR CODE, ART. 33.
Copy of contract of lease or proof of building ownership, indicating
the office address and providing for an office space of at least one Article 33: Reports on employment status. - Whenever the public
hundred (100) square meters; interest requires, the Secretary of Labor may direct all persons or
Proof of publication of notice of the application with the names of the entities within the coverage of this Title to submit a report on the
proprietor, partners, incorporators and officers; status of employment, including job vacancies, details of job
Certificate of attendance of owner and/or chief executive officer in a requisitions, separation from jobs, wages, other terms and conditions
pre-application seminar conducted by the Administration. and other employment data.
Only applications with complete supporting documents shall be
processed. Prohibited Acts
Section 4: Payment of Fees and Posting of Bonds. Upon LABOR CODE, ART. 34.
approval of the application, the applicant shall pay a license fee of
Fifty Thousand Pesos (P50,000.00). It shall submit an escrow Article 34: Prohibited practices. - It shall be unlawful for any
agreement in the amount of One Million Pesos (P1,000,000.00), individual, entity, licensee, or holder of authority:
confirmation of escrow deposit with a reputable bank and a surety (a) To charge or accept, directly or indirectly, any amount greater
bond of One Hundred Thousand Pesos (P100,000.00) from a than that specified in the schedule of allowable fees prescribed
bonding company acceptable to the Administration and accredited by the Secretary of Labor, or to make a worker pay any amount
with the Insurance Commission. greater than that actually received by him as a loan or advance;
Agencies with existing licenses shall, within four years from effectivity (b) To furnish or publish any false notice or information or document
hereof, increase their Escrow Deposit to One Million Pesos in relation to recruitment or employment;
(P1,000,000.00) at the rate of One Hundred Seventy-Five Thousand
(c) To give any false notice, testimony, information or document or
(P175,000.00) pesos per year.
commit any act of misrepresentation for the purpose of securing
The bonds and escrow shall answer for all valid and legal claims a license or authority under this Code.
arising from violations of the conditions for the grant and use of the
(d) To induce or attempt to induce a worker already employed to
license and/or contracts of employment. The bonds and escrow shall
quit his employment in order to offer him to another unless the
likewise guarantee compliance with the provisions of these rules and
transfer is designed to liberate the worker from oppressive terms
pertinent Philippine laws and all liabilities which the Administration
and conditions of employment;
may impose. The surety bonds shall include the condition that notice
to the principal is notice to the surety and that any final and executory (e) To influence or to attempt to influence any person or entity not to
judgment against the principal in connection with matters falling employ any worker who has not applied for employment through
under POEA's/NLRC's jurisdiction shall be binding and conclusive on his agency;
the surety. The surety bonds shall cover the validity period of the (f) To engage in the recruitment or placement of workers in jobs
license. harmful to public health or morality or to the dignity of the
Section 6: Validity of the License. Except in case of a Republic of the Philippines;
provisional license, every license shall be valid for four (4) years from (g) To obstruct or attempt to obstruct inspection by the Secretary of
the date of issuance unless sooner cancelled, revoked or suspended Labor or by his duly authorized representatives;
(h) To fail to file reports on the status of employment, placement (c) To give any false notice, testimony, information or document or
vacancies, remittance of foreign exchange earnings, separation commit any act of misrepresentation for the purpose of securing
from jobs, departures and such other matters or information as a license or authority under the Labor Code, or for the purpose
may be required by the Secretary of Labor. of documenting hired workers with the POEA, which include the
(i) To substitute or alter employment contracts approved and act of reprocessing workers through a job order that pertains to
verified by the Department of Labor from the time of actual nonexistent work, work different from the actual overseas work,
signing thereof by the parties up to and including the periods of or work with a different employer whether registered or not with
expiration of the same without the approval of the Secretary of the POEA;
Labor; (d) To induce or attempt to induce a worker already employed to
(j) To become an officer or member of the Board of any corporation quit his employment in order to offer him another unless the
engaged in travel agency or to be engaged directly or indirectly transfer is designed to liberate a worker from oppressive terms
in the management of a travel agency; and and conditions of employment;
(k) To withhold or deny travel documents from applicant workers (e) To influence or attempt to influence any person or entity not to
before departure for monetary or financial considerations other employ any worker who has not applied for employment through
than those authorized under this Code and its implementing his agency or who has formed, joined or supported, or has
rules and regulations. contacted or is supported by any union or workers' organization;
(f) To engage in the recruitment or placement of workers in jobs
Illegal Recruitment harmful to public health or morality or to the dignity of the
LABOR CODE, ART. 38 [A] & [B]; Republic of the Philippines;
(g) To fail to submit reports on the status of employment, placement
Article 38(a) & (b): Illegal recruitment. vacancies, remittance of foreign exchange earnings, separation
[a] Any recruitment activities, including the prohibited practices from jobs, departures and such other matters or information as
enumerated under Article 34 of this Code, to be undertaken by non- may be required by the Secretary of Labor and Employment;
licensees or non-holders of authority, shall be deemed illegal and (h) To substitute or alter to the prejudice of the worker, employment
punishable under Article 39 of this Code. The Department of Labor contracts approved and verified by the Department of Labor and
and Employment or any law enforcement officer may initiate Employment from the time of actual signing thereof by the
complaints under this Article. parties up to and including the period of the expiration of the
[b] Illegal recruitment when committed by a syndicate or in large same without the approval of the Department of Labor and
scale shall be considered an offense involving economic sabotage Employment;
and shall be penalized in accordance with Article 39 hereof. (i) For an officer or agent of a recruitment or placement agency to
Illegal recruitment is deemed committed by a syndicate if carried out become an officer or member of the Board of any corporation
by a group of three (3) or more persons conspiring and/or engaged in travel agency or to be engaged directly or indirectly
confederating with one another in carrying out any unlawful or illegal in the management of travel agency;
transaction, enterprise or scheme defined under the first paragraph (j) To withhold or deny travel documents from applicant workers
hereof. Illegal recruitment is deemed committed in large scale if before departure for monetary or financial considerations, or for
committed against three (3) or more persons individually or as a any other reasons, other than those authorized under the Labor
group. Code and its implementing rules and regulations;
(k) Failure to actually deploy a contracted worker without valid
R.A. NO. 8042, AS AMENDED, SEC. 6; reason as determined by the Department of Labor and
Employment;
Section 6: Definition. - For purposes of this Act, illegal recruitment (l) Failure to reimburse expenses incurred by the worker in
shall mean any act of canvassing, enlisting, contracting, transporting, connection with his documentation and processing for purposes
utilizing, hiring, or procuring workers and includes referring, contract of deployment, in cases where the deployment does not actually
services, promising or advertising for employment abroad, whether take place without the worker's fault. Illegal recruitment when
for profit or not, when undertaken by non-licensee or non-holder of committed by a syndicate or in large scale shall be considered
authority contemplated under Article 13(f) of Presidential Decree No. an offense involving economic sabotage; and
442, as amended, otherwise known as the Labor Code of the (m) To allow a non-Filipino citizen to head or manage a licensed
Philippines: Provided, That any such non-licensee or non-holder who, recruitment/manning agency.
in any manner, offers or promises for a fee employment abroad to
two or more persons shall be deemed so engaged. It shall likewise Illegal recruitment is deemed committed by a syndicate if carried out
include the following acts, whether committed by any person, by a group of three (3) or more persons conspiring or confederating
whether a non-licensee, non-holder, licensee or holder of authority: with one another. It is deemed committed in large scale if committed
(a) To charge or accept directly or indirectly any amount greater against three (3) or more persons individually or as a group.
than that specified in the schedule of allowable fees prescribed
by the Secretary of Labor and Employment, or to make a worker In addition to the acts enumerated above, it shall also be unlawful for
pay or acknowledge any amount greater than that actually any person or entity to commit the following prohibited acts:
received by him as a loan or advance; (1) Grant a loan to an overseas Filipino worker with interest
(b) To furnish or publish any false notice or information or document exceeding eight percent (8%) per annum, which will be used for
in relation to recruitment or employment; payment of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor or
accommodation party, postdated checks in relation to the said cancel any license or authority to recruit employees for overseas
loan; employment for violation of rules and regulations issued by the
(2) Impose a compulsory and exclusive arrangement whereby an Ministry of Labor, the Overseas Employment Development Board, or
overseas Filipino worker is required to avail of a loan only from for violation of the provisions of this and other applicable laws,
specifically designated institutions, entities or persons; General Orders and Letters of Instructions.
(3) (3) Refuse to condone or renegotiate a loan incurred by an Article 36: Regulatory power. - The Secretary of Labor shall have
overseas Filipino worker after the latter's employment contract the power to restrict and regulate the recruitment and placement
has been prematurely terminated through no fault of his or her activities of all agencies within the coverage of this Title and is hereby
own authorized to issue orders and promulgate rules and regulations to
(4) (4) Impose a compulsory and exclusive arrangement whereby carry out the objectives and implement the provisions of this Title.
an overseas Filipino worker is required to undergo health Article 37: Visitorial Power. - The Secretary of Labor or his duly
examinations only from specifically designated medical clinics, authorized representatives may, at any time, inspect the premises,
institutions, entities or persons, except in the case of a seafarer books of accounts and records of any person or entity covered by
whose medical examination cost is shouldered by the this Title, require it to submit reports regularly on prescribed forms,
principal/shipowner; and act on violation of any provisions of this Title.
(5) Impose a compulsory and exclusive arrangement whereby an Article 38: Illegal recruitment.
overseas Filipino worker is required to undergo training, Any recruitment activities, including the prohibited practices
seminar, instruction or schooling of any kind only from enumerated under Article 34 of this Code, to be undertaken by non-
specifically designated institutions, entities or persons, except licensees or non-holders of authority, shall be deemed illegal and
fpr recommendatory trainings mandated by punishable under Article 39 of this Code. The Department of Labor
principals/shipowners where the latter shoulder the cost of such and Employment or any law enforcement officer may initiate
trainings complaints under this Article.
(6) (6) For a suspended recruitment/manning agency to engage in Illegal recruitment when committed by a syndicate or in large scale
any kind of recruitment activity including the processing of shall be considered an offense involving economic sabotage and
pending workers' applications; and shall be penalized in accordance with Article 39 hereof.
(7) (7) For a recruitment/manning agency or a foreign Illegal recruitment is deemed committed by a syndicate if carried out
principal/employer to pass on the overseas Filipino worker or by a group of three (3) or more persons conspiring and/or
deduct from his or her salary the payment of the cost of confederating with one another in carrying out any unlawful or illegal
insurance fees, premium or other insurance related charges, as transaction, enterprise or scheme defined under the first paragraph
provided under the compulsory worker's insurance coverage. hereof. Illegal recruitment is deemed committed in large scale if
The persons criminally liable for the above offenses are the committed against three (3) or more persons individually or as a
principals, accomplices and accessories. In case of juridical persons, group.
the officers having ownership, control, management or direction of The Secretary of Labor and Employment or his duly authorized
their business who are responsible for the commission of the offense representatives shall have the power to cause the arrest and
and the responsible employees/agents thereof shall be liable. detention of such non-licensee or non-holder of authority if after
In the filing of cases for illegal recruitment or any of the prohibited investigation it is determined that his activities constitute a danger to
acts under this section, the Secretary of Labor and Employment, the national security and public order or will lead to further exploitation of
POEA Administrator or their duly authorized representatives, or any job-seekers. The Secretary shall order the search of the office or
aggrieved person may initiate the corresponding criminal action with premises and seizure of documents, paraphernalia, properties and
the appropriate office. For this purpose, the affidavits and testimonies other implements used in illegal recruitment activities and the closure
of operatives or personnel from the Department of Labor and of companies, establishments and entities found to be engaged in the
Employment, POEA and other law enforcement agencies who recruitment of workers for overseas employment, without having
witnessed the acts constituting the offense shall be sufficient to been licensed or authorized to do so.
prosecute the accused. Article 39: Penalties.
In the prosecution of offenses punishable under this section, the [a] The penalty of life imprisonment and a fine of One Hundred
public prosecutors of the Department of Justice shall collaborate with Thousand Pesos (P1000,000.00) shall be imposed if illegal
the anti-illegal recruitment branch of the POEA and, in certain cases, recruitment constitutes economic sabotage as defined herein;
allow the POEA lawyers to take the lead in the prosecution. The [b] Any licensee or holder of authority found violating or causing
POEA lawyers who act as prosecutors in such cases shall be entitled another to violate any provision of this Title or its implementing rules
to receive additional allowances as may be determined by the POEA and regulations shall, upon conviction thereof, suffer the penalty of
Administrator. imprisonment of not less than two years nor more than five years or a
The filing of an offense punishable under this Act shall be without fine of not less than P10,000 nor more than P50,000, or both such
prejudice to the filing of cases punishable under other existing laws, imprisonment and fine, at the discretion of the court;
rules or regulations. [c] Any person who is neither a licensee nor a holder of authority
under this Title found violating any provision thereof or its
Enforcement & Sanctions implementing rules and regulations shall, upon conviction thereof,
LABOR CODE, ARTS. 35, 36, 37, 38, & 39; 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
Article 35: Suspension and/or cancellation of license or than P100,000 or both such imprisonment and fine, at the discretion
authority. - The Minister of Labor shall have the power to suspend or of the court;
[d] If the offender is a corporation, partnership, association or entity, parties up to and including the period of the expiration of the
the penalty shall be imposed upon the officer or officers of the same without the approval of the Department of Labor and
corporation, partnership, association or entity responsible for Employment;
violation; and if such officer is an alien, he shall, in addition to the (v) For an officer or agent of a recruitment or placement agency to
penalties herein prescribed, be deported without further proceedings; become an officer or member of the Board of any corporation
[e] In every case, conviction shall cause and carry the automatic engaged in travel agency or to be engaged directly or indirectly
revocation of the license or authority and all the permits and in the management of travel agency;
privileges granted to such person or entity under this Title, and the (w) To withhold or deny travel documents from applicant workers
forfeiture of the cash and surety bonds in favor of the Overseas before departure for monetary or financial considerations, or for
Employment Development Board or the National Seamen Board, as any other reasons, other than those authorized under the Labor
the case may be, both of which are authorized to use the same Code and its implementing rules and regulations;
exclusively to promote their objectives. (x) Failure to actually deploy a contracted worker without valid
reason as determined by the Department of Labor and
R.A. No. 8042, Secs. 6, 7, & 10 Employment;
(y) Failure to reimburse expenses incurred by the worker in
Section 6: Definition. - For purposes of this Act, illegal recruitment connection with his documentation and processing for purposes
shall mean any act of canvassing, enlisting, contracting, transporting, of deployment, in cases where the deployment does not actually
utilizing, hiring, or procuring workers and includes referring, contract take place without the worker's fault. Illegal recruitment when
services, promising or advertising for employment abroad, whether committed by a syndicate or in large scale shall be considered
for profit or not, when undertaken by non-licensee or non-holder of an offense involving economic sabotage; and
authority contemplated under Article 13(f) of Presidential Decree No. (z) To allow a non-Filipino citizen to head or manage a licensed
442, as amended, otherwise known as the Labor Code of the recruitment/manning agency.
Philippines: Provided, That any such non-licensee or non-holder who,
in any manner, offers or promises for a fee employment abroad to
Illegal recruitment is deemed committed by a syndicate if carried out
two or more persons shall be deemed so engaged. It shall likewise
by a group of three (3) or more persons conspiring or confederating
include the following acts, whether committed by any person,
with one another. It is deemed committed in large scale if committed
whether a non-licensee, non-holder, licensee or holder of authority:
against three (3) or more persons individually or as a group.
(n) 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 and Employment, or to make a worker In addition to the acts enumerated above, it shall also be unlawful for
pay or acknowledge any amount greater than that actually any person or entity to commit the following prohibited acts:
received by him as a loan or advance; (8) Grant a loan to an overseas Filipino worker with interest
(o) To furnish or publish any false notice or information or document exceeding eight percent (8%) per annum, which will be used for
in relation to recruitment or employment; payment of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor or
(p) To give any false notice, testimony, information or document or
accommodation party, postdated checks in relation to the said
commit any act of misrepresentation for the purpose of securing
loan;
a license or authority under the Labor Code, or for the purpose
of documenting hired workers with the POEA, which include the (9) Impose a compulsory and exclusive arrangement whereby an
act of reprocessing workers through a job order that pertains to overseas Filipino worker is required to avail of a loan only from
nonexistent work, work different from the actual overseas work, specifically designated institutions, entities or persons;
or work with a different employer whether registered or not with (10) (3) Refuse to condone or renegotiate a loan incurred by an
the POEA; overseas Filipino worker after the latter's employment contract
(q) To induce or attempt to induce a worker already employed to has been prematurely terminated through no fault of his or her
quit his employment in order to offer him another unless the own
transfer is designed to liberate a worker from oppressive terms (11) (4) Impose a compulsory and exclusive arrangement whereby
and conditions of employment; an overseas Filipino worker is required to undergo health
(r) To influence or attempt to influence any person or entity not to examinations only from specifically designated medical clinics,
employ any worker who has not applied for employment through institutions, entities or persons, except in the case of a seafarer
his agency or who has formed, joined or supported, or has whose medical examination cost is shouldered by the
contacted or is supported by any union or workers' organization; principal/shipowner;
(s) To engage in the recruitment or placement of workers in jobs (12) Impose a compulsory and exclusive arrangement whereby an
harmful to public health or morality or to the dignity of the overseas Filipino worker is required to undergo training,
Republic of the Philippines; seminar, instruction or schooling of any kind only from
specifically designated institutions, entities or persons, except
(t) To fail to submit reports on the status of employment, placement
fpr recommendatory trainings mandated by
vacancies, remittance of foreign exchange earnings, separation
principals/shipowners where the latter shoulder the cost of such
from jobs, departures and such other matters or information as
trainings
may be required by the Secretary of Labor and Employment;
(13) (6) For a suspended recruitment/manning agency to engage in
(u) To substitute or alter to the prejudice of the worker, employment
any kind of recruitment activity including the processing of
contracts approved and verified by the Department of Labor and
pending workers' applications; and
Employment from the time of actual signing thereof by the
(14) (7) For a recruitment/manning agency or a foreign If the offender is an alien, he or she shall, in addition to the penalties
principal/employer to pass on the overseas Filipino worker or herein prescribed, be deported without further proceedings.
deduct from his or her salary the payment of the cost of In every case, conviction shall cause and carry the automatic
insurance fees, premium or other insurance related charges, as revocation of the license or registration of the recruitment/manning
provided under the compulsory worker's insurance coverage. agency, lending institutions, training school or medical clinic.
The persons criminally liable for the above offenses are the Section 10 (as amended by RA 10022): Money Claims.
principals, accomplices and accessories. In case of juridical persons, Notwithstanding any provision of law to the contrary, the Labor
the officers having ownership, control, management or direction of Arbiters of the National Labor Relations Commission (NLRC) shall
their business who are responsible for the commission of the offense have the original and exclusive jurisdiction to hear and decide, within
and the responsible employees/agents thereof shall be liable. ninety (90) calendar days after the filing of the complaint, the claims
In the filing of cases for illegal recruitment or any of the prohibited arising out of an employer-employee relationship or by virtue of any
acts under this section, the Secretary of Labor and Employment, the law or contract involving Filipino workers for overseas deployment
POEA Administrator or their duly authorized representatives, or any including claims for actual, moral, exemplary and other forms of
aggrieved person may initiate the corresponding criminal action with damage. Consistent with this mandate, the NLRC shall endeavor to
the appropriate office. For this purpose, the affidavits and testimonies update and keep abreast with the developments in the global
of operatives or personnel from the Department of Labor and services industry.
Employment, POEA and other law enforcement agencies who The liability of the principal/employer and the recruitment/placement
witnessed the acts constituting the offense shall be sufficient to agency for any and all claims under this section shall be joint and
prosecute the accused. several. This provision shall be incorporated in the contract for
In the prosecution of offenses punishable under this section, the overseas employment and shall be a condition precedent for its
public prosecutors of the Department of Justice shall collaborate with approval. The performance bond to de filed by the
the anti-illegal recruitment branch of the POEA and, in certain cases, recruitment/placement agency, as provided by law, shall be
allow the POEA lawyers to take the lead in the prosecution. The answerable for all money claims or damages that may be awarded to
POEA lawyers who act as prosecutors in such cases shall be entitled the workers. If the recruitment/placement agency is a juridical being,
to receive additional allowances as may be determined by the POEA the corporate officers and directors and partners as the case may be,
Administrator. shall themselves be jointly and solidarily liable with the corporation or
The filing of an offense punishable under this Act shall be without partnership for the aforesaid claims and damages.
prejudice to the filing of cases punishable under other existing laws, Such liabilities shall continue during the entire period or duration of
rules or regulations. the employment contract and shall not be affected by any
Section 7 (RA 8042): Penalties substitution, amendment or modification made locally or in a foreign
[a] Any person found guilty of illegal recruitment shall suffer the country of the said contract.
penalty of imprisonment of not less than six (6) years and one (1) day Any compromise/amicable settlement or voluntary agreement on
but not more than twelve (12) years and a fine not less than two money claims inclusive of damages under this section shall be paid
hundred thousand pesos (P200,000.00) nor more than five hundred within thirty (30) days from approval of the settlement by the
thousand pesos (P500,000.00). appropriate authority.
[b] The penalty of life imprisonment and a fine of not less than five In case of termination of overseas employment without just, valid or
hundred thousand pesos (P500,000.00) nor more than one million authorized cause as defined by law or contract, or any unauthorized
pesos (P1,000,000.00) shall be imposed if illegal recruitment deductions from the migrant worker's salary, the worker shall be
constitutes economic sabotage as defined herein. entitled to the full reimbursement if his placement fee and the
Provided, however, that the maximum penalty shall be imposed if the deductions made with interest at twelve percent (12%) per annum,
person illegally recruited is less than eighteen (18) years of age or plus his salaries for the unexpired portion of his employment contract
committed by a non-licensee or non-holder of authority. or for three (3) months for every year of the unexpired term,
Section 6 (RA 10022, amending Sec. 7 of RA 8042): Penalties. whichever is less.
[a] Any person found guilty of illegal recruitment shall suffer the In case of a final and executory judgement against a foreign
penalty of imprisonment of not less than twelve (12) years and one employer/principal, it shall be automatically disqualified, without
(1) day but not more than twenty (20) years and a fine of not less further proceedings, from participating in the Philippine Overseas
than One million pesos (P1,000,000.00) nor more than Two million Employment Program and from recruiting and hiring Filipino workers
pesos (P2,000,000.00). until and unless it fully satisfies the judgment award.
[b] The penalty of life imprisonment and a fine of not less than Two Noncompliance with the mandatory periods for resolutions of case
million pesos (P2,000,000.00) nor more than Five million pesos provided under this section shall subject the responsible officials to
(P5,000,000.00) shall be imposed if illegal recruitment constitutes any or all of the following penalties:
economic sabotage as defined therein. [a] The salary of any such official who fails to render his decision or
Provided, however, That the maximum penalty shall be imposed if resolution within the prescribed period shall be, or caused to be,
the person illegally recruited is less than eighteen (18) years of age withheld until the said official complies therewith
or committed by a non-licensee or non-holder of authority. [b] Suspension for not more than ninety (90) days; or
[c] Any person found guilty of any of the prohibited acts shall suffer [c] Dismissal from the service with disqualification to hold any
the penalty of imprisonment of not less than six (6) years and one (1) appointive public office for five (5) years.
day but not more than twelve (12) years and a fine of not less than Provided, however, That the penalties herein provided shall be
Five hundred thousand pesos (P500,000.00) nor more than One without prejudice to any liability which any such official may have
million pesos (P1,000,000.00).
incurred under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.

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