BOOK 1: PRE-EMPLOYMENT

• "Worker" - means any member of the labor force, whether employed or unemployed.
• "Recruitment and placement" - refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not:

   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.

   
• "Private fee-charging employment agency" - means any person or entity engaged in recruitment and placement of workers for a fee which is charged, directly or indirectly, from

  the workers or employers or both.
• "License" - means a document issued by the Department of Labor authorizing a person or entity to operate a private employment agency.
• "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.
• "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.
• "Seaman" - means any person employed in a vessel engaged in maritime navigation.

   
• "Overseas employment" - means employment of a worker outside the Philippines.
• (i) "Emigrant" - means any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination.
• ART. 16. Private Recruitment

  • As a general rule: no person or entity other than public employment offices shall engage in recruitment and placement of persons.
• The following may recruit:Public employment offices

  2. Private employment offices

  3. POEA

  4. Shipping or manning agency

  5. Construction contractors (authorized by DOLE and CIA)

  6. Members of the Diplomatic Corps

  7. Other persons or entities authorized by DOLE Secretary
• Entities not authorized to recruit

  • Travel agencies
  • Sales agencies of airline companies
  • Officers or members of entities (corporation) engaged in travel agency
  • Officers and members of travel agencies
  • Persons, partnerships, corporations which have derogatory records
  • Employee of DOLE, POEA, etc. and relatives within 4th civil degree
  • Recruitment agencies that have cancelled or revoked license
• Travel agencies and sales agencies of airline companies are expressly prohibited because they are under the supervisory powers of the DoT and not DOLE which might give rise to confusion
• More so illegal recruitment can be traced to travel agencies; tourist visas are converted to work visas
• ART. 20. National Seamen Board. – (a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive program for Filipino seamen employed overseas.
• Replacement of Worker without Cost

  Employer is entitled to replace worker, without additional cost, only once within 1 month from the first day the worker reported for work, on the following grounds:

  a)worker is suffering from incurable or contagious disease

  b) worker is physically or mentally incapable

  c) worker abandons the job, voluntarily resigns, commits theft or acts prejudicial to the employer
• Refund of Service - Employer is entitled to 75% refund of service fee if Agency failed to provide replacement after lapse of 1 month from receipt of request based on the abovementioned grounds.
• Forfeiture of Rights - If employer failed to avail the same within 1 month from the first day the worker reported for work
• Placement Fee - not exceeding 20% of the worker’s first month basic salary, it must be charged after the actual commencement of employment
• Service Fee - not exceeding 20% of annual basic salary of the worker. In no case shall the service fee be deducted from worker’s salary
• Transportation - shall be charged against the employer, and shall in no case be deducted from worker’s salary
• Private Recruitment and Placement Agency (PRPA) – any individual, partnership, corporation or entity engaged in recruitment and placement of persons
• Licensee –person or entity duly license and authorized by DOLE to operate a PRPA
• Non-licensee –person or entity which does not have a valid license or those whose license has been suspended, revoked or cancelled by DOLE
• Authority to Recruit –document granted by Regional Office authorizing a person to conduct recruitment activities in the region
• Authority to Operate Branch Office –document granted by DOLE authorizing a licensed PRPA to establish and operate a branch office
• Recruitment contract –agreement between PRPA and recruit stating clearly the terms and conditions of recruitment 
• a) Employment contract –agreement between employer and recruit stating clearly the terms and conditions of employment
• Placement fee –amount charged by PRPA from a recruit
• Service fee –amount charged by PRPA from an employer 
• Suspension of License: 

  1. Violation of publication requirement and notification in case of change of ownership or business address 

  b) Violation regarding publication of job vacancies 

  c) Non-issuance of official receipt 

  d) Non-submission of monthly report 

  e) Charging or accepting, directly or indirectly any amount in excess of what is provided by the Rules 

  f) Disregard of lawful orders 

  g) Non-observance of procedures on recruitment 
• Cancellation of License: 

  1. Violation of condition of license 

  b) Engaging in acts of misrepresentation 

  c) Continuous operation despite expiration of license 

  d) Incurring 2 suspensions 

  e) Violation of RA 7610 on recruitment and placement of workers

  f) Violation of non-transferability of license 

  g) Committing prohibited practices under Art. 34 of LC 

  h) Engaging in labor-only contracting defined in Art. 106 of LC 
• ART. 20. National Seamen Board. – (a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive program for Filipino seamen employed overseas.
• Overseas Employment Administration abolished Overseas Employment Development Board and the issuance of EO 247 gave birth to the POEA.
• Philippine Overseas Employment Administration (POEA)


  Government agency that regulates the participation of private sector in recruitment and overseas employment of Filipino workers
• Regulatory Functions


  Regulates the participation of private sector in recruitment and overseas employment of Filipino workers through its licensing and registration system
• Adjudicatory Functions


  1. Have quasi-judicial powers and exercise jurisdiction over

  2. Cases which are administrative in character, involving or arising from violations of rules and regulations relating to licensing and registration of recruitment agency

  3. Disciplinary action cases administrative in character involving employers, principals, contracting partners and Filipino migrant workers
• Disciplinary actions against OFW should be filed within 3 years from the time the cause of action accrued, otherwise it is barred. 
• ART. 27. Citizenship Requirement. – Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas.
• •  RA 8042 OR MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT 
  • Institutes policies on overseas employment and establishes a higher standard of protection and promotion of the welfare of migrant workers, their families and overseas Filipinos in distress.