Art. 38. Illegal recruitment.

 There is illegal recruitment:

a. Any recruitment activities, including the prohibited practices a. When a person who is not a holder of license or authority
enumerated under Article 34 of this Code, to be undertaken by engages in recruitment activities
non-licensees or non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this Code. The b. When a person, w/n a holder of a license or authority,
Department of Labor and Employment or any law enforcement commits any of the prohibited practices enumerated in
officer may initiate complaints under this Article. Article 34 of the LC or those enumerated in Section 6 of the
Migrant Workers Act of 1995, in case of overseas
b. Illegal recruitment when committed by a syndicate or in large employment.
scale shall be considered an offense involving economic
sabotage and shall be penalized in accordance with Article 39  Qualified illegal recruitment:
hereof. Illegal recruitment is deemed committed by a syndicate if a. If its committed by a syndicate, i.e., carried out by a group of
carried out by a group of three (3) or more persons conspiring 3 or more persons conspiring or confederating with one
and/or confederating with one another in carrying out any another in carrying out any illegal or unlawful recruitment
unlawful or illegal transaction, enterprise or scheme defined activity; or
under the first paragraph hereof. Illegal recruitment is deemed
committed in large scale if committed against three (3) or more b. If it is committed by a large scale, i.e., if committed against
persons individually or as a group. 3 or more persons, individually or as a group.
c. The Secretary of Labor and Employment or his duly authorized
 Illegal recruitment, if committed by a syndicate or in a large scale,
representatives shall have the power to cause the arrest and
is considered an offense involving economic sabotage, hence, a
detention of such non-licensee or non-holder of authority if after
higher penalty is imposed.
investigation it is determined that his activities constitute a
danger to national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the search
 A person who violates Art. 13 (b) and Art. 34 of the LC can be
of the office or premises and seizure of documents,
charged and convicted separately of illegal recruitment and
paraphernalia, properties and other implements used in illegal
estafa because the former is malum probihitum where criminal
recruitment activities and the closure of companies,
intent is not necessary for conviction and the latter is malum in
establishments and entities found to be engaged in the
se where criminal intent of the accused is necessary for
recruitment of workers for overseas employment, without having
conviction.
been licensed or authorized to do so. (Declared unconstitutional
in Salazar v. Achacoso)
 Prescription of action:
a. Art. 290 of the LC (local employment)- 3 yrs
 Recruitment activities – refer to any act of canvassing,
b. Migrant – 5 yrs, except those involving economic sabotage
enlisting, contracting, transporting, utilizing, hiring or procuring
which prescribe in 20 yrs
workers. It includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit
or not.  The SC, in declaring Art. 38 (c) unconstitutional, held that under
Section 2, Art III of the 1987 Constitution, only judges, and no
other, can issue warrants of arrest and search. Not being a
 It is enough that the recruiter gives the impression of his ability
judge, the Secretary of DOLE cannot issue search warrants or
to enlist workers for job placement abroad.
warrants of arrest.

Art. 39. Penalties.
a. The penalty of life imprisonment and a fine of One Hundred
Thousand Pesos (P1,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined
herein;
b. Any licensee or holder of authority found violating or causing
another to violate any provision of this Title or its
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than
two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
c. Any person who is neither a licensee nor a holder of authority
under this Title found violating any provision thereof or its
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than
four years nor more than eight years or a fine of not less than
P20,000 nor more than P100,000 or both such imprisonment
and fine, at the discretion of the court;
d. If the offender is a corporation, partnership, association or
entity, the penalty shall be imposed upon the officer or
officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he
shall, in addition to the penalties herein prescribed, be
deported without further proceedings;
e. In every case, conviction shall cause and carry the automatic
revocation of the license or authority and all the permits and
privileges granted to such person or entity under this Title,
and the forfeiture of the cash and surety bonds in favor of
the Overseas Employment Development Board or the
National Seamen Board, as the case may be, both of which
are authorized to use the same exclusively to promote their
objectives.
 The persons criminally liable for illegal recruitment are the
principals, accomplices and accessories. In case of juridical
persons, the officers having control, management or direction of
the business shall be liable.
EMPLOYMENT OF NON-RESIDENT ALIENS
Art. 40. Employment permit of non-resident aliens.
Any alien seeking admission to the Philippines for employment purposes
and any domestic or foreign employer who desires to engage an alien
for employment in the Philippines shall obtain an employment permit
from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the
applicant employer after a determination of the non-availability of a
person in the Philippines who is competent, able and willing at the time
of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said
employment permit may be issued upon recommendation of the
government agency charged with the supervision of said registered
enterprise.
 Purpose: intended to regulate the employment on non-residents
so as not to displace Filipinos from jobs that they are capable of
doing.
 All non-resident nationals who intend to engage in gainful
employment in the Philippines are required to obtain an Alien
Employment Permit.
 Persons exempted from securing said permit:
1. Members of the diplomatic services and foreign
government officials accredited by the Philippine
government;
2. Officers and staff of international organizations of which
the Philippine government is cooperating member, and
their legitimate spouses desiring to work in the
Philippines;
3. Foreign nationals elected as members of the Governing
Board who do not occupy any other position, but have
only voting rights in the corporation
 4. All foreign nationals granted exemption by special laws
and all other laws that may be promulgated by the
Congress;
5. Owners and representatives of foreign principals, whose
companies are accredited by the Philippine Overseas
Employment Administration (POEA), who come to the
Philippines for a limited period solely for the purpose of
interviewing Filipino applicants for employment abroad;
6. Foreign nationals who come to the Philippines to teach,
present and/or conduct research studies in universities
and colleges as visiting, exchange or adjunct professors
under formal agreements between the universities or
colleges in the Philippines and foreign universities or
colleges; or between the Philippine government and
foreign government; provided that exemption is on a
reciprocal basis.
7. Resident foreign nationals.
 A foreign national who intends to engage in gainful employment
in the Philippines should file an application for Alien Employment
Permit (AEP) with the Regional Office of the DOLE having
jurisdiction over the intended place of work.
 An application for renewal of such permit shall be filed on or
before its expiration. Application of foreign nationals with expired
AEP shall be considered as new application.
 The AEP shall be valid for a period of 1 yr, unless the
employment contract, consultancy services, or other modes of
engagement provides otherwise, which in no case shall exceed
5 yrs.
 Grounds for suspension of AEP:
1. The continued stay of the foreign national may result in
damage to the interest of the industry or the country.
2. The employment of the foreign national is suspended by the
employer or by order of the court.
 Petition for suspension of AEP shall be resolved within 30
calendar days from receipt thereof.
 Cancellation of AEP:
1. Non-compliance with any of the requirements of conditions
of the AEP
2. Misrepresentation of the facts in the application
3. Submission of falsified or tampered documents
4. Meritorious objection or information against the employment
of the foreign national as determined by the regional director
5. Foreign national has a derogatory record; and
6. Employer terminated the employment of the foreign national.
 Petition for cancellation of AEP shall be resolved within 30
calendar days from receipt thereof.
 Remedies in case of suspension, cancellation or revocation of
AEP:
a. The aggrieved party may file a motion for recon and/or
appeal within 7 calendar days after receipt of the
suspension/cancellation/revocation order, with the regional
director who shall resolve the same within 10 calendar days
from receipt thereof. If the motion for recon is filed after the
period of 7 calendar days but not later than 10 calendar days
from receipt of denial, it shall be treated as an appeal
b. Such order may also be appealed to the Sec of DOLE, in
which case, it should be filed within 10 calendar days from
its receipt. Decision rendered shall be final and
unappealable.
 Foreign nationals found working without, or with an expired AEP
may be fined 10k for every year of fraction thereof
 Permanent resident aliens who are employed in the Philippines
are obliged to secure an Alien Employment Registration
 Certificate (AERC). The AERC may be obtained by filing with the
regional office of DOLE an application with the necessary
supporting documents.
Art. 41. Prohibition against transfer of employment.
a. After the issuance of an employment permit, the alien shall not
transfer to another job or change his employer without prior
approval of the Secretary of Labor.
b. Any non-resident alien who shall take up employment in violation
of the provision of this Title and its implementing rules and
regulations shall be punished in accordance with the provisions
of Articles 289 and 290 of the Labor Code. In addition, the alien
worker shall be subject to deportation after service of his
sentence.
 Sanctions for Violation:
a. Cancellation of AEP
b. Fine of not less than 1k nor more than 10k, or imprisonment of
not less than 3 mos nor more than 3 yrs or both such fine and
imprisonment at the discretion of the court, as provided in Art.
288 of the LC.
c.
Art. 42. Submission of list.
Any employer employing non-resident foreign nationals on the effective
date of this Code shall submit a list of such nationals to the Secretary of
Labor within thirty (30) days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and
status of stay in the country. The Secretary of Labor shall then determine
if they are entitled to an employment permit.
 The list will enable the secretary of DOLE to determine if the
foreign nationals listed are still entitled to an AEP.
ART 43-56 – SUPERSEDED BY R.A NO. 7796 / TECHNICAL
EDUCATION AND SKILLS DEVELOPMENT Act
 TESDA Act aims to promote and strengthen the quality of ethical
education and skills development programs in order to attain
international competitiveness and meet the changing demands
for quality middle-level manpower.
 In pursuance of the declared policy of the state to provide
relevant, accessible, high quality and efficient technical
education and skills development in order to build up high quality
Filipino middle-level manpower responsive to the Philippine
development goals and priorities.
TECHNICAL EDUCATION – refers to the education process designed
at post-secondary and lower tertiary level officially recognized as non-
degree programs aimed at preparing technicians, para-professionals
and other categories of middle-level workers by providing them with a
broad range of general education, theoretical, scientific and
technological studies, and related job skills training.
SKILLS DEVELOPMENT – is the process through which learners and
workers are systematically provided with learning opportunities to
acquire or upgrade, or both, their ability, knowledge and behavior pattern
required as qualifications for a job or range of jobs in a given
occupational area.
COMPOSITION OF TESDA BOARD
1. Secretary of Labor and Employment – Chairperson
2. Secretary of Education – Co-chairperson
3. Secretary of trade and Industry – Co- Chairperson
4. Secretary of Agriculture – Member
5. Secretary of Interior and Local Government - Member
6. Director-General of the TESDA secretariat – Member
7. 2 representatives, from the employer/industry organization, one of
whom shall be a woman
8. 3 representatives from the labor sector, one of whom shall be a
woman
TESDA ACT OF 1994 (R.A NO. 7796)
DECLARATION OF POLICY
 To provide relevant, accessible, high quality and efficient
technical education and skills development in support of the
development of high quality Filipino middle-level manpower
responsive to and in accordance with Philippine development
goals and priorities.
  The state shall encourage active participation of various
concerned sectors, particularly private enterprises being direct
participants in and immediate beneficiaries of a trained and
skilled workforce, in providing technical education and skills
development opportunities.
GOALS AND OBJECTIVES
 To promote and strengthen the quality of technical education and
skills development programs to attain international
competitiveness.
 Focus technical education and skills development on meeting
the changing demands for quality middle-level manpower.
 Encourage critical and creative thinking by disseminating the
scientific and technical knowledge base of middle-level
manpower development programs
 Recognize and encourage the complimentary roles of public and
private institutions in technical education and skills development
and training systems.
 Inculcate desirable values through the development of moral
character with emphasis on the work ethic, self-discipline, self-
reliance and nationalism.
SKILL – The acquired and practiced ability to carry out a task or job
SKILLS DEVELOPMENT – the process through which learners and
workers are systematically provided with learning opportunities to
acquire or upgrade, or both, their ability, knowledge and behavior pattern
required as qualifications for a job or range of jobs in a given
occupational area.
TECHNICAL EDUCATION – the education process designed at post-
secondary and lower tertiary levels, officially recognized as non-degree
programs aimed at preparing technicians, paraprofessionals and other
categories of middle-level workers by providing them with a broad range
of general education, theoretical studies, and related job skills training.
TRADE – any group of interrelated jobs or any occupation which is
traditionally or officially recognized as craft or artisan in nature requiring
specific qualifications that can be acquired through work and/or training.
MIDDLE-LEVEL MANPOWER
– refers to those:
1. Who have acquired practical skills and knowledge through formal
or non-formal education and training equivalent to at least a
secondary education and training equivalent to at least a
secondary education but preferably a postsecondary education
with a corresponding degree or diploma
2. Skilled workers who have become highly competent in their trade
or craft as attested by industry
PRIVATE ENTERPRISES – an economic system under which property
of all kinds can be privately owned and in which individuals, alone or in
association with another, can embark on a business activity. This
includes industrial, agricultural, or agro-industrial establishments
engaged in the production, manufacturing, processing, repacking or
assembly of goods including service oriented enterprises.
TRAINERS – persons who direct the practice of skills towards
immediate improvement in some task
TRAINORS/TRAINERS – persons who provide training to trainers
aimed at developing the latter’s behavior patterns required for specific
jobs, tasks, occupations or group of related occupations.
TRAINEES – Persons who are participants in a vocational,
administrative or technical training program for the purpose of acquiring
and developing job-related skills
APPRENTICESHIP – training within employment with compulsory
related theoretical instructions involving a contract between an
apprentice and an employer on an approved apprenticeable occupation.
APPRENTICE – a person undergoing training for an approved
apprenticeable occupation during an established period assured by an
apprenticeship agreement.
APPRENTICESHIP AGREEMENT – a contract wherein a prospective
employer binds himself to train the apprentice who in turn accepts