Social Justice Social Justice is

neither
communism,
nor
despotism, nor atomism nor
anarchy, but the humanization
of laws and the equalization of
social and economic forces by
the State so that justice in its
rational and objectively secular
conception may at least be
approximated. Social justice
means the promotion of the
welfare of the people, the
adoption by the government of
measures calculated to ensure
economic stability of all the
component elements of the
society
through
the
maintenance
of
proper
economic
and
social
equilibrium
In
the
interrelations of the members
of
the
community,
constitutionally, through the
adoption of measures legally
justifiable,
or
extraconstitutionally, through the
exercise of powers underlying
the
existence
of
all
governments, on the timehonored principle of salus
populi
est
suprema
lex
(Calalang vs Williams)
ARTICLE 4
Art. 4. Construction in Favor of Labor. All
doubts
in
the
implementation
and
interpretation of the provisions of this Code,
including its implementing rules and
regulations, shall be resolved in favor of
labor.
It is in keeping with the
constitutional
mandate
of
promoting social justice and
affording protection to labor
Related Civil Code Provisions
Art. 10 In case of doubt in the
interpretation or application of
laws, it is presumed that the
law-making
body
intended
right and justice to prevail.
At. 1702 In case of doubt, all
labor legislation and all labor
contracts shall be construed in
favor of the safety and decent
living of the laborer.
Those who have less in life
should have more in law.
This rule of interpretation and
construction in favor of labor
does not mean that the capital
should, at all times, be at the
losing end of controversy.
The Philippine Constitution,
while
inexorably
committed
towards the protection of the
working class from exploitation
and
unfair
treatment,
nevertheless
mandates
the
policy of social justice so as to
strike balance between
an
avowed predilection for labor,
on
one
hand,
and
the

maintenance of the legal rights

of the capital, on the other.
Contracts
which
are
not
ambiguous
are
to
be
interpreted according to their
literal meaning and not beyond
their obvious intendment.
Rules and Regulations
Art. 5. Rules and regulations. The
Department of Labor and other government
agencies charged with the administration
and enforcement of this Code or any of its
parts shall promulgate the necessary
implementing rules and regulations. Such
rules and regulations shall become effective
fifteen (15) days after announcement of their
adoption
in
newspapers
of
general
circulation.
*It has been ruled that administrative
regulations and policies enacted by
administrative bodies to interpret the law
which they are entrusted to enforce have the
force of law, and are entitled to great respect.

QUASI-LEGISLATIVE POWER
This article vests the DOLE with RULEMAKING POWERS in the enforcement
thereof. However, a rule or regulation
promulgated by an administrative body, such
as the Department of Labor, to implement a
law, in excess of its rule-making authority is
VOID. An administrative interpretation which
takes away a benefit granted in the law is
utra vires, that is beyond ones power.
ARTICLLE 6 : APPLICABILITY
GENERAL RULE : The Code applies to all
workers, whether agricultural or nonagricultural, including employees in the a
government corporation incorporated in the
Corporation Code.
EXECEPTIONS:
Government Employees;
Employees of the government
corporations created by special
or original charter;
Foreign governments;
Local Water districts;
International
Agencies
and
employees
of
intergovernmental
organization;
Corporate
Officers/
Intracorporate disputes which fall
under P.D. No. 902-A and now
fall under the jurisdiction of
the Regular Courts pursuant to
Securities Regulation Code

Employer Any person, natural or juridical,

domestic or foreign, who carries on it the
Philippines any trade, business, industry,
undertaking or activity of any kind and uses
the services of another person who is under
his orders as regards the employment,
except the Government and any of its
political
subdivisions,
branches
or
instrumentalities, including corporations
owned or controlled by the Government:
Provided, That a selfemployed person shall
be both employee and employer at the same
time. (RA 8282, Sec. 8c)

Employee Any person who performs

services for an employer in which either or
both mental and physical efforts are used
and who receives compensation for such
services, where there is an employer
employee relationship: Provided, That a self
employed person shall be both employee
and employer at the same time. (RA 8282,
Sec. 8d)
What is the 4-fold test of employee-employer
relationship?
Selection and engagement of
the employee;
Payment of wages or salaries;
Exercise of the power of
dismissal;
Exercise of the power to
control
the
employees
conduct. (Control Test)
However, the 4-fold test is not fool-proof as it
admits of exceptions.
It must be noted that the control test is the
controlling test, meaning, the employer
controls or has the right to control not only
as to the result of the work to be done but
also as t the means and methods by which
the same is to be accomplished.
The greater the supervision and control the
hirer exercises, the more likely the worker is
deemed an employee. The converse holds
true as well less control the hirer exercises,
the more likely the worker is considered an
independent contractor. (Sonza v. ABS-CBN,
GR 138051, June 10, 2004)
Rule
to
establish
relationship

employee-employer

It is not necessary that a written contract be

secured for the creation and validity of
employee-employer relationship, an oral
contract may also serve the purpose.
The case of the Kasambahay is an exception
to the rule wherein it is required that the
contract of employment must be in writing.
Other Tests
Two-tiered approach
Economic
dependence
economic reality test
1. Two-tiered Approach

or

The putative employers power

to
control
employee
with
respect to the means and
methods by which the work is
to be accomplished; and
The
underlying
economic
realities of the activity or
relationship.
2. Economic
Reality Test

Dependence

or

Economic

Refers to whether the worker is dependent

on the alleged employer for his continued
employment in that line of business.

Existence of Employment Relationship

The Existence of an employee-employer
relationship is determined by law; it cannot
be negated simply by repudiating it in the
management or employment contract. It
cannot be held that the worker is an
independent contractor when the terms of
the agreement clearly show otherwise.
(Acuzena, 2014, p. 164)
Kinds of Employment
Regular employees referring to
those who have been engaged
to perform activities which are
usually necessary or desirable
in the usual business or trade
of the employer;
Project employees referring to
those whose employment has
been fixed for a specific project
or undertaking, the completion
or termination of which has
been determined at the time of
the
engagement
of
the
employee;
Seasonal employees referring
to those who work or perform
services which are seasonal in
nature, and the employment is
for the duration of the season;
Casual employees referring to
those who are not regular,
project,
or
seasonal
employees;
Fixed-term employees whose
term is freely and voluntarily
determined by the employer
and the employee.
Regular Employment
May be attained in either of
three ways, namely
By nature of work. The
employment is deemed regular
when the employee has been
engaged to perform activities
which are usually necessary or
desirable in the usual business
or trade of the employer.
By period of service. The
employment is reckoned as
regular when the employee has
rendered at least one (1) year
of
service,
whether
such

service
is
continuous
or
broken, with respect to the
activity
in
which
he
is
employed and his employment
shall
continue
while
such
activity exist.
By probationary employment.
The employment is considered
regular when the employee is
allowed to work after the
probationary period.
Project Employment
Litmus Test is whether or not
the project employees were
assigned to carry out specific
project or undertaking, the
duration and scope of which
were specified at the time the
employees were engaged for
that project.
A true project employee should
be assigned to a project which
begins and ends at determined
or determinable times and be
informed thereof at the time of
hiring.
Seasonal Employment
A
seasonal
employee
can
become a regular seasonal
employee provided that the
following
requisites
are
complied with:
The seasonal employee should
perform work or services that
are seasonal in nature; and
They must have also been
employed for more than one
(1) year.
Casual Employment
The most important distinction
is that the work or job for
which he was hired is merely
incidental to the principal
business of the employer and
such work or job is for a
definite period made known o
the employee at the time of
engagement.
Casual
employees
become
regular after one year of
service by operation of law.
The one (1) year period should
be reckoned from the hiring
date. Repeated rehiring of a
casual employee makes him a
regular employee.
Fixed-term Employment
Requisites for a valid fixedterm employment:
The
fixed
period
of
employment
was
knowingly
and voluntarily agreed upon by
the parties, without any force,
duress or improper pressure
being brought to bear upon the
employee and absent any other
circumstances
vitiating
his
consent; or

It satisfactorily appears that

the employer and employee
dealt with each other on more
or less equal terms with no
moral
dominance
whatever
being exercised by the former
on the latter.
Note: The practice of hiring of employees on
a uniformly fixed 5-month basis and
replacing them upon the expiration of their
contracts with other workers with the same
employment status circumvents their right to
security of tenure.
Cases
Where
Relationship Exists

Employee-Employer

Jeepney drivers on boundary

basis (Villamaria v. CA, GR
165881, April 19, 2006)
Drivers or helpers of salesmen
are employees of the company
(Alhambra Industries v. CIR, GR
L-15984, October 30, 1970)
Employees
of
unregistered
association
(Orlando
Farm
Growers v. NLRC, GR 129076,
November 25, 1998)
Street-hired
kargador
(Caurdanetaan Piece Workers
Union v. Laguesma, GR 113542,
February 24, 1998)
Workers in movie projects
(Maraguinot
v.
NLRC,
GR
120969, January 22, 1998)
Salaried insurance agents as
distinguished from registered
agents on commission basis
(Great Pacific Life Assurance
Corp. v. Judico, GR 73887,
December 21, 1989)
Tailors, seamstresses, servers,
basters, pantsadoras paid on
piece-rate
basis
(Makati
Haberdashery v. NLRC, GR
83380-83, November 15, 1989)
In-house
lawyer
as
distinguished from an outside
retainer
(Hydro
Resources
Contractors
Corp.
v.
Pagalilauan, GR L-62909, April
18, 1989)
Resident physicians ( IRR LC
Book III, Rule X, Sec. 15)
University
professors
and
instructors ( FEU v. CIR, GR L17620, August 31, 1962)
Taxi driver, barber (Citizen
League of Free Workers v.
Abbas, GR L-21212, September
23, 1966)
Security guard with respect to
the Security Agency (Agro
Commercial Services Agency,
Inc. v. NLRC, GR 82823, July 31,
1989)
Case where the is no Employee-Employer
Relationship
Farm
workers
are
not
employees of the sugar central
(Victoria Milling Co., Inc. v.

NLRC, GR 116347, October 3,

1996)
Caddies are not employees of
the golf club (Manila Golf &
Country Club v. IAC, GR 64948,
September 27, 1998)
Working
scholars
are
not
employees
of
the
school
(Filamer Christian Institute v.
IAC, GR 75112), August 17,
1992)
Collecting
agents
on
commission
basis
(Singer
Sewing Machine Company v.
Drilon, GR 91116, January 24,
1991)
Shoe
shine
boy (Besa v.
Trajano, GR 72409, December
29, 1986)
Independent contractor selling
soft drinks (Mafinco Trading
Corp. v. Ople, GR L-37790,
March 25, 1976
Commission salesman (Abante,
Jr. v. Lammadrid Bearing &
Parts Corporation, GR 159890,
May 28, 2004)

Dismissal from Employment

Exercise of
requirement:

the

two-fold

due

process

Substantive
aspect
which
means that the dismissal must
be for any of the (1) just cause
provided under Article 282 of
the Labor Code or the company
rules
and
regulations
promulgated by the employer;
or (2) authorized causes under
Articles 283 and 284 thereof;
and
Procedural aspect which means
that the employee must be
accorded due process, the
elements of which are notice
and opportunity to be heard
and to defend himself.
A dismissal based on just cause means that
the employee has committed a wrongful act
or omission; while a dismissal based on
authorized cause means that there exist a
ground which the law itself allows or
authorizes to be invoked to justify the
termination of an employee even if he has
not committed any wrongful act or omission
such as installation of labor-saving devices,
redundancy, retrenchment, closure or
cessation of business operation or disease.
Just Causes mentioned in the Labor Code
ART. 282. Termination by employer. - An
employer may terminate an employment for
any of the following causes:
Serious misconduct or willful
disobedience by the employee
of the lawful orders of his
employer or representative in
connection with his work;

Gross and habitual neglect by

the employee of his duties;
Fraud or willful breach by the
employee of the trust reposed
in him by his employer or duly
authorized representative;
Commission of a crime or
offense
by
the
employee
against the person of his
employer or any immediate
member of his family or his
duly
authorized
representatives; and
Other causes analogous to the
foregoing.
ART. 264(a). (Prohibited Activities) which
provides for the termination of the following:
Union officers who knowingly
participate in an illegal strike
and therefore deemed to have
lost their employment status.
Any employee, union officer or
ordinary
member
who
knowingly participates in the
commission of illegal acts
during a strike (irrespective of
whether the strike is legal or
illegal), is deemed to have lost
his employment status.
ART. 263(g). (National Interest Cases) where
strikers who violate orders, prohibitions
and/or injunctions as are issued by the DOLE
Secretary or the NLRC, may be imposed
immediate disciplinary action, including
dismissal or loss of employment status.
ART. 248(e). (Union Security Clause) where
violation of the union security agreement in
the CBA may result in termination of
employment. Under this clause, the
bargaining union can demand from the
employer the dismissal of an employee who
commits a breach of union security
arrangement, such as failure to join the
union or to maintain his membership in good
standing therein. The same union can also
demand the dismissal of a member who
commits an act of disloyalty against it, such
as when the member organizes a rival union.
Just Cause under Jurisprudence
The following may be cited as just cause in
accordance with prevailing jurisprudence:
Violation of company rules and
regulations
Theft of property owned by a
co-employee as distinguished
from company-owned property
which is considered serious
misconduct
Incompetence, inefficiency or
ineptitude
Failure to attain work quota
Failure to comply with weight
standards of employer
Attitude problem

Other Analogous Causes

The following may be cited as analogous
causes:
Violation of company rules and
regulations
Theft of property owned by a
co-employee, as distinguished
from theft owned by the
employer.
Incompetence, inefficiency or
ineptitude
Failure to attain work quota
Failure to comply with weight
standards of employer
Attitude
problem
is
analogous to loss of trust and
confidence.
Authorized Causes
Two classes, namely:
Business-related
causes

Referring
to
the
grounds
specifically
mentioned
in
Article 283, to wit:
Installation
of
labor-saving
device;
Redundancy;
Retrench;
Closure
or
cessation
of
business operation NOT due to
serious business losses or
financial reverses;
Closure
or
cessation
of
business operation due to
serious losses and financial
reverses.
Health-related
causes

referring to disease covered by

Article 284 of the Labor Code.
Requisites applicable to
causes under Article 283

the

authorized

There is good faith in effecting

the termination;
The termination is a matter of
last resort, there being no
other option available to the
employer after resorting to
cost-cutting measures;
Two (2) separate notices are
served on both the affected
employees and the DOLE at
least one (1) month prior to the
intended date of termination;
Separation pay is paid to the
affected employees, to wit:
If based on (1) installation of
labor-saving device, or (2)
redundancy. One (1) month pay
or at least one (1) month pay
for every year of service,
whichever is higher, a fraction
of at least six (6) months shall
be considered as one (1) whole
year.
If based on (1) retrenchment,
or (2) closure NOT due to
serious business losses or
financial reverses. One (1)
month pay or at least one-half

pay for every year of service,

whichever is higher, a fraction
of at least six (6) months shall
be considered as one (1) whole
year.
If closure is due to serious
business losses of financial
reverses, NO separation pay is
required to be paid.
In case the CBA or company
policy provides for a higher
separation pay, the same must
be followed instead of the one
provided in Article 283.
Fair and reasonable criteria in
ascertaining what position are
to
be
affected
by
the
termination, such as, but not
limited to: nature of work;
status of employment (whether
casual, temporary or regular);
experience;
efficiency;
seniority;
dependability;
adaptability;
flexibility;
trainability;
job
preference;
discipline;
and
attitude
towards work. Failure to follow
fair and reasonable criteria in
selecting who to terminate
would render the termination
invalid.
Due Process
Twin-Notice Requirement
Hearing;
Meaning
Opportunity to be Heard

of

Due process means compliance with both

STATUTORY
due
process
and
CONTRACTUAL
due
process.
CONSTITUTIONAL due process is NOT
applicable.
Statutory due process refers to the one
prescribed in the Labor Code (Article 277(b));
while contractual due process refers to the
one prescribed in the Company Rules and
Regulations.
Twin-Notice Requirement
Service of first written notice
Contain the specific causes or
grounds
for
termination
against him;
Contain a directive that the
employee
is
given
the
opportunity
to
submit
his
written explanation within the
reasonable
period of FIVE
CALENDAR DAYS from receipt
of the notice:
To enable him to prepare
adequately for his defense;
To study the accusation against
him;
To consult a union official or
lawyer;
To gather data and evidence;
and
To decide on the defense he
will
raise
against
the
complainant.

Contain a detailed narration of

the facts and circumstances
that will serve as basis for the
charge against the employee.
This is required in order to
enable him to intelligently
prepare his explanation and
defenses. A general description
of the charge will not suffice.
Specifically
mention
which
company rules, if any, are
violated and/or which among
the grounds under Article 282
is being charged against the
employee.
Conduct of hearing
The employer should schedule and conduct
a hearing or conference wherein the
employee will be given the opportunity to:
Explain and clarify his defenses
to the charge/s against him;
Present evidence in support of
his defenses; and
Rebut the evidence presented
against
him
by
the
management.
The
employee
may
defend
himself
personally, with the assistance of a
representative or counsel of his choice.
Moreover, this conference or hearing could
be used by the parties as an opportunity to
come to an amicable settlement.
Perez Doctrine
This is the new guiding principle on the
hearing requirement. It has interpreted that
the term ample opportunity to be heard as
follows:
ample
opportunity
to
be
heard mans any meaningful
opportunity (verbal or written)
given to the employee to
answer the charges against
him and submit evidence in
support
of
his
defense,
whether
in
a
hearing,
conference or some other fair,
just and reasonable way.
A formal hearing or conference
is no longer mandatory. It
becomes mandatory only under
and
of
the
following
circumstances:
When requested by employee
in writing;
When substantial evidentiary
disputes exist;
When a company rule or
practice requires it;
When similar circumstances
justify it.
The ample opportunity to be
heard standard in the Labor
Code
prevails
over
the
hearing
or
conference
requirement
in
its
Implementing
Rules
and
Regulations.
Service of the
written notice

of

second

After
determining
that
termination of employment is
justified, the employer shall
serve the employees a written
notice of termination indicating
that:
All circumstances involving the
charge/s against the employee
have been considered; and
Grounds have been established
to justify the severance of his
employment.
The Seven (7) Standard
Termination Cases

Situations

in

The rules on termination of employment in

the Labor Code and pertinent jurisprudence
are applicable to the seven (7) different
situations, namely:
1

5
6

The dismissal was for a just

cause under Article 282, for an
authorized cause under Article
283, or for health reasons
under Article 284, and due process
was observed. this termination is
LEGAL
The dismissal was without a just or
authorized cause but due process
was observed. this termination is
ILLEGAL
The dismissal was without a just or
authorized cause and due process
was not observed. This termination
is ILLEGAL
The dismissal was for a just or
authorized cause but the due process
was not observed. this termination
is LEGAL
The dismissal was for non-existent
cause. This termination is ILLEGAL
The dismissal was not supported by
any evidence of termination this
termination is NEITHER LEGAL NOR
ILLEGAL as there is no dismissal to
speak of. Reinstatement is ordered
not as a relief for illegal dismissal but
on equitable ground.
The dismissal was brought about by
the implementation of a law. This
termination is LEGAL.

Reliefs for Illegal Dismissal

Under Article 279 of the Labor Code:
1
2
3

Reinstatement
without
loss
of
seniority rights and other privileges;
Full
backwages,
inclusive
of
allowances; and
Other benefits or their monetary
equivalent.

Other Reliefs Not Found in Article 279 But

Awarded in Illegal Dismissal Cases
1
2

Award of separation pay in lieu of

reinstatement
Award of penalty in the form of
nominal damages in case of
termination due to just or authorized
cause but without observance of
procedural due process.

4
5

Reliefs
to
illegally
dismissed
employee whose employment is for a
fixed period. The proper relief is only
the payment of the employees
salaries
corresponding
to
the
unexpired portion of the employment
contract.
Award of damages and attorneys
fees.
Award of financial assistance in
cases
where
the
employees
dismissal is declared legal but
because of long years of service, and
other
considerations,
financial
assistance is awarded.
Imposition of legal interest on
separation pay, backwages and other
monetary awards.

At least 15 years of age (as amended

by R.A. 7610, Section 12) provided
that if below 18 years, he shall not be
eligible for hazardous occupation;

Physically fit for the occupation in

which he desires to be trained;

Possess vocational aptitude and

capacity for the particular occupation
as established through appropriate
tests; and

Possess the ability to comprehend

and follow oral and written instructions.

ART. 60. Employment of apprentices.

Qualifications to be met by employer:

APPRENTICESHIP
ART. 57. Statement of objectives. - This Title
aims:
(1) To help meet the demand of the economy
for trained manpower;
(2) To establish a national apprenticeship
program through the participation of
employers, workers and government and
non-government agencies; and
(3) To establish apprenticeship standards for
the protection of apprentices.
ART. 58. Definition of Terms.

APPRENTICESHIP a practical
training on the job supplemented by
related theoretical instruction, for a
highly skilled or technical occupation
for a period of not less than 3 months
but not more than 6 months.
APPRENTICE a person undergoing
training
for
an
approved
apprenticeable occupation during an
established period assured by an
apprenticeship agreement.

APPRENTICEABLE OCCUPATION
an occupation officially endorsed by
a tripartite body and approved for
apprenticeship by the TESDA.

APPRENTICESHIP AGREEMENT an
employment contract wherein the
employer binds himself to train the
apprentice and the apprentice in turn
accepts the terms of training.

ON-THE-JOB TRAINING a practical

work experience through actual
participation in productive activities
given to or acquired by an
apprentice.

HIGHLY TECHNICAL INDUSTRIES

those trade, business, enterprise,
industry or other activity which are
engaged in the application of
advanced technology.

ART. 59. Qualifications of apprentice.

1
2

Only employers in highly technical

industries may employ apprentices;
and
Only in apprenticeable occupations
as determined by the TESDA

Requisites for a Valid Apprenticeship:

1
2
3
4

Qualifications of apprentice are met;

Apprentice earns not less than 75%
of the prescribed minimum salary;
Apprenticeship
agreement
duly
executed and signed;
Apprenticeship agreement must be
approved by the TESDA; otherwise
apprentice shall be deemed a regular
employee; and
Period of apprenticeship shall not
exceed 6 months.
At the termination of the
apprenticeship, the employer is
not required to continue the
employment.

Number of Apprentices to be Taken in by

Companies
-

Only up to a maximum number of

20% of its total regular workforce.

There is no valid apprenticeship if:

1

3
4

The agreement submitted to the

TESDA was made long after the
workers
started
undergoing
apprenticeship;
The
work
performed
by
the
apprenticeship was different from
those allegedly approved by the
TESDA;
The
workers
undergoing
apprenticeship are already skilled
workers;
The workers were required to
continue undergoing apprenticeship
beyond 6 months.

ART.
61. Contents
of
apprenticeship
agreements. - Apprenticeship agreements,
including the wage rates of apprentices,
shall conform to the rules issued by the
Secretary of Labor and Employment. The
period of apprenticeship shall not exceed six
months.
Apprenticeship
agreements
providing for wage rates below the legal

minimum wage, which in no case shall start

below 75 percent of the applicable minimum
wage, may be entered into only in
accordance with apprenticeship programs
duly approved by the Secretary of Labor and
Employment. The Department shall develop
standard
model
programs
of
apprenticeship. (As amended by Section 1,
Executive Order No. 111, December 24, 1986).
Working hours of apprentices
-

Shall not exceed the maximum

number of hours prescribed by law, if
any, for a worker of his age and sex.
An apprentice not otherwise barred
by law from working 8 hours may be
requested by his employer to work
overtime and paid accordingly.

ART. 62. Signing of apprenticeship agreement. Every apprenticeship agreement shall be

signed by the employer or his agent, or by an
authorized representative of any of the
recognized organizations, associations or
groups and by the apprentice.
An apprenticeship agreement with a minor
shall be signed in his behalf by his parent or
guardian, if the latter is not available, by an
authorized representative of the Department
of Labor, and the same shall be binding
during its lifetime.
Every apprenticeship agreement entered into
under this Title shall be ratified by the
appropriate apprenticeship committees, if
any, and a copy thereof shall be furnished
both the employer and the apprentice.
Defective Contract
-

If the agreement is found to be

defective and serious damage would
be sustained by either party if such
defect is not corrected, the DOLETESDA shall advise the employer
within 5 working days not to
implement the agreement pending
amendment thereof.

ART. 63. Venue of apprenticeship programs. Any firm, employer, group or association,
industry organization or civic group wishing
to organize an apprenticeship program may
choose from any of the following
apprenticeship schemes as the training
venue for apprentice:
(a) Apprenticeship conducted entirely by and
within the sponsoring firm, establishment or
entity;
(b) Apprenticeship
entirely
within
a
Department
of Labor and
Employment
training center or other public training
institution; or
(c) Initial training in trade fundamentals in a
training center or other institution with
subsequent actual work participation within
the sponsoring firm or entity during the final
stage of training.
ART.
64. Sponsoring
of
apprenticeship
program. - Any of the apprenticeship
schemes recognized herein may be
undertaken or sponsored by a single
employer or firm or by a group or

association
thereof
or
by
a
civic
organization. Actual training of apprentices
may be undertaken:
(a) In the premises of the sponsoring
employer in the case of individual
apprenticeship programs;
(b) In the premises of one or several
designated firms in the case of programs
sponsored by a group or association of
employers or by a civic organization; or
(c)
In
a
Department
of Labor and
Employment training centeror other public
training institution.
ART.
65. Investigation
of
violation
of
apprenticeship agreement. - Upon complaint of
any interested person or upon its own
initiative, the appropriate agency of the
Department ofLabor and Employment or its
authorized representative shall investigate
any violation of an apprenticeship agreement
pursuant to such rules and regulations as
may be prescribed by the Secretary
of Labor and Employment.
ART. 66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized
agency of the Department ofLabor and
Employment may be appealed by any
aggrieved
person
to
the
Secretary
of Labor and Employment within five (5) days
from receipt of the decision. The decision of
the Secretary of Labor and Employment shall
be final andexecutory.
ART.
67. Exhaustion
of
administrative
remedies. - No person shall institute any
action for the enforcement of any
apprenticeship agreement or damages for
breach of any such agreement, unless he
has exhausted all available administrative
remedies.
ART. 68. Aptitude testing of applicants. Consonant with the minimum qualifications
of apprentice-applicants required under this
Chapter, employers or entities with duly
recognized apprenticeship programs shall
have primary responsibility for providing
appropriate aptitude tests in the selection of
apprentices. If they do not have adequate
facilities for the purpose, the Department
of Labor and Employment shall perform the
service free of charge.
ART.
69. Responsibility
for
theoretical
instruction. Supplementary
theoretical
instruction to apprentices in cases where the
program is undertaken in the plant may be
done by the employer. If the latter is not
prepared to assume the responsibility, the
same may be delegated to an appropriate
government agency.
ART.
70. Voluntary
organization
of
apprenticeship
programs;
exemptions. (a) The organization
of
apprenticeship
program shall be primarily a voluntary
undertaking by employers;
(b) When national security or particular
requirements of economic development so
demand, the President of the Philippines
may require compulsory training of
apprentices in certain trades, occupations,
jobs or employment levels where shortage of

trained manpower is deemed critical as

determined by the Secretary of Labor and
Employment. Appropriate rules in this
connection shall be promulgated by the
Secretary ofLabor and Employment as the
need arises; and
(c) Where services of foreign technicians are
utilized
by
private
companies
in apprenticeable trades, said companies are
required
to
set
up
appropriate
apprenticeship programs.
ART. 71. Deductibility of training costs. - An
additional deduction from taxable income of
one-half (1/2) of the value oflabor training
expenses incurred for developing the
productivity and efficiency of apprentices
shall be granted to the person or enterprise
organizing an apprenticeship program:
Provided, That such program is duly
recognized by the Department ofLabor and
Employment: Provided, further, That such
deduction shall not exceed ten (10%) percent
of direct labor wage: and Provided, finally,
That the person or enterprise who wishes to
avail himself or itself of this incentive should
pay his apprentices the minimum wage.
ART. 72. Apprentices without compensation. The Secretary ofLabor and Employment may
authorize the hiring of apprentices without
compensation whose training on the job is
required by the school or training program
curriculum or as requisite for graduation or
board examination.
.

Any unemployed person 15 years old

and above may apply for apprenticeship with
any participating enterprise. The apprentices
shall furnish the following requirements:
a

Forge an Apprenticeship Agreement

with the participating enterprise;
b Comply
with
the
enterprise
requirements
(e.g.
clearances,
medical certificate, etc.); and
c Abide with the stipulations in the
Apprenticeship Agreement.
Additional requirements (PESO registration):
a
b
c
d

What is the duration of the Apprenticeship

period?
The apprenticeship period shall not
be less than four (4) months but not more
than six (6) months. However, the
participating employer has the option to hire
the apprentice even prior to the completion
of the apprenticeship period.
What are the apprentices entitled to?
1

2
DEPARTMENT ORDER NO. 68-04 Series of
2004
GUIDELINES IN THE IMPLEMENTATION OF
THE
KASANAYAN
AT
HANAPBUHAY
PROGRAM
(An
Apprenticeship
Program)

and

Employment

Objective
1

Provide opportunity for new entrants

to the labor force to acquire
experience and skills; generate
commitment from enterprises in
developing the skills of the Filipino
workforce; and
Facilitate
the
absorption
of
apprentices
into
the
regular
workforce after their apprenticeship.

Apprentice a person undergoing training for

an approved apprenticeable occupation
during an established period and covered by
an apprenticeship agreement.
Who may apply to be an apprentice?

Register at the PESO using the

CNMRS Form;
Submit to PESO the accomplished
CNMRS form in two (2) copies;
Report
to
the
enterprise
for
screening, if referred by the PESO;
and
Inform the PESO on the result of the
application.

Apprentices shall be entitled to

receive a wage not less than 75
percent of the prevailing minimum
wage and benefits such as social
security and health benefits, and
overtime pay.
An apprentice can work overtime
provided there are no regular
workers to do the job and the time
spent on overtime work is duly
credited to his training hours.

Apprenticeship training within employment

involving a contract between an apprentice
and an enterprise on an apprenticeable
occupation.
Apprenticeable Occupation an occupation
officially approved for apprenticeship by
TESDA.
Apprenticeship Agreement a contract
wherein a prospective enterprise binds
himself to train the apprentice who, in turn,
accepts the terms of training for a
recognized
apprenticeable
occupation
emphasizing
the
rights,
duties
and
responsibilities
of
each
party.
No
apprenticeship training will commence until
an Apprenticeship Agreement has been
forged between an enterprise and an
apprentice.

Enterprise a participating establishment

that directly engages an apprentice based on
an approved Apprenticeship Program.

Training Certificate a document issued by

the participating enterprise to an apprentice
who completes the apprenticeship period.

b
c

e
Letter of Application a letter signifying the
intentions of the enterprise to register in the
Apprenticeship Program.
Certificate of Registration a document issued
by TESDA granting an authority to a
participating enterprise to offer the program
in a particular occupation.
Who
may
apply
Registration?

for

Certificate

of

The enterprise shall register its

apprenticeship program with any of the
TESDA Provincial Offices. It shall submit the
following:
1
2

Letter of Application;
Certification that the number of
apprentices to be hired is not more
than 20 percent of the total regular
workforce; and
3 Skills Training Outline.
(No enterprise shall be allowed to hire
apprentices
unless
its
apprenticeship
program is registered and approved by
TESDA.)

Who are the Government Agencies and

Stakeholders involved in DO 68-04?
TESDA (Office of Apprenticeship) and
Department of Labor and Employment
(Bureau of Local Employment) shall jointly:
a

Any enterprise duly registered with

the appropriate government authorities with
ten (10) or more regular workers is qualified
to join the program. The number of
apprentices for each participating enterprise
shall not be more than 20 percent of its total
regular workforce.

What
are
the
incentives
participating enterprises?

given

to

Payment of 75% of the prevailing

minimum wage to apprentices;
OR
An additional deduction from taxable
income of one-half (1/2) of the value
of labor training expenses incurred
for developing the productivity and
efficiency of apprentices shall be
granted to the person or enterprise
organizing
an
apprenticeship
program: Provided, however, that
such deduction shall not exceed ten
(10%) percent of direct labor wage;
and, that the person or enterprise
who wishes to avail himself or itself
of this incentive should pay his
apprentices the minimum wage. (As
provided for under Book II, Title II,
Chapter I, Article 71 of the Labor
Code)

What are the Duties of the Enterprises?

Forge an Apprenticeship Agreement

with qualified apprentice(s);
Provide training to apprentices;
Supervise and monitor the progress
of the apprentice(s);
Issue
Training
Certificate
to
apprentices
who
successfully
complete the program and pass the
assessment;
Pay the apprentices their allowable
wage and other social security and
health benefits; and
Submit reports (Enrollment and
Terminal Report) to TESDA Regional/
Provincial Office.

b
c
d
e

Formulate
guidelines
on
the
implementation of the program;
Develop information materials;
Conduct
briefing,
training
and
orientation for DOLE and TESDA
Regional and Provincial Offices;
Initially, assist DOLE and TESDA
RO/PO with the advocacy of the
program; and
Monitor
and evaluate
program
implementation
and
recommend
measures to improve, strengthen and
sustain the program.

TESDA-OA shall:
a
b

Facilitate the approval of new

apprenticeable occupations; and
Build and maintain a Kasanayan at
Hanapbuhay Registry of Enterprises
in coordination with TESDA
Planning Office (PO).

TESDA Regional/ Provincial Office

a
b
c
d
e

f
g
h

Conduct promotion and advocacy of

the program in coordination with
DOLE Regional Offices;
Identify prospective enterprises in
coordination with DOLE Regional
Offices;
Evaluate and approve programs of
participating enterprises;
Issue Certificate of Registration to
participating enterprises;
Provide list of registered enterprises
with
corresponding
skills
for
apprenticeship to DOLE Regional/
Provincial Offices;
Assist
enterprises
in
the
development
of
competency
assessment instrument;
Administer competency assessment
to apprentices, whenever applicable
and issue Certificate of Competency;
Submit enrollment and terminal
reports to OA, copy furnished DOLE
Regional/ Provincial Office; and In
cases where there is no presence of
DOLE in the province, TESDA

Provincial Office shall assist the

applicant-apprentice.

BLE shall:
a

Build and maintain the Kasanayan at

Hanapbuhay Manpower Registry in
the Phil-JobNet as part of the
Computerized National Manpower
Registry of Skills (CNMRS)

DOLE Regional Offices (DOLE-RO):

b
c
d
e
f

Conduct promotion and advocacy of

the program in coordination with
TESDA Regional Office;
Provide technical supervision and
assistance
to
PESO
in
the
implementation of the program;
Maintain a separate database for the
Kasanayan at Hanapbuhay Manpower
Registry in the region;
Identify prospective enterprises in
coordination with TESDA RO; and
Submit reports on registered and
referred applicants to BLE, copy
furnished TESDA Regional/Provincial
Office.

Public Employment Service Office (PESO)

a

b
c
d
e

Receive application, register, match

and refer applicant-apprentice to
participating enterprises and submit
to DOLE-RO duplicate copy;
Facilitate
absorption
of
an
apprentice-graduate
into
regular
employment;
Submit
required
reports
on
applicants registered to the DOLE
Regional/Provincial Office;
Assist the DOLE and TESDA RO/PO
in the conduct of promotion, and
advocacy of the program;and
Assist the DOLE and TESDA RO/PO
in the identification of prospective
enterprises.

Section 14(f) Creation of the Office of

Apprenticeship which has the following
functions:
1 to provide direction, policies and
guidelines on the implementation of
the Apprenticeship system;
2 to accredit, coordinate, monitor and
evaluate all apprenticeship schemes
and program implemented by various
institutions and enterprises;
3 to establish a network of institutions
and
enterprises
conducting
apprenticeship
schemes
and
programs;
4 to perform such other powers and
functions as may be authorized.
SECTION
18.
Transfer
of
the
Apprenticeship
Program.

The
Apprenticeship Program of the Bureau of
Local Employment of the Department of
Labor
and
Employment
shall
be
transferred to the Authority which shall
implement and administer said program in
accordance with existing laws, rules and
regulations.
SECTION 23. Administration of Training
Programs. The Authority shall design
and administer training programs and
schemes that will develop the capabilities
of public and private institutions to
provide quality and cost-effective technical
educational and skills development and
related opportunities. Such training
programs and schemes shall include
teachers trainers training, skills training
for
entrepreneur
development
and
technology development, cost-effective
training in occupational trades and related
fields
of
employment,
and
value
development as an integral component of
all skills training programs.

..

Learners Art. 73-77

Tesda Act of 1994

Learners Art 73

Section 3(j) Apprenticeship training

within employment with compulsory
related theoretical instructions involving a
contract between an apprentice and an
employer on an approved apprenticeable
occupation.
Section 3(l) - Apprenticeship Agreement
is a contract wherein a prospective
employer binds himself to train the
apprentice who in turn accepts the terms
of training for a recognized apprenticeable
occupation emphasizing the rights, duties
and responsibilities of each party.
Section 3(n) Learners refer to persons
hired as trainees in semi-skilled and other
industrial occupations which are nonapprenticeable. Learnership programs
must be approved by the Authority.

persons hired as trainees in semi-skilled

and other industrial occupations

non-apprenticeable

may be learned through practical

training on the job in a relatively short
period of time

shall not exceed three (3) months.

Prerequisites before learners may be validly

employed or hired (Article 74)

no experienced workers are available

the employment of learners is necessary

to prevent curtailment of employment
opportunities, and

the employment does not create unfair

competition in terms of labor costs or
impair or lower working standards.

Art. 75.Learnership agreement.

Employment and training contract entered into
between the employer and the learner

where it is required that the employer

make a commitment to employ the
learners if they so desire, as regular
employees upon completion of the
learnership.

All learners who have been allowed or

suffered to work during the first two (2)
months shall be deemed regular
employees if training is terminated by
the employer before the end of the
stipulated period through no fault of the
learners.

subject to inspection by the Secretary of Labor

and Employment or his duly authorized
representative
Learnership agreement shall include:

.*OJT or practical training of a learner need NOT

be
supplemented
by
THEORETICAL
INSTRUCTION

The names and addresses of the

learners;

The duration of the learnership period,

which shall not exceed three (3) months;

The wages or salary rates of the

learners which shall begin at not less
than seventy-five percent (75%) of the
applicable
minimum
wage;
and

*Salary- Not less than 75% of the applicable

adjusted minimum wage

A commitment to employ the learners if

they so desire, as regular employees
upon completion of the learnership.

Learners can work OT

Learners deemed regular employees

allowed or suffered to work during the

first two (2) months

if training is terminated by the employer

before the end of the stipulated period

without fault of the learners.

*Focus of training- Semis skilled/industrial

occupation (non apprenticeable)

*Overtime pay-

When no regular workers to do the job

Time spent on OT work is duly credited

to his training hrs

Incentives to companyparticipating
Learnership Programs:

employer or his duly authorized agent

learner

Employer shall furnish a copy of learnership

agreement within 5 working dsays following its
execution by the parties, to the following:

learner

TESDA

Apprenticeship
Division
appropriate Regional Office

Entitled to and additional deduction

from taxable income the value of the
training
expenses
incurred
for
developing
the
productivity
and
efficiency of learners

Said incentive shall be given provided

that such deduction shall not exceed 10
% of the labor wage

Enterprise which wishes to avail such

incetive should pay the learners the
minimum wage

Who may cancel Learnership program?

Secretary of Labor and Employment
of

the

If upon inquiry,it is found that the justification for

the program no longer exists

Employment of minors as Learners:

Below 15 years- not allowed
Below 18 yrs- only in non hazardous occupation
When does the employer or enterprise hasd
an obligation to hire the learners as
employee?
under TESDA Circular No. 12 Series of 2004,
after learnership period
Basis: Art 75 LCP

the

Parties to a learnership agreement:

in

Learners in piecework Article 76

Learners employed:

during the training period

shall be paid in full for the work done.

Art. 77. Penalty clause.

Any violation of this Chapter or its implementing

rules and regulations
shall be subject to the general penalty clause
provided for in this Code.
It refers t o Art 288 LCP
Art. 288. Penalties. Except as otherwise
provided in this Code, or unless the acts
complained of hinge on a question of
interpretation
or
implementation
of
ambiguous provisions of an existing
collective
bargaining
agreement,
any
violation of the provisions of this Code
declared to be unlawful or penal in nature
shall be punished with a fine of not less than
One Thousand Pesos (P1,000.00) nor more
than Ten Thousand Pesos (P10,000.00) or
imprisonment of not less than three months
nor more than three years, or both such fine
and imprisonment at the discretion of the
court.
In addition to such penalty, any alien found
guilty shall be summarily deported upon
completion of service of sentence.
Any provision of law to the contrary
notwithstanding,
any criminal
offense
punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or
City Courts and the Courts of First
Instance. (As amended by Section 3, Batas
Pambansa Bilang 70)
..
RA 7277: MAGNA CARTA FOR DISABLED
PERSONS
Disabled persons are those suffering from
restriction or different abilities, as a
result of a mental, physical or sensory
impairment, to perform an activity in the
manner or within the range considered
normal for human being
Chapter I: Employment
Sec. 5 Equal Opportunity for Employment.
A qualified disabled employee shall
be subject to the same terms and
conditions of employment and the
same
compensation,
privileges,
benefits, fringe benefits, incentives or
allowances as qualified able bodied
person. (Sec. 5, p.1)

Sec. 7. Apprenticeship
Subject to the provisions of the Labor
Code as amended,
disabled persons shall be eligible as
apprentices or learners: Provided, That their
handicap is not as much as to effectively
impede the performance of job operations in
the particular occupation for which they are
hired; Provided, further, That after the
lapse of the period of apprenticeship, if
found satisfactory in the job performance,
they
shall be eligible for employment.

Sec. 8. Incentives for Employers

(a) To encourage the active participation of

the
private sector in promoting the welfare of
disabled persons and to ensure gainful
employment for qualified disabled persons,
adequate incentives shall be provided to
private entities which employ disabled
persons.
(b) Private entities that employ disabled
persons who meet the required skills or
qualifications, either as regular employee,
apprentice or learner, shall be entitled to an
additional deduction, from their gross
income, equivalent to twenty-five percent
(25%)
of the total amount paid as salaries and
wages to disabled persons: Provided,
however,
That such entities present proof as certified
by the Department of Labor and
Employment that disabled persons are under
their employ: Provided, further, That the
disabled employee is accredited with the
Department of Labor and Employment and
the
Department of Health as to his disability,
skills and qualifications.
(c) Private entities that improve or modify
their physical facilities in order to provide
reasonable accommodation for disabled
persons shall also be entitled to an
additional
deduction from their net taxable income,
equivalent to fifty percent (50%) of the direct
costs of the improvements or modifications.
This Section, however, does not apply to
improvements or modifications of facilities
required under Batas Pambansa Bilang 344.
....................................................
Topic # 12 Pre-employment
Art. 12. Statement of objectives. It is the policy
of the State: [Pro2 Fac2ReSI]
a. To promote and maintain a state of full
employment through improved manpower
training, allocation
and utilization;
b. To protect every citizen desiring to work
locally or overseas by securing for him the
best possible
terms and conditions of employment;
c. To facilitate a free choice of available
employment by persons seeking work in
conformity with the
national interest;
d. To facilitate and regulate the movement of
workers in conformity with the national
interest;
e. To regulate the employment of aliens,
including the establishment of a registration
and/or work
permit system;
f. To strengthen the network of public
employment offices and rationalize the
participation of the

private sector in the recruitment and

placement of workers, locally and overseas,
to serve national

c. "Private fee-charging employment agency"

means any person or entity engaged in
recruitment and

development objectives;

placement of workers for a fee which is

charged, directly or indirectly, from the
workers or

g. To insure careful selection of Filipino

workers for overseas employment in order to
protect the good
name of the Philippines abroad
The DOLE

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.

- by Administrative Code of 1987 (EO

292)
the
primary
policy-making,
programming,
coordinating
and
administrative entity of the Executive branch
of the govt in the field of labor and
employment
Its Primary responsibilities:
1. The promotion of gainful employment
opportunities and the optimization of the
devt & utilization of the countrys manpower
resources;
2. The advancement of workers welfare by
providing for just and humane working
conditions and terms of employment;
3. The maintenance of industrial peace by
promoting harmonious, equitable and stable
employment, relations that assure protection
for the rights of all concerned parties.
Art. 13. Definitions.
b. "Recruitment and placement" refers to any
act of: [CETCHUP]
canvassing,
enlisting,
transporting,
contracting, utilizing, hiring or procuring
workers,
and includes: [CRAP]
contract services, referrals, advertising or
promising
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.
Notes:
1.Recruitment includes the act of
referral or the act of passing along or
forwarding of an applicant for employment
after an initial interview of a selected
applicant for employment to a selected
employer, placement officer or bureau
(Rodolfo v. PP)
2.The number of persons dealt with is
not an essential ingredient of the act of
recruitment and placement of workers. The
proviso merely creates a presumption.

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.
h.
"Overseas
employment of
Philippines.

employment"
means
worker outside the

Classification of OFWs
1
2

Sea-based or Seamen
Land-Based contract workers other
than a seaman including workers
engaged in offshore activities whose
occupation requires that majority of
his working or gainful hours spent on
land.

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.
-now referred to as legal resident.
He is a person who has obtained permanent
residency status in accordance w/ the law of
the host country.
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.
Allocation of Manpower Resources is Assigned
to the:
1
2

Bureau of Local Employment (BLE)

assigned the effective allocation of
manpower resources in local
Ph
Overseas
Employment
Administration (POEA) for overseas
employment

Art
15.
BUREAU
OF
EMPLOYMENT
SERVICES
(now
BLE)
- primarily responsible for developing
& monitoring a comprehensive employment
program.

The decisions of the regional offices

of the BES if so authorized by the Sec of
DOLE shall be appealable to the NLRC upon
the same grounds provided in Art 233 hereof.
The decisions of the NLRC shall be final &
unappealable.
Minister of Labor has the power to impose
& collect fees, based on rates recommended
by the BES. Such fees shall be deposited in
the National Treasury as a special acct of the
General Fund, for the promotion of the
objectives of the BES, subj to the provisions
of Sec 40 of PD 1177.
PD 850 replaced BES w/ BLE, through EO
797
which
also
created
POEA
AO 186 made licensing of local
recruitment agencies and the issuance of
work permits to non-resident aliens and
employment registration certificates to
resident aliens a function of the regional
offices of DOLE
Private Recruitment and Placement Agency
(PRPA)

Powers
&
Duties:
1. To formulate & develop plans & programs
to implement the employment promotion
objectives
of
this
Title;
2. To establish & maintain a registration
and/or licensing system to regulate private
sector participation in the recruitment &
placement of workers, locally & overseas,
and to secure the best possible terms &
conditions of employment for Filipino
contract workers and compliance therewith
under such rules & regulations as may be
issued
by
the
DOLE;
3. To formulate & develop employment
programs designed to benefit disadvantaged
groups
&
communities;
4. To establish & 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 & testing system in aid of proper
human
resources
allocation;
and
7. To maintain a central registry of skills,
except
seamen

It
refers
to
any
individual,
partnership, corporation or entity engaged in
the recruitment and placement of persons for
local employment.

*EO 797, May 1, 1982, created BLE to assume

functions of Bureau of Apprenticeship and
the Bureau of Employment Services (BES).

A licensed PRPA may charge the

EMPLOYER service fee w/c shall not exceed
20% of the annual salary of the worker. In no
case shall the service fee be deducted from
the workers salary.

Original & Exclusive Jurisdiction of the regional

offices
of
DOLE
- over all matters/cases involving EREE relations including money claims, arising
out of or by virtue of any law or contracts
involving Filipino workers for overseas
employment except seamen: Provided, that
the (BES) (now BLE) may, in the case of the
NCR, exercise such power, whenever the
DOLE
deems
it
appropriate.

Transportation Expenses of the worker from

the place of origin to the place of work shall
be charged against the employer and shall in
no case be deductedfrom the workers
salary.

- Secures a license from a DOLE

regional office.
Placement Fee
Under existing BLE regulations, a licensed
PRPA may charge a worker placement fee w/
shall not exceed 20% of the workers first
months basic salary, chargeable after actual
commencement of employment.
XPN: Sec. 13, Kasambahay Law:
Regardless if whether the domestic
worker was hired through a private
employment agency or a third party, no share
in the recruitment or finders fee shall be
charged against the domestic worker by the
said private employment agency.
Service Fee Chargeable to Employer

RA 8795 required the establishment of a

Public Employment Service Office (PESO) in
capital towns, cities and other strategic

areas
PESO - serves as employment service &
information
center
- Regularly obtains lists of job
vacancies from employers, publicizes them,
invites and evaluates applicants, and refers
them
for
probable
hiring
- Provides training and educational
guidance and employment counseling
services
- Also renders special services to the
public such as holding of jobfairs, livelihood
and
self-employment
bazaars
- Special credit assistance for placed
overseas
workers
- Special program for employment of
students (SPES) during summer or semestral
breaks
- Work appreciation seminars &
conferences
and
- Hiring of workers in infrastructure
projects
(WHIP)
Ra 6885 created WHIP, a program w/c
requires the DPWH and private contractors
to hire 30% of skilled and 50% unskilled
labor requirements from the area where the
project is being undertaken.

Art
16.
PRIVATE
RECRUITMENT:
GR: No person/entity other than the public
employment offices, shall engage in the
recruitment & placement of workers.
XPN:
[P4CMONS]
(based
on
Rules
Implementing the Code, the ff. entities are
authorized to recruit and place workers for
local
and
overseas
employment)
1.
Public
employment
offices
2.
Private
recruitment
entities
3.
Private
employment
agencies
4. POEA
5. Construction contractors if authorized to
operate by DOLE and the Construction
Industry
Authority
6. Members of the diplomatic corps although
hirings done by them have to be processed
through
the
POEA
7. Other persons/entities as may be
authorized by the Sec of DOLE
8. Shipping or
representatives

manning

agents

Art 17. OVERSEAS EMPLOYMENT

BOARD
POEA has taken over the functions
Overseas Employment Development
(OEDB) and the National Seamen
(NSB)

or

DEVT
of the
Board
Board

Principal Functions of the POEA [FPD]

1.
Formulation,
implementation
and
monitoring of overseas employment of
Filipino
workers;
2. Protection of their rights to fair and
equitable
employment
practices;
3. Deployment of Filipino workers through
govt-to-govt hiring
Regulatory Functions

The
POEA
shall:
[RFI2S]
1. Regulate private sector participation in the
recruitment & overseas placement of
workers
through
its
licensing
and
registration
system;
2. Formulate & implement, in coordination w/
appropriate
entities
concerned,
when
necessary, a system for promoting and
monitoring the overseas employment of
Filipino workers taking into consideration
their welfare and the domestic manpower
requirements;
3. Inform migrant workers not only of their
rights as workers but also of their rights as
human
beings;
4. Instruct and guide the workers how to
assert their rights and provide the available
mechanism to redress violation of their
rights;
5. In the recruitment & placement of workers
to service the requirements for trained and
competent Filipino workers of foreign govts
and their instrumentalities, and such other
employers as public interest may require,
deploy only to countries: [BOG] (under
Selective
Deployment)
a. Where the PH has concluded
Bilateral labor agreements or arrangements;
b. Observing and/or complying w/ the
international laws and standards of migrant
workers;
c. Guaranteeing to protect the rights
of Filipino migrant workers.
Adjudicatory
Functions
[AD]
1. Administrative cases involving violations
of licensing rules & regulations and
registration of recruitment and employment
agencies/entities;
and
2. Disciplinary action cases and other special
cases w/c are administrative in character,
involving employers, principals, contracting
partners and Filipino migrant workers.
Jurisdiction retained by POEA
After the passage of RA 8042, the POEA
retains original and exclusive jurisdiction to
hear
and
decide:
1. all cases w/c are administrative in
character, involving or arising out of
violations of rules & regulations relating to
licensing & registration of recruitment and
employment
agencies/entities;
and
2. disciplinary action cases and other special
cases w/c are administrative in character,
involving employers, principals, contracting
partners and Filipino migrant workers
Outside
of
POEA
Jurisdiction
1. NO jurisdiction to enforce foreign
judgment (must be brought before the
regular courts). POEA is an administrative
(not a court), exercising adjudicatory or
quasi-judicial
functions
2.
NO
jurisdiction
over
torts
Grounds for Disciplinary Action [PUG is VVECs
GIFT to DAD]
1
2

Prostitution;
Unjust refusal to depart for the
worksite after all employment and

3
4
5

7
8
9

10
11
12
13
14
15

travel documents have been duly

approved by the appropriate govt
agency/ies;
Gunrunning or possession of deadly
weapons;
Vandalism or destroying company
property;
Violation/s of the laws and sacred
practices of the host country and
unjustified breach of govt-approved
employment contract by a worker;
Embezzlement of company funds or
of moneys and properties of a fellow
worker entrusted for delivery to kins
or relatives in the PH;
Creating trouble at the worksite or in
the vessel;
Gambling, esp where the laws of the
host country prohibits the same;
Initiating/joining a strike or work
stoppage where the laws of the host
country prohibit strikes or similar
actions;
Commission of a felony punishable
by Ph laws or by the laws of the
host country;
Theft/robbery;
Desertion or abandonment;
Drug
addiction/possession
or
trafficking of prohibited drugs;
and
Drunkenness, esp where the laws of
the host country prohibit intoxicating
drinks

COMPROMISE
AGREEMENT
-consistent w/ the policy encouraging
amicable settlement of labor disputes Sec 10
of RA 8042 allows resolution by compromise
of
cases
filed
w/
the
NLRC
- any compromise agreement on
money claims inclusive of damages shall be
paid w/in 4 months from the approval of the
settlement
Penalties for Non-compliance of the mandatory
period
for
resolution
of
cases
1. The salary of such official who fails
to render his decision/resolution w/in the
prescribed period shall be, or caused to be,
withheld until such official complies
therewith;
2. Suspension for not more than 90 days; or
3. Dismissal w/ disqualification to hold any
appointive public office for 5 yrs
ER/EE
Relations
Cases
Millares & Lagda v NLRC: SC: seafarers are
contractual
EES
Premature
Termination
of
Contract
If EE is terminated before end of contract w/o
just cause, employers will be ordered
to pay their salaries corresponding to the
unexpired portion of their employment
contract
Pretermination
Under
RA
8042
A
worker
dismissed
from
overseas
employment w/o just cause as defined by
law/contract
is
entitled
to
full

reimbursement of his placement fee w/

interest at 12% per annum, plus the salary
for the unexpired portion of their
employment
contract.
Due
Process
required
to
terminate
employment
in case of seamen must be given written
notice of the charges against him, and
afforded a formal investigation where he can
defend himself or thrua representative before
he can be dismissed & disembarked.
The employer is required to furnish him w/ 2
notices: (1) written notice of charge; and (2)
written notice of dismissal
Contracted but not Deployed: Perfected
Contract
Death

benefits
of
Seafarers
- entitled to death and other benefits
under w/c ever is higher (foreign law or Ph
law)
- entitled to death benefits if death
occurs during the term of his contract of
employment, even if death is not workrelated;
XPN: death is caused by their own
doing
Disability loss or impairment of a physical
or
mental
function
resulting
from
injury/sickness
Permanent disability the inability of a
worker to perform his job for more than 120
days, regardless of WON he loses the use of
any
part
of
his
body
Total Disability disablement of an EE to
earn wages in the same kind of work of
similar nature that he was trained for or
accustomed to perform, or any kind of work
w/c a person of his mentality and
attainments could do. It does not mean
absolute
helplessness.
In disability compensation, it is not
the injury w/c is compensated, but rather it is
the incapacity to work resulting in the
impairment of ones earning capacity
Disability benefits by seamen a matter
governed not only by medical findings but by
law
&
contract
- shall be paid beginning on the 1 st
day of such disability. If caused by an
injury/sickness it shall not be paid longer
than 120 consecutive days;
Except:
where such injury/sickness still
requires medical attendance beyond 120
days but not to exceed 240 days from onset
of disability in w/c case benefit for temporary
total
disability
shall
be
paid.
In case of differing medical assessment

a.) when a seafarer sustains a workrelated illness/injury while on board, his

fitness/unfitness to work shall be determined
by the company-designated physician.
b.) If the physician appointed by the
seafarer
disagrees
w/
the
company
designated physicians assessment, the
opinion of a 3rd doctor may be agreed jointly
bet the employer and the seafarer to be the
decision final and binding on them
Invalid Agreements
1

Signing satisfaction receipts is not a

waiver. Any agreement to receive less
compensation than what the worker
is entitled to recover is invalid.
An agreement that diminishes the
employees pay and benefits as
contained in a POEA-approved
contract is void, unless such
subsequent agreement is approved
by POEA.

Agencies Given the Duty to promote the welfare

&
rights
of
migrant
workers:
1.DFA
2.DOLE
3.POEA
4. OWWA Overseas Workers Welfare
Administration provides social & welfare
services including insurance coverage, legal
assistance, placement assistance and
remittance services to Filipino overseas
workers. Under RA8042, it shall provide the
Filipino migrant worker & his family
assistance in the enforcement of contractual
obligations by agencies, entities and/or their
principals;
5. RPM - Re-Placement and Monitoring
Center develops livelihood programs for
the returning workers to reintegrate the
returning migrant workers to the Ph society;
6.
NLRC

tasked
w/
the
settlement/adjudication of labor disputes
Art
18:
BAN
ON
DIRECT
HIRING
GR: Direct hiring of Filipino workers for
overseas employment is not allowed
XPN:
1. Members of Diplomatic corps;
2.
International
organizations;
3. Other employers as may be
allowed
by
DOLE;
and
4. Name hires individual workers
who are able to secure contracts for
overseas employment on their own efforts
and
representations
w/o
assistance/participation of any agency. Their
hiring nonetheless, shall pass through the
POEA
for
processing
purposes
Rationale
of
the
Prohibition
1. To assure the best possible terms &
conditions of work to the EE; and
2. To assure the foreign ER that he hires only
qualified Filipino workers
Q: Does POEA Administrator or the DOLE
Secretary or DOLE Regional Director have
the power to issue closure order?

A: Yes. If upon preliminary examination or

surveillance, the DOLE Secretary, the POEA
Administrator or DOLE Regional Director is
satisfied that such danger or exploitation
exists, a written order may be issued for the
closure of the establishment being used for
illegal recruitment activity.
Art. 19. Office of Emigrant Affairs. (Dead Article)
Art. 20. National Seamen Board (NSB)
pursuant to EO 797, now POEA (See Art. 17)
Minimum
Employment
Conditions
Overseas Employment [GF3J WAR]
1
2
3
4
5
6
7
8

of

Guaranteed
wages
for
regular
working hours and overtime pay;
Free transportation from point of hire
to site or return;
Free emergency medical and dental
treatment and facilities;
Free and adequate board and lodging
facilities or compensatory food
allowance;
Just causes for termination of the
services of the workers;
Assistance on remittance of workers
salaries and allowances;
Workmens compensation benefits
and war hazard protection; and
Repatriation of workers remains and
properties in case of death.

Art. 21. Foreign service role and participation

(Superseded by B.P. Blg. 79, An Act creating
the Commission on Filipinos Overseas and
for other Purposes)
-

necessary to monitor the status

of OFWs in their respective areas
of assignment and insure that
they are not exploited or abused
by
their
foreign
principal
employers

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.
- All OFWs are required to remit a portion of
their foreign exchange earnings ranging
from 50% - 80% depending on the workers
kind of job, to their families, dependents,
and/or beneficiaries. (POEA Rules, Book III,
Rule VIII)
Exceptions to Mandatory Remittance [URU]
1. Fil servicemen working in US military
installations;
2. Where the workers immediate family
members, dependents, or beneficiaries are
Residing
w/
him
abroad;
3. Immigrants and Fil professionals and EEs
working w/ UN agencies or specialized
bodies
Effects
of
Failure
to
Remit
1. Workers who fail to comply w/ the

mandatory remittance requirement shall be

suspended/excluded from the list of eligible
workers
for
overseas
employment.
Subsequent violations shall warrant his
repatriation.
2. Employers who fail to comply shall be
excluded from the overseas employment
program.
Private
employment
agencies/entities shall face cancellation or
revocation of their licenses or authority to
recruit, w/o prejudice to other liabilities
under existing laws and regulations.

Note. Pachek kung tama ung sa

overseas hehehehe 3 million alam
ko e..
C

Those not otherwise disqualified by

law or other government regulations
to engage in the recruitment and
placement of workers for overseas
employment;

In local, Employment, the owner,

partner or the corporation must be of
good moral character and not
disqualified by law and have an office
space with a minimum floor area of
50 square meters.

Note:
Legitimate relationship not a requirement
to be a beneficiary.
Art. 23. Composition of the Boards.
Art. 24. Boards to issue rules and collect fees.
.
ARTICLE
25:
PRIVATE
EMPLOYMENT
PARTICIPATION IN THE RECRUIMENT AND
PLACEMENT OF WORKERS
PRIVATE SECTORS WHO CAN PARTICIPATE
IN R and P:
1

Private employment agencies;

Private recruitment agencies;

Shipping and manning agnecies;

Such other persons as may maybe

authorized by the Secretary of Labor
and Employment;

Construction and Contractors

-

But with a duly issued authority

to operate private recruitment
entitites.

QULFIFICATIONS:
A

Article 27: Citizenship

Filipino Citizens or

Corporations, partnerships or
entities atleat 75
of the
authorized and voting capital
stock of which is owned and
controlled by Filipino Citizen.

VALIDITY OF LICENSE:

For overseas employement- every

license shall be valid for four years
from the date of issue unless sooner
cancelled, revoked or suspended.

For Local Employment- two (2) years

from the date of issuance.

PROVISIONAL LICENSE FOR OVERSEAS

EMLOYMENT
Applicants for new license shall be issued
provisional license valid for one (1) year
within which the applicant should be able to
comply with the undertaking to deploy 100
workers to its principal (POEA 2002 Rules
and regulations)
DISQUALIFICATION
FOR OVERSEAS EMPLOYMENT WHETEHER
FOR PROFIT OR NOT:
1

Travel Agencies and sales agencies

of airline companies (ART. 26 of
Laborcode)

Officers or members of the board of

any corporation or members in
partnership engaged in business of a
travel agency;

Coporations and partneships when

any of its officers and members of
the board or partners is also an
officer, member of the board or
partner of corporation or partnership
engaged in the business of a travel
agency;

Persons,
partnerships
or
corporations which have derogatory
records such as but not limited to the
ff:

Article 28: Capitalization

Private Employment Agency for

Local Employment Minimum
networth pf P 1, 000,000 in case
of single proprietorship and a
minimum paid up capital of 1,
000, 000 in case of partnership
and corporation;
For Overseas EmploymentP 3, 000,000 for both single and
corporations

Those
certified
to
have
derogatory record in the National
Bureau of Investigation or by the

Anti illegal Recrutment Branch of

POEA;
b

Those against whom probable

cause or a prima facie finding of
guilt for illegal recruitment other
related cases exist;

The recruitment and placement

activities must be undertaken at their
authorized official addresses.

Provincial Recruitment and/ or job

fairs maybe allowed only when
authorized by POEA in writing.

Those convicted for illegal

recruitment or other related cases
and/ or crimes involving moral
turpitude;

Note: Change of ownership or relationship of

single proprietorship licensed to engage in
overseas employment shall cause the
automatic revocation of license.

Those agencies whose licenses

have been previously cancelled
or revoked by POEA ;

In case of death single proprietorship

licensee and upon the request of heir,
license maybe extended to continue only for
the purpose of winding up the business
operations because a single proprietor does
not have the power of succession.

Official or employees of DOLE or

other government agencies directly
involved in overseas employment
program and their relatives with the
4t degree of consanguinity or affinity;
Those license have
cancelled of revoke.

previously

ARTICLE 30: Registration Fees

The secretary of labor shall promulgate a
schedule of fees for the registration of all
applicants for license or authority.

FOR LOCAL EMPLOYMENT:

1

Those who are convicted of illegal

recruitment, trafficking in persons ,
anti chiled labor violation or crimes
involving moral turpitude;

Those against whom probable cause

or a prima facie finding of guilt for
illegal recruitment other related
cases exist;

Those agencies whose licenses have

been previously revoked or cancelled
by the department under Sec. 54
these rules;

Cooperatives whether registered or

not under the Cooperative Act of the
Pil.

Law enforcers and any official and

employee of the Department of Labor
of Employment
Sole proprietors of duly licensed
agencies
are
prohibited
from
securing another license to engage in
recruitment and placement
Sole proprietors, partnerships or
corporation licensed to engage in
private recruitment and placement for
local employment are prohibited from
engaging in job contracting or sub
contracting activities.

ARTICLE 29: NON- TRANSFERABILITY OF

LICENSE OR AUTHORITY
1

It may be used only by the one in

whose favor it was issued, hence it
cannot be assigned conveyed or
transferred to any other person or
entity.
It must be used only in the Place
stated in the license. Thus, could
only undertake recruitment and
placement activities in the region
where the license was granted.

ARTICLE 31: BONDS

For overseas employment
a

Prior to the approval- all applicants

fro license shall post such cash bond
and surety bonds as determined by
the Secretary of labor including
escrow deposits

Upon Approval

License Fee of 50, 000

Escrow of 1,000, 000

Surety bond of 100,000

For Local Employment

a

Prior to Approval

Cash bond of 25, 000

Surety of 100,000

Both valid for two years

License fee of 6000

Exemption from garnishment:

Cash bond filed by applicants for license or
authority is not subject to garnishment by a
judgment creditor of the agency.
ARTICLE 32: Fees to be paid by workers

The fees should be collected from a

hired worker only after he has signed
the employment contract and the
same covered by the receipts
showing the amount paid

1
2

Except when the prevailing system in

country where the worker to be
deployed either by law policy or
practice do not allow charging or
collecting
of
placement
and
recruitment fees, a land based
agency may charge and collect from
its hired workers:

Placement fee equivalent to one

month salary;
Documentation
following

costs

such

Regulatory Function- to regulate

local and foreign principal

Disciplinary
action
casescomplaint filed by the recruitment
and placement or OFW

Suspend or cancel license;

Order refund or reimbursement of

such illegally collected fees

Passport

Nbi/police/
clearance

Authentication

Birth Certificate

Trade test if necessary

Inoculation when required

by the host country

VISITORIAL AND ENFORCEMENT

Medical Examination

On the spot inspection at the time

the applicant files application to
operated and recruit

Routine
inspection
operations

Complaint inspection every time

there is a complaint filed

barangay

No other fees charge shall be

imposed including processing fees
shall imposed against a worker.

AGENCIES
OF
DOLE
TO
MONITOR
EMPLOYMENT: Lecture of Comm. Belle

Regulation
Employees

Issuance
Employment

Issuance of Alien Resident

Cert.

of

of

To charge greater amount that that

specified in the schedule allowable
fees;

To furnish any false information in

relation
to
recruitment
or
employment

To give nay false notice, testimony

etc,
or
commit
any
act
of
misrepresentation to secure a license
or authority

To induce or attempt to induce a

worker to quit his job in liue of
another offer unless it is designed to
liberate the worker from oppressive
terms of employment

To influence or attempt to influence

any person or entity not to employ
any worker who has not applied to
his her agency

To engage in the recruitment or

placement of jobs harmful to public
health, morality or to the dignity of
the Philippines

To obstruct or attempt to obstruct

inspection by the secretary of labor
or his authorized representative

Alien

Alien

Referral of Local Employment

during

Bureua of Local EmploymentIncharge with the regulation

and
licensing
of
local
recruitment agency

Original and exclusive jurisdiction to

inspect recruitment and placement
agency and manning agency

ARTICLE 34 AND SEC 6 RA NO. 8042

(PROHIBITED PRRACTICES)

RA

Assume the function of Overseas

Employment Development Board
(OEDB) and Seamans Board

Manning agencies shall not charge

any fee from seafearer applicants for
its
recruitment
and
placement
services. All expense for hiring
seaman shall be shouldered by
foreign principals.

as

EO 797-REORGANIZING THE MINISTRY OF

LABOR AND EMPLOYMENT, CREATING THE
PHILIPPINE
OVERSEAS
EMPLOYMENT
ADMINISTRATION,
AND
FOR
OTHER
PURPOSES

POEA- actively engaged in the

Recruitment and placement overseas

To fail to file reports on the status of

employment placement etc. and such
other matters as maybe required by
the secretary of labor

Jursidiction

To substitute or alter employment

contracts without the approval of the
Secretary of Labor

The DOLE Secratry and POEA Administrator

have concurrent jurisdiction to suspend or
cancel license.

10 To become an officer or member of

the board or corporation engaged in
the management of travel agency
11 To withhold travel documents from
applicant workers before departure
for
nauthorized
monetary
consderations
12 Failure
to
actually
deploy
a
contracted worker without valid
reasons as determine by department
of labor

Publishing
job
announcements
without the POEAs prior approval

Suability of Foreign Corporations

A Foreign Corporation that through an
unlicensed agnet, recruits workers in the
country may be sued in and found liable by
the Philippine Courts.
Lecture Com Belle
Foreign Placement Agency

Cannot engaged in recruitment and

placement in the Philippines

13 Failure
to
reimburse
incurred
expenses in case of non deployment

But they can accredited as foreign

principal/ or employer

14 To allow a non- Filipino Citizen to

head
or
manage
a
licensed
recruitment manning agency

Registration of Foreign Principal can

be transferred from one to another
just as lng as the second recruitment
agency shall assume for all the
responsibilities
in
the
frist
recruitment agency.

ARTICLE
35:
Suspension
and/
cancellation of license or authority

or

Non license or holder of authority is any

person, corporation or entity which has not
been issued a valid license or authority to
enage a receruitment and placement by the
Secrtary of Labor, whose license or authority
has been suspended, revoked, or cancelled
by the POEA and the Secretary.
GROUNDS FOR REVOCATION OF LICENSE
1

Incurring an accumulated three

counts of suspension by an agency
based on final and executory orders
within the validity period of its
license;

Violation of the conditions of license

Engagaing in the To engage in the

recruitment or placement of jobs
harmful to public health, morality or
to the dignity of the Philippines

Grounds
for
the
Suspension
Cancellation of License

or

The acts prohibited under article 34

of Labor Code

Charging Fee before the worker is

employedto in excess of the
authorized amount

Doung recruitmen in palces outside

its authorized area

Deploying
workers
without
processing through the POEA

Local Employment
Executive Order No. 797 issued on May 1,
1982 created the Bureau of Local Employment
(BLE) which assumed the functions of the
Bureau of Apprenticeship and the domestic
functions of the Bureau of Employment
Services (BES). With this development, the
Bureau of Employment Services is now
called Bureau of Local Employment.
Its overseas employment functions were
assumed by the Philippine Overseas
Employment Administration (POEA) on May
1, 1982 by virtue of the same Executive
Order. (Philippine-Singapore Ports Corp. v.
NLRC, 218SCRA77, 1993)
In line with the mandate to decentralize
government operations and in order to make
more effective and efficient the delivery of
the Department of Labor and Employments
services, the line functions of the Bureau of
Local Employment were turned over to the
Regional Offices as follows:
a

b
c
d

Regulation and licensing of local

recruitment agencies in the region,
including registration of regional
branch offices and issuance of
temporary authority to recruit outside
the region;
Regulation of Alien employment and
understudy programs;
Issuance
of
non-resident
alien
employment permits;
Issuance of resident alien employment
registration certificates;

e
f

Regulation and monitoring of the

apprenticeship and the learnership
programs; and
Referral and placement of workers
for local employment. (AO No. 186,
Series of 1987)

The BLE is a policy making body for local

recruitment and placement and alien
relations; and is further tasked in coming-up
of strategies in addressing local employment
issues.
Department Order 141-14
-important because it instructs us pertaining
to
local
recruitment
and
placement
(Commissioner Ortiguera)
Definition of terms:
a
b
c
d
e
f
g

Bureau refers to the Bureau of Local

Employment.
Department

refers
to
the
Department
of
Labor
and
Employment.
Secretary refers to the Secretary of
the Department of Labor and
Employment.
Regional Office refers to the
Regional Offices of the Department.
Regional Director refers to the
Regional Director of the Regional
Office.
Field Office refers to the district or
provincial offices of the Department.
Private employment agency or agency
refers to any person, partnership or
corporation
engaged
in
the
recruitment
and
placement
of
workers for local employment.
It also refers to any individual,
partnership, corporation or entity
licensed by the Department of Labor
and Employment (DOLE) to engage in
the recruitment and placement of
Kasambahay for local employment.
License refers to a document issued
by the Secretary through the
Regional Director authorizing a
person, partnership or corporation to
operate
a
private
employment
agency.
Authority to operate branch office
refers to a document issued by the
Secretary through the Regional
Director
authorizing
a
private
employment agency to establish and
operate a branch office.
Authority to recruit refers to a
document issued by the Secretary
through
the
Regional
Director
authorizing a person to conduct
recruitment
activities
for
local
employment on behalf of a private
employment agency.
Representative refers to a person
acting as an agent of a private
employment agency registered with
the Regional Office and granted
Authority to Recruit.
Domestic Seafarer refers to any
person who is employed or engaged to
work in any capacity on board ship as
defined herein.

As compared with the definition

given by the Labor Code (Art. 13)
"Seaman"
means
any
person
employed in a vessel engaged in
maritime navigation.
As compared with the definition
stated in RA 8042 as amended by RA
10022 (Rule II, Sec. 1), Seafarer refers to any person who is employed
or engaged in overseas employment in
any capacity on board a ship other
than a government ship used for
military or non-commercial purposes.
The definition shall include fishermen,
cruise ship personnel and those serving
on mobile offshore and drilling units in
the high seas.
m Ship refers to a Philippine registered
ship or vessel which navigates within
the territorial jurisdiction of the
Philippines or closely adjacent to,
sheltered areas or areas where port
regulations apply.
n Public Employment Service Office or
PESO refers to a non-fee charging
multi-employment service facility or
entity established, recognized or
accredited pursuant to Republic Act
No. 8759 or the PESO Act of 1999 and
its
implementing
rules
and
regulation.
o Recruit refers to any Filipino
individual promised, contracted, or
enlisted for employment.
p
Domestic Worker or Kasambahay
refers to any person engaged in
domestic work within an employment
relationship, whether on a live in or
live out arrangement, such as, but not
limited to general househelp, yaya,
cook, gardener, or laundry person,
but shall exclude service providers,
family drivers, children who are
under foster family arrangement, or
any person who performs domestic
work
only
occasionally
or
sporadically and not on occupational
basis.
q Recruitment contract refers to the
agreement entered into between a
private employment agency or its
representative and a recruit stating
the terms and conditions of the
recruitment in a language known and
understood by the recruit.
r Employment contract refers to the
individual written agreement between
the employer and the worker stating
clearly the terms and conditions of
employment in a language known
and understood by the worker.
s Service contract refers to the
agreement entered into between the
employer and the private employment
agency stating clearly the terms and
conditions of the service.
t Service fee refers to the amount
charged by a private employment
agency to a local employer as
payment for actual services rendered
in relation to the recruitment and
placement of workers.
u Deployment Expenses refers to
expenses that are directly used for

the transfer of the Kasambahay from

the place of origin to the place of
work
covering
the
cost
of
transportation,
meals,
communication expense, and other
incidental expenses. Advances or
loans by the Kasambahay are not
included
in
the
definition
of
deployment expenses.
Employer refers to any person,
partnership, corporation or entity
engaging the services of a worker
through the private employment
agency, and who is party to the
employment contract with the worker.
It also refers to any person who
engages and controls the services of
a Kasambahay and is party to the
employment contract.
Non-license or non-holder of authority
refers to any person, partnership or
corporation who has not been issued
a license or authority to recruit, or
whose license or authority to recruit
has been revoked or cancelled by the
Regional Director.

Qualifications for Local Recruitment

Placement Agency for Local Employment

e. Law enforcers and any official and

employee of the Department of Labor
and Employment (DOLE).
f. Sole proprietors of duly licensed
agencies are prohibited from securing
another
license
to
engage
in
recruitment and placement.
g. Sole proprietors, partnerships or
corporations licensed to engage in
private recruitment and placement
for local employment are prohibited
from engaging in job contracting or sub
contracting activities.
4. Must have an office space with
minimum floor area of fifty (50)
square meters.
The license application shall be filed in the
Regional Office/Field Office having jurisdiction
over the place where the applicants intends
to establish its office. In case the documents
submitted are incomplete, the application
must not be received and/or accepted.

and

The applicant for a license to operate a PRPA

must possess the following:
1

d. Cooperatives whether registered or

not under the Cooperative Act of the
Philippines.

Must be a Filipino Citizen, if single

proprietorship.
In
case
of
a
partnership or a corporation, at least
75% of the authorized capital stock
must be owned and controlled by
Filipino citizen;
Must have a minimum net worth of
P1,000,000 in the case of single
proprietorship and partnership or a
minimum paid-up capital of P1,000,000
in the case of corporation.
The owner, partners or the officers of
the corporation must be of good moral
character and not otherwise disqualified
by law.
Disqualification set under Sec. 5 of
DO 141-14:
Section 5. Disqualification. The
following are not qualified to engage
in the business of recruitment and
placement for local employment:

Appeal from the Denial of Application

The order of the Regional Director may be
appealed to the Office of the Secretary within
ten (10) days from receipt of the order. The
same will be resolved by the secretary 10
day from receipt of notice of appeal. A
motion for reconsideration can be filed
within 10 days from receipt of the decision. A
second motion for reconsideration shall not
be allowed.
Validity of the License
The license shall be valid all over the
Philippines for three (3) years from the date of
issuance, upon submission of proof of
publication, unless sooner suspended,
cancelled or revoked by DOLE Regional
Director.
It must be noted that license shall not be
transferred, conveyed or assigned to any other
person or entity.

a. Those who are convicted of illegal

recruitment, trafficking in persons,
anti-child labor violation, or crimes
involving moral turpitude;

Fees and Charges

b. Those against whom probable

cause or prima facie finding of guilt for
illegal recruitment or other related
cases exist particularly to owners or
directors of agencies who have
committed illegal recruitment or
other related cases.

An agency may charge the following:

c. Those agencies whose licenses

have been previously revoked or
cancelled by the Department under
Sec. 54 of these rules.

No fees whatsoever shall be collected

neither deducted from the salaries or wages
of the workers.
1

Service fee. An agency may charge

the employers a service fee as may
be agreed upon by the agency and
the employer. In no care shall the
service fee be deducted from the
workers salary.
Transportation expenses. The
transportation expenses for the
transfer of the worker from the place
of residence to the place of work
shall be charged to the employer, and
shall in no case be deducted from the
workers salary.

RECRUITMENT/PLACEMENT AGENCY
Replacement of Worker without Cost or Refund
of Service Fee

General Rule:
- Can only engage in acts of
recruitment in the place stated in the
license.

An employer shall be entitled to a replacement

of a worker without additional cost or a refund of
75% of the service fee and transportation
expenses
subject
to
the
following
conditions:
a

If the worker is certified by a

competent/government physician to
be suffering from a medical or mental
illness within one (1) month from the
first day of work rendering him
incapable
of
discharging
the
minimum requirements of the job; or
If the worker abandons the job,
voluntarily resigns, commits theft or any
other acts prejudicial to the employer or
his family within three (3) months from
the first day of his work.

If the request for a preplacement is beyond

the abovementioned periods, the employer
shall pay an additional service fee as agreed
by both parties. (Sec. 37)
The employer is entitled to a refund of seventy
five (75%) percent of the service fee if the
agency failed to provide a replacement of
worker based on any grounds enumerated in
the preceding section after the lapse of one (1)
month from receipt of the request unless the
parties agreed on a longer period. (Sec. 38
.

It is not the policy of the State to

promote foreign employment. The policy of
the State towards foreign employment is
selective, protective and ameliorative.

Exceptions:
1. When recruitment is done by PESO
- recruitment can be done anywhere in
the Philippines where there is a PESO
Office
2. When the agency has been issued a
Special Recruitment Authority (SRA)
- The term is self-limiting.
An
exclusion of term must be with the
approval of the POEA.

The State shall deploy overseas

workers only if the receiving country:
1.
Has similar laws with PH
2.
Is a signatory of ILO Conventions
3.
Is a signatory to bilateral and
multilateral conventions

FOREIGN RECRUITMENT AGENCIES (FPA)

Cannot engage in recruitment in the
Philippines but can be accredited as principal
or employer.
General Rule:
One
accreditation
principal/employer.

per

foreign

Exception:
When the foreign employer can still offer a
uniform compensation package, and has a
unified job order covering at least 50 workers.
OVERSEAS FILIPINOS
Migrant workers, other Filipino nationals and
their dependents abroad.
SEAMAN
- any person employed in a vessel engaged
in maritime navigation.
OVERSEAS EMPLOYMENT
- the employment of a worker outside the
Philippines covered by a valid contract.

While
recognizing
the
significant
contribution of Filipino migrant workers to
the national economy through their foreign
exchange remittances, the State does not
promote overseas employment as a means
to sustain economic growth and achieve
national development.

OVERSEAS FILIPINO WORKER

(MIGRANT WORKER)
- a person who is to be engaged, is engaged
or ahs been engaged in a remunerated
activity in a state of which he or she is not a
citizen or on board a vessel navigating the
foreign seas other than a government ship
used for military or non-commercial
purposes or on an installation located
offshore or on the high seas.

PRIVATE FEE CHARGING EMPLOYMENT

AGENCY
- Any person or entity engaged in the
recruitment and placement of workers for a
fee which is charged, directly or indirectly,
from the workers or employers or both.
PRIVATE RECRUITMENT ENTITY
- any person or association engaged in the
recruitment and placement of workers,
locally or overseas, without charging,
directly or indirectly, any fee from the
workers or employers.

A foreigner cannot be actively involved in the

management of a local recruitment agency.

Recruited construction workers of a

Philippine corporation which secured a project
abroad are not considered OFWs.

Recruitment whether done for profit or not is

immaterial

OFWs cannot acquire regularity of employment.

They can only be contractual or fixed-term
employees.

Indefinite period of employment of OFWs is not

valid as it contravenes the explicit rule on
fixed-term employment.

It shall be mandatory for all OFWs to remit a

portion of their foreign exchange earnings to
their
families,
dependents,
and/or
beneficiaries in the country through the
Philippine banking system. The OFW cannot
designate himself as allotee thereof.

POWERS OF THE SECRETARY OF LABOR

AND EMPLOYMENT:
1. Cannot issue search warrants and
warrants of arrest
2. Can issue seize and desist orders
3. Can exercise visitorial and employment
powers over recruitment and manning
agencies
4. Can ban deployment of OFWs in the
exercise of police power to protect
public interest
JURISDICTION OF THE POEA:
1. Original and Exclusive when it comes
to the regulation of recruitment and
placement agencies
2. Adjudication of complaints which are
administrative in character
3. Adjudication of disciplinary action
cases and other special cases which
are administrative in character,
involving
employers,
principals,
recruitment and placement agencies
and OFWs.
4. Original and exclusive jurisdiction to
inspect all recruitment and placement
agencies as well as manning
agencies, in relation to the visitorial
powers of the Secretary of Labor and
Employment.

CLASSIFICATION OF OFWs:
1. Sea-based (Seamen)
- those employed in a vessel engaged in
maritime navigation.
2. Land-based
- contract workers other than a seaman
including workers engaged in offshore
activities whose occupation requires that
majority of his working or gainful hours are
spent on land.
ALLOCATION OF MANPOWER RESOURCES
IS ASSIGNED TO THE:

VISITORIAL POWERS
SECRETARY:

1. Bureau of Local Employment (BLE)

- for local employment
- assumed the functions of the defunct
Bureau of Employment Services.
- FUCTIONS:
a. Coming up with strategies to address
and improve unemployment in the
Philippines
b. Policy-making
body
for
local
recruitment and placement, for
promotion of employment, and for
alien employment.

THE

DOLE

1. On-the-spot inspection
2. Routine inspection
3. Complaint inspection
DISCIPLINARY ACTION CASES
-

2.
Philippine
Overseas
Employment
Administration (POEA)
- for overseas employment.
- assumed the functions of the defunct OEBB
and Seamens Board
- created by EO 797

Should be filed with the Adjudication

Office or Regional Office of the
POEA, as the case may be.
The POEA may motu proprio
undertake disciplinary action against
a worker.
It shall establish a system of watvhing
and blacklisting.

RECOURSE OF AGGRIEVED EMPLOYEES:

PRIVATE RECRUITMENT:

DOLE Regional Office

10 days

General Rule:
No person or entity shall engage in
the recruitment and placement of workers,
locally or overseas.
Exceptions:
1. Public Employment Offices
2. Private Recruitment Entities
3. Private Employment Agencies
4. POEA
5. Construction
Contractors
if
authorized by the DOLE and the
Construction Industry Authority
6. Members of the Diplomatic Corps
7. Other persons or entities as may by
authorized by the DOLE Secretary
8. Name hires
9. Shipping or manning agents or
representatives

OF

Secretary of Labor
10 days
Motion for Reconsideration
No further recourse
Finality of Decision

GRAVEST PENALTY FOR RECRUITMENT

VIOLATIONS
Suspension or cancellation of license plus
fines.
CONSEQUENCES OF CONVICTION
1. Automatic revocation of license or
authority
2. Forfeiture of cash and surety bonds

3. Conviction for the crime of Estafa, if

found guilty thereof

POEA for violation of terms and conditions

of the contract, simultaneously.
The DOLE Secretary and the POEA
Administrator have concurrent jurisdiction to
suspend or cancel a license.

A person may be charged and convicted

for both illegal recruitment and estafa

RULE ON PRE-TERMINATION OF CONTRACT

ILLEGAL

ESTAFA

RECRUITMENT
Malum prohibitum

Malum in se

Criminal intent is not

necessary

Criminal intent is
requried

PENALTY AND PRESCRIPTIVE PERIOD FOR

ILLEGAL RECRUITMENT
SIMPLE
Prescriptive

ECONOMIC
SABOTAGE

5 years

20 years

Imprisonment

12 years
and 1
day to
20 years

Life
imprisonme
nt

Fine

P 1 to 2
million

P 2 to 5
million

Period

1. If terminated other than those that are lawful and

valid before the agreed termination date, the
employer will pay the workers their salaries
corresponding to the unexpired portion of
the employment contract.
2. If the date of employment termination occurred
on or after July 15, 1995, a worker dismissed
from overseas employment without just,
valid or authorized cause or there is any
unauthorized deductions from his salary, he
is entitled to full reimbursement of his
placement fee with interest at 12% per
annum plus salaries for the unexpired
portion of his contract.

An OFW is not entitled to overtime pay, even if

guaranteed, if he failed to present any
evidence to prove that he rendered service in
excess of the regular 8 working hours a day.

In case of unauthorized deductions from

OFWs salary, he shall be entitled to the full
reimbursement of the deductions at 12%
interest per annum.

Maximum Penalty shall be imposed if the

person illegally recruited is less than 18
years of age or if committed by a nonlicensee or non-holder or authority.

SECTION 10 (RA 8042)

SECTION 7 (RA 10022)
The clause or for three (3) months for every
year of the unexpired term, whichever is less
has been declared unconstitutional for
violation of the equal protection clause and
of substantive due process.

Absence of receipts evidencing payment is

not fatal to prosecutions case for illegal
recruitment for as long as the witnesses can
positively show through their respective
testimonies that the accused is the one
involved in prohibited recruitment.

Claims arising out of an employer-employee

relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral exemplary and other forms of
damages is transferred to the Labor Arbiters of
the NLRC.

Alteration of contract is prohibited.

Venue for Filing Action for Illegal

Recruitment:
A criminal action arising from illegal
recruitment as defined herein shall be filed
with the Regional Trial Court of the province
or city where the offense was committed or
where the offended party actually resides at
the same time of the commission of the
offense: Provided, That the court where the
criminal action is first filed shall acquire
jurisdiction to the exclusion of other courts.
Provided, however, That the aforestated
provisions shall also apply to those criminal
actions that have already been filed in court
at the time of the effectivity of this Act.
CONCURRENT JURISDICTION
Employees constructively dismissed can file
before LA for illegal dismissal and before

Venue:
Regional Arbitration branch of the NLRC
where the complainant resides or where the
principal office of the respondent/employer
is situated at the option of the complainant.
-

In cases of claims and disputes arising from

collective bargaining agreements, the parties
shall submit the same to the original and
exclusive jurisdiction of the voluntary
arbitrator or panel of arbitrators.

It is only in the absence of a CBA that parties

may opt to submit the dispute to either the
NLRC or to voluntary arbitration.
DUE PROCESS REQUIRED TO TERMINATE
EMPLOYMENT

1. Procedural due process requires that a

seaman must be given:
a. Written notice of the charges
against him; and
b. Formal investigation where he
can
defend
himself
personally or through a
representative before he can
be
dismissed
and
disembarked
from
the
vessel.
2. The employer is bound to furnish him 2
notices:
a. The written charge; and
b. The written notice of dismissal
in case that is the penalty
imposed
BOTH the recruitment agency and its foreign
principal have the burden of proof to show
that the dismissal was legal.

Sec 11 Overtime There are two types of

overtime for seafarers:
1 Open Overtime 125% of basic hourly
work; basic is 208 hours monthly;
2 Guaranteed Overtime fixed rate of
overtime work; shall not exceed 105
hours a month.

Managerial personnel of seafarers may

render overtime work.

For seafarers, there is still obligation to

prove he rendered overtime work based
on:
1 No. of Hours;
2 Permission to render overtime work;
and
3 Particularity of the work done.

The following are considered Holidays at

sea and in port:
1 New Years Day;
2 Maundy Thursday;
3 Good Friday;
4 Araw ng Kagitingan;
5 Labor Day;
6 Independence Day;
7 National Heroes Day;
8 All Saints Day;
9 Bonifacio Day;
10 Christmas; and
11 Rizal Day.

Unica Doctrine If the contract of a

seafarer is terminated and he is onboard;
voluntary work must be compensated but
such work is not tantamount to implied
renewal of the contract of the seafarer.

Sec 18 Termination of Employment

Generally,
the
employment
ceases
when(Sec 18[a]):
1 the seafarer completes his period of
contractual service aboard the ship;
2 he signs-off from the ship; and
3 he arrives in the point of hire.

Other Causes of Termination of Employment

(Sec 18[b]):
1 When the seafarer disembarks for
medical reasons(Medical Repatriation);
2 When the seafarer signs off due to
shipwreck, ships sale, lay-up of ship,
discontinuance of voyage, or change or
principal;
3 When the seafarer is discharged for
just cause;
4 Voluntary Resignation; and
5 Voluntary Repatriation by the employer.

RELIEFS TO WHICH OFWs ARE ENTITLED:

-

Monetary in nature.

1. All salaries for the unpexpired portion of

the contract.
2. Full reimbursement of placement fees and
deductions at an interest of 12% per annum.
DOCTRINE OF PROCESSUAL PRESUMPTION
-

Where a foreign law is not pleaded or, even if

pleaded, is not proved, the presumption is
that foreign law is the same as Philippine
law.

POEA SEC 2010

Sec 2 (a) The employment contract

commence upon concurring with the
following requisites:
1 Actual departure of the seafarer
from the point of hire; and
2 The acquiring and bringing of a
POEA approved contract.

The Pre-Employment Medical Examination

(PEME) is required for a seafarer before
he is allowed to depart for his work.

Sec 2 (b) The period of employment

must be mutually agreed and must not
exceed 12 months. Any extension is
subject to mutual consent of both parties.

Sec 8 - The seafarer is required to make an

allotment in the Philippines of at least
eighty percent (80%) of his monthly basic
salary.

The allottee may be any person. It is not

required that the allottee of the seafarer be
his relative.

Medical Repartriation

When the seafarer signs off due to

medical reason(Medical Repatriation), he
must report within 3 days from arrival to the
manning agency for his Post-Medical
Examination (POME).

If the seafarer did not report within three

days for his POME, unless for a valid
reason, it is an implied waiver of his right to
claim for sickness and disability benefits.

The only valid reason that the seafarer is

allowed not to report within three days
must be caused by his physical incapability
due to his sickness, in which he must send
a written notice that he will not be able to
report within the three-day period.
In order for the injury or illness benefits
be given to the seafarer, two requisites
must concur:
1 The sickness must be work-related;
and
2 The sickness must exist during the
term of the seafarers employment
contract.
Aside from the report, the seafarer is
required to visit the company-designated
physician in a regular basis.
If during the POME, the companydesignated physician declares the illness
as not work-related, the employer may
cease the giving of the benefits.

The seafarer must agree in joining another

ship. If he does not agree, he is entitled to
wages, reparation and, termination pay.

Voluntary Resignation of the seafarer

A seafarer who requests for an early

termination of his contract shall be liable
for his repatriation costs as well as the
transportation cost of his replacement.

The employer, upon compassionate

grounds, may assume the transportation
costs of the seafarers replacement.

Voluntary Repatriation by the employer

If the ship arrives in a convenient port

within a period of three (3) months before
the expiration of the contract of a seafarer,
the employer may repatriate the seafarer
from such port provided that the seafarer
shall be paid all of his wages.

Just cause dismissal

The employee, in cases of declaration by

the company-designated physician of the
illness as not work-related, may consult
another physician for the declaration of his
illness of work-relatedness.

When a seafarer is discharged for just

cause, the employer has the right to
recover the cost of his replacement and
repatriation from the seafarers wage and
other earnings.

When the finding of the physician chosen

by the seafarer is contrary to the finding
of the company-designated physician, the
employee may initiate a conflict resolution
procedure. The following steps are to be
followed:

Seafarer is not entitled to procedural due

process for the termination if he is a clear
danger to the safety of the ship. If he is a
clear danger to the safety of the ship, the
following steps must be followed:
1 The seafarer must be secured in a
separate facility;
2 The seafarer must be surrendered
in the proper authority upon
arriving in a convenient port; and
3 The master of the ship must send
a complete report to the local
manning agency substantiated by
witnesses, testimonies, and other
documents in support thereof.

When the seafarer is not a clear danger to

the safety of the ship, he is entitled to
procedural
due
process
for
his
termination.
The two-notice rule is effected for the
procedural due process of seafarers:
1 The seafarer must be furnished
with a written notice which
contains the Grounds for the
charges and the time, place, and
date of the formal investigation of
the charges.
2 If after the investigation or
hearing, the Master is convinced
that an imposition or penalty is
justified, the master shall issue a
written notice of penalty and the
reasons for it to the seafarer, with
copies furnished to the Philippine
agent.
..

1
2

presenting a copy of the report of the

chosen physician to the employer;
the employer will send both reports to
a mutually-agreed physician for
another assessment.

The finding of the third physician is final

and binding upon both parties.

If the seafarer failed to present to

employer the assessment made by
chosen physician, the report of
company physician is binding and
employer may cease the giving of
benefits to the seafarer.

the
his
the
the
the

The benefits given by the employer is

considered separate and distinct from the
benefits given to the seafarer under
Philippine laws (SSS, OWWA, ECC,
Philhealth, PAG-IBIG) as the seafarer is
the one who paid the premiums from such
benefits.

Termination due to sale of ship, lay-up, or

discontinuance of voyage(Sec 23)

The seafarer is entitled to earn wages,

reparation at the employers cost and
termination pay; UNLESS agreements have
been made for the seafarer to join another
ship belonging to the same principal to
complete his contract.

Miscellaneous Provisions of the New Labor

Code (PD442)
Article. 36

Regulatory powers Secretary of

Labor shall have the power to restrict,
regulate, issue orders and promulgate rules
and regulations to carry out the objectives
and implement the provisions of the Labor
Code

Article. 37
Visitorial Power Secretary of Labor
or his duly authorized representatives may,
at any time, inspect the premises, books of
accounts and records of any person or entity
covered by the Labor code, require to submit
reports regularly on prescribed forms, and
act on violation of any provisions of this
Labor Code.
Articles 3839,
PLACEMENT

RECRUITMENT

AND

What is Illegal Recruitment? (sec. 6, R.A. 8042)

For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or
procuring of workers which includes
referring, contract services, promising or
advertising for employment abroad, whether
for profit or not, when undertaken by a nonlicense
or
non-holder
of
authority
contemplated under Article 13 (f) of
Presidential Decree No. 442, as amended ,
otherwise known as the Labor Code of the
Philippines: Provided, That any such nonlicense or non-holder who, in any manner,
offers or promises for a fee employment
abroad for two or more persons shall be
deemed so engaged. It shall likewise include
the following acts, whether committed by
any person, whether a non-licensee, nonholder, 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 and Employment, or to
make a worker pay or
acknowledge
any
amount
greater than that actually
received by him as a loan or
advance;
To furnish or publish any false
notice
or
information
or
document
in
relation
to
recruitment or employment;
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 the Labor Code,
or
for
the
purpose
of
documenting hired workers with
the POEA, which include the act
of reprocessing workers through
a job order that pertains to
nonexistent work, work different
from the actual overseas work,
or work with a different
employer whether registered or
not with the POEA;
To include or attempt to induce
a worker already employed to

quit his employment in order to

offer him another unless the
transfer is designed to liberate a
worker from oppressive terms
and conditions of employment;
To influence or attempt to
influence any person or entity
not to employ any worker who
has not applied for employment
through his agency or who has
formed, joined or supported, or
has contacted or is supported
by any union or workers'
organization;
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;
To fail to submit 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 and Employment;
To substitute or alter to the
prejudice
of
the
worker,
employment contracts approved
and verified by the Department
of Labor and Employment from
the time of actual signing
thereof by the parties up to and
including the period of the
expiration of the same without
the approval of the Department
of Labor and Employment;
For an officer or agent of a
recruitment
or
placement
agency 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 travel agency;
To withhold or deny travel
documents
from
applicant
workers before departure for
monetary
or
financial
considerations, or for any other
reasons, other than those
authorized under the Labor
Code and its implementing rules
and regulations;
Failure to actually deploy a
contracted worker without valid
reason as determined by the
Department of Labor and
Employment;
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;
and

m To allow a non-Filipino citizen to

head or manage a licensed
recruitment/manning agency.

"Illegal recruitment is deemed committed by

a syndicate if carried out by a group of three
(3) or more persons conspiring or
confederating with one another. It is deemed
committed in large scale if committed
against three (3) or more persons
individually or as a group.
"In addition to the acts enumerated above, it
shall also be unlawful for any person or
entity to commit the following prohibited
acts:
1

Grant a loan to an overseas

Filipino worker with interest
exceeding eight percent (8%)
per annum, which will be
used for 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 loan;
Impose a compulsory and
exclusive
arrangement
whereby an overseas Filipino
worker is required to avail of
a loan only from specifically
designated
institutions,
entities or persons;
Refuse
to
condone
or
renegotiate a loan incurred by
an overseas Filipino worker
after the latter's employment
contract
has
been
prematurely
terminated
through no fault of his or her
own;
Impose a compulsory and
exclusive
arrangement
whereby an overseas Filipino
worker is required to undergo
health
examinations
only
from specifically designated
medical clinics, institutions,
entities or persons, except in
the case of a seafarer whose
medical examination cost is
shouldered
by
the
principal/shipowner;
Impose a compulsory and
exclusive
arrangement
whereby an overseas Filipino
worker is required to undergo
training, seminar, instruction
or schooling of any kind only
from specifically designated
institutions,
entities
or
persons,
except
fpr
recommendatory
trainings
mandated
by
principals/shipowners where
the latter shoulder the cost of
such trainings;
For
a
suspended
recruitment/manning agency
to engage in any kind of
recruitment activity including

the processing of pending

workers' applications; and
For a recruitment/manning
agency
or
a
foreign
principal/employer to pass on
the overseas Filipino worker
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.

What are the Elements of Illegal Recruitment?

1

The offender is a licensee/nonlicensee or holder/non-holder of

authority engaged in the recruitment
and placement of workers; and
The offender undertakes either any
recruitment activities defined under
Article 13 (b), or any prohibited
practices enumerated under Article
34.

What are the

Recruitment?

Classifications

of

Illegal

I. Simple IR involves less than three (3)

victims or recruiters
II. IR involving economic sabotage:
a
b

Large Scale committed against

three (3) or more persons individually
or as a group
Syndicated committed by a group
of three (3) or more persons
conspiring or confederating with one
another.

What is the prescriptive period for prosecuting

Illegal Recruitment cases? (Sec.12, R.A. 8042)
Simple IR five (5) years
IR involving economic sabotage
(Large Scale and Syndicated) twenty (20)
years
What are the penalties for Illegal Recruitment?
(sec. 7, R.A. 8042)
Simple Illegal Recruitment
a

Any person found guilty of

illegal recruitment shall suffer
the penalty of imprisonment
of not less than twelve (12)
years and one (1) day but not
more than twenty (20) years
and a fine of not less than
One
million
pesos
(P1,000,000.00) nor more than
Two
million
pesos
(P2,000,000.00).
Illegal Recruitment constituting economic
sabotage (large scale and syndicated)
b

The
penalty
of
life
imprisonment and a fine of
not less than Two million
pesos (P2,000,000.00) nor
more than Five million pesos

(P5,000,000.00)
shall
be
imposed if illegal recruitment
constitutes
economic
sabotage as defined therein.
"Provided, however, That the
maximum penalty shall be
imposed if the person illegally
recruited is less than eighteen
(18)
years
of
age
or
committed by a non-licensee
or non-holder of authority.
Any person found guilty of any of the
prohibited acts shall suffer the penalty of
imprisonment of not less than six (6) years
and one (1) day but not more than twelve (12)
years and a fine of not less than Five
hundred thousand pesos (P500,000.00) nor
more than One million pesos (P1,000,000.00).

"If the offender is an alien, he or she shall, in

addition to the penalties herein prescribed,
be deported without further proceedings.
"In every case, conviction shall cause and
carry the automatic revocation of the license
or registration of the recruitment/manning
agency, lending institutions, training school
or medical clinic."
Maximum penalty shall be imposed if the
person recruited is less than 18 years of age
or if committed by a non-holder or authority.
Where can ILLEGAL RECRUITMENT Cases be
Filed? (sec. 9, RA 8042)
Illegal Recruitment cases may be filed in
places where (RTC: Regional Trial Court):
a
b

The offense was committed; or

The offended party actually resides at
the time of the commission of the
offense.

PNPCIDG, or directly with the prosecutors

office or with law enforcement agencies.
Eg. Accused represented themselves
to complainant to have the capacity to send
workers abroad, although they did not have
any authority or license. It is by this
representation
that
they
induced
complainants to pay a placement fee. Such
act constitute estafa under Art. 315, par 2 of
the RPC.
SUPREME COURT DECISIONS
REFERRAL is the act of passing along or
forwarding of an applicant for employment
after an initial interview of a selected
applicant for employment to a selected
employer, placement officer or bureau.
(People vs. Goce, 247 SCRA 780)
SUPREME COURT DECISIONS
There is illegal recruitment when one
purports to have the ability to send a worker
abroad though without authority or license to
do so (Pp vs Villas, 277 SCRA 391)
It is the lack of necessary license or
authority that renders the recruitment
activity unlawful or criminal. (Pp vs
Borromeo, 305 SCRA 180)
SUPREME COURT DECISIONS
An illegal recruiter need not present himself
to the victim as duly licensed recruiter.
It suffices that he gives an impression of his
ability to enlist the complainants for
employment abroad, in order to include them
to tender payment of fees. (Pp vs. Peralta,
283 SCRA 81)
Lack of receipts does not mean no
transaction for recruitment for overseas job
was made. (People vs. Naparan, 225 SCRA
714)

REMEDIES AVAILABLE TO VICTIMS OF IR

Administrative Remedy

SUPREME COURT DECISIONS

A. Complaint for recruitment violation

against a licensed agency and filed with the
Adjudication Office of the POEA

Failure of the complainants to ask for the

receipts for the fees they paid, x x x, is not
fatal to their case if they are able to duly
prove by their testimonies the involvement of
the accused in the recruitment process.
(People vs. Comia, 136 SCRA 185)

B. Complaint/Report requesting conduct of

surveillance / entrapment and other special
operations filed with the Anti illegal
Recruitment Branch of theLicensing and
Regulation Office, POEA
C. Complaints / reports may also filed with
the DOLE regional Offices and/ or the POEA
Regional Extension Units/Centers nearest
the place where the offense was committed
REMEDIES AVAILABLE TO VICTIMS OF IR
Criminal Remedy
Complaints for Estafa and/or Illegal
Recruitment against an illegal recruiter or a
responsible officer of a licensed agency may
be filed with the assistance of the POEA Anti
illegal Recruitment Branch (AIRB), NBI,

Liability of Recruitment Agency:

The recruitment agency is solidarily
liable with the foreign principal for unpaid
salaries of a worker it recruited. Before
recruiting, the agency is required to submit a
document containing its power to sue and be
sued jointly and severally with the principal
or foreign-based employer for any of the
violations of the recruitment agreement, and
the contract of employment.
NOTE: 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.

4
5

Is the solidary liability of corporate officers

with the recruitment agency automatic in
character?
No. In order to hold the officers of the
agency solidarily liable, it is required that there
must be proof of their culpability therefor. Thus,
in the 2013 case of Gagui V. Dejero. Thus,
while it is true that R.A. 8042 and the
Corporation code for solidary liability, must be so
stated in the decision sought to be implemented.
Absent this express statement, a corporate
officer may not be impleaded and made to
personally answer for the liability of the
corporation.
Exception to Liability of Recruitment Agency:
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.

Liability of Employee of company engaged in

Illegal Recruitment:
Any employee of a company or corporation
engaged in illegal recruitment may be held
as principal together with his employer, if it
is shown that he actively and consciously
participated in illegal recruitment.
Issuance of Warrant or Warrant of arrest:
Art. 38 is unconstitutional inasmuch as it
gives the Secretary of Labor the power to
issue search or arrest warrants (the
Secretary not being a judge, the authorities
must go through the judicial process)
The exception is in cases of
deportation of illegal and undesirable aliens
whom the President or the Commissioner of
Immigration may order arrest, following a
final order of deportation.
The Secretary of Labor may order
closure of illegal recruitment establishments
because it is only administrative and
regulatory in nature.
What are some relevant principles on illegal
recruitment involving economic sabotage?
1 The number of persons victimized is
determinative of the crime. A
conviction for large scale illegal
recruitment must be based on a
finding in each case of illegal
recruitment of three (3) or more
persons having been recruited,
whether individually or as a group.
2 Failure to prove at least 3 persons
recruited makes the crime a case of
simple illegal recruitment.
3 There is no illegal recruitment in
large scale based on several
informations filed by only one
complainant.

The number of offenders is not

material in illegal recruitment in
large scale.
Recruitment in large scale or by a
syndicate is malum prohibitum and
not malum in se.

ILLEGAL RECRUITMENT VS. ESTAFA

Can a person be charged and convicted
separately for illegal recruitment and estafa
involving one and the same act of
recruitmen?
Yes. It is clear that conviction
under the Labor Code does not
preclude conviction for estafa or
other crimes under other laws.
Some relevant principles:
Same evidence to prove illegal
recruitment may be used to prove
estafa.
Conviction for both illegal recruitment
and estafa, not double jeopardy.
What are some relevant principles on the
persons liable for illegal recruitment?
1 Employees of a licensed recruitment
agency may be held liable for illegal
recruitment as principal by direct
participation, together with his employer,
if it is shown that he actively and
consciously participated in illegal
recruitment.
2 Good faith and merely following orders
of superiors are not valid defenses of an
employee.
3 A manager of a recruitment/manning
agency is not a mere employee. As
such, he receives job applications,
interviews applicants and informs them
of the agencys requirement of payment
of performance or cash bond prior to
applicants deployment. As the crewing
manager, he was at the forefront of the
companys recruitment activities.

What is meant by Theory of Imputed

Knowledge?
The theory of imputed knowledge is a
rule that any information material to the
transaction, either possessed by the
agent at the time of the transaction or
acquired by him before its completion, is
deemed to be the knowledge of the
principal, at least insofar as the
transaction is concerned, even though
the knowledge, in fact, is not
communicated to the principal at all.
Imputed knowledge means the
knowledge attributed to a party because
of his position, or his relationship with or
responsibility for another party. Such
knowledge is attributed for the reason
that the facts in issue were open to
discovery and it was that persons duty
to apprise him of such facts