RECRUITMENT AND PLACEMENT

A. RECRUITMENT OF LOCAL AND MIGRANT

WORKERS
I.
RECRUITMENT AND PLACEMENT FOR LOCAL
EMPLOYMENT
What is a Private Recruitment and Placement Agency
(PRPA)?
It refers to any individual, partnership, corporation or entity engaged
in the recruitment and placement of persons for local employment.
What are the qualifications of a PRPA for local
employment?
An applicant for a license to operate a PRPA must possess the
following:
1. Must be a Filipino citizen, if single proprietorship. In case of a
partnership or a corporation, at least seventy-five percent (75%) of
the authorized capital stock must be owned and controlled by
Filipino citizens;
2. Must have a minimum net worth of P200,000.00 in the case of
single proprietorship and partnership or a minimum paid-up capital
of P500,000.00 in the case of a corporation.
3. The owner, partners or the officers of the corporation must be of
good moral character and not otherwise disqualified by law;
4. Must have an office space with a minimum floor area of fifty
(50) square meters.
What is the period of validity of the license?
The license shall be valid all over the Philippines for two (2) years
from the date of issuance, upon submission of proof of publication,
unless sooner suspended, cancelled or revoked by the DOLE Regional
Director.
Is the license transferable to other persons or entities?
No license shall be transferred, conveyed or assigned to any other
person or entity.
II. RECRUITMENT AND PLACEMENT FOR OVERSEAS
EMPLOYMENT
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 What are the laws relevant to overseas employment?

1. The Labor Code; and
2. Migrant Workers and Overseas Filipinos Act of 1995 [R. A. No.
8042], as amended by R.A. No. 10022 (March 8, 2010).
What are the important terms related to overseas
employment?
1. Overseas Filipinos refer to migrant workers, other Filipino
nationals and their dependents abroad.
2. Overseas Filipino Worker or Migrant Worker refers to a
person who is to be engaged, is engaged, or has 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. A person to be
engaged in a remunerated activity refers to an applicant
worker who has been promised or assured employment overseas.
What are the entities authorized to engage in recruitment
and placement of workers?
The following are authorized to engage in recruitment and placement
of workers:
a. Public employment offices;
b. Philippine Overseas Employment Administration (POEA);
c. Private recruitment entities;
d. Private employment agencies;
e. Shipping or manning agents or representatives;
f. Such other persons or entities as may be authorized by the DOLE
Secretary; and
g. Construction contractors.
LICENSING AND REGULATION FOR OVERSEAS
RECRUITMENT AND PLACEMENT
What are the qualifications of a recruiter for overseas
employment?
Only those who possess the following qualifications may be permitted
to engage in the business of recruitment and placement of overseas
Filipino workers:
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1. Filipino citizens, partnerships or corporations at least seventy five

percent (75%) of the authorized capital stock of which is owned and
controlled by Filipino citizens;
2. A minimum capitalization of Two Million Pesos
(P2,000,000.00) in case of a single proprietorship or partnership
and a minimum paid-up capital of Two Million Pesos
(P2,000,000.00) in case of a corporation; Provided, that those
with existing licenses shall, within four (4) years from effectivity
hereof, increase their capit alization or paid up capital, as the case
may be, to Two Million Pesos (P2,000,000.00) at the rate of Two
Hundred Fifty Thousand Pesos (P250,000.00) every year; and
3. Those not otherwise disqualified by law or other government
regulations to engage in the recruitment and placement of workers
for overseas employment.
What are the disqualifications?
The following are not qualified to engage in the business of
recruitment and placement of Filipino workers overseas:
a. Travel agencies and sales agencies of airline companies;
b. Officers or members of the Board of any corporation or members in
a partnership engaged in the business of a travel agency;
c. Corporations and partnerships, when any of its officers, members
of the board or partners, is also an officer, member of the board or
partner of a corporation or partnership engaged in the business of a
travel agency;
d. Persons, partnerships or corporations which have derogatory
records, such as, but not limited to, the following:
1) Those certified to have derogatory record or information by the
NBI or by the Anti-Illegal Recruitment Branch of the POEA;
2) Those against whom probable cause or prima facie finding of guilt
for illegal recruitment or other related cases exists;
3) Those convicted for illegal recruitment or other related cases
and/or crimes involving moral turpitude; and
4) Those agencies whose licenses have been previously revoked or
cancelled by the POEA for violation of R.A. No. 8042, the Labor Code
(PD 442, as amended), and their implementing rules and regulations.
All applicants for issuance/renewal of license shall be required to
submit clearances from the NBI and Anti-Illegal Recruitment Branch
of the POEA, including clearances for their respective officers and
employees.
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e. Any official or employee of the DOLE, POEA, Overseas Workers

Welfare Administration (OWWA),Department of Foreign Affairs
(DFA) and other government agencies directly involved in the
implementation of R.A. No. 8042 and/or any of his/her relatives
within the fourth (4th) civil degree of consanguinity or affinity; and
f. Persons or partners, officers and directors of corporations whose
licenses have been previously cancelled or revoked for violation of
recruitment laws.
What is the period of validity of license?
Every license shall be valid for four (4) years from the date of
issuance unless sooner cancelled, revoked or suspended for violation
of applicable Philippine law, the Rules and other pertinent issuances.
Such license shall be valid only at the place/s stated therein and when
used by the licensed person, partnership or corporation.
Can a license be transferred?
No. The license shall not be transferred, conveyed or assigned to any
person, partnership or corporation. It shall not be used directly or
indirectly by any person, partnership or corporation other than the
one in whose favor it was issued.
ILLEGAL RECRUITMENT
(Section 5, R.A. No. 10022)
What is the concept of illegal recruitment?
The scope of the term illegal recruitment, has been broadened
under R.A. No. 8042, otherwise known asthe Migrant Workers and
Overseas Filipinos Act of 1995, as amended, and its Implementing
Rules.
Consequently, the acts described in the following provision of this law
that may be committed by any person, constitute illegal
recruitment, regardless of whether such person is a nonlicensee, non-holder, licensee or holder of authority:
SEC. 6. Definition. - For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and
includes referring, contract services, promising or
advertising for employment abroad, whether for profit or
not, when undertaken by non-licensee or non-holder of
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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 non-licensee or non-holder
who, in any manner, offers or promises for a fee employment abroad
to 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, non-holder, 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;
(b) To furnish or publish any false notice or information or document
in relation to recruitment or employment;
(c) To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing a
license or authority under 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;
(d) To induce 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;
(e) 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;
(f) To engage in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of the Republic
of the Philippines;
(g) To 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;
(h) 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
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up to and including the period of the expiration of the same without

the approval of the Department of Labor and Employment;
(i) 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;
(j) 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;
(k) Failure to actually deploy a contracted worker without valid
reason as determined by the Department of Labor and Employment;
(l) 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.
LICENSE VS. AUTHORITY
What is a license for overseas recruitment?
License refers to the document issued by the DOLE Secretary
authorizing a person, partnership or corporation to operate a private
recruitment/manning agency.
What is an authority for overseas employment?
Authority refers to the document issued by the DOLE Secretary
authorizing the officers, personnel, agents or representatives of a
licensed recruitment/manning agency to conduct recruitment
and placement activities in a place stated in the license or in a
specified place.
ELEMENTS OF ILLEGAL RECRUITMENT
What are the elements of illegal recruitment?

The essential elements of illegal recruitment vary in accordance with

the following classifications:
(1) Simple illegal recruitment;
(2) When committed by a syndicate; or
(3) When committed in large scale.
When illegal recruitment is committed under either Nos. 2 or 3
above or both, it is considered an offense involving economic
sabotage.
SIMPLE ILLEGAL RECRUITMENT
What are the 2 elements of simple illegal recruitment?
According to the 2011 case of Delia D. Romero v. People, the two
(2) elements of the crime of simple illegal recruitment are:
(1) The offender has no valid license or authority required by law to
enable one to lawfully engage in recruitment and placement of
workers; and
(2) He undertakes either any activity within the meaning of
recruitment and placement defined under Article 13(b), or any
prohibited practices enumerated under Article 34 of the Labor Code.
Any person, whether a non-licensee, non-holder, licensee
or holder of authority, may be held liable for illegal
recruitment. Under R.A. No, 8042, as amended by R.A. No.
10022, license or authority of the illegal recruiter is
immaterial.
Can a recruiter be a natural or juridical person?
Yes.
What are some relevant principles on illegal
recruitment?
1. Mere impression that a person could deploy workers overseas is
sufficient to constitute illegal recruitment. But if no such impression
is given, the accused should not be convicted for illegal recruitment.
2. Mere promise or offer of employment abroad amounts to
recruitment.
3. There is no need to show that accused represented himself as a
licensed recruiter.
4. Referrals may constitute illegal recruitment.
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5. It is illegal recruitment to induce applicants to part with their

money upon false misrepresentations and promises in assuring them
that after they paid the placement fee, jobs abroad were waiting for
them and that they would be deployed soon.
6. Recruitment whether done for profit or not is immaterial.
7. The act of receiving money far exceeding the amount as required by
law is not considered as recruitment and placement as this phrase
is contemplated under the law.
8. Actual receipt of fee is not an element of the crime of illegal
recruitment.
9. Conduct of interviews amounts to illegal recruitment.
10.Absence of receipt is not essential to hold a person guilty of illegal
recruitment.
11.Conviction for illegal recruitment may be made on the strength of
the testimonies of the complainants.
12.Absence of documents evidencing the recruitment activities
strengthens, not weakens, the case for illegal recruitment.
13.Only one person recruited is sufficient to convict one for illegal
recruitment.
14.Non-prosecution of another suspect is immaterial.
15.Execution of affidavit of desistance affects only the civil liability
but has no effect on the criminal liability for illegal recruitment.
16.Defense of denial cannot prevail over positive identification.
Positive identification where categorical and consistent and not
attended by any showing of ill motive on the part of the eyewitnesses
on the matter prevails over alibi and denial. Between the categorical
statements of the prosecution witnesses, on the one hand, and bare
denials of the accused, on the other hand, the former must prevail.
ILLEGAL RECRUITMENT AS A FORM OF ECONOMIC
SABOTAGE
When is illegal recruitment considered a crime involving
economic sabotage?
Illegal recruitment is considered a crime involving economic sabotage
when the commission thereof is attended by the following qualifying
circumstances:
1. when committed by a syndicate; or
2. when committed in large scale.

 When is illegal recruitment committed by a syndicate?

Illegal recruitment is deemed committed by a syndicate if it is carried
out by a group of three (3) or more
persons conspiring or confederating with one another.
Elements of illegal recruitment by a syndicate.
The essential elements of the crime of illegal recruitment committed
by a syndicate are as follows:
1. There are at least three (3) persons who, conspiring and/or
confederating with one another, carried out any unlawful or illegal
recruitment and placement activities as defined under Article 13(b) or
committed
any prohibited activities under Article 34 of the Labor Code; and
2. Said persons are not licensed or authorized to do so, either locally
or overseas.
The law, it must be noted, does not require that the syndicate should
recruit more than one (1) person in order to constitute the crime of
illegal recruitment by a syndicate. Recruitment of one (1) person
would suffice to qualify the illegal recruitment act as having been
committed by a syndicate.
When is illegal recruitment considered in large scale?
Illegal recruitment is deemed committed in large scale if committed
against three (3) or more persons individually or as a group.
Elements of illegal recruitment in large scale.
The elements of illegal recruitment in large scale, as distinguished
from simple illegal recruitment, are as follows:
1. The accused engages in the recruitment and placement of workers
as defined under Article 13(b) or committed any prohibited activities
under Article 34 of the Labor Code; and
2. The accused commits the same against three (3) or more persons,
individually or as a group.
Distinguished from illegal recruitment by a syndicate.
As distinguished from illegal recruitment committed by a syndicate,
illegal recruitment in large scale may be committed by only one (1)
person. What is important as qualifying element is that there should
be at least three
(3) victims of such illegal recruitment, individually or as a group.
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 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.
4. The number of offenders is not material in illegal recruitment in
large scale.
5. 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 thesame
act of recruitment?
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.
NATURE OF LIABILITY OF LOCAL RECRUITMENT
AGENCY
AND FOREIGN EMPLOYER
What is the nature of the liability between local recruiter
and its foreign principal?
The nature of their liability is solidary or joint and several
for any and all claims arising out of the implementation of the
employment contract involving Filipino workers for overseas
deployment.
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 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 provide for solidary liability, this
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.
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 the applicants deployment. As the
crewing manager, he was at the forefront of the companys
recruitment activities.
THEORY OF IMPUTED KNOWLEDGE
What is meant by this theory?
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

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facts in issue were open to discovery and it was that person's duty to
apprise him of such facts.
Sunace International Management Services, Inc. v. NLRC,
where the High Court has the opportunity to discuss the application
of the theory of imputed knowledge. Here, the OFW (Divina), a
domestic helper in Taiwan, has extended her 12-month contract, after
its expiration, for two (2) more years after which she returned to the
Philippines. It was established by evidence that the extension was
without the knowledge of the local recruitment agency, petitioner
Sunace. The Court of Appeals, however, affirmed the Labor Arbiters
and NLRCs finding that Sunace knew of and impliedly consented to
the extension of Divinas 2-year contract. It went on to state that It is
undisputed that [Sunace] was continually communicating with
[Divinas] foreign employer. It thus concluded that [a]s agent of the
foreign principal, petitioner cannot profess ignorance of such
extension as obviously, the act of the principal extending complainant
(sic) employment contract necessarily bound it.
In finding that the application by the CA of this theory of imputed
knowledge was misplaced, the High Court ruled that this theory
ascribes the knowledge of the agent, Sunace, to the principal,
employer Xiong, not the other way around. The knowledge of the
principal-foreign employer cannot, therefore, be imputed to its agent,
Sunace. There being no substantial proof that Sunace knew of and
consented to be bound under the 2-year employment contract
extension, it cannot be said to be privy thereto. As such, Sunace and
its owner cannot be held solidarily liable for any of Divinas claims
arising from the 2-year employment extension. As the New Civil Code
provides: Contracts take effect only between the parties, their
assigns, and heirs, except in case where the rights and obligations
arising from the contract are not transmissible by their nature, or by
stipulation or by provision of law.
PRE-TERMINATION OF CONTRACT OF MIGRANT
WORKER
Can an OFW acquire regularity of employment?
No. The prevailing rule is that OFWs are contractual (fixed-term
only), not regular, employees. In fact, they can never attain regularity
of employment.
What are some relevant principles?
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1. Indefinite period of employ ment of OFWs is not valid as it

contravenes the explicit provision of the POEA Rules and Regulations
on fixed-period employment.
2. OFWs do not become regular employees by reason of nature of
work, that is, that they are made to perform work that is usually
necessary and desirable in the usual business or trade of the
employer. The exigencies of their work necessitate that they be
employed on a contractual basis. This notwithstanding the fact that
they have rendered more than twenty (20) years of service.
3. Regular employment does not result from the series of re-hiring of
OFWs.
4. The fixed-period employment of OFWs is not discriminatory
against them nor does it favor foreign employers. It is for the mutual
interest of both the seafarer and the employer why the employment
status must be contractual only or for a certain period of time.
Seafarers spend most of their time at sea and understandably, they
cannot stay for a long and an indefinite period of time at sea. Limited
access to shore society during the employment will have an adverse
impact on the seafarer. The national, cultural and lingual diversity
among the crew during the contract of employment is a reality that
necessitates the limitation of its period.
5. The expiration of the employment contracts of OFWs marks its
ending.
What is the effect of hiring a seafarer for overseas
employment but assigning him to local vessel?
As held in OSM Shipping Philippines, Inc. v. NLRC, the nondeployment of the ship overseas did not affect the validity of the
perfected employment contract. After all, the decision to use the
vessel for coastwise shipping was made by petitioner only and did not
bear the written conformity of private respondent. A contract cannot
be novated by the will of only one party. The claim of petitioner that it
processed the contract of private respondent with the POEA only after
he had started working is also without merit. Petitioner cannot use its
own misfeasance to defeat his claim.
What is the effect of non-deployment of OFW to overseas
employment?
Petitioner-seafarer, in Santiago v. CF Sharp Crew Management,
Inc. was not deployed overseas despite the signing of a POEA13

approved employment contract. One of his contentions is that such

failure to deploy was an act designed to prevent him from attaining
the status of a regular employee. The Supreme Court, however,
disagreed and ruled that seafarers are considered contractual
employees and cannot be considered as regular employees under the
Labor Code. Their employment is governed by the contracts they sign
every time they are rehired and their employment is terminated when
the contract expires. The exigencies of their work necessitate that they
be employed on a contractual basis.
What is doctrine of processual presumption?
Presumed-identity approach or processual presumption is an
International Law doctrine which dictates that 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. Thus, under this situation,
Philippine labor laws should apply in determining the issues
presented in a case.
Is the due process under Philippine law applicable to
termination of employment of OFWs?
Yes. In the absence of proof of applicable foreign law, OFWs are
entitled to due process in accordance with Philippine laws.
Is the Agabon doctrine applicable to OFWs who are
dismissed for cause but without due process?
Yes. The Agabon doctrine of awarding indemnity in the form of
nominal damages in cases of valid termination for just or authorized
cause but without procedural due process also applies to termination
of OFWs.
Who has the burden of proof to show that the dismissal of
the OFW is legal?
Burden of proof devolves on both recruitment agency and its foreign
principal.
Are OFWs entitled to the reliefs under Article 279 of the
Labor Code?
No. They are not entitled to such reliefs under Article 279 as
reinstatement or separation pay in lieu of reinstatement or full
backwages. They are entitled to the reliefs provided under Section 10
of R.A. No. 8042, as amended, to wit:
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(1) All salaries for the unexpired portion of the contract;

(2) Full reimbursement of placement fees and deductions made with
interest at twelve percent (12%) per annum. In other words, all
the reliefs available to an illegally dismissed OFW are monetary in
nature.
It must be noted that under the 2009 Serrano doctrine, (Antonio
M. Serrano v. Gallant Maritime Services, Inc.,), an illegally
dismissed OFW is now entitled to all the salaries for the entire
unexpired portion of their employment contracts, irrespective of the
stipulated term or duration thereof. The underlined phrase in Section
10 below has been declared unconstitutional in this case:
In case of termination of overseas employment without just, valid or
authorized cause as defined by law or contract, or any unauthorized
deductions from the migrant worker's salary, the worker shall be
entitled to the full reimbursement of his placement fee and the
deductions made with interest at twelve percent (12%) per annum,
plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year
of the unexpired term, whichever is less.
What are some principles in regard to monetary awards
to OFWs?
1. Monetary award to OFW is not in the nature of separation pay or
backwages but a form of indemnity.
2. Only salaries are to be included in the computation of the amount
due for the unexpired portion of the contract.
Overtime, holiday and leave pay and allowances are not included.
However, this rule on exclusion of allowance does not apply in case it
is encapsulated in the basic salary clause.
3. Entitlement to overtime pay of OFWs. - As far as entitlement
to overtime pay is concerned, the correct criterion in determining
whether or not sailors are entitled to overtime pay is not whether they
were on board and cannot leave ship beyond the regular eight (8)
working hours a day, but whether they actually rendered service in
excess of said number of hours. 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 eight (8) working
hours a day.
4. In case of unauthorized deductions from OFWs salary, he
shall be entitled to the full reimbursement of the deductions made
15

with interest at twelve percent (12%) per annum. This is in addition to

the full reimbursement of his placement fee with the same interest of
twelve percent (12%) per annum plus his salaries for the unexpired
portion of his employment contract if he is terminated without just,
valid or authorized cause as defined by law or contract.
CLAIMS FOR DISABILITY AND DEATH BENEFITS OF
OFWs
Which office has jurisdiction over an OFWs claims for
disability and death benefits?
a. Labor Arbiters have jurisdiction over claims for disability, death
and other benefits of OFWs.
b. Labor Arbiters have jurisdiction even if the case is filed by the
heirs of the deceased OFW.
Are claims of OFWs for disability, death and burial
benefits similar to claims under the Labor Code?
No. The claims under the Labor Code are cognizable by the
Employees Compensation Commission (ECC).
Is the Labor Codes concept of permanent total disability
similar to that of of OFWs?
Yes. The concept of this kind of disability under Article 192 of the
Labor Code is applicable to them as reiterated lately in the 2013 case
of Kestrel Shipping Co., Inc. v. Munar.
What are the requisites for compensability of injury or
illness of seafarers?
1. It should be work-related; and
2. The injury or illness existed during the term of the seafarers
employment contract.

DIRECT HIRING
What is direct hiring?
Direct Hiring refers to the process of directly hiring workers by
employers for overseas employment as

16

authorized by the DOLE Secretary and processed by the POEA,

including:
1. Those hired by international organizations;
2. Those hired by members of the diplomatic corps;
3. Name hires or workers who are able to secure overseas
employment opportunity with an employer without the assistance or
participation of any agency.
Does the POEA Administrator or the DOLE Secretary or
DOLE Regional Director have the power to issue
closure order?
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.
Does the DOLE Secretary have the power to issue arrest
and search and seizure orders?
No. It was declared in Salazar v. Achacoso, that the exercise by the
DOLE Secretary of his twin powers to issue arrest and search and
seizure orders provided under Article 38[c] of the Labor Code is
unconstitutional. Only regular courts can issue such orders.
REMITTANCE OF FOREIGN EXCHANGE EARNINGS
Is remittance of foreign exchange earnings by OFWs
mandatory?
Yes. 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 DOLE Secretary. It should be
made through the Philippine banking system.
What is the reason why obligation to remit is
mandatory?
It is necessary to protect the welfare of their families, dependents and
beneficiaries and to ensure that their foreign exchange earnings are
remitted through authorized financial institutions of the Philippine
government in line with the countrys economic development
program.
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PROHIBITED ACTIVITIES IN RELATION TO ILLEGAL

RECRUITMENT
What are the prohibited activities in connection with
recruitment for overseas employment? Besides illegal
recruitment, the law additionally provides that 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, post-dated checks in relation to the said loan;
(2) 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;
(3) 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;
(4) 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;
(5) 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 for recommendatory trainings mandated by
principals/shipowners where the latter shoulder the cost of
such trainings;
(6) For a suspended recruitment/manning agency to engage in any
kind of recruitment activity including the processing of pending
workers' applications; and
(7) 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.
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