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PART TWO LABOR STANDARDS LAW: non-forum shopping and non-submission of the required

documents to accompany said petition. The petitioner then moved


PURPOSE: for reconsideration of the order of dismissal but was also denied by
the appellate court, hence, this petition.
MARIVELES SHIPYARD CORP. VS. CA et al. ISSUE: W/N petitioner is jointly and severally liable with Longest
G.R. No. 144134 Force?
November 11, 2003
HELD:
FACTS: Petitioner engaged the services of Longest Force Yes, Petitioners liability is joint and several with that of Longest
Investigation and Security Agency, Inc. to render security services Force, pursuant to Articles 106, 107 and 109 of the Labor Code.
at its premises. Longest Force then deployed its security guards, When the petitioner contracted with Longest Force, petitioner
herein private respondents, at the petitioners shipyard. However, became an indirect employer of private respondents pursuant to
petitioner found the services rendered by private respondents Article 107. Following Article 106, when the agency as contractor
unsatisfactory and inadequate causing it to terminate its contract failed to pay the guards, the corporation as principal becomes
with Longest Force and in turn, the latter terminated the jointly and severally liable for the guards wages.
employment of said respondents.
This is mandated by the Labor Code to ensure compliance with its
Consequently, private respondents filed a case for illegal dismissal, provisions, including payment of statutory minimum wage. The
underpayment of wages pursuant to the PNPSOSIA-PADPAO rates, security agency is held liable by virtue of its status as direct
non-payment of overtime pay, premium pay for holiday and rest employer, while the corporation is deemed the indirect employer of
day, service incentive leave pay, 13th month pay and attorneys the guards for the purpose of paying their wages in the event of
fees, against both Longest Force and petitioner, before NLRC, who failure of the agency to pay them.
in turn sought the guards reinstatement with full backwages and
without loss of seniority rights. This statutory scheme gives the workers the ample protection
consonant with labor and social justice provisions of the
Petitioner appealed to the NLRC, contending that it should not be Constitution. Petitioner cannot evade its liability by claiming that it
held jointly and severally liable with Longest Force for had religiously paid the compensation of guards as stipulated
underpayment of wages and overtime pays because it had been under the contract with the security agency.
religiously and promptly paying the bills for the security services
sent by Longest Force and that these are in accordance with the Labor standards are enacted by the legislature to alleviate the
statutory minimum wage. plight of workers whose wages barely meet the spiraling costs of
their basic needs.
Also, petitioner contends that it should not be held liable for
overtime pay as private respondents failed to present proof that Labor laws are considered written in every contract. Stipulations
overtime work was actually performed. However, the labor tribunal in violation thereof are considered null.
affirmed in toto the decision of the Labor Arbiter. Petitioner moved
for reconsideration, but this was denied by the NLRC. Similarly, legislated wage increases are deemed amendments to
the contract. Thus, employers cannot hide behind their contracts
The petitioner then filed a special civil action for certiorari assailing in order to evade their (or their contractors or subcontractors)
the NLRC judgment for having been rendered with grave abuse of liability for noncompliance with the statutory minimum wage.
discretion with the Court of Appeals, which was also outright
dismissed by the respondent court due to a defective certificate of 1. EMPLOYMENT POLICY;
1.01. PRE EMPLOYMENT POLICY STATEMENT OF
OBJECTIVES ART. 12 LABOR CODE. "Recruitment and placement" refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
BOOK ONE workers, and includes referrals, contract services, promising or
PRE-EMPLOYMENT advertising for employment, locally or abroad, whether for profit or
not: Provided, That any person or entity which, in any manner,
Art. 12. Statement of objectives. It is the policy of the State: offers or promises for a fee, employment to two or more persons
To promote and maintain a state of full employment through shall be deemed engaged in recruitment and placement.
improved manpower training, allocation and utilization;
"Private fee-charging employment agency" means any person or
To protect every citizen desiring to work locally or overseas by entity engaged in recruitment and placement of workers for a fee
securing for him the best possible terms and conditions of which is charged, directly or indirectly, from the workers or
employment; employers or both.

To facilitate a free choice of available employment by persons "License" means a document issued by the Department of Labor
seeking work in conformity with the national interest; authorizing a person or entity to operate a private employment
agency.
To facilitate and regulate the movement of workers in conformity
with the national interest; "Private recruitment entity" means any person or association
engaged in the recruitment and placement of workers, locally or
To regulate the employment of aliens, including the establishment overseas, without charging, directly or indirectly, any fee from the
of a registration and/or work permit system; workers or employers.

To strengthen the network of public employment offices and "Authority" means a document issued by the Department of Labor
rationalize the participation of the private sector in the recruitment authorizing a person or association to engage in recruitment and
and placement of workers, locally and overseas, to serve national placement activities as a private recruitment entity.
development objectives;
"Seaman" means any person employed in a vessel engaged in
To insure careful selection of Filipino workers for overseas maritime navigation.
employment in order to protect the good name of the Philippines
abroad. "Overseas employment" means employment of a worker outside
the Philippines.
2. RECRUITMENT AND PLACEMENT OF WORKERS;
"Emigrant" means any person, worker or otherwise, who emigrates
* STATUTORY REFERENCE: ART. 13 29, LABOR CODE; to a foreign country by virtue of an immigrant visa or resident
Title I permit or its equivalent in the country of destination.
RECRUITMENT AND PLACEMENT OF WORKERS Art. 14. Employment promotion. The Secretary of Labor shall have
Chapter I the power and authority:
GENERAL PROVISIONS To organize and establish new employment offices in addition to
Art. 13. Definitions. the existing employment offices under the Department of Labor as
"Worker" means any member of the labor force, whether employed the need arises;
or unemployed.
To organize and establish a nationwide job clearance and employer-employee relations including money claims, arising out
information system to inform applicants registering with a of or by virtue of any law or contracts involving Filipino workers for
particular employment office of job opportunities in other parts of overseas employment except seamen: Provided, That the Bureau
the country as well as job opportunities abroad; of Employment Services may, in the case of the National Capital
Region, exercise such power, whenever the Minister of Labor
To develop and organize a program that will facilitate occupational, deems it appropriate. The decisions of the regional offices of the
industrial and geographical mobility of labor and provide assistance Bureau of Employment Services, if so authorized by the Minister of
in the relocation of workers from one area to another; and Labor as provided in this Article, shall be appealable to the
National Labor Relations Commission upon the same grounds
To require any person, establishment, organization or institution to provided in Article 223 hereof. The decisions of the National Labor
submit such employment information as may be prescribed by the Relations Commission shall be final and inappealable. (Superseded
Secretary of Labor. by Exec. Order 797, May 1, 1982).
Art. 15. Bureau of Employment Services.
The Bureau of Employment Services shall be primarily responsible The Minister of Labor shall have the power to impose and collect
for developing and monitoring a comprehensive employment fees based on rates recommended by the Bureau of Employment
program. It shall have the power and duty: Services. Such fees shall be deposited in the National Treasury as
To formulate and develop plans and programs to implement the a special account of the General Fund, for the promotion of the
employment promotion objectives of this Title; objectives of the Bureau of Employment Services, subject to the
provisions of Section 40 of Presidential Decree No. 1177.
To establish and maintain a registration and/or licensing system to Art. 16. Private recruitment. Except as provided in Chapter II of
regulate private sector participation in the recruitment and this Title, no person or entity other than the public employment
placement of workers, locally and overseas, and to secure the best offices, shall engage in the recruitment and placement of workers.
possible terms and conditions of employment for Filipino contract Art. 17. Overseas Employment Development Board. An Overseas
workers and compliance therewith under such rules and Employment Development Board is hereby created to undertake,
regulations as may be issued by the Minister of Labor; in cooperation with relevant entities and agencies, a systematic
program for overseas employment of Filipino workers in excess of
To formulate and develop employment programs designed to domestic needs and to protect their rights to fair and equitable
benefit disadvantaged groups and communities; employment practices. It shall have the power and duty:
To promote the overseas employment of Filipino workers through a
To establish and maintain a registration and/or work permit comprehensive market promotion and development program;
system to regulate the employment of aliens;
To secure the best possible terms and conditions of employment of
To develop a labor market information system in aid of proper Filipino contract workers on a government-to-government basis
manpower and development planning; and to ensure compliance therewith;

To develop a responsive vocational guidance and testing system in To recruit and place workers for overseas employment on a
aid of proper human resources allocation; and government-to-government arrangement and in such other sectors
as policy may dictate; and
To maintain a central registry of skills, except seamen.
To act as secretariat for the Board of Trustees of the Welfare and
The regional offices of the Ministry of Labor shall have the original Training Fund for Overseas Workers.
and exclusive jurisdiction over all matters or cases involving
Art. 18. Ban on direct-hiring. No employer may hire a Filipino employment for contract seamen workers and secure compliance
worker for overseas employment except through the Boards and therewith;
entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and To maintain a complete registry of all Filipino seamen.
such other employers as may be allowed by the Secretary of Labor
is exempted from this provision. The Board shall have original and exclusive jurisdiction over all
Art. 19. Office of Emigrant Affairs. matters or cases including money claims, involving employer-
Pursuant to the national policy to maintain close ties with Filipino employee relations, arising out of or by virtue of any law or
migrant communities and promote their welfare as well as contracts involving Filipino seamen for overseas employment. The
establish a data bank in aid of national manpower policy decisions of the Board shall be appealable to the National Labor
formulation, an Office of Emigrant Affairs is hereby created in the Relations Commission upon the same grounds provided in Article
Department of Labor. The Office shall be a unit at the Office of the 223 hereof. The decisions of the National Labor Relations
Secretary and shall initially be manned and operated by such Commission shall be final and inappealable.
personnel and through such funding as are available within the Art. 21. Foreign service role and participation. To provide ample
Department and its attached agencies. Thereafter, its protection to Filipino workers abroad, the labor attaches, the labor
appropriation shall be made part of the regular General reporting officers duly designated by the Secretary of Labor and
Appropriations Decree. the Philippine diplomatic or consular officials concerned shall, even
without prior instruction or advice from the home office, exercise
The office shall, among others, promote the well-being of the power and duty:
emigrants and maintain their close link to the homeland by: To provide all Filipino workers within their jurisdiction assistance
serving as a liaison with migrant communities; on all matters arising out of employment;

provision of welfare and cultural services; To insure that Filipino workers are not exploited or discriminated
against;
promote and facilitate re-integration of migrants into the national
mainstream; To verify and certify as requisite to authentication that the terms
and conditions of employment in contracts involving Filipino
promote economic; political and cultural ties with the workers are in accordance with the Labor Code and rules and
communities; and regulations of the Overseas Employment Development Board and
National Seamen Board;
generally to undertake such activities as may be appropriate to
enhance such cooperative links. To make continuing studies or researches and recommendations
Art. 20. National Seamen Board. on the various aspects of the employment market within their
A National Seamen Board is hereby created which shall develop jurisdiction;
and maintain a comprehensive program for Filipino seamen
employed overseas. It shall have the power and duty: To gather and analyze information on the employment situation
To provide free placement services for seamen; and its probable trends, and to make such information available;
and
To regulate and supervise the activities of agents or
representatives of shipping companies in the hiring of seamen for To perform such other duties as may be required of them from
overseas employment and secure the best possible terms of time to time.
Art. 22. Mandatory remittance of foreign exchange earnings. It Art. 24. Boards to issue rules and collect fees. The Boards shall
shall be mandatory for all Filipino workers abroad to remit a issue appropriate rules and regulations to carry out their functions.
portion of their foreign exchange earnings to their families, They shall have the power to impose and collect fees from
dependents, and/or beneficiaries in the country in accordance with employers concerned, which shall be deposited in the respective
rules and regulations prescribed by the Secretary of Labor. accounts of said Boards and be used by them exclusively to
Art. 23. Composition of the Boards. promote their objectives.
The OEDB shall be composed of the Secretary of Labor and Chapter II
Employment as Chairman, the Undersecretary of Labor as Vice- REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
Chairman, and a representative each of the Department of Foreign Art. 25. Private sector participation in the recruitment and
Affairs, the Department of National Defense, the Central Bank, the placement of workers. Pursuant to national development objectives
Department of Education, Culture and Sports, the National and in order to harness and maximize the use of private sector
Manpower and Youth Council, the Bureau of Employment Services, resources and initiative in the development and implementation of
a workers organization and an employers organization and the a comprehensive employment program, the private employment
Executive Director of the OEDB as members. sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and
The National Seamen Board shall be composed of the Secretary of regulations as may be issued by the Secretary of Labor.
Labor and Employment as Chairman, the Undersecretary of Labor Art. 26. Travel agencies prohibited to recruit. Travel agencies and
as Vice-Chairman, the Commandant of the Philippine Coast Guard, sales agencies of airline companies are prohibited from engaging in
and a representative each of the Department of Foreign Affairs, the business of recruitment and placement of workers for overseas
the Department of Education, Culture and Sports, the Central employment whether for profit or not.
Bank, the Maritime Industry Authority, the Bureau of Employment Art. 27. Citizenship requirement. Only Filipino citizens or
Services, a national shipping association and the Executive corporations, partnerships or entities at least seventy-five percent
Director of the NSB as members. (75%) of the authorized and voting capital stock of which is owned
and controlled by Filipino citizens shall be permitted to participate
The members of the Boards shall receive allowances to be in the recruitment and placement of workers, locally or overseas.
determined by the Board which shall not be more than P2,000.00 Art. 28. Capitalization. All applicants for authority to hire or
per month. renewal of license to recruit are required to have such substantial
capitalization as determined by the Secretary of Labor.
The Boards shall be attached to the Department of Labor for policy Art. 29. Non-transferability of license or authority. No license or
and program coordination. They shall each be assisted by a authority shall be used directly or indirectly by any person other
Secretariat headed by an Executive Director who shall be a Filipino than the one in whose favor it was issued or at any place other
citizen with sufficient experience in manpower administration, than that stated in the license or authority be transferred,
including overseas employment activities. The Executive Director conveyed or assigned to any other person or entity. Any transfer
shall be appointed by the President of the Philippines upon the of business address, appointment or designation of any agent or
recommendation of the Secretary of Labor and shall receive an representative including the establishment of additional offices
annual salary as fixed by law. The Secretary of Labor shall appoint anywhere shall be subject to the prior approval of the Department
the other members of the Secretariat. of Labor.

The Auditor General shall appoint his representative to the Boards BOOK 1, RULES III-VIII, OMNIBUS RULES;
to audit their respective accounts in accordance with auditing laws BOOK ONE
and pertinent rules and regulations. Pre-Employment
RULE III least seventy-five percent (75%) of the authorized and voting
Recruitment and Placement capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in
SECTION 1. Private recruitment. No person or entity shall the recruitment and placement of
engage in the recruitment and placement of workers, locally or overseas.
workers either for local or overseas employment except the
following: RULE V
(a) Public employment offices; Private Employment Agencies
(b) Overseas Employment Development Board;
(c) National Seamen Board; SECTION 1. Qualifications of applicants. All applicants for
(d) Private recruitment offices; license to operate private employment
(e) Private employment agencies; agencies either for local or overseas recruitment and placement
(f) Shipping or manning agents or representatives; and shall possess the following qualifications:
(g) Such other persons or entities as may be authorized by the (a) Citizenship requirement as provided for in Rule IV of these
Secretary. Rules;
SECTION 2. Ban on direct hiring. No employer may hire a (b) Appropriate capitalization as follows:
Filipino worker for overseas employment 1. For overseas recruitment and placement, a minimum networth
except through the person or entities enumerated in the preceding of P150,000.00 in the case of single
section or as authorized by the law or proprietorship, and a paid-up capital or networth of P150,000.00 in
by the Secretary. Direct hiring by members of the diplomatic the case of a corporation or
service, officials and employees of partnership, as the case may be;
international organizations and such other employers as may be 2. For local recruitment and placement, a minimum networth of
authorized by the Secretary is exempted P25,000.00 in the case of single
from this provision. Such hirings shall be processed by the proprietorship; and a paid-up capital or networth of P25,000.00 in
Overseas Employment Development Board. the case of partnership or corporation,
as the case may be;
RULE IV (c) Applicants not otherwise disqualified by law, rule or regulations
Private Sector Participation in Recruitment and Placement as may be determined by competent
authority to engage in recruitment and placement. (Repealed by
SECTION 1. Who may participate in the private sector. POEA Rules and Regulations)
Only the following persons or entities in the
private sector may engage in the recruitment and placement of SECTION 2. Application for license for overseas recruitment
workers either for local or overseas and placement. Every applicant for license to operate a private
employment: employment agency for overseas recruitment and placement shall
(a) Private employment agencies; submit to the Bureau the following documents in support of the
(b) Private recruitment entities; application:
(c) Shipping or manning agents or representatives; and (a) A certified copy of the Articles of Incorporation in the case of a
(d) Such other persons or entities as may be authorized by the corporation, or the registration with the
Secretary. Bureau of Domestic Trade in the case of a single proprietorship or
partnership;
SECTION 2. Citizenship requirement. Only Filipino citizens or (b) If the applicant is a corporation, proof of financial capacity of
corporations, partnerships or entities at the major stockholders such as sworn
statements of assets and verified income tax returns for the last SECTION 5. Issuance of license. Upon payment of the license
two years; fee and the posting of the appropriate
(c) Clearance from the Philippine Constabulary and the Bureau of bonds, the Bureau shall issue the corresponding licensing to the
Internal Revenue for all the applicant. (Modified by Sec. 5, Rule II,
incorporators, partners or single proprietor; chan robles virtual law Book II, POEA Rules and Regulations)
library SECTION 6. Duration of license. Every license shall be valid for
(d) A verified statement that the applicant has in its employ one year from the date of approval,
persons with adequate competence to unless sooner cancelled, revoked or suspended by the Secretary
evaluate and test recruits and to consider them for employment for violation of any of the conditions of
strictly on the basis of merit and fitness, the license or any of applicable provisions of the Code and these
without any undue discrimination and in accordance with the Rules. (As amended by Sec. 6, Rule II,
qualifications prescribed by the employer; Book II, POEA Rules and Regulations)
(e) A verified undertaking to assume all responsibilities for the SECTION 7. Non-transferability of license. No license shall be
proper use of its license/authority and the transferred, conveyed or assigned to
implementation of the contracts of employment with the workers; any other person or entity, or used in any place other than that
and stated in the license. Any transfer of
(f) Such other requirements that the Secretary may require upon business address, appointment or designation, of any agent or
recommendation of the Bureau Director. representative, including the
(Amended by Sec. 1, Rule II, Book II, POEA Rules and establishment of additional offices elsewhere, shall be subject to
Regulations) the final approval of the Bureau. (As
SECTION 3. Action on application. Within the thirty (30) days amended by Sec. 7, Rule II, Book II, POEA Rules and Regulations)
from the receipt of the application for SECTION 8. Change of Ownership of Business. Transfer or
license, the Bureau shall recommend its denial or approval to the change of ownership of a single
Secretary. Upon considering the proprietorship licensed or authorized to engage in overseas
findings and recommendations of the Bureau, the Secretary may employment shall cause the automatic
either deny or approve the application. revocation of the license or authority. The new owner shall be
(Amended by POEA Rules and Regulations) required to apply for a license or authority
SECTION 4. Fees and bonds. Upon approval of the application, in accordance with these Rules. (Added by Sec. 8, Rule II, Book II,
the applicant shall pay to the POEA Rules and Regulations)
Department a license fee of P6,000.00, post a cash bond of A change in the relationship of the partners in a partnership duly
P50,000.00 or negotiate bonds of equivalent authorized or licensed to engage in
amount convertible to cash issued by banking or financial overseas employment which materially interrupt the course of the
institutions duly endorsed to the Department, business or results in the actual
as well as a surety bond of P150,000.00 from an accredited dissolution of the partnership shall likewise cause the automatic
bonding company to answer for valid and revocation of the license or authority.
legal claims arising from violations of the conditions of the license SECTION 9. Upgrading of Single Proprietorship or partnership.
or the contracts of employment and Licensees or authority holders which
guarantee compliance with the provisions of the Code, its are single proprietorships or partnerships may, subject to the
implementing rules and regulations and guidelines of the Administration, convert into
appropriate issuances of the Department. (Amended by Sec. 2 & 4 corporations for purposes of upgrading or raising their capabilities
Rule II Book II, POEA Rules and to meet the stiff competition in the
Regulations)
international labor market and to enable them to better comply (b) In case of a corporation, Board Resolution duly registered with
with their responsibilities arising from the the SEC authorizing transfer of
recruitment and deployment of workers overseas. (Added by Sec. business address;
9, Rule II, Book II, POEA Rules and (c) Copy of the BDT or SEC acknowledgment of the notice to
Regulations) transfer;
The prohibition on the issuance of new license under L.O.I. 1190 (d) Copy of the contract of lease or proof of building ownership.
shall not apply to the new entity created The new office space shall be subject to the normal ocular
by reason of the above merger, consolidation or upgrading. inspection procedures by duly authorized
The approval of merger, consolidation or upgrading shall representatives of the Administration.
automatically revoke or cancel the license or A notice to the public of the new address shall be punished in a
authorities of the single proprietorships, partnerships or newspaper of general circulation.
corporations so merged, consolidated or SECTION 13. Conduct of Recruitment Outside of Registered Office.
upgraded. No licensed or authorized agency
SECTION 10. Change of Directors of Corporations. Every change or entity shall conduct recruitment activities outside of the address
in the composition of the Board of stated in the licensed authority without
Directors of a corporation licensed or authorized to participate in first securing prior authority from the Administration. (Added by
overseas employment shall be Sec. 13, Rule II, Book II, POEA Rules and
registered with the Administration within 30 days from the date Regulations)
the change was decided or approved. The SECTION 14. Appointment of Representatives. Every
corporation shall be required to submit to the Administration the appointment of representatives or agents of
bio-data and clearances of the new licensed or authorized agency or entity shall be subject to the prior
members of the Board from the government agencies identified in approval or authority of the
Section 1 (c) Rule II, Book II of these Administration. The approval may be issued upon submission of or
Rules. (Added by Sec. 10, Rule II, Book II, POEA Rules and compliance with the following
Regulations) requirements:(Added by Sec. 14, Rule II, Book II, POEA Rules and
SECTION 11. Change of Other Officers and Personnel. Every Regulations)
change of officers or representatives (a) Proposed appointment or special power of attorney;
and termination of appointment of personnel shall be registered (b) Philippine Constabulary (PC-CIS) and National Bureau of
with the Administration within 30 days Investigation (NBI) clearances of the
from the date the change or termination occurred. (Added by Sec. proposed representative or agent;
11, Rule II, Book II, POEA Rules and (c) Two (2) copies of passport-size pictures of the proposed
Regulations) representative or agent;
SECTION 12. Transfer of Business Address. Any transfer of (d) A sworn or verified statement by the designating or appointing
business address, including the person or company assuming full
establishment of additional offices elsewhere, shall be effected only responsibility for all acts of the agent or representative done in
with prior authority or approval of the connection with the recruitment and
Administration. The approval shall be issued only upon formal placement of workers.
notice of the intention of transfer with the Approval by the Administration of the appointment or designation
following attachments: (Added by Sec. 12, Rule II, Book II, POEA does not authorize the agent or
Rules and Regulations) representative to establish a branch or extension office of the
(a) Copy of the company's formal notice to the BDT or SEC on the licensed agency represented.
transfer of business address;
Any revocation or amendments in the appointment should be (a) Replenishment of Cash or Surety Bonds. Within thirty (30)
communicated to the Administration, days from notice by the Administration
otherwise the designation or appointment shall be deemed as not that the bonds or any part thereof had been garnished, the agency
revoked or amended. or entity shall replenish the same.
SECTION 15. Renewal of license. Not later than forty five (45) Failure to replenish shall cause the suspension or cancellation of
days before the expiry date of the the license or authority.
license, a private employment agency shall submit to the Bureau (b) Refund of Cash Bond. A licensed agency or entity which
an application for renewal of license. voluntarily surrenders its license or authority
Such application shall be supported by the following documents: shall be entitled to the refund of its cash bond only after posting a
(a) A report under oath of its operations during the period covered surety bond of similar amount valid for
by the license containing the following three (3) years.
information, among other: (c) Evaluation of Performance of Agencies and Entities. The
1) Number and categories of workers recruited and placed Administration shall undertake the evaluation
overseas during the period, names and and rating of the performance of licensed agencies and entities and
addresses of their respective employer(s)/principal(s), total basic determine the merits of their
wages and salaries earned of workers continued participation in the overseas employment program
placed by it and reported foreign exchange earnings remitted taking into consideration compliance with
during the period as certified by the Central laws and regulations and such other criteria as it may deem
Bank; proper. (Sec. 21 Rule II, Book III, POEA
2) Total amount paid to the welfare fund and processing fees paid Rules and Regulations)
during the period; (d) Classification and Ranking. The Administration may
3) Names and addresses of its principals and the amount of service undertake the classification and ranking of
fees per worker charged against agencies and entities. (Sec. 22 Rule II, Book III, POEA Rules and
them; and Regulations)
(b) Verified financial statement of operation during the period, (e) Incentives and Recognition. The Administration may
including latest income tax payment. undertake incentives and recognition to
(Amended by Sec. 15, Rule II, Book II, POEA Rules and deserving agencies and contractors for exemplary performance.
Regulations) (Sec. 23 Rule II, Book III, POEA Rules
SECTION 16. Processing of application for renewal. Within thirty and Regulations)
(30) days from receipt of the SECTION 17. Requirement before recruitment. Before recruiting
application for renewal of license, the Bureau shall complete the any worker, the private employment
processing of the same. Upon evaluation agency shall submit to the Bureau the following documents:
of the documents submitted and the agency's performance (a) A formal appointment or agency contract executed by a
records, the Bureau shall recommend its foreign-based employer in favor of the license
denial or renewal to the Secretary who may accept or deny the holder to recruit and hire personnel for the former duly
Bureau's recommendation. The Bureau authenticated or attested by the Philippine Labor
shall release the license subject to payment of a license fee of Attach or duly authorized Philippine foreign service official or, in
P6,000.00, posting of a cash bond of his absence by an appropriate official,
P50,000.00 or its acceptable equivalent, and the renewal of the agency or organization in the country where the employer
surety bond of P150,000.00. (Amended conducts his business. In case any of the
by Sec. 16 to 18, Rule II, Book II, POEA Rules and Regulations) foregoing documents is executed in the Philippines, the same may
be authenticated by the duly
authorized official of the Department of Foreign Affairs or of the SECTION 19. Standard format of service agreement and
employer's consulate or Embassy or of employment contract. The Bureau shall
the Department of Labor and Employment official as may be adopt a standard format of service agreement and employment
appropriate. Such formal appointment or contract in accordance with pertinent
recruitment agreement shall contain the following provisions, labor and social legislation and prevailing international standard
among others: and conventions. The standard format
(1) Terms of recruitment, including the responsibility of the parties shall set the minimum standards of the terms and conditions to
relative to the employment of workers; govern the employment of land-based
(2) Power of the agency to sue and be sued jointly and solidarily overseas Filipinos. All employers shall adopt the model contract in
with the principal or foreign-based connection with the hiring and
employer for any of the violations of the recruitment agreement engagement of the services of overseas workers. (Modified by Sec.
and the contracts of employment; 2 Rule I, Book V, POEA Rules and
(3) Compensation or payment schedule, including payment of Regulations)
documentation costs, government fees, SECTION 20. Worker's deployment. It shall be the responsibility
service from the transportation fare and the mode of payments; of the private employment agency to
(4) Period of validity, which shall be not less than one year and up facilitate the deployment of the recruits. If the worker is unable to
to the expiration date of the last depart within forty-five (45) days from
employment contract signed with its recruits; and the release of passport through no fault of his and without any
(5) Institutions of systems or procedure to be implemented for valid reason on the part of the agency, he
mandatory remittance of a portion of the shall be entitled to the refund of his expenses, if any, and standby
worker's salary as provided under the Code and the Affidavit of pay, if he is made to wait for his
undertaking. deployment. On the other hand, if after the applicant worker has
(b) Commercial registration and other pertinent documents been properly documented and
proving the legal personality of the foreign processed, he decides to withdraw without any valid reason, he
principal, including its authority to hire and recruit foreign workers; shall reimburse the agency all expenses
(c) Job order or requisition of the foreign-based employer or of processing and documentation. The Bureau shall issue as
principal, including the number for categories appropriate, orders to implement this
of workers needed, salary and benefit schedule, qualification provision.
guidelines and testing procedures and SECTION 21. Contents of employment contracts. The
master employment contract; and employment contracts shall in no case provide
(d) Work permits or work visas where such are required by the for terms of employment below the standards established by the
country of destination. Department, which shall not be below
SECTION 18. Submission of employment contracts. (a) Every the basic requirements of Philippine labor and social legislation or
private employment agency shall submit practices, and shall include the
to the Bureau, for evaluation and approval, the master following: (Modified by Sec. 1 Rule I, Book V, POEA Rules and
employment contract to be used for its recruits and Regulations)
the service/recruitment agreement which shall be written in (a) Guaranteed wages for regular working hours and overtime pay
English and in the language of the country of for services rendered in excess of
work whenever necessary. basic working hours as established by the Ministry;
(b) All applicants for passport or travel of recruited workers shall (b) Free transportation from point of hire to site of employment
be properly endorsed by the Bureau. and return, including expenses for travel
documentation;
(c) Adequate board and lodging facilities; appropriate receipt indicating the amount paid and the purpose of
(d) Free emergency medical and dental treatment and facilities; such payment. In addition and subject
(e) Just causes for the termination of the contract or of the service to the approval of the Secretary the applicant workers may be
of the workers; required to post a bond to guarantee
(f) Workmen's compensation benefits and war hazard protection, compliance with the employment contract.
including life and accident insurance (b) A recruit may be required to shoulder the cost of the following
coverage during the term of employment; requirements provided that the same
(g) Immediate transportation of the worker's remains and property shall be covered by an appropriate receipt and unless paid by the
in case of death to the point of hire or if employer of principal:
this is not possible under the circumstances, the proper disposition (1) Medical and psychological examination;
thereof, upon previous arrangement (2) Inoculation certificate;
with the worker's next-of-kin and the nearest Philippine Embassy (3) Passport.
or Consulate; and (c) Records of payment shall be available for inspection by an
(h) Remittance of the worker's salaries, allowances and/or authorized representative of the Bureau
allotments to his beneficiaries through the any time during regular office hours. (Amended by Sec. 2 Rule IV,
Philippine banking system. Book II, POEA Rules and Regulations)
SECTION 21. (a) Allowable Salaries and Wages. Workers hired SECTION 24. Fees chargeable against the employer. A private
for overseas employment shall receive employment agency shall charge a
salaries or wages in accordance with the standards promulgated by minimum mobilization fee to cover costs of recruitment, processing
the Administration. The and documentation in accordance
Administration shall undertake the periodic review of salaries and with a schedule approved by the Secretary in addition to service
wages prevailing at worksites. (Sec. 3 charges which may be negotiated with a
Rule I, Book V, POEA Rules and Regulations) foreign employer or principal.
SECTION 22. Renewal of contracts. Every contract worker shall (a) Fees Chargeable Against Principals. Agencies shall charge from
advise the Department of the renewal their principals a service of manning
or extension of his employment contract in any of the following fee to cover services rendered in the recruitment, documentation
manner: and placement of workers. (Sec. 1 Rule
(a) Through the labor attach, or in his absence through a duly IV, Book II, POEA Rules and Regulations)
designated foreign service official in the (b) Charges deductible from Fees Paid by Withdrawing Workers. In
area of employment who is authorized to renew the contract; or case of the withdrawal of the worker
(b) By furnishing the Bureau directly with a copy of the renewed within one hundred twenty (120) days from the signing of the
contract. employment contracts the agency or entity
SECTION 23. Allowable fees chargeable against the workers. shall refund the amount paid by him after deducting such actual
(a) Unless otherwise provided by the Secretary, private expenses incurred in the documentation
employment agencies may collect a placement of the worker as may be supported by receipts. (Sec. 3 Rule IV,
fee from every worker in accordance with a schedule to be Book II, POEA Rules and Regulations)
approved by him. Such fee shall be paid only (c) Prohibition on Charging of Other Fees. No other fees or charges
when the employment contract of the worker has been approved shall be imposed against any worker.
by the Bureau and he is about to (Sec. 4 Rule IV, Book II, POEA Rules and Regulations)
commence employment through the efforts of the agency. Every (d) Processing Fees and Welfare Fund Contribution. Contract
payment shall be covered by an processing fees and the Welfare Fund
contributions shall in no case be charged to the worker. However, published not in accordance with the prescribed format shall be
this shall not apply in the case of valid ground for suspension or
Seafarers' Welfare Fund which is contributory in nature. cancellation of license or authority. (Sec. 3, Rule I, Book III, POEA
SECTION 25. Recruitment Advertisement. Rules and Regulations)
(a) No advertisement for overseas recruitment including training or SECTION 26. Application for license for local recruitment and
review activities for overseas placement.
employment shall be placed in any newspaper by a private (a) Every applicant for license to operate a private employment
employment agency without prior agency for local recruitment and
authorization by the Bureau. Such advertisement shall contain the placement shall submit the following documents in support of the
following information, among others: application;
(1) The number and nature of jobs available, including wage and (1) A certified copy of the Articles of Incorporation in the case of a
benefit schedule; corporation or the registration with the
(2) A brief description of the skills needed; Bureau of Domestic Trade in the case of a single proprietorship or
(3) The name, nationality and address of the employer; and partnership; and
(4) The name, address and license number of the agency. (2) Clearance from the Philippine Constabulary and the Bureau of
(b) No press notice or announcement regarding the availability of Internal Revenue for all the
overseas jobs shall be released by the incorporators, partners or single proprietor.
agency prior to the accreditation of one principal. (As amended by (3) List of officers/personnel and corresponding bio-data.
Sec. 2 Rule II Book III, POEA Rules (b) An agency licensed to recruit and place workers overseas need
and Regulations) not apply for a separate license to
SECTION 25. (a) Recruitment from the Administration's Manpower engage in domestic recruitment and placement.
Registry. Agencies or entities may SECTION 27. Action on application. Within thirty (30) days from
recruit workers for their accredited principals or projects from the receipt of the application for license,
manpower registry of the Administration the Bureau Director shall either deny or approve the same. The
in accordance with the guidelines set by it. (Sec. 1, Rule II Book denial by the Bureau Director may be
III, POEA Rules and Regulations) appealed by the applicant to the Secretary within ten (10) days
(b) Advertisement for Manpower Pooling By Agencies or Entities. from the receipt of the notice of denial.
Agencies or entities desiring to SECTION 28. Notice of approval or denial. The Bureau shall
generate qualified applicants for prospective principal or project immediately transmit the notice of denial
may advertise in accordance with the or approval of the application to the applicant.
format prescribed by the Administration. Such undertakings shall SECTION 29. Fees and bonds. Upon approval of the application,
not involve payment of any fee by the applicant shall pay to the
applicants. (Sec. 3, Rule II Book III, POEA Rules and Regulations) Department a license fee of P1,000.00 and post cash and surety
(c) Press Releases on Recruitment. For purposes of these rules, bonds of P5,000.00 and P25,000.00,
press releases on negotiations with respectively.
principals or contracting partners and/or involving overseas job The bonds shall guarantee compliance with the provisions of the
openings shall be considered as Code, its implementing rules and the
advertisements. (Sec. 4, Rule II Book III, POEA Rules and terms and conditions of the employment contracts.
Regulations) SECTION 30. Issuance of License. Upon payment of the license
(d) Sanctions. False and deceptive advertisements published by fee and the posting of the appropriate
agencies or entities including those bonds, the Bureau Director shall issue the corresponding license to
the applicant.
SECTION 31. Duration of license. The license shall be valid for job;
one year from the date of approval (c) The recruit abandons the job, voluntarily resigns, commits theft
unless sooner cancelled, revoked or suspended by the Bureau or any other act prejudicial to the
Director for violation of any of the employer or to any immediate members of his family; and
conditions prescribed in the license or applicable provisions of the (d) Other grounds analogous to the foregoing.
Code or these Rules. SECTION 36. Acknowledgment of contracts. Every recruitment
SECTION 32. Non-transferability of license. No license shall be contract shall be acknowledged before
transferred, conveyed or assigned to the appropriate Regional Director or his duly authorized
any other person or entity, or used in any place other than that representative, or in his absence, before the
stated in the license. Any transfer of municipal mayor, judge, notaries public or any person authorized
business address, appointment, or designation of any agent or by law to administer oath of the place
representatives, including the where the recruit resides. If the recruit is a minor, the consent of
establishment of additional offices elsewhere shall be subject to the parent or guardian, similarly
the prior approval of the Bureau. acknowledged, shall be attached to the contract.
SECTION 33. Registration of local private recruitment entities. RULE VI
Educational institutions and civic Cancellation or Suspension of License
organizations setting up placement offices to service their students SECTION 1. Scope of Application. These Rules shall apply to all
or members shall register their persons, agencies or entities duly
operations with the nearest public employment office or the licensed or authorized to recruit and deploy Filipino workers for
Bureau under such guidelines as may be overseas employment. (Sec. 1, Rule VI
prescribed by the Secretary. Such entities shall coordinate their Book I, POEA Rules and Regulations)
recruitment activities with the public SECTION 2. Grounds for Suspension, Cancellation or Revocation.
employment offices in the area where they operate. A license or authority shall be
SECTION 34. Allowable fees. An employment agency which cancelled, suspended or revoked on any of the following grounds,
recruits a domestic worker for an among others:
employer may charge the latter a service fee to be determined by a. Imposing or accepting directly or indirectly any amount of
the Bureau which shall cover the money, goods or services, or any fee or bond
maintenance of the recruit including board and lodging prior to in excess of what is prescribed by the Administration;
placement. The transportation fare of the b. Engaging in act(s) of misrepresentation, such as publication or
recruit from place of work may be charged against the latter. advertisement of false or deceptive
Every payment shall be covered by an appropriate receipt notices or information in relation to the recruitment and placement
indicating the amount paid and purpose of of workers;
such payment. c. Engaging in act(s) of misrepresentation, such as giving false
SECTION 35. Replacement without costs. An employer shall be statements, false testimonies or falsified
entitled to a replacement without documents;
additional charges within one (1) month from the date of d. Inducing or attempting to induce an already employed worker to
engagement of the first recruit on any of the transfer from or leave his employment
following grounds: to another unless such transfer is advantageous or beneficial to
(a) The recruit is found to be suffering from an incurable or the worker;
contagious disease; e. Influencing or attempting to influence any person or entity to
(b) The recruit is physically or mentally incapable of discharging prevent employment of any worker;
the minimum normal requirements of the
f. Engaging in the recruitment and placement of workers in jobs u. Withholding of workers' salaries or remittances without
harmful to public health or morality or to justifiable reasons;
the dignity of the Republic of the Philippines; v. Coercing workers overseas to accept prejudicial arrangements in
g. Obstructing or attempting to obstruct inspection by the exchange of certain benefits that
Secretary, the Administrator or by their duly rightfully belong to the worker; and
authorized representatives; w. Violation of other pertinent provisions of the Labor Code and
h. Substituting or altering employment contracts and other other relevant laws, rules and regulations.
documents approved and verified by the (Sec. 2, Rule Sec. 4, Rule II Book III, POEA Rules and
Administration from the time of actual signing thereof by the Regulations)I Book II, POEA Rules and
parties up to and including the period of Regulations)
expiration of the same without the Administration's approval; SECTION 3. Complaints against private employment agency.
i. Failure to file report on the remittance of foreign exchange Any complaint or report against private
earnings and such matters as may be employment agency shall be filed with the Bureau. If the
required by the Administration; complainant or report shows any violation of the
j. Where the owner, partner or majority stockholder, licensee or conditions of the license or the pertinent provisions of the Code or
holder of authority, or principal officers of these rules, the Bureau shall
become officer or member of the Board of any corporation or immediately conduct an investigation and require the private
partnership engaged in travel or engaged employment agency concerned to submit its
directly or indirectly in the management of a travel agency; comments or explanation within five (5) working days upon receipt
k. Withholding or denying travel and other documents from of the copy of order/notice of the
workers for monetary considerations or Bureau. ( Amended by Sec. 3, Rule VI Book II, POEA Rules and
reasons other than those authorized under the Labor Code and its Regulations)
implementing Rules and Regulations; (a) Contents of the Complaint. The complaint shall state the name
l. Engaging in recruitment activities in places other than specified and address of the complainant as well
in the license or authority without as that of the respondent, the specific offense or omission, the
previous authorization from the Administration; date when the offense was committed,
m. Appointing or designating agents or representatives without and the relief(s) sought. (Sec. 4, Rule VI Book I, POEA Rules and
prior approval of the Administration; Regulations)
n. Falsifying or altering workers' employment contracts or travel (b) Action on the Complaint. Upon receipt of the complaint, the
documents; Administration shall furnish the
o. Deploying workers or seamen to vessels or principals not respondent with a copy of the complaint and its supporting
accredited by the Administrator; documents, if any, and require him to file his
p. Deploying workers whose employment and travel documents answer within ten (10) working days from receipt thereof.
were not processed by the The respondent's answer should be filed with the Licensing and
Administration; Regulation Office within the reglementary
q. Publishing or causing the publication of overseas job vacancies period, attaching thereto proof of service of a copy thereof to the
in violation of the prescribed rules; complainant.
r. Failure to deploy workers without valid reasons within the Within five (5) days from receipt of the last responsive pleading,
prescribed period as provided under Section the Hearing Officer, shall schedule the
5, Rule III, Book III hereof; hearing of the case if he finds from the submitted pleadings that
s. Failure to pay or replenish cash bond and renew surety bond; there is a prima facie case of violation of
t. Disregard of lawful orders, summons, etc;
the rules. Should there be a finding to the contrary, a minute from the first hearing. The Bureau shall submit its findings and
resolution/summary judgment can be recommendations to the Department of
rendered motu proprio. (Amended by Sec. 5, Rule VI Book II, Labor and Employment within fifteen (15) days from the
POEA Rules and Regulations) termination of the investigation. (Amended by
(c) Failure to Answer/Appear During Hearing. Failure of the Sec. 7, Rule VI Book II, POEA Rules and Regulations)
respondent to file an answer within the period SECTION 6. Duration of Suspension. The order of suspension
prescribed or appear during the hearing, as the case may be, shall may carry with it the period of effectivity
render the respondent in default and which shall be in accordance with the scale of penalties which the
hearing or investigation may proceed ex parte. Decision/resolution Administration may promulgate. (Sec.
of the case shall be based on the 11, Rule VI Book II, POEA Rules and Regulations)
evidence presented by the complainant. ( Amended by Sec. 6, SECTION 7. Effects of Settlement. A mutually agreed settlement
Rule VI Book II, POEA Rules and of the case or the desistance of the
Regulations) complainant shall not bar the Administration from proceeding with
SECTION 4. Suspension of license pending investigation. (a) the investigation. The Secretary or the
Pending investigation of the complaint or Administrator shall act on the case as may be merited by the
report, the Secretary may suspend the license of the private results of the investigation and impose such
employment agency concerned upon penalties on the erring agency or entity as may be deemed
recommendation of the Bureau on any of the following grounds: appropriate. Such settlement when reached to
(1) Failure on the part of the agency to submit its comments or the full satisfaction of the complainant may, however, mitigate the
explanation within five (5) days; liability of the respondent. (Sec. 12,
(2) There is a strong prima facie case for violation of the Labor Rule VI Book II, POEA Rules and Regulations)
Code as amended, its implementing Rules SECTION 8. Imposition of Fines. In addition to or in lieu of the
and Regulations and the Bureau's policies, memoranda and penalties of suspension or cancellation
circulars; or the Secretary or the Administrator may impose fines. (Sec. 13,
(3) There exists reasonable ground showing that the continued Rule VI Book II, POEA Rules and
operations of the agency will lead to Regulations)
further violation of the conditions of the license or the exploitation SECTION 9. Suspension of Documentary Processing. The
of the workers being recruited, or Administration may order the suspension of
imperil friendly relations with any country or otherwise prejudice the processing of documents pertaining to a respondent agency or
national interest or security. entity on any of the grounds under
(b) Similar action may be taken by the Bureau Director in the case Section 2 of this Rule or for violation of any provision of these
of private agencies licensed for Rules. (Sec. 14, Rule VI Book II, POEA
domestic recruitment and placement. Rules and Regulations)
SECTION 5. Conduct of investigation. The Bureau shall summon SECTION 10. Who May Issue Orders. Orders of cancellation shall
the owner or official of the private be issued by the Secretary. Orders
employment agency and other parties concerned if any, receive for suspension of license or authority or the lifting thereof shall be
such evidence as may be relevant and issued by the Administrator, or in his
necessary, and otherwise take such other actions as may be absence by the Acting Administrator, in behalf of the Secretary. All
warranted to inform itself of true facts and other orders or resolutions which do
circumstances of the case. The investigation shall be terminated not involve the suspension, cancellation or revocation of license or
not later than thirty (30) working days authority may be issued by the
Director, LRO. (Sec. 14, Rule VI Book II, POEA Rules and cancel the license. (Repealed by POEA Rules and Regulations)
Regulations) (b) Where the case involves domestic recruitment and placement
SECTION 11. Effect of Order of Suspension of License. An order activities, the Bureau Director may take
suspending a license or authority similar action as provided for in paragraph (a) hereof. His decision
shall be immediately executory and shall have the effect of may be appealed to the Secretary by
suspending all activities of the agency or an aggrieved party within ten (10) days from receipt of decision.
entity which fall under the definitions of recruitment and (c) The decision of the Secretary in both cases shall be final and
placement. The Administration may seek the unappealable.
assistance of other government institutions, agencies, or offices to (d) Where the decision of the Secretary is to suspend the
ensure that suspension or revocation license/authority, the duration of said
orders are carried out. (Sec. 16, Rule VI Book II, POEA Rules and suspension shall not be less than sixty (60) days, unless sooner
Regulations) lifted by him.
SECTION 12. Authority to Administer Oath, Issue Subpoena, Etc. SECTION 15. Inspection and enforcement. (a) The Bureau shall
The Administrator, the Director, LRO establish an inspectorate system to
and the Hearing Officers shall have the authority to administer ensure effective supervision of the activities of all license and
oath and/or affirmations, issue subpoena, authority holders as well as of aliens
take evidence, compel the attendance of the parties and/or employed in the Philippines and the implementation of the
witnesses and require the production of any understudy training program of the employers
book, paper, correspondence, memoranda and other records of such aliens.
relevant or material to the case or inquiry. (b) The Bureau Director or his duly authorized representative may,
(Sec. 17, Rule VI Book II, POEA Rules and Regulations) during regular office hours, inspect the
SECTION 13. Motion for Reconsideration or Appeal. A motion for premises, books and records of license and authority holders and
the reconsideration of an order of of establishments employing aliens to
suspension or an appeal to the Secretary from an order cancelling determine compliance with the Code and of these Rules. (Amended
a license or authority may be by Sec. 3, Rule III Book II, POEA
entertained only when filed with the LRO within ten (10) working Rules and Regulations)
days from service of the order or SECTION 16. Inspection Before Licensing. Before issuance or
decision. renewal of license or authority the
The filing of a motion for reconsideration or appeal shall not Administration shall conduct an inspection of the premises and
automatically stay the execution of the order. pertinent documents of the applicant.
The Secretary or the Administrator may order the stay of (Sec. 1, Rule III, Book II, POEA Rules and Regulations)
execution and require the posting of SECTION 17. Inspection of Agencies and Entities. All Agencies
supersedeas bond. (Sec. 18, Rule VI Book II, POEA Rules and and entities shall be subject to periodic
Regulations) inspection by the Administration to determine compliance with
SECTION 14. Action by the Secretary or Bureau Director. (a) existing rules and regulations. Inspection
Where the case arises from overseas shall likewise be conducted by the Administration in case of
recruitment and placement activities, the Bureau shall submit its transfer of office or establishment of a branch
findings and recommendations to the office or upon complaint or report of violations of existing rules and
Secretary within fifteen (15) days from the termination of the regulations. (Sec. 2, Rule III, Book II,
investigation, on the basis of which the POEA Rules and Regulations)
Secretary may lift the suspension of the license or maintain the SECTION 18. Subject of Inspection. Depending on the purpose
same until the violation are corrected, or of inspection, the authorized
representative(s) of the Administration shall require the entities shall develop programs for the hiring of workers in
presentation of and examine the necessary organized or corporate groups.
documents, records and premises of an agency or entity. (Sec. 4, RULE VIII
Rule III, Book II, POEA Rules and Private Recruitment Entities
Regulations) SECTION 1. Qualifications of applicants. All applicants for
SECTION 19. Inspection Procedures. authority to operate private recruitment
a) Inspection shall be conducted by a team of at least two duly entities for overseas work other than construction contractors shall
authorized persons during office hours, possess the following qualifications:
unless otherwise authorized in accordance with Section 3 of this (a) Citizenship requirement as provided for in Rule IV of these
Rules; Rules;
b) Inspection shall be conducted in the presence of the Manager of (b) Appropriate capitalization as follows:
the office or any office personnel; 1. A minimum networth of P300,000 in the case of single
c) Inspection reports shall be submitted to the Administrator or the proprietorship; and a paid-up capital or networth
Director, LRO, within 24 hours after the of P300,000 in the case of a corporation or partnership, as the
inspection. (Sec. 5, Rule III, Book II, POEA Rules and Regulations) case may be.
SECTION 20. Violations Found in the Course of Inspection. SECTION 2. Application for authority for overseas private
Violations found in the course of recruitment. Every applicant for authority to
inspection such as non-compliance with the Administration's rules, operate a private recruitment entity shall submit the following
issuances, directives, etc. may be documents in support of the application:
grounds for the imposition of appropriate sanctions or for the (a) A certified copy of the Articles of Incorporation in the case of a
denial of application for renewal of license. corporation, or the registration with the
(Sec. 6, Rule III, Book II, POEA Rules and Regulations) Bureau of Domestic Trade in the case of a single proprietorship or
SECTION 21. Issuance of Policy Guidelines on Inspection. The partnership;
Director, LRO, shall issue appropriate (b) If the applicant is a corporation, proof of financial capacity of
guidelines which shall ensure an effective and comprehensive the major stockholders such as sworn
system of inspection. (Sec. 7, Rule III, statements of assets and liabilities and verified income tax returns
Book II, POEA Rules and Regulations) for the last two years;
SECTION 22. Guidelines on functions and responsibilities. (c) If the applicant is a single proprietorship or a partnership, proof
Consistent with these rules and regulations of financial capacity of proprietor or
and appropriate instructions of the Secretary, the Bureau shall partners such as sworn statements of assets and liabilities and
issue guidelines governing its functions verified income tax returns for the last two
and responsibilities. years;
RULE VII (d) Clearance from the Philippine Constabulary and the Bureau of
The Overseas Construction Industry and the Corporate Export Internal Revenue for all the
Program incorporators, partners or single proprietor;
SECTION 1. Registration of Filipino Construction Contractors. (e) A verified statement that the applicant has in its employ
Subject to guidelines issued jointly by persons with adequate competence to
the Secretary and the Construction Industry Authority of the evaluate and test recruits and to consider them for employment
Philippines, construction contractors shall be strictly on the basis of merit and fitness,
issued authority to operate as private recruitment entities. without any undue discrimination and in accordance with the
SECTION 2. Corporate Export Program. The Bureau, in qualifications prescribed by the employers;
coordination with other relevant agencies and
(f) A verified undertaking to assume all responsibilities for the of any agency or representative, including the establishment of
proper use of its authority and the additional offices elsewhere, shall be
implementation of the contract of employment with the workers; subject to the prior approval of the Bureau.
and (c) The Secretary shall issue appropriate guidelines on the renewal
(g) Such other requirements that the Secretary may require upon of authority in accordance with the
recommendation of the Director. applicable provisions of these Rules and which may be similar to
SECTION 3. Action on application. Within thirty (30) days from those provided for licensed holders.
the receipt of the application for SECTION 8. Recruitment, hiring and employment of workers.
authority, the Bureau shall recommend its denial or approval to Every private recruitment entity shall
the Secretary. Upon considering the recruit, hire and employ workers for overseas job in accordance
findings and recommendations of the Bureau, the Secretary may with the applicable provisions of these
either deny or approve the application. Rules. All applications for passport or travel of recruited and hired
SECTION 4. Fees and bonds. Upon approval of the application, workers shall be properly endorsed by
the applicant shall pay to the the Bureau.
Department a registration fee of P2,000.00, and post a SECTION 9. Allowable fees and charges. (a) A private
performance bond of P200,000.00 from an recruitment entity shall charge a minimum
accredited bonding company to answer for valid and legal claims mobilization fee to cover costs of recruitment, processing and
arising from violations of the conditions documentation in accordance with a
of the authority of the contracts of employment and guarantee schedule approved by the Secretary in addition to service charges
compliance with the provisions of the it may negotiate with its principal.
Code, its implementing rules and appropriate issuances of the (b) Subject to approval by the Secretary the recruited workers
Department. may be required to post a bond to
SECTION 5. Action on application. Within thirty (30) days from guarantee compliance with the employment contract.
the receipt of the application for
authority, the Bureau shall recommend its denial or approval to MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF
the Secretary. Upon considering the 1995 (R.A. 8042); AS AMENDED BY R.A. 9422 (2007) AND
findings and recommendations of the Bureau, the Secretary may R.A. 10022 (2010)
either deny or approve the application. REPUBLIC ACT No. 10022
SECTION 6. Issuance of authority. Upon payment of the
registration fee and the posting of the AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN
appropriate bonds the Secretary shall issue the corresponding AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF
authority to the applicant. 1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF
SECTION 7. Duration/renewal and non-transferability of Authority. PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT
(a) Every authority shall be valid for WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN
one year from the date of approval, unless sooner cancelled, DISTRESS, AND FOR OTHER PURPOSES
revoked or suspended by the Secretary for
violations of any of the conditions of the authority or any Be it enacted by the Senate and House of Representatives of the
applicable provisions of the Code or these Rules. Philippines in Congress assembled:
(b) No authority shall be transferred, conveyed or assigned to any
other person or entity or used in any Section 1. Paragraphs (a), (e), (g) and (h) of Section 2 of Republic
place other than that stated in the authority. Any transfer of Act. No. 8042, as amended, otherwise known as the Migrant
business address, appointment or designation
Workers and Overseas Filipinos Act of 1995, is hereby amended (a) Overseas Filipino worker refers to a person who is to be
to read as follows: 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
(a) In the pursuit of an independent foreign policy and while vessel navigating the foreign seas other than a government ship
considering national sovereignty, territorial integrity, national used for miliatry or non-commercial purposes or on an installation
interest and the right to self-determination paramount in its located offshore or on the high seas; to be used interchangeably
relations with other states, the State shall, at all times, uphold the with migrant worker.
dignity of its citizens whether in country or overseas, in general,
and Filipino migrant workers, in particular, continuously monitor Section 3. Section 4 of Republic Act No. 8042, as amended, is
international conventions, adopt/be signatory to and ratify those hereby amended to rerad as follows:
that guarantee protection to our migrant workers, and endeavor to
enter into bilateral agreements with countries hosting overseas SEC. 4. Deployment of Migrant Workers. The State shall allow
Filipino workers. the deployment of overseas Filipino workers only in countries
where the rights of Filipino migrant workers are protected. The
(e) Free access to the courts and quasi-judicial bodies and government recognizes any of the following as a guarantee on the
adequate legal assistance shall not be denied to any person by part of the receiving country for the protection of the rights of
reason of poverty. In this regard, it is imperative that an effective overseas Filipino workers:
mechanism be instituted to ensure that the rights and interest of
distressed overseas Filipinos, in general, and Filipino migrant (a) It has existing labor and social laws protecting the rights of
workers, in particular, whether regular/documented or workers, including migrant workers;
irregular/undocumented, are adequately protected and
safeguarded. (b) It is a signatory to and/or a ratifier of multilateral
conventions, declarations or resolutions relating to the protection
(g) The State recognizes that the most effective tool for of workers, including migrant workers; and
empowerment is the possession of skills by migrant workers. The
government shall provide them free and accessible skills (c) It has concluded a bilateral agreement or arrangement with
development and enhancement programs. Pursuant to this and as the government on the protection of the rights of overseas Filipino
soon as practicable, the government shall deploy and/or allow the Workers:
deployment only of skilled Filipino workers.
Provided, That the receiving country is taking positive, concrete
(h) The State recognizes non-governmental organizations, trade measures to protect the rights of migrant workers in furtherance of
unions, workers associations, stakeholders and their similar any of the guarantees under subparagraphs (a), (b) and (c)
entities duly recognized as legitimate, are partners of the State in hereof.
the protection of Filipino migrant workers and in the promotion of
their welfare. The State shall cooperate with them in a spirit of In the absence of a clear showing that any of the aforementioned
trust and mutual respect. The significant contribution of guarantees exists in the country of destination of the migrant
recruitment and manning agencies shall from part this workers, no permit for deployment shall be issued by the Philippine
partnership. Overseas Employment Administration (POEA).

Section 2. Section 3, paragraph (a) of Republic Act No. 8042, as The members of the POEA Governing Board who actually voted in
amended, is hereby amended to read as follows: favor of an order allowing the deployment of migrant workers
without any of the aforementioned guarantees shall suffer the
penalties of removal or dismissal from service with disqualification SEC. 6. Definition. For purposes of this Act, illegal recruitment
to hold any appointive public office for five (5) years, Further, the shall mean any act of canvassing, enlisting, contracting,
government official or employee responsible for the issuance of the transporting, utilizing, hiring, or procuring workers and includes
permit or for allowing the deployment of migrant workers in referring, contract services, promising or advertising for
violation of this section and in direct contravention of an order by employment abroad, whether for profit or not, when undertaken
the POEA Governing Board prohibiting deployment shall be meted by non-licensee or non-holder of authority contemplated under
the same penalties in this section. Article 13(f) of Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the Philippines: Provided,
For this purpose, the Department of Foreign Affairs, through its That any such non-licensee or non-holder who, in any manner,
foreign posts, shall issue a certification to the POEA, specifying offers or promises for a fee employment abroad to two or more
therein the pertinent provisions of the receiving countrys persons shall be deemed so engaged. It shall likewise include the
labor/social law, or the convention/declaration/resolution, or the following acts, whether committed by any person, whether a non-
bilateral agreement/arrangement which protect the rights of licensee, non-holder, licensee or holder of authority:
migrant workers.
(a) To charge or accept directly or indirectly any amount greater
The State shall also allow the deployment of overseas Filipino than that specified in the schedule of allowable fees prescribed by
workers to vessels navigating the foreign seas or to installations the Secretary of Labor and Employment, or to make a worker pay
located offshore or on high seas whose owners/employers are or acknowledge any amount greater than that actually received by
compliant with international laws and standards that protect the him as a loan or advance;
rights of migrant workers.
(b) To furnish or publish any false notice or information or
The State shall likewise allow the deployment of overseas Filipino document in relation to recruitment or employment;
workers to companies and contractors with international
operations: Provided, That they are compliant with standards, (c) To give any false notice, testimony, information or document
conditions and requirements, as embodied in the employment or commit any act of misrepresentation for the purpose of securing
contracts prescribed by the POEA and in accordance with a license or authority under the Labor Code, or for the purpose of
internationally-accepted standards. documenting hired workers with the POEA, which include the act of
reprocessing workers through a job order that pertains to
Section 4. Section 5 of Republic Act No. 8042, as amended, is nonexistent work, work different from the actual overseas work, or
hereby amended to read as follows: work with a different employer whether registered or not with the
POEA;
SEC. 5. Termination or Ban on Deployment. Notwithstanding
the provisions of Section 4 hereof, in pursuit of the national (d) To include or attempt to induce a worker already employed to
interest or when public welfare so requires, the POEA Governing quit his employment in order to offer him another unless the
Board, after consultation with the Department of Foreign Affairs, transfer is designed to liberate a worker from oppressive terms
may, at any time, terminate or impose a ban on the deployment of and conditions of employment;
migrant workers.
(e) To influence or attempt to influence any person or entity not
Section 5. Section 6 of Republic Act No. 8042, as amended, is to employ any worker who has not applied for employment
hereby amended to read as follows: 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 Illegal recruitment is deemed committed by a syndicate if carried
harmful to public health or morality or to the dignity of the out by a group of three (3) or more persons conspiring or
Republic of the Philippines; confederating with one another. It is deemed committed in large
scale if committed against three (3) or more persons individually
(h) To fail to submit reports on the status of employment, or as a group.
placement vacancies, remittance of foreign exchange earnings,
separation from jobs, departures and such other matters or In addition to the acts enumerated above, it shall also be unlawful
information as may be required by the Secretary of Labor and for any person or entity to commit the following prohibited acts:
Employment;
(1) Grant a loan to an overseas Filipino worker with interest
(i) To substitute or alter to the prejudice of the worker, exceeding eight percent (8%) per annum, which will be used for
employment contracts approved and verified by the Department of payment of legal and allowable placement fees and make the
Labor and Employment from the time of actual signing thereof by migrant worker issue, either personally or through a guarantor or
the parties up to and including the period of the expiration of the accommodation party, postdated checks in relation to the said
same without the approval of the Department of Labor and loan;
Employment;
(2) Impose a compulsory and exclusive arrangement whereby an
(j) For an officer or agent of a recruitment or placement agency to overseas Filipino worker is required to avail of a loan only from
become an officer or member of the Board of any corporation specifically designated institutions, entities or persons;
engaged in travel agency or to be engaged directly or indirectly in
the management of travel agency; (3) Refuse to condone or renegotiate a loan incurred by an
overseas Filipino worker after the latters employment contract has
(k) To withhold or deny travel documents from applicant workers been prematurely terminated through no fault of his or her own;
before departure for monetary or financial considerations, or for
any other reasons, other than those authorized under the Labor (4) Impose a compulsory and exclusive arrangement whereby an
Code and its implementing rules and regulations; overseas Filipino worker is required to undergo health
examinations only from specifically designated medical clinics,
(l) Failure to actually deploy a contracted worker without valid institutions, entities or persons, except in the case of a seafarer
reason as determined by the Department of Labor and whose medical examination cost is shouldered by the
Employment; principal/shipowner;

(m) Failure to reimburse expenses incurred by the worker in (5) Impose a compulsory and exclusive arrangement whereby an
connection with his documentation and processing for purposes of overseas Filipino worker is required to undergo training, seminar,
deployment, in cases where the deployment does not actually take instruction or schooling of any kind only from specifically
place without the workers fault. Illegal recruitment when designated institutions, entities or persons, except fpr
committed by a syndicate or in large scale shall be considered an recommendatory trainings mandated by principals/shipowners
offense involving economic sabotage; and where the latter shoulder the cost of such trainings;

(n) To allow a non-Filipino citizen to head or manage a licensed (6) For a suspended recruitment/manning agency to engage in
recruitment/manning agency. any kind of recruitment activity including the processing of pending
workers applications; and
(7) For a recruitment/manning agency or a foreign one (1) day but not more than twenty (20) years and a fine of not
principal/employer to pass on the overseas Filipino worker or less than One million pesos (P1,000,000.00) nor more than Two
deduct from his or her salary the payment of the cost of insurance million pesos (P2,000,000.00).
fees, premium or other insurance related charges, as provided
under the compulsory workers insurance coverage. (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
The persons criminally liable for the above offenses are the pesos (P5,000,000.00) shall be imposed if illegal recruitment
principals, accomplices and accessories. In case of juridical constitutes economic sabotage as defined therein.
persons, the officers having ownership, control, management or
direction of their business who are responsible for the commission Provided, however, That the maximum penalty shall be imposed if
of the offense and the responsible employees/agents thereof shall the person illegally recruited is less than eighteen (18) years of
be liable. age or committed by a non-licensee or non-holder of authority.

In the filing of cases for illegal recruitment or any of the (c) Any person found guilty of any of the prohibited acts shall
prohibited acts under this section, the Secretary of Labor and suffer the penalty of imprisonment of not less than six (6) years
Employment, the POEA Administrator or their duly authorized and one (1) day but not more than twelve (12) years and a fine of
representatives, or any aggrieved person may initiate the not less than Five hundred thousand pesos (P500,000.00) nor
corresponding criminal action with the appropriate office. For this more than One million pesos (P1,000,000.00).
purpose, the affidavits and testimonies of operatives or personnel
from the Department of Labor and Employment, POEA and other If the offender is an alien, he or she shall, in addition to the
law enforcement agencies who witnessed the acts constituting the penalties herein prescribed, be deported without further
offense shall be sufficient to prosecute the accused. proceedings.

In the prosecution of offenses punishable under this section, the In every case, conviction shall cause and carry the automatic
public prosecutors of the Department of Justice shall collaborate revocation of the license or registration of the
with the anti-illegal recruitment branch of the POEA and, in certain recruitment/manning agency, lending institutions, training school
cases, allow the POEA lawyers to take the lead in the prosecution. or medical clinic.
The POEA lawyers who act as prosecutors in such cases shall be
entitled to receive additional allowances as may be determined by Section 7. Section 10 of Republic Act No. 8042, as amended, is
the POEA Administrator. hereby amended to read as follows:

The filing of an offense punishable under this Act shall be without SEC. 10. Money Claims. Notwithstanding any provision of law to
prejudice to the filing of cases punishable under other existing the contrary, the Labor Arbiters of the National Labor Relations
laws, rules or regulations. Commission (NLRC) shall have the original and exclusive
jurisdiction to hear and decide, within ninety (90) calendar days
Section 6. Section 7 of Republic Act No. 8042, as amended, is after the filing of the complaint, the claims arising out of an
hereby amended to read as follows: employer-employee relationship or by virtue of any law or contract
involving Filipino workers for overseas deployment including claims
SEC. 7. Penalties. for actual, moral, exemplary and other forms of damage.
Consistent with this mandate, the NLRC shall endeavor to update
(a) Any person found guilty of illegal recruitment shall suffer the and keep abreast with the developments in the global services
penalty of imprisonment of not less than twelve (12) years and industry.
The liability of the principal/employer and the (a) The salary of any such official who fails to render his decision
recruitment/placement agency for any and all claims under this or resolution within the prescribed period shall be, or caused to be,
section shall be joint and several. This provision shall be withheld until the said official complies therewith;
incorporated in the contract for overseas employment and shall be
a condition precedent for its approval. The performance bond to de (b) Suspension for not more than ninety (90) days; or
filed by the recruitment/placement agency, as provided by law,
shall be answerable for all money claims or damages that may be (c) Dismissal from the service with disqualification to hold any
awarded to the workers. If the recruitment/placement agency is a appointive public office for five (5) years.
juridical being, the corporate officers and directors and partners as
the case may be, shall themselves be jointly and solidarily liable Provided, however, That the penalties herein provided shall be
with the corporation or partnership for the aforesaid claims and without prejudice to any liability which any such official may have
damages. incured under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.
Such liabilities shall continue during the entire period or duration
of the employment contract and shall not be affected by any Section 8. The first paragraph of Section 13 of Republic Act No.
substitution, amendment or modification made locally or in a 8042, as amended is hereby amended to read as follows:
foreign country of the said contract.
SEC. 13. Free Legal Assistance; Preferential Entitlement Under
Any compromise/amicable settlement or voluntary agreement on the Witness Protection Program. A mechanism for free legal
money claims inclusive of damages under this section shall be paid assistance for victims of illegal recruitment shall be established in
within thirty (30) days from approval of the settlement by the the anti-illegal recruitment branch of the POEA including its
appropriate authority. regional offices. Such mechanism shall include coordination and
cooperation with the Department of Justice, the Integrated Bar of
In case of termination of overseas employment without just, valid the Philippines, and other non-governmental organizations and
or authorized cause as defined by law or contract, or any volunteer groups.
unauthorized deductions from the migrant workers salary, the
worker shall be entitled to the full reimbursement if his placement Section 9. Section 16 of Republic Act No. 8042, as amended, is
fee and the deductions made with interest at twelve percent (12%) hereby amended to read as follows:
per annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the SEC. 16. Mandatory Repatriation of Underage Migrant Workers.
unexpired term, whichever is less. Upon discovery or being informed of the presence of migrant
workers whose ages fall below the minimum age requirement for
In case of a final and executory judgement against a foreign overseas deployment, the responsible officers in the foreign
employer/principal, it shall be automatically disqualified, without service shall without delay repatriate said workers and advise the
further proceedings, from participating in the Philippine Overseas Department of Foreign Affairs through the fastest means of
Employment Program and from recruiting and hiring Filipino communication available of such discovery and other relevant
workers until and unless it fully satisfies the judgement award. information. The license of a recruitment/manning agency which
recruited or deployed an underage migrant worker shall be
Noncompliance with the mandatory periods for resolutions of case automatically revoked and shall be imposed a fine of not less than
provided under this section shall subject the responsible officials to Five hundred thousand pesos (Php 500,000.00) but not more than
any or all of the following penalties: One million pesos (Php 1,000,000.00). All fees pertinent to the
processing of papers or documents in the recruitment or
deployment shall be refunded in full by the responsible (a) Develop and support programs and projects for livelihood,
recruitment/manning agency, without need of notice, to the entrepreneurship, savings, investments and financial literacy for
underage migrant worker or to his parents or guardian. The refund returning Filipino migrant workers and their families in
shall be independent of and in addition to the indemnification for coordination with relevant stakeholders, service providers and
the damages sustained by the underage migrant worker. The international organizations;
refund shall be paid within thirty (30) days from the date of the
mandatory repatriation as provided for in this Act. (b) Coordinate with appropriate stakeholders, service providers
and relevant international organizations for the promotion,
Section 10. Section 17 of Republic Act No. 8042, as amended, is development and the full utilization of overseas Filipino worker
hereby amended to read as follows: returnees and their potentials;

SEC. 17. Establishment of National Reintegration Center for (c) Institute, in cooperation with other government agencies
Overseas Filipino Workers. -A national reintegration center for concerned, a computer-based information system on returning
overseas Filipino workers (NRCO) is hereby created in the Filipino migrant workers shall be accessible to all local recruitment
Department of Labor and Employment for returning Filipino agencies and employers, both public and private;
migrant workers which shall provide a mechanism for their
reintegration into the Philippine society, serve as a promotion (d) Proved a periodic study and assessment of job opportunities
house for their local employment, and tap their skills and for returning Filipino migrant workers;
potentials for national development.
(e) Develop and implement other appropriate programs to
The Department of Labor and Employment, the Overseas Workers promote the welfare of returning Filipino migrant workers;
Welfare Administration (OWWA), and the Philippine Overseas
Employment Administration (POEA) shall, within ninety (90) days (f) Maintain an internet-based communication system for on-line
from the effectivity of this Act, formulate a program that would registration and interaction with clients, and maintain and upgrade
motivate migrant workers to plan for productive options such as computer-based service capabilities of the NRCO;
entry into highly technical jobs or undertakings, livelihood and
entrepreneurial development, better wage employment, and (g) Develop capacity-building programs for returning overseas
investment of savings. Filipino workers and their families, implementers, service
providers, and stakeholders; and
For this purpose, the Technical Education and Skills Development
Authority (TESDA), the Technology Livelihood Resource Center (h) Conduct research for policy recommendations and program
(TLRC), and other government agencies involved in training and development.
livelihood development shall give priority to returnees who had
been employed as domestic helpers and entertainers. Section 12. The second paragraph of Section 19 of Republic Act
No. 8042, as amended, is hereby amended to read as follows:
Section 11. Section 18 of Republic Act No. 8042, as amended is
hereby amended to read as follows: The establishment and operations of the Center shall be a joint
undertaking of the various government agencies. The Center shall
SEC. 18. Functions of the National Reintegration Center for be open for twenty-four (24) hours daily including Saturdays,
Overseas Filipino Workers. -The Center shall provide the following Sundays and holidays, and shall be staffed by Foreign Service
services: personnel, service attaches or officers who represent other
Philippine government agencies abroad and, if available, individual information and communications technology standards to facilitate
volunteers and bona fide non-government organizations from the the sharing of information among the member agencies.
host countries. In countries categorized as highly problematic by
the Department of Foreign Affairs and the Department of Labor The inter-agency committee shall meet regularly to ensure the
and Employment and where there is a concentration of Filipino immediate and full implementation of this section and shall explore
migrant workers, the government must provide a Sharia or human the possibility setting up a central storage facility for the data on
rights lawyer, a psychologist and a social worker for the Center. In migration. The progress of the implementation of this section shall
addition to these personnel, the government must also hire within be include in the report to Congress of the Department of Foreign
the receiving country, in such number as may be needed by the Affairs and the Department of Labor and Employment under
post, public relation officers or case officers who are conversant, Section 33.
orally and in writing, with the local language, laws, customs and
practices. The Labor Attache shall coordinate the operation of the The inter-agency committee shall convene to identify existing
Center and shall keep the Chief of Mission informed and updated data bases which shall be declassified and shared among member
on all matters affecting it. agencies. These shared data bases shall initially include, but not be
limited to, the following information:
Section 13. Section 20 of Republic Act No. 8042, as amended, is
hereby amended to read as follows: (a) Masterlists of Filipino migrant workers/overseas Filipino
classified according to occupation/job category, civil status, by
SEC. 20. Establishment of a Shared Government Information country/state of destination including visa classification;
System for Migration. An interagency committee composed of
the Department of Foreign Affairs and its attached agency, the (b) Inventory of pending legal cases involving Filipino migrant
Commission on Filipinos Overseas, the Department of Labor and workers and other Filipino nationals, including those serving prison
Employment and its attached concerned agencies, the Department terms;
of Tourism, the Department of Justice the Bureau of Immigration,
the National Bureau of Investigation, the Department of the (c) Masterlists of departing/arriving Filipinos;
Interior and Local Government, the National Telecommunications
Commission, the Commission on Information and Communications (d) Statistical profile on Filipino migrant workers/overseas
Technology, the National Computer Center, the National Statistical Filipinos/tourists;
and Coordination Board, the National Statistics Office and other
government agencies concerned with overseas employment shall (e) Blacklisted foreigners/undesirable aliens;
be established to implement a shared government information
system for migration. The interagency committee shall initially (f) Basic data on legal systems, immigration policies, marriage
make available to itself the information contained in existing data laws and civil and criminal codes in receiving countries particularly
bases/files. The second phase shall involve linkaging of computer those with large numbers of Filipinos;
facilities on order to allow free-flow data exchanges and sharing
among concerned agencies. (g) List of Labor and other human rights instruments where
receiving countries are signatories;
The inter-agency committee shall be co-chaired by the
Department of Foreign Affairs and the Department of Labor and (h) A tracking system of past and present gender disaggregated
Employment. TheNationalComputerCentershall provide the cases involving male and female migrant workers, including
necessary technical assistance and shall set the appropriate minors; and
(i) Listing of overseas posts which may render assistance to In the recruitment and placement of workers to service the
overseas Filipinos, in general, and migrant workers, in particular. requirements for trained and competent Filipino workers of foreign
governments and their instrumentalitys, and such other employers
Section 14. Subparagraph (b.1) of paragraph (b) of Section 23 of as public interests may require, the Administration shall deploy
Republic Act No. 8042, as amended, is hereby amended to read as only to countries where the Philippine has conclude bilateral labor
follows: agreements or arrangements: Provided, That such countries shall
guarantee to protect the rights of Filipino migrant workers; and
(b.1) Philippine Overseas Employment Administration. The Provided, further, That such countries shall observe and/or comply
Administration shall regulate private sector participation in the with the international laws and standards for migrant workers.
recruitment and overseas placement of workers by setting up a
licensing and registration system. It shall also formulate and Section 15. Sub-paragraph (b.2) of Paragraph (b) of Section 23 of
implement, in coordination with appropriate entities concerned, Republic Act No. 8042, as amended, is hereby amended to read as
when necessary, a system for promoting and monitoring the follows:
overseas employment of Filipino workers taking into consideration
their welfare and the domestic manpower requirements. It shall be (b.2) Overseas Workers Welfare Administration. The Welfare
responsible for the regulation and management of overseas officer of in his absence, the coordinating officer shall provide the
employment from the pre-employment stage, securing the best Filipino migrant worker and his family all the assistance they may
possible employment terms and conditions for overseas Filipino need in the enforcement of contractual obligations by agencies or
workers, and taking into consideration the needs of vulnerable entities and/or by their principals. In the performance of this
sectors and the peculiarities of sea-based and land-based workers. function, he shall make representation and may call on the
In appropriate cases, the Administration shall allow the lifting of agencies or entities concerned to conferences or conciliation
suspension of erring recruitment/manning agencies upon the meetings for the purpose of settling the compliance or problems
payment of fine of Fifty thousand pesos (P50,000.00) for every brought to his attention. The OWWA shall likewise formulate and
month of suspension. implement welfare programs for overseas Filipino workers and
their families while they are abroad and upon their return. It shall
in addition to its powers and functions, the Administration shall ensure the awareness by the overseas Filipino workers and their
inform migrant workers not only of their rights as workers but also families of these programs and other related governmental
of their rights as human beings, instruct and guide the workers programs.
how to assert their rights and provide the available mechanism to
redress violation of their rights. It shall also be responsible for the In the repatriation of workers to be undertaken by OWWA, the
implementation, in partnership with other law-enforcement latter shall be authorized to pay repatriation-related expenses,
agencies, of an intensified program against illegal recruitment such as fines or penalties, subject to such guidelines as the OWWA
activities. For this purpose, the POEA shall provide comprehensive Board of Trustees may prescribe.
Pre-Employment Orientation Seminars (PEOS) that will discuss
topics such as prevention of illegal recruitment and gender- Section 16. Under Section 23 of Republic Act No. 8042, as
sensitivity. amended, add new paragraphs (c) and (d) with their
corresponding subparagraphs to read as follows:
The Administration shall not engage in the recruitment and
placement of overseas workers except on a government-to- (c) Department of Health. The Department of Health (DOH)
government arrangement only. shall regulate the activities and operations of all clinics which
conduct medical, physical, optical, dental, psychological and other
similar examinations, hereinafter referred to as health
examinations, on Filipino migrant workers as requirement for their operated clinic shall be temporarily disqualified from the
overseas employment. Pursuant to this, the DOH shall ensure that: participating in the overseas employment program, pursuant to
POEA rules and regulations.
(c.1) The fees for the health examinations are regulated,
regularly monitored and duly published to ensure that the said fees In case an overseas Filipino worker is found to be not medically fit
are reasonable and not exorbitant; upon his/her immediate arrival in the country of destination, the
medical clinic that conducted the health examination/s of such
(c.2) The Filipino migrant worker shall only be required to overseas Filipino worker shall pay for his or her repatriation back
undergo health examinations when there is reasonable certainty to the Philippines and the cost of deployment of such worker.
that he or she will be hired and deployed to the jobsite and only
those health examinations which are absolutely necessary for the Any government official or employee who violates any provision of
type of job applied for or those specifically required by the foreign this subsection shall be removed or dismissed from service with
employer shall be conducted; disqualification to hold any appointive public office for five(5)
years. Such penalty is without prejudice to any other liability which
(c.3) No group or groups of medical clinics shall have a monopoly he or she may have incurred under existing laws, rules or
of exclusively conducting health examinations on migrant workers regulations.
for certain receiving countries;
(d) Local Government Units. In the fight against illegal
(c.4) Every Filipino migrant worker shall have the freedom to recruitment, the local government units (LGUs), in partnership
choose any of the DOH-accredited or DOH-operated clinics that will with the POEA, other concerned government agencies, and non-
conduct his/her health examinations and that his or her rights as a government organizations advocating the rights and welfare of
patient are respected. The decking practice, which requires an overseas Filipino workers, shall take a proactive stance by being
overseas Filipino worker to go first to an office for registration and primarily responsible for the dissemination of information to their
then farmed out to a medical clinic located elsewhere, shall not be constituents on all aspects of overseas employment. To carry out
allowed; this task, the following shall be undertaken by the LGUs:

(c.5) Within a period of three (3) years from the effectivity of this (d.1) Provide a venue for the POEA, other concerned government
Act, all DOH regional and/or provincial hospitals shall establish and agencies and non-government organizations to conduct PEOS to
operate clinics that can be serve the health examination their constituents on a regular basis;
requirements of Filipino migrant workers to provide them easy
access to such clinics all over the country and lessen their (d.2) Establish overseas Filipino worker help desk or kiosk in their
transportation and lodging expenses and localities with the objective of providing current information to
their constituents on all the processes aspects of overseas
(c.6) All DOH-accredited medical clinics, including the DOH- employment. Such desk or kiosk shall, as be linked to the
operated clinics, conducting health examinations for Filipino database of all concerned government agencies, particularly the
migrant workers shall observe the same standard operating POEA for its updated lists of overseas job orders and licensed
procedures and shall comply with internationally-accepted recruitment agencies in good standing.
standards in their operations to conform with the requirements of
receiving countries or of foreign employers/principals. Section 17. Subparagraph ( c ) of Section of Republic Act No.
8042, as amended, is hereby amended to read as follows:
Any Foreign employer who does not honor the results of valid
health examinations conducted by a DOH-accredited or DOH-
( c ) To tap the assistance of reputable law firms, the Integrated
Bar of the Philippines, other bar associations and other SEC. 26. Uses of the Legal Assistance Fund. The Legal
government legal experts on overseas Filipino worker laws to Assistance Fund created under the preceding section shall be used
complement the governments efforts to provide legal assistance to exclusively6 to provide legal services to migrant workers and
our migrant workers; overseas Filipinos in distress in accordance with the guidelines,
criteria and procedures promulgated in accordance with Section 24
Section 18. Section 25 of Republic Act No. 8042, as amended, is ( a ) herof. The expenditures to be charged against the Fund shall
hereby amended to read as follows: include the fees for the foreign lawyers to be hired by the Legal
Assistant for Migrant Workers Affairs to represent migrant workers
SEC. 25. Legal Assistance Fund. There is herby established a facing charges or in filing cases against erring or abusive
legal assistance fund for migrant workers, hereinafter referred to employers abroad, bail bonds to secure the temporary releases
as the Legal Assistance Fund, in the amount of one hundred million and other litigation expenses: Provided, That at the end of every
pesos (P100,000,000.00) to be constituted from the following year, the Department of Foreign Affairs shall include in its report to
sources. Congress, as provided for under Section 33 of this Act, the status
of the Legal Assistance Fund, including the expenditures from the
Fifty million pesos (50,000,000.00) from the Contingency Fund of said fund duly audited by the Commission on Audit (COA):
the President; Provided, further, That the hiring of foreign legal counsels, when
circumstances warrant urgent action, shall be exempt from the
Thirty million pesos (30,000,000.00) from the Contingency Fund coverage of Republic Act No. 9184 or the Government
of the President Social Fund; Procurement Act.

Twenty million pesos (20,000,000.00) from the Welfare Fund for Section 20. Section 32 of Republic Act No. 8042, as amended, is
Overseas Workers established under Letter of Instructions No. 537 hereby amended to read as follows:
as amended by Presidential Decree Nos. 1694 and 1809; and
SEC. 32. POEA, OWWA and other Boards; Additional
An amount appropriated in the annual General Appropriations Act Memberships. Notwithstanding any provision of law to the
(GAA) which shall not be less than Thirty million pesos contrary, the respective Boards of the POEA and the OWWA shall,
(30,000,000.00) per year: Provided, that the balance of the Legal in addition to their present composition, have three (3) members
Assistance Fund (LAF) including the amount appropriated for the each who shall come from the women, sea-based and land-based
year shall not be less than One hundred million pesos sectors respectively, to be selected and nominated openly by the
(P100,000,000.00) : Provided, further, That the fund shall be general membership of the sector being represented.
treated as a special fund in the National Treasury and its balance,
including the amount appropriated in the GAA, which shall form The selection and nomination of the additional members from the
part of the Fund, shall not revert to the General Fund. women, sea-based and land-based sectors shall be governed by
the following guidelines:
Any balances of existing funds which have been set aside by the
government specifically as legal assistance or defense fund to help (a) The POEA and the OWWA shall launch a massive information
migrant workers shall upon effectivity of this Act, be turned over campaign on the selection of nominees and provide for a system of
to, and form part of, the Fund created under this Act. consultative sessions for the certified leaders or representatives of
the concerned sectors, at least three (3) times, within ninety (90)
Section 19. Section 26 of Republic Act No. 8042, as amended, is days before the boards shall be convened, for purposes of
hereby amended to read as follows: selection. The process shall be open, democratic and transparent;
Section 4 hereof, the Department of Foreign Affairs and the
(b) Only non-government organizations that protect and promote Department of Labor and Employment shall submit separately to
the rights and welfare of overseas Filipino workers, duly registered the said body a semi-annual report of Philippine foreign posts
with the appropriate Philippine government agency and in good located in countries hosting Filipino migrant workers. The mid-year
standing as such, and in existence for at least three (3) years prior report covering the period January to June shall be submitted not
to the nomination shall be qualified to nominate a representative later than October 31 of the same year while the year-end report
for each sector to the Board; covering the period July to December shall be submitted not later
than May 31 of the following year. The report shall include, but
(c) The nominee must be at least twenty-five (25) years of age, shall not limited to, the following information:
able to read and write, and a migrant worker at the time of his or
her nomination or was a migrant worker with at least three (3) xxx
years experience as such; and
Any officer of the government who fails to submit the report as
(d) A final list of all the nominees selected by the OWWA/POEA stated in this section shall be subject to an administrative penalty
governing boards, which shall consist of three(3) names for each of dismissal from the service with disqualification to hold any
sector to be represented, shall be submitted to the President and appointive public office for five (5) years.
published in a newspaper of general circulation;
Section 22. Section 35 of Republic Act No. 8042, as amended, is
Within thirty (30) days from the submission of the list, the hereby amended to read as follows:
President shall select and appoint from the list, the representatives
to the POEA/OWWA governing boards. SEC. 35. Exemption from Travel Tax Documentary Stamp and
Airport Fee. All laws to the contrary notwithstanding, the migrant
The additional members shall have a term of three (3) years and workers shall be exempt from the payment of travel tax and
shall be eligible for reappointment for another three (3) years. In airport-fee upon proper showing of proof entitlement by the POEA.
case of vacancy, the President shall in accordance with the
provisions of this Act, appoint a replacement who shall serve the The remittances of all overseas Filipino workers, upon showing of
unexpired term of his or her predecessor. the same proof of entitlement by the overseas Filipino workers
beneficiary or recipient, shall be exempt from the payment of
Any executive issuances or orders issued that contravene the documentary stamp tax.
provisions of this section shall have no force and effect.
Section 23. A new Section 37-A. of Replublic Act No. 8042, as
All other government agencies and government-owned or amended, is hereby added to read as follows:
controlled corporations which require at least one (1)
representative from the overseas workers sector to their SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired
respective boards shall follow all the applicable provisions of this Workers. In addition to the performance bond to be filed by the
section. recruitment/manning agency under Section 10, each migrant
worker deployed by a recruitment/manning agency shall be
Section 21. The first and last paragraph of Section 33 of Republic covered by a compulsory insurance policy which shall be secured
Act No. 8042, as amended, is hereby amended to read as follows: at no cost to the said worker. Such insurance policy shall be
effective for the duration of the migrant workers employment and
SEC. 33. Report to Congress. In order to inform the Philippine shall cover, at the minimum:
Congress on the implementation of the policy enunciated in
(a) Accidental death, with at least Fifteen thousandUnited shall be entitled to a compassionate visit by one (1) family
Statesdollars (US$10,000.00) survivors benefit payable to the member or a requested individual. The insurance company shall
migrant workers beneficiaries; pay for the transportation cost of the family member or requested
individual to the major airport closest to the place of
(c) Permanent total disablement, with at least Seven thousand hospitalization of the worker. It is, however, the responsibility of
five hundredUnited Statesdollars (US$7,500.00) disability benefit the family member or requested individual to meet all visa and
payable to the migrant worker. The following disabilities shall be travel document requirements;
deemed permanent: total, complete loss of sight of both eyes; loss
of two(2) limbs at or above the ankles or wrists; permanent (h) Medical evacuation. When an adequate medical facility is not
complete paralysis of two (2) limbs; brain injury resulting to available proximate to the migrant worker, as determined by the
incurable imbecility or insanity; insurance companys physician and/or a consulting physician,
evacuation under appropriate medical supervision by the mode of
(d) Repatriation cost of the worker when his/her employment is transport necessary shall be undertaken by the insurance provider;
terminated without any valid cause, including the transport of his and
or her personal belongings. In case of death, the insurance
provider shall arrange and pay for the repatriation or return of the (i) Medical repatriation. When medically necessary as determined
workers remains. The insurance provider shall also render any by the attending physician, repatriation under medical supervision
assistance necessary in the transport including, but not limited to, to the migrant workers residence shall be undertaken by the
locating a local licensed funeral home, mortuary or direct insurance provider at such time that the migrant worker is
disposition facility to prepare the body for transport, completing all medically cleared for travel by commercial carrier. If the period to
documentation, obtaining legal clearances, procuring consular receive medical clearance to travel exceeds fourteen (14) days
services, providing necessary casket or air transport container, as from the date of discharge from the hospital, an alternative
well as transporting the remains including retrieval from site of appropriate mode of transportation, such as air ambulance, may
death and delivery to the receiving funeral home; be arranged. Medical and non-medical escorts may be provided
when necessary.
(e) Subsistence allowance benefit, with at least One
hundredUnited Statesdollars (US$100.00) Per month for a Only reputable private insurance companies duly registered with
maximum of six (6) months for a migrant worker who is involved the Insurance Commission (IC), which are in existence and
in a case or litigation for the protection of his/her rights in the operational for at least Five hundred million pesos
receiving country; (P500,000,000.00) to be determined by the IC, and with a current
year certificate of authority shall be qualified to provide for the
(f) Money claims arising from employers liability which may be workers insurance coverage. Insurance companies who have
awarded or given to the worker in a judgment or settlement of his directors, partners, officers, employees or agents with relatives,
or her case in the NLRC. The insurance coverage for money claims within the fourth civil degree of consanguinity or affinity, who work
shall be equivalent to at least three (3) months for every year of or have interest in any of the licensed recruitment/manning
the migrant workers employment contract; agencies or in any of the government agencies involved in the
overseas employment program shall be disqualified from providing
In addition to the above coverage, the insurance policy shall also this workers insurance coverage.
include:
The recruitment/manning agency shall have the right to choose
(g) Compassionate visit. When a migrant worker is hospitalized from any of the qualified insurance providers the company that will
and has been confined for at least seven (7) consecutive days, he insure the migrant worker it will deploy. After procuring such
insurance policy, the recruitment/manning agency shall provide an the case, the names of the parties and the nature of the cause of
authenticated copy thereof to the migrant worker. It shall then action of the migrant worker.
submit the certificate of insurance coverage of the migrant worker
to POEA as a requirement for the issuance of an Overseas For the payment of money claims under subparagraph (f), the
Employment Certificate (OEC) to the migrant worker. In the case following rules shall govern:
of seafarers who are insured under policies issued by foreign
insurance companies, the POEA shall accept certificates or other (1) After a decision has become final and executor or a
proofs of cover from recruitment/manning agencies: Provided, settlement/compromise agreement has been reached between the
That the minimum coverage under sub-paragraphs (a) to (i) are parties at the NLRC, an order shall be released mandating the
included therein. respondent recruitment/manning agency to pay the amount
adjudged or agreed upon within thirty (30) days;
Any person having a claim upon the policy issued pursuant to
subparagraphs (a), (b), (c), (d) and (e) of this section shall (2) The recruitment/manning agency shall then immediately file a
present to the insurance company concerned a written notice of notice of claim with its insurance provider for the amount of
claim together with pertinent supporting documents. The insurance liability insured, attaching therewith a copy of the decision or
company shall forthwith ascertain the truth and extent of the claim compromise agreement;
and make payment within ten (10) days from the filing of the
notice of claim. (3) Within ten (10) days from the filing of notice of claim, the
insurance company shall make payment to the
Any claim arising from accidental death, natural death or recruitment/manning agency the amount adjudged or agreed
disablement under this section shall be paid by the insurance upon, or the amount of liability insured, whichever is lower. After
company without any contest and without the necessity of receiving the insurance payment, the recruitment/manning agency
providing fault or negligence of any kind on the part of the insured shall immediately pay the migrant workers claim in full, taking
migrant worker: Provided, That the following documents, duly into account that in case the amount of insurance coverage is
authenticated by the Philippine foreign posts, shall be sufficient insufficient to satisfy the amount adjudged or agreed upon, it is
evidence to substantiate the claim: liable to pay the balance thereof;

(1) Death Certificate In case of natural or accidental death; (4) In case the insurance company fails to make payment within
ten (10) days from the filing of the claim, the recruitment/
(2) Police or Accident Report In case of accidental death; and manning agency shall pay the amount adjudged or agreed upon
within the remaining days of the thirty (30)-day period, as
(3) Medical Certificate In case of permanent disablement; provided in the first subparagraph hereof;

For repatriation under subparagraph (d) hereof, a certification (5) If the workers claim was not settled within the aforesaid
which states the reason/s for the termination of the migrant thirty (30)-day period, the recruitment/manning agencys
workers employment and the need for his or her repatriation shall performance bond or escrow deposit shall be forthwith garnished
be issued by the Philippine foreign post or the Philippine Overseas to satisfy the migrant workers claim;
Labor Office (POLO) located in the receiving country.
(6) The provision of compulsory workers insurance under this
For subsistence allowance benefit under subparagraph (e), the section shall not affect the joint and solidary liability of the foreign
concerned labor attach or, in his absence, the embassy or employer and the recruitment/manning agency under Section 10;
consular official shall issue a certification which states the name of
(7) Lawyers for the insurance companies, unless the latter is
impleaded, shall be prohibited to appear before the NLRC in money For purposes of this section, the Department of Labor and
claims cases under this section. Employment, IC, NLRC and the POEA, in consultation with the
recruitment/manning agencies and legitimate non-government
Any question or dispute in the enforcement of any insurance organizations advocating the rights and welfare of overseas Filipino
policy issued under this section shall be brought before the IC for workers, shall formulate the necessary implementing rules and
mediation or adjudication. regulations.

In case it is shown by substantial evidence before the POEA that The foregoing provisions on compulsory insurance coverage shall
the migrant worker who was deployed by a licensed be subject to automatic review through the Congressional
recruitment/manning agency has paid for the premium or the cost Oversight Committee immediately after three (3) years from the
of the insurance coverage or that the said insurance coverage was effectivity of this Act in order to determine its efficacy in favor of
used as basis by the recruitment/manning agency to claim any the covered overseas Filipino workers and the compliance by
additional fee from the migrant worker, the said licensed recruitment/manning agencies and insurance companies, without
recruitment/manning agency shall lose its license and all its prejudice to an earlier review if necessary and warranted for the
directors, partners, proprietors, officers and employees shall be purpose of modifying, amending and/or repealing these subject
perpetually disqualified from engaging in the business of provisions.
recruitment of overseas workers. Such penalty is without prejudice
to any other liability which such persons may have incurred under Section 24. A new Section 37-B of Republic Act No. 8042, as
existing laws, rules or regulations. amended, is hereby added to read as follows:

For migrant workers recruited by the POEA on a government-to- Sec. 37-B. Congressional Oversight Committee. There is hereby
government arrangement, the POEA shall establish a foreign created a Joint Congressional Oversight Committee composed of
employers guarantee fund which shall be answerable to the five (5) Senators and five (5) Representatives to be appointed by
workers monetary claims arising from breach of contractual the Senate President and the Speaker of the House of
obligations. For migrant workers classified as rehires, name hires Representatives, respectively. The Oversight Committee shall be
or direct hires, they may opt to be covered by this insurance co-chaired by the chairpersons of the Senate Committee on Labor
coverage by requesting their foreign employers to pay for the cost and Employment and the House of Representatives Committee on
of the insurance coverage or they may pay for the premium Overseas Workers Affairs. The Oversight Committee shall have the
themselves. To protect the rights of these workers, the POEA shall following duties and functions:
provide them adequate legal assistance, including conciliation and
mediation services, whether at home or abroad. (a) To set the guidelines and overall framework to monitor and
ensure the proper implementation of Republic Act No. 8042, as
At the end of every year, the Department of Labor and amended, as well as all programs, projects and activities related to
Employment and the IC shall jointly make an assessment of the overseas employment;
performance of all insurance providers, based upon the report of
the NLRC and the POEA on their respective interactions and (b) To ensure transparency and require the submission of reports
experiences with the insurance companies, and they shall have the from concerned government agencies on the conduct of programs,
authority to ban or blacklist such insurance companies which are projects and policies relating to the implementation of Republic Act
known to be evasive or not responsive to the legitimate claims of No. 8042, as amended;
migrant workers. The Department of Labor and Employment shall
include such assessment in its year-end report to Congress.
(c) To approve the budget for the programs of the Oversight House of Representatives Committee on Overseas Workers Affairs,
Committee and all disbursements therefrom, including shall, within sixty (60) days after the effectivity of this Act,
compensation of all personnel; formulate the necessary rules and regulations for its effective
implementation.
(d) To submit periodic reports to the President of the Philippines
and Congress on the implementation of the provisions of Republic Section 26. Funding. The departments, agencies,
Act No. 8042, as amended; instrumentalities, bureaus, offices and government-owned and
controlled corporations charged with carrying out the provisions of
(e) To determine weaknesses in the law and recommend the this Act shall include in their respective programs the
necessary remedial legislation or executive measures; and implementation of this Act, the funding of which shall be included
in the General Appropriations Act. The Congressional Oversight
(f) To perform such other duties, functions and responsibilities as Committee on Overseas Workers Affairs shall have the sum of
may be necessary to attain its objectives. Twenty-five million pesos (P25,000,000.00), half of which shall be
charged against the current appropriations of the Senate while the
The Oversight Committee shall adopt its internal rules of other half shall be charged against the current appropriations of
procedure, conduct hearings and receive testimonies, reports, and the House of Representatives, to carry out its powers and functions
technical advice, invite or summon by subpoena ad testificandum for its initial operations and for fiscal years wherein the General
any public official or private citizen to testify before it, or require Appropriations Act is reenacted and no provision for its continued
any person by subpoena duces tecum documents or other operation is included in such Act. Thereafter, such amount
materials as it may require consistent with the provisions of necessary for its continued operations shall be included in the
Republic Act No. 8042, as amended. annual General Appropriations Act.

The Oversight Committee shall organize its staff and technical Section 27. Separability Clause. If, for any reason, may portion
panel, and appoint such personnel, whether on secondment from of this Act is declared unconstitutional or invalid, the same shall
the Senate and the House of Representatives or on temporary, not affect the validity of the other provisions not affected thereby.
contractual, or on consultancy, and determine their compensation
subject to applicable civil service laws, rules and regulations with a Section 28. Repealing Clause. All laws, decrees, executive
view to ensuring a competent and efficient secretariat. orders, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed or
The members of the Oversight Committee shall not receive modified accordingly.
additional compensation, allowances or emoluments for services
rendered thereto except traveling, extraordinary and other Section 29. Effectivity. This Act shall take effect fifteen (15) days
necessary expenses to attain its goals and objectives. after its publication in at least two (2) newspapers of general
circulation.
The Oversight Committee shall exist for a period of ten (10) years
from the effectivity of this Act and may be extended by a joint * R.A. 8759 (2000) PUBLIC EMPLOYMENT SERVICE
concurrent resolution. OFFICE ACT OF 1999 SECS. 2-3;
Section 2.- Declaration of Policy The state to provide full
Section 25. Implementing Rules and Regulations. The employment and equality of employment opportunities for all, and
departments and agencies charged with carrying out the provisions for this purpose, to strengthen and expand the existing
of this Act, except as otherwise provided herein, in consultation employment facilitation service machinery of the government
with the Senate Committee on Labor and Employment and the particularly at the local levels.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Section 3. Establishment of the Public Employment Service Office Philippines, by virtue of the powers vested in me by the
To carry out the above-declared policy, there shall be established Constitution, do hereby order and promulgate:
in all capital towns of provinces, key cities, and other strategic
areas a Public Employment Service Office, Hereinafter referred to SECTION 1. It shall be mandatory for every Filipino contract
as PESO, which shall be community-based and maintained worker abroad to remit regularly a portion of his foreign exchange
largely by local government units (LGUs) and a number of non- earnings to his beneficiary in the Philippines through the Philippine
governmental organizations (NGOs) or community-based banking system. Licensed agencies and other entities authorized
organizations (CBOs) and state universities and colleges (SUCs). by the Ministry of Labor and Employment to recruit Filipino workers
The PESOs shall be linked to the regional offices of the Department for overseas employment are similarly required to remit their
of Labor and Employment (DOLE) for coordination and technical workers earnings as provided for in this Order.
supervision, and to the DOLE central office, to constitute the
national employment service network. SECTION 2. All contracts of employment and agency or service
agreements submitted to the Ministry of Labor and Employment
* E.O. 857 GOVERNING THE REMITTANCE TO THE shall contain a proviso that shall make it mandatory for workers to
PHILIPPINES OF FOREGIN EXCHANGE EARNINGS OF remit to the Philippines in foreign exchange at least the following
FILIPINO WORKERS ABROAD AND FOR OTHER PURPOSES portions of their earnings:
1984;
WHEREAS, existing laws and regulations governing remittances of a) Seamen or mariners: Seventy (70) percent of basic salary;
foreign exchange earnings of overseas Filipino workers to their
families, dependents and/or beneficiaries have not been fully b) Workers of Filipino contractors and construction companies:
effective in ensuring that they are coursed through official financial Seventy (70) percent of basic salary;
institutions of the Philippine Government of their authorized
agents; c) Doctors, engineers, teachers, nurses and other professional
workers whose contract provide for free board and lodging:
WHEREAS, it is necessary to protect the welfare of families, Seventy (70) percent of basic salary;
dependents and beneficiaries of Filipino workers abroad and to
ensure that the foreign exchange earnings of these workers are d) All other professional workers whose employment contracts do
remitted through authorized financial institutions of the Philippine not provide for free board and lodging facilities: Fifty (50) percent
Government in line with the countrys economic development of basic salary;
program;
e) Domestic and other service workers: Fifty (50) percent of basic
WHEREAS, non-compliance with these aforesaid laws and salary;
regulations and recourse to the use of unauthorized and unofficial
financing institutions has led to the detriment of the countrys f) All other workers not falling under the aforementioned
balance of payments and economic development program; categories: Fifty (50) percent of basic salary.

WHEREAS, it is imperative that the mandatory remittance SECTION 3. Passports issued to Filipino contract workers shall
requirement be fully complied with by all concerned through the have an initial period of validity of one year provided that the
institution of appropriate remittance facilities and the imposition of Ministry of Foreign Affairs may adjust, as circumstances may
effective sanctions; require, the initial passport validity period. The passport shall be
renewable every year upon submission of usual requirements and
presentation of documentary proof of compliance to the remittance regulations, may act in the interim as the channel for remittance of
requirement in the percentages provided for in this Order. The foreign exchange earnings. The Ministry of Foreign Affairs shall
Ministry of Foreign Affairs shall not extend or renew the passport immediately inform the Central Bank of the Philippines these
of any contract worker unless proof of his compliance with the arrangements and shall remit all funds thereto.
mandatory remittance requirement is submitted.
SECTION 9. Contract workers who fail to comply with the
SECTION 4. The Ministry of Labor and Employment shall not requirements of this Order shall be suspended or excluded from
approve the renewal of employment contracts and agency or the list of eligible workers for overseas employment. In cases of
service agreements unless proof of remittance of foreign exchange subsequent violations, he shall be repatriated from the job site at
earnings is submitted. the expense of the employer or at his expense, as the case may
be.
SECTION 5. For purposes of this Order, proof of compliance with
the mandatory remittance requirement as mentioned in Section 1 Filipino or foreign employers and/or their representatives who fail
hereof, may consist of any of the following documents or such to comply with the requirements under this Order shall be
alternative as may be approved by the Central Bank of the excluded from the overseas employment program. In the case of
Philippines showing that the contract worker had in fact effected local private employment agencies and entities, failure to comply
aforesaid remittance and had caused the surrender of the same for with the provisions hereof shall be a ground for cancellation of
pesos through the Philippine banking system: their license or authority to recruit workers for overseas
employment, without prejudice to their liabilities under existing
a. Confirmed bank (foreign) remittance form; laws and regulations.
b. Certification from employer, duly authenticated, that remittance
has been effected; SECTION 10. The Ministries of Labor and Employment and Foreign
c. Certification as to the surrender for pesos to the Philippine Affairs and the Central Bank of the Philippines shall draw up the
banking system; and necessary rules and procedures for the proper implementation of
d. Receipt of International Postal Money Order. this Order within ten (10) days from the signing hereof.

SECTION 6. Remittances of foreign exchange earnings may be SECTION 11. All provisions of existing orders, rules and regulations
undertaken individually by the contract worker or collectively inconsistent herewith are hereby repealed.
through the employer under a payroll deduction scheme, in
accordance with Central Bank regulations and applicable SECTION 12. This Order shall take effect thirty (30) days after the
guidelines. promulgation of implementing rules and procedures.

SECTION 7. As a prerequisite for accreditation by the Ministry of Done in the City of Manila, this 13th day of December, in the year
Labor and Employment, an employer shall commit to provide of our Lord, Nineteen Hundred and Eighty Two.
facilities to effect the remittances and monitoring of foreign
exchange earnings of Filipino workers in his employ. 2.01. RECRUITMENT AND PLACEMENT OF WORKERS
DEFINITION ART. 13 (a); 13 (b);
SECTION 8. The Central Bank of the Philippines shall cause 13 (a): "Worker" means any member of the labor force, whether
necessary arrangements to be made with the appropriate financing employed or unemployed.
institutions to handle the remittances called for in this Order. In
the absence of appropriate banking facilities, the Embassy or 13 (b): "Recruitment and placement" refers to any act of
Consulate nearest to the job site, in accordance with local laws and canvassing, enlisting, contracting, transporting, utilizing, hiring or
procuring workers, and includes referrals, contract services, HELD: Article 13(b) of P. D. 442, otherwise known as the Labor
promising or advertising for employment, locally or abroad, Code, states that, "(b) 'Recruitment and placement' refers to any
whether for profit or not: Provided, That any person or entity act of canvassing, 'enlisting, contracting, transporting, hiring, or
which, in any manner, offers or promises for a fee, employment to procuring workers, and includes referrals, contract services,
two or more persons shall be deemed engaged in recruitment and promising or advertising for employment, locally or abroad,
placement. whether for profit or not: Provided, That any person or entity
which, in any manner, offers or promises for a fee employment to
DEFINITION LAW STRUCTURE two or more persons shall be deemed engaged in recruitment and
placement."
PEOPLE V PANIS
142 SCRA 664 1986 As we see it, the proviso was intended neither to impose a
condition on the basic rule nor to provide an exception thereto but
FACTS: Four informations were filed on January 9, 1981, in the merely to create a presumption. The presumption is that the
Court of First Instance of Zambales and Olongapo City alleging individual or entity is engaged in recruitment and placement
that SerapioAbug, private respondent herein, "without first whenever he or it is dealing with two or more persons to whom, in
securing a license from the Ministry of Labor as a holder of consideration of a fee, an offer or promise of employment is made
authority to operate a fee-charging employment agency, did then in the course of the "canvassing, enlisting, contracting,
and there wilfully, unlawfully and criminally operate a private fee- transporting, utilizing, hiring or procuring (of) workers."
charging employment agency by charging fees and expenses
(from) and promising employment in Saudi Arabia" to four At any rate, the interpretation here adopted should give more
separate individuals named therein, in violation of Article 16 in force to the campaign against illegal recruitment and placement,
relation to Article 39 of the Labor Code. which has victimized many Filipino workers seeking a better life in
a foreign land, and investing hard-earned savings or even
Abug filed a motion to quash on the ground that the informations borrowed funds in pursuit of their dream, only to be awakened to
did not charge an offense because he was accused of illegally the reality of a cynical deception at the hands of their own
recruiting only one person in each of the four informations. Under countrymen.
the proviso in Article 13(b), he claimed, there would be illegal
recruitment only "whenever two or more persons are in any PEOPLE vs. SUALO
manner promised or offered any employment for a fee."
EXECUTIVE SECRETARY vs. CA 429 SCRA 81 (04)
The posture of the petitioner is that the private respondent is FACTS: Republic Act 8042 (Migrant Workers and Overseas Filipino
being prosecuted under Article 39 in relation to Article 16 of the Act of 1995) took effect on 15 July 1995. Prior to its effectivity,
Labor Code; hence, Article 13(b) is not applicable. However, as the Asian Recruitment Council Philippine CHaptr Inc (ARCO-Phil) filed
first two cited articles penalize acts of recruitment and placement petition for declaratory relief. The alleged that Section 6,
without proper authority, which is the charge embodied in the subsections (a) to (m) is unconstitutional because licensed and
informations, application of the definition of recruitment and authorized recruitment agencies are placed on equal footing with
placement in Article 13(b) is unavoidable. illegal recruiters. It contended that while the Labor Code
distinguished between recruiters who are holders of licenses and
ISSUE: W/N the petitioner is guilty of violating Article 13(b) of P. non-holders thereof in the imposition of penalties, Rep. Act No.
D. 442, otherwise known as the Labor Code? 8042 does not make any distinction. The penalties in Section 7(a)
and (b) being based on an invalid classification are, therefore,
repugnant to the equal protection clause, besides being excessive;
hence, such penalties are violative of Section 19(1), Article III of 2.03 Allowed Entities;
the Constitution. In their answer to the petition, they contend that
ARCO-Phil has no legal standing, it being a non-stock, non-profit A. GENERAL RULE Art. 16, 18, 26 and 12 (f)
organization; hence, not the real party-in-interest as petitioner in Art. 16. Private recruitment. Except as provided in Chapter II
the action. It is service-oriented while the recruitment agencies it of this Title, no person or entity other than the public
purports to represent are profit-oriented. employment offices, shall engage in the recruitment and
placement of workers.
ISSUE: W/N ARCO-Phil has legal standing to assail RA 8042?
Art. 18. Ban on direct-hiring. No employer may hire a Filipino
HELD: worker for overseas employment except through the Boards
The modern view is that an association has standing to complain of and entities authorized by the Secretary of Labor. Direct-hiring
injuries to its members. This view fuses the legal identity of an by members of the diplomatic corps, international
association with that of its members. An association has standing organizations and such other employers as may be allowed by
to file suit for its workers despite its lack of direct interest if its the Secretary of Labor is exempted from this provision.
members are affected by the action. An organization has standing
to assert the concerns of its constituents. However, the respondent Art. 26. Travel agencies prohibited to recruit. Travel agencies
has no locus standi to file the petition for and in behalf of unskilled and sales agencies of airline companies are prohibited from
workers. We note that it even failed to implead any unskilled engaging in the business of recruitment and placement of
workers in its petition. workers for overseas employment whether for profit or not.

2.02. EMPLOYMENT AGENCY ART. 13 (c), (d), (e), (f); Art. 12. Statement of objectives. It is the policy of the State:
(f) To strengthen the network of public employment offices and
Art. 13. Definitions. rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas, to
(c) "Private fee-charging employment agency" means any person serve national development objectives;
or entity engaged in recruitment and placement of workers for a
fee which is charged, directly or indirectly, from the workers or B. ALLOWED ENTITIES ART. 13 (c),(e);
employers or both. Art. 13. Definitions.

(d) "License" means a document issued by the Department of (c) "Private fee-charging employment agency" means any person
Labor authorizing a person or entity to operate a private or entity engaged in recruitment and placement of workers for a
employment agency. fee which is charged, directly or indirectly, from the workers or
employers or both.
(e) "Private recruitment entity" means any person or association
engaged in the recruitment and placement of workers, locally or (e) "Private recruitment entity" means any person or association
overseas, without charging, directly or indirectly, any fee from the engaged in the recruitment and placement of workers, locally or
workers or employers. 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 1. Private Art. 13 (c), (e);
and placement activities as a private recruitment entity. (c) "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, Chapter II
from the workers or employers or both. REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES;

(e) "Private recruitment entity" means any person or Art. 26. Travel agencies prohibited to recruit. Travel agencies and
association engaged in the recruitment and placement of sales agencies of airline companies are prohibited from engaging in
workers, locally or overseas, without charging, directly or the business of recruitment and placement of workers for overseas
indirectly, any fee from the workers or employers. employment whether for profit or not.

2. Public Art. 12 (f), 14(g) ; 2.06 TECHNIQUES OF REGULATION ART. 25 39;


Art. 12. Statement of objectives. It is the policy of the
State: Chapter II
(f) To strengthen the network of public employment offices REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
and rationalize the participation of the private sector in the
recruitment and placement of workers, locally and Art. 25. Private sector participation in the recruitment and
overseas, to serve national development objectives; placement of workers. Pursuant to national development objectives
and in order to harness and maximize the use of private sector
(g) To insure careful selection of Filipino workers for resources and initiative in the development and implementation of
overseas employment in order to protect the good name of a comprehensive employment program, the private employment
the Philippines abroad. sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and
2.04 DEPLOYMENT OF MIGRANT WORKERS; regulations as may be issued by the Secretary of Labor.
http://www.poea.gov.ph/laws&rules/files/Migrant%20Workers%20
Act%20of%201995%20(RA%208042).html Art. 26. Travel agencies prohibited to recruit. Travel agencies and
sales agencies of airline companies are prohibited from engaging in
2.05 PROHIBITED ENTITY ART. 16, 18, 26 the business of recruitment and placement of workers for overseas
employment whether for profit or not.
Title I
RECRUITMENT AND PLACEMENT OF WORKERS Art. 27. Citizenship requirement. Only Filipino citizens or
Chapter I corporations, partnerships or entities at least seventy-five percent
GENERAL PROVISIONS (75%) of the authorized and voting capital stock of which is owned
and controlled by Filipino citizens shall be permitted to participate
Art. 16. Private recruitment. Except as provided in Chapter II of in the recruitment and placement of workers, locally or overseas.
this Title, no person or entity other than the public employment
offices, shall engage in the recruitment and placement of workers. Art. 28. Capitalization. All applicants for authority to hire or
renewal of license to recruit are required to have such substantial
Art. 18. Ban on direct-hiring. No employer may hire a Filipino capitalization as determined by the Secretary of Labor.
worker for overseas employment except through the Boards and
entities authorized by the Secretary of Labor. Direct-hiring by Art. 29. Non-transferability of license or authority. No license or
members of the diplomatic corps, international organizations and authority shall be used directly or indirectly by any person other
such other employers as may be allowed by the Secretary of Labor than the one in whose favor it was issued or at any place other
is exempted from this provision. than that stated in the license or authority be transferred,
conveyed or assigned to any other person or entity. Any transfer
of business address, appointment or designation of any agent or 3. To give any false notice, testimony, information or
representative including the establishment of additional offices document or commit any act of misrepresentation for the
anywhere shall be subject to the prior approval of the Department purpose of securing a license or authority under this Code.
of Labor.
4. To induce or attempt to induce a worker already employed
Art. 30. Registration fees. The Secretary of Labor shall promulgate to quit his employment in order to offer him to another
a schedule of fees for the registration of all applicants for license or unless the transfer is designed to liberate the worker from
authority. oppressive terms and conditions of employment;

Art. 31. Bonds. All applicants for license or authority shall post 5. To influence or to attempt to influence any person or entity
such cash and surety bonds as determined by the Secretary of not to employ any worker who has not applied for
Labor to guarantee compliance with prescribed recruitment employment through his agency;
procedures, rules and regulations, and terms and conditions of
employment as may be appropriate. 6. To engage in the recruitment or placement of workers in
jobs harmful to public health or morality or to the dignity
Art. 32. Fees to be paid by workers. Any person applying with a of the Republic of the Philippines;
private fee-charging employment agency for employment
assistance shall not be charged any fee until he has obtained 7. To obstruct or attempt to obstruct inspection by the
employment through its efforts or has actually commenced Secretary of Labor or by his duly authorized
employment. Such fee shall be always covered with the representatives;
appropriate receipt clearly showing the amount paid. The
Secretary of Labor shall promulgate a schedule of allowable fees. 8. To fail to file reports on the status of employment,
placement vacancies, remittance of foreign exchange
Art. 33. Reports on employment status. Whenever the public earnings, separation from jobs, departures and such other
interest requires, the Secretary of Labor may direct all persons or matters or information as may be required by the
entities within the coverage of this Title to submit a report on the Secretary of Labor.
status of employment, including job vacancies, details of job
requisitions, separation from jobs, wages, other terms and 9. To substitute or alter employment contracts approved and
conditions and other employment data. verified by the Department of Labor from the time of
actual signing thereof by the parties up to and including
Art. 34. Prohibited practices. It shall be unlawful for any individual, the periods of expiration of the same without the approval
entity, licensee, or holder of authority: of the Secretary of Labor;

1. To charge or accept, directly or indirectly, any amount 10. To become an officer or member of the Board of any
greater than that specified in the schedule of allowable corporation engaged in travel agency or to be engaged
fees prescribed by the Secretary of Labor, or to make a directly or indirectly in the management of a travel
worker pay any amount greater than that actually received agency; and
by him as a loan or advance;
11. To withhold or deny travel documents from applicant
2. To furnish or publish any false notice or information or workers before departure for monetary or financial
document in relation to recruitment or employment; considerations other than those authorized under this Code
and its implementing rules and regulations.
large scale if committed against three (3) or more persons
Art. 35. Suspension and/or cancellation of license or authority. The individually or as a group.
Minister of Labor shall have the power to suspend or cancel any
license or authority to recruit employees for overseas employment The Secretary of Labor and Employment or his duly authorized
for violation of rules and regulations issued by the Ministry of representatives shall have the power to cause the arrest and
Labor, the Overseas Employment Development Board, or for detention of such non-licensee or non-holder of authority if after
violation of the provisions of this and other applicable laws, investigation it is determined that his activities constitute a danger
General Orders and Letters of Instructions. to national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the search of
Chapter III the office or premises and seizure of documents, paraphernalia,
MISCELLANEOUS PROVISIONS properties and other implements used in illegal recruitment
activities and the closure of companies, establishments and
Art. 36. Regulatory power. The Secretary of Labor shall have the entities found to be engaged in the recruitment of workers for
power to restrict and regulate the recruitment and placement overseas employment, without having been licensed or authorized
activities of all agencies within the coverage of this Title and is to do so.
hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the Art. 39. Penalties.
provisions of this Title. The penalty of life imprisonment and a fine of One Hundred
Thousand Pesos (P1000,000.00) shall be imposed if illegal
Art. 37. Visitorial Power. The Secretary of Labor or his duly recruitment constitutes economic sabotage as defined herein;
authorized representatives may, at any time, inspect the premises, Any licensee or holder of authority found violating or causing
books of accounts and records of any person or entity covered by another to violate any provision of this Title or its implementing
this Title, require it to submit reports regularly on prescribed rules and regulations shall, upon conviction thereof, suffer the
forms, and act on violation of any provisions of this Title. 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
Art. 38. Illegal recruitment. P50,000, or both such imprisonment and fine, at the discretion of
Any recruitment activities, including the prohibited practices the court;
enumerated under Article 34 of this Code, to be undertaken by
non-licensees or non-holders of authority, shall be deemed illegal Any person who is neither a licensee nor a holder of authority
and punishable under Article 39 of this Code. The Department of under this Title found violating any provision thereof or its
Labor and Employment or any law enforcement officer may initiate implementing rules and regulations shall, upon conviction thereof,
complaints under this Article. 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
Illegal recruitment when committed by a syndicate or in large scale than P100,000 or both such imprisonment and fine, at the
shall be considered an offense involving economic sabotage and discretion of the court;
shall be penalized in accordance with Article 39 hereof.
If the offender is a corporation, partnership, association or entity,
Illegal recruitment is deemed committed by a syndicate if carried the penalty shall be imposed upon the officer or officers of the
out by a group of three (3) or more persons conspiring and/or corporation, partnership, association or entity responsible for
confederating with one another in carrying out any unlawful or violation; and if such officer is an alien, he shall, in addition to the
illegal transaction, enterprise or scheme defined under the first penalties herein prescribed, be deported without further
paragraph hereof. Illegal recruitment is deemed committed in proceedings;
In every case, conviction shall cause and carry the automatic HELD/Ratio:
revocation of the license or authority and all the permits and
privileges granted to such person or entity under this Title, and the Pursuant to the POEA rules and regulations, Josefina could recruit
forfeiture of the cash and surety bonds in favor of the Overseas applicants for overseas employment and process their applications
Employment Development Board or the National Seamen Board, as only at the RSI office in Mandaluyong, Metro Manila since there
the case may be, both of which are authorized to use the same was no showing that RSI had an acknowledged branch or
exclusively to promote their objectives. extension office in Baguio City or that the prior approval of the
POEA for provincial recruitment or recruitment activities outside
CASE: TECHNIQUES OF REGULATION; Art. 25 39; the RSI office was obtained. Thus, the court was not persuaded by
Josefina's claim that no recruitment activity was being done
PEOPLE OF THE PHILIPPINES VS ALONA BULI-E 404 SCRA outside of the territorial permit of RSI and it was only incidental
105 (03) that complainants who were referred to her by Buli-e were
residents of Baguio City.
FACTS:The following people namely ALONA BULI-E, JOSEFINA
(JOSIE) ALOLINO and JOSE ALOLINO was accused of violating As earlier discussed, there is no indication that complainants ever
Article38 of PD no.442 as further amended by PD no.2018 which is set foot in the RSI office. They were always brought by Buli-e to
an act of economic sabotage, and by a syndicate in such a manner Las Pias, Metro Manila where they were entertained by one or
that they represented themselves to have the capacity to contract, both of the spouses Alolino who repeatedly assured them that they
enlist and hire and transport Filipino workers for employment would be able to fly to Taiwan in a matter of months. Josefina,
abroad for a fee, recruit and promise employment / job placement who claims to have authority to recruit applicants for overseas
of 8 persons in Taiwan without first obtaining or securing license or employment in behalf of RSI, should have known that licensed
authority from the proper government agency. They were also agencies are prohibited from conducting any provincial
accused of 8 counts of estafa. recruitment, job fairs or recruitment activities of any form outside
of the address stated in the license, acknowledged branch or
Upon arraignment, appellants pleaded not guilty to each of the extension office, without securing prior authority from the POEA.
nine informations filed against them. Buli-e contended that she
was, in fact, recruiting contract workers for Taiwan and that, Finally, the trial court did not make a mistake in finding appellants
although she did not have a license of her own to recruit, her boss guilty of eight (8) counts of estafa. It is settled that a person
in Manila who was a licensed recruiter, was in the process of convicted of illegal recruitment under the Labor Code can also be
getting her one which would soon be issued. Buli-e identified her convicted of violation of the Revised Penal Code provisions on
superiors in Manila to be the spouses Jose and Josefina Alolino. estafa provided that the elements of the crime are present. The
Further, Josefina was connected with Rodolfo S. Ibuna elements for estafa are: (a) that the accused defrauded another by
Employment Agency (RSI for brevity), a private employment abuse of confidence or by means of deceit, and (b) that damage or
agency licensed to recruit overseas contract workers. prejudice capable of pecuniary estimation is caused to the
In rendering the decision, the trial court ruled that by their acts, offended party or third person.
Buli-e and Josefina, conspired and confederated with one another
in the illegal recruitment of complainants for overseas Appellants deceived complainants into believing that they had the
employment. Hence, this petition. authority and capability to send them to Taiwan for employment.
By reason or on the strength of such assurance, complainants
ISSUE: W/N herein accused is guilty beyond reasonable doubt of parted with their money in payment of the placement fees. Since
illegal recruitment and estafa? the representations of appellants proved to be false, paragraph
2(a), Article 315 of the Revised Penal Code is applicable. Buli-e's 4. The Secretary of Labor and Employment or his duly
claim that she did not benefit from the money collected from authorized representatives shall have the power to cause
complainants since she gave the payments to Josefina is of no the arrest and detention of such non-licensee or non-
moment. It was clearly established that she acted in connivance holder of authority if after investigation it is determined
with Josefina in defrauding complainants. As regards Josefina, the that his activities constitute a danger to national security
fact that she returned the payment of some of the complainants and public order or will lead to further exploitation of job-
will not exculpate her from criminal liability. Criminal liability for seekers. The Secretary shall order the search of the office
estafa is not affected by compromise or novation, for it is a public or premises and seizure of documents, paraphernalia,
offense which must be prosecuted and punished by the properties and other implements used in illegal recruitment
government on its own motion even though complete reparation activities and the closure of companies, establishments
has been made of the damage suffered by the offended party. and entities found to be engaged in the recruitment of
workers for overseas employment, without having been
2.07 ILLEGAL RECCRUITMENT; ART. 38, 34 LABOR CODE; licensed or authorized to do so.
SEC. 6, R.A. 8042; SEC. 2 & 5, R.A. 10022;
Chapter II
Chapter III REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
MISCELLANEOUS PROVISIONS
Art. 34. Prohibited practices. It shall be unlawful for any individual,
Art. 38. Illegal recruitment. entity, licensee, or holder of authority:
1. Any recruitment activities, including the prohibited
practices enumerated under Article 34 of this Code, to be 1. To charge or accept, directly or indirectly, any amount
undertaken by non-licensees or non-holders of authority, greater than that specified in the schedule of allowable
shall be deemed illegal and punishable under Article 39 of fees prescribed by the Secretary of Labor, or to make a
this Code. The Department of Labor and Employment or worker pay any amount greater than that actually received
any law enforcement officer may initiate complaints under by him as a loan or advance;
this Article.
2. To furnish or publish any false notice or information or
2. Illegal recruitment when committed by a syndicate or in document in relation to recruitment or employment;
large scale shall be considered an offense involving
economic sabotage and shall be penalized in accordance 3. To give any false notice, testimony, information or
with Article 39 hereof. document or commit any act of misrepresentation for the
purpose of securing a license or authority under this Code.
3. Illegal recruitment is deemed committed by a syndicate if
carried out by a group of three (3) or more persons 4. To induce or attempt to induce a worker already employed
conspiring and/or confederating with one another in to quit his employment in order to offer him to another
carrying out any unlawful or illegal transaction, enterprise unless the transfer is designed to liberate the worker from
or scheme defined under the first paragraph hereof. Illegal oppressive terms and conditions of employment;
recruitment is deemed committed in large scale if
committed against three (3) or more persons individually 5. To influence or to attempt to influence any person or entity
or as a group. not to employ any worker who has not applied for
employment through his agency;
6. To engage in the recruitment or placement of workers in promises for a fee employment abroad to two or more persons
jobs harmful to public health or morality or to the dignity shall be deemed so engaged. It shall likewise include the following
of the Republic of the Philippines; acts, whether committed by any persons, whether a non-licensee,
non-holder, licensee or holder of authority.
7. To obstruct or attempt to obstruct inspection by the
Secretary of Labor or by his duly authorized (a) To charge or accept directly or indirectly any amount greater
representatives; than the specified in the schedule of allowable fees prescribed by
the Secretary of Labor and Employment, or to make a worker pay
8. To fail to file reports on the status of employment, any amount greater than that actually received by him as a loan or
placement vacancies, remittance of foreign exchange advance;
earnings, separation from jobs, departures and such other
matters or information as may be required by the (b) To furnish or publish any false notice or information or
Secretary of Labor. document in relation to recruitment or employment;

9. To substitute or alter employment contracts approved and (c) To give any false notice, testimony, information or document or
verified by the Department of Labor from the time of commit any act of misrepresentation for the purpose of securing a
actual signing thereof by the parties up to and including license or authority under the Labor Code;
the periods of expiration of the same without the approval
of the Secretary of Labor; (d) To induce or attempt to induce a worker already employed to
quit his employment in order to offer him another unless the
10. To become an officer or member of the Board of any transfer is designed to liberate a worker from oppressive terms
corporation engaged in travel agency or to be engaged and conditions of employment;
directly or indirectly in the management of a travel
agency; and (e) To influence or attempt to influence any persons or entity not
to employ any worker who has not applied for employment
11. To withhold or deny travel documents from applicant through his agency;
workers before departure for monetary or financial
considerations other than those authorized under this Code (f) To engage in the recruitment of placement of workers in jobs
and its implementing rules and regulations. harmful to public health or morality or to dignity of the Republic of
the Philippines;
R.A 8042
II. ILLEGAL RECRUITMENT (g) To obstruct or attempt to obstruct inspection by the Secretary
of Labor and Employment or by his duly authorized representative;
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting, contracting, (h) To fail to submit reports on the status of employment,
transporting, utilizing, hiring, procuring workers and includes placement vacancies, remittances of foreign exchange earnings,
referring, contact services, promising or advertising for separations from jobs, departures and such other matters or
employment abroad, whether for profit or not, when undertaken information as may be required by the Secretary of Labor and
by a non-license or non-holder of authority contemplated under Employment;
Article 13(f) of Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the Philippines. Provided, (i) To substitute or alter to the prejudice of the worker,
that such non-license or non-holder, who, in any manner, offers or employment contracts approved and verified by the Department of
Labor and Employment from the time of actual signing thereof by activity in a state of which he or she is not a citizen or on board a
the parties up to and including the period of the expiration of the vessel navigating the foreign seas other than a government ship
same without the approval of the Department of Labor and used for miliatry or non-commercial purposes or on an installation
Employment; located offshore or on the high seas; to be used interchangeably
with migrant worker.
(j) For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation Section 5. Section 6 of Republic Act No. 8042, as amended,
engaged in travel agency or to be engaged directly on indirectly in is hereby amended to read as follows:
the management of a travel agency;
SEC. 6. Definition. For purposes of this Act, illegal recruitment
(k) To withhold or deny travel documents from applicant workers shall mean any act of canvassing, enlisting, contracting,
before departure for monetary or financial considerations other transporting, utilizing, hiring, or procuring workers and includes
than those authorized under the Labor Code and its implementing referring, contract services, promising or advertising for
rules and regulations; employment abroad, whether for profit or not, when undertaken
by non-licensee or non-holder of authority contemplated under
(l) Failure to actually deploy without valid reasons as determined Article 13(f) of Presidential Decree No. 442, as amended,
by the Department of Labor and Employment; and otherwise known as the Labor Code of the Philippines: Provided,
That any such non-licensee or non-holder who, in any manner,
(m) Failure to reimburse expenses incurred by the workers in offers or promises for a fee employment abroad to two or more
connection with his documentation and processing for purposes of persons shall be deemed so engaged. It shall likewise include the
deployment, in cases where the deployment does not actually take following acts, whether committed by any person, whether a non-
place without the worker's fault. Illegal recruitment when licensee, non-holder, licensee or holder of authority:
committed by a syndicate or in large scale shall be considered as
offense involving economic sabotage. (a) To charge or accept directly or indirectly any amount greater
than that specified in the schedule of allowable fees prescribed by
Illegal recruitment is deemed committed by a syndicate carried out the Secretary of Labor and Employment, or to make a worker pay
by a group of three (3) or more persons conspiring or or acknowledge any amount greater than that actually received by
confederating with one another. It is deemed committed in large him as a loan or advance;
scale if committed against three (3) or more persons individually
or as a group. (b) To furnish or publish any false notice or information or
document in relation to recruitment or employment;
The persons criminally liable for the above offenses are the
principals, accomplices and accessories. In case of juridical (c) To give any false notice, testimony, information or document
persons, the officers having control, management or direction of or commit any act of misrepresentation for the purpose of securing
their business shall be liable. a license or authority under the Labor Code, or for the purpose of
documenting hired workers with the POEA, which include the act of
Republic Act No. 10022 reprocessing workers through a job order that pertains to
Section 2. Section 3, paragraph (a) of Republic Act No. nonexistent work, work different from the actual overseas work, or
8042, as amended, is hereby amended to read as follows: work with a different employer whether registered or not with the
POEA;
(a) Overseas Filipino worker refers to a person who is to be
engaged, is engaged or has been engaged in a remunerated
(d) To include or attempt to induce a worker already employed to (m) Failure to reimburse expenses incurred by the worker in
quit his employment in order to offer him another unless the connection with his documentation and processing for purposes of
transfer is designed to liberate a worker from oppressive terms deployment, in cases where the deployment does not actually take
and conditions of employment; place without the workers fault. Illegal recruitment when
committed by a syndicate or in large scale shall be considered an
(e) To influence or attempt to influence any person or entity not offense involving economic sabotage; and
to employ any worker who has not applied for employment
through his agency or who has formed, joined or supported, or has (n) To allow a non-Filipino citizen to head or manage a licensed
contacted or is supported by any union or workers organization; recruitment/manning agency.

(f) To engage in the recruitment or placement of workers in jobs Illegal recruitment is deemed committed by a syndicate if carried
harmful to public health or morality or to the dignity of the out by a group of three (3) or more persons conspiring or
Republic of the Philippines; confederating with one another. It is deemed committed in large
scale if committed against three (3) or more persons individually
(h) To fail to submit reports on the status of employment, or as a group.
placement vacancies, remittance of foreign exchange earnings,
separation from jobs, departures and such other matters or In addition to the acts enumerated above, it shall also be unlawful
information as may be required by the Secretary of Labor and for any person or entity to commit the following prohibited acts:
Employment;
(1) Grant a loan to an overseas Filipino worker with interest
(i) To substitute or alter to the prejudice of the worker, exceeding eight percent (8%) per annum, which will be used for
employment contracts approved and verified by the Department of payment of legal and allowable placement fees and make the
Labor and Employment from the time of actual signing thereof by migrant worker issue, either personally or through a guarantor or
the parties up to and including the period of the expiration of the accommodation party, postdated checks in relation to the said
same without the approval of the Department of Labor and loan;
Employment;
(2) Impose a compulsory and exclusive arrangement whereby an
(j) For an officer or agent of a recruitment or placement agency to overseas Filipino worker is required to avail of a loan only from
become an officer or member of the Board of any corporation specifically designated institutions, entities or persons;
engaged in travel agency or to be engaged directly or indirectly in
the management of travel agency; (3) Refuse to condone or renegotiate a loan incurred by an
overseas Filipino worker after the latters employment contract has
(k) To withhold or deny travel documents from applicant workers been prematurely terminated through no fault of his or her own;
before departure for monetary or financial considerations, or for
any other reasons, other than those authorized under the Labor (4) Impose a compulsory and exclusive arrangement whereby an
Code and its implementing rules and regulations; overseas Filipino worker is required to undergo health
examinations only from specifically designated medical clinics,
(l) Failure to actually deploy a contracted worker without valid institutions, entities or persons, except in the case of a seafarer
reason as determined by the Department of Labor and whose medical examination cost is shouldered by the
Employment; principal/shipowner;
(5) Impose a compulsory and exclusive arrangement whereby an The filing of an offense punishable under this Act shall be without
overseas Filipino worker is required to undergo training, seminar, prejudice to the filing of cases punishable under other existing
instruction or schooling of any kind only from specifically laws, rules or regulations.
designated institutions, entities or persons, except fpr
recommendatory trainings mandated by principals/shipowners CASES: ELEMENTS OF CRIME;
where the latter shoulder the cost of such trainings;
PEOPLE VS. SAGAYAGA, 423 SCRA 105 (04)
(6) For a suspended recruitment/manning agency to engage in FACTS: Complainants, Elmer Janer, Eric Farol and Elmer Ramos
any kind of recruitment activity including the processing of pending filed a case of Illegal Recruitment against the accused, Sagaya, So,
workers applications; and So Yan Han and Burgos who were the personnels of the Alvis
Placement Service Corporation.
(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino worker or They promised the complainants an overseas job (Factory Worker)
deduct from his or her salary the payment of the cost of insurance in Taiwan. Upon completion of the necessary requirements for
fees, premium or other insurance related charges, as provided employment and the placement fee amounting to Php 70, 000 -
under the compulsory workers insurance coverage. Php 75, 000, the accused failed to render the job that was
promised.
The persons criminally liable for the above offenses are the
principals, accomplices and accessories. In case of juridical The complainant contested a refund but the accused failed to
persons, the officers having ownership, control, management or render and reimburse the money which made them decide to file a
direction of their business who are responsible for the commission complaint of Illegal Recruitment to the court. The other accused
of the offense and the responsible employees/agents thereof shall remained at large while Sagayaga, in her expense, pleaded not
be liable. guilty contesting that she had no participation in the operation of
the Alavis Placement Service Corporation and she was just part of
In the filing of cases for illegal recruitment or any of the her job as a treasurer of the said company to receive the
prohibited acts under this section, the Secretary of Labor and placement fees of the complainants.
Employment, the POEA Administrator or their duly authorized
representatives, or any aggrieved person may initiate the ISSUE: W/N the appellant Sagayaga will be held guilty of Illegal
corresponding criminal action with the appropriate office. For this Recruitment?
purpose, the affidavits and testimonies of operatives or personnel
from the Department of Labor and Employment, POEA and other HELD:
law enforcement agencies who witnessed the acts constituting the YES, Wherefore, the appeal of Sagayaga was erred without merit
offense shall be sufficient to prosecute the accused. for she acted as a principal by direct participation on the offense of
Illegal Recruitment. She participated actively and consciously in
In the prosecution of offenses punishable under this section, the the illegal recruitment as manifested by the fact that she signed in
public prosecutors of the Department of Justice shall collaborate her capacity as the corporations Assistant General Manager.
with the anti-illegal recruitment branch of the POEA and, in certain
cases, allow the POEA lawyers to take the lead in the prosecution. The court also erred the provisions under Republic Act No. 8042
The POEA lawyers who act as prosecutors in such cases shall be Section 6, which provides that illegal recruitment shall be
entitled to receive additional allowances as may be determined by considered an offense involving economic sabotage if committed in
the POEA Administrator. large scale, viz, committed agaiits three (3) or more persons
individually or as a group, the imposable penalty for which is life
imprisonment and a fine not less than Php 500, 000 nor more that recruiter. He claimed that he was a mere janitor, messenger and
Php 1,000,000. In which, in this case, there were three (3) private errand boy of the World Pack Travel and Tours. The company is
complainants, namely, Elmer Janer, Eric Farol and Elmer Ramos. owned by his aunt, Editha Singh, and managed by his mother Rose
Thus, the trial court denied the appeal and convicted the appellant Dujua. He admitted he did not have a license to recruit,but
of large scale illegal recruitment and sentenced her to suffer life acknowledged receiving the money given by complainants but
imprisonment. denied knowing what it was for. He said, however, that his mother
only asked him to count the money.
PEOPLE vs. BAYTIC, 398 SCRA 18 (03)
RTC convicted Dujua of illegal recruitment in large scale,
CF SHARP MANAGEMENT, INC. vs. ESPANOL, 533 SCRA 424 committed against Jaime Cabus, Beldon Caluten and Roberto
Perlas, and of two counts of estafa, committed against Cabus and
LAPASARAN vs. PEOPLE, G.R. 179907, (09) 578 SCRA 658 Perlas.

ISSUE: W/N the prosecution proved the guilt of the accused in


CASES: LARGE SCALE; illegal recruitment in large scale by means of proof beyond
reasonable doubt?
PEOPLE vs. BULI E (SAME 2.06)
HELD:
PEOPLE vs. DUJUA, 422 SCRA 169 (04) Yes. The essential elements of the crime of illegal recruitment in
FACTS: Complainant Beldon Caluten, went to the accuseds office, large scale are: (1) the accused engages in acts of recruitment and
the World Pack Travel and Tours. Upon Beldons inquiry, Ramon placement of workers defined under Article 13(b) or in any
Dujua said that he sends applicants abroad and gave Beldon an prohibited activities under Art. 34 of the Labor Code; (2) the
application form. Beldon filled up the form and submitted it to accused has not complied with the guidelines issued by the
Ramon, who told him that he must pay a processing fee and make Secretary of Labor and Employment, particularly with respect to
an advance payment. Beldon was promised work as a factory the securing of a license or an authority to recruit and deploy
worker in Japan. workers, either locally or overseas; and (3) the accused commits
the unlawful acts against three or more persons, individually or as
He advanced money for his processing fees and other expenses. a group. All three elements have been established beyond
Despite such payments, the promise to send Beldon to work in reasonable doubt.
Japan remained unfulfilled, Beldon asked Ramon to give him back
his money. Beldon never recovered his payments, however, First, the testimonies of the complaining witnesses satisfactorily
prompting him and his fellow applicants to file a complaint at the prove that appellant promised them employment and assured
National Bureau of Investigation (NBI). Private complainants them placement overseas. Complainants were firm and
Jaime Cabus, Roberto Perlas and Romulo Partos suffered the same categorical. All of them positively identified appellant as the
fate as Beldon. He also filed a compliaint against the accused. person who recruited them for employment abroad. Their
testimonies dovetail each other on material points. There is no
The prosecution presented a Certification issued by Hermogenes C. adequate showing that any of them was impelled by any ill motive
Mateo, Director II, Licensing Branch of the POEA, stating that to testify against appellant.
Ramon Dujua is not licensed or authorized by the POEA to recruit
workers abroad. Another Certification, of even date shows that Second, appellant did not have any license or authority to recruit
neither is the World Pack Travel and Tours authorized to recruit persons for overseas work, as shown by the Certification issued by
workers abroad. The accused Ramon Dujua denied that he was a
the POEA. Neither did his employer, the World Pack Travel and she was the one who approached complainants and prodded them
Tours, possess such license or authority. to seek employment abroad. It was through her that they met
Julia Micua. This is clearly an act of referral. Worse, accused-
PEOPLE vs. REYES, 242 SCRA 264 (95) appellant declared that she was capable of placing them in jobs
overseas. Suffice it to say that complainants' recruitment would
not have been consummated were it not for the direct participation
CASES: REFERRALS; of accused-appellant in the recruitment process.

PEOPLE vs MERIS, 329 SCRA 33 (00) Labor And Social Legislation; Labor Code; Illegal Recruitment In
Large Scale; Elements. Illegal recruitment is conducted in a
Labor And Social Legislation; Labor Code; Illegal Recruitment; large scale if perpetrated against three (3) or more persons
Recruitment and Placement; Defined. Art. 13, par. (b) of the individually or as a group. This crime requires proof that the
Labor Code defines recruitment and placement as "any act of accused: (1) engaged in the recruitment and placement of workers
canvassing enlisting, contracting, transporting, utilizing, hiring or defined under Article 13 or in any of the prohibited activities under
procuring workers, and includes referrals, contract services, Article 34 of the Labor Code; (2) does not have a license or
promising or advertising for employment, locally or abroad, authority to lawfully engage in the recruitment and placement of
whether for profit or not; Provided that any person or entity which, workers; and (3) committed the infraction against three or more
in any manner, offers or promises for a fee employment to two or persons, individually or as a group.
more persons shall be deemed engaged in recruitment and
placement." Labor And Social Legislation; Labor Code; Illegal Recruitment In
Large Scale; Case at Bar. All these three essential elements are
Labor And Social Legislation; Labor Code; Illegal Recruitment; present in the case at bar. As earlier discussed, accused-appellant
Making Referrals to Agency Constitutes Recruitment. In People recruited the six complainants. Further, the Philippine Overseas
v. Agustin, therein appellant argued that she could not be Employment Administration certified that neither accused-
convicted of illegal recruitment because in introducing the appellant nor Julie Micua is licensed to recruit workers for overseas
complainants to the alleged recruiters, she merely acted "out of employment. Moreover, accused-appellant and her husband's acts
the goodness of her heart." In resolving said case, the Court ruled: of receiving almost all the payments of the complainants and
The testimonial evidence hereon show that she indeed further issuing receipts signed by Julie Micua contradict her claim of being
committed acts constitutive of illegal recruitment. All four a mere applicant. There were even times that accused-appellant
prosecution witnesses testified that it was Agustin whom they herself signed the receipts for the placement fees. Taken as a
initially approached regarding their plans of working overseas. It whole, the evidence shows that accused-appellant conspired and
was from her that they learned about the fees they had to pay, as actively participated in the deceitful plan adopted by her co-
well as the papers that they had to submit. It was after they had accused Julie Micua, Rico Cordova and her own husband, Renato
talked to her that they met the accused spouses who owned the Meris, to hire without license or authority, gullible and naive
placement agency. As such, the Court concluded that appellant applicants for non-existent overseas jobs.
was an employee of the Goce spouses, as she was actually making
referrals to the agency. She was, therefore, engaged in FACTS: Leonida Meris was convicted of six (6) counts of estafa and
recruitment activities. one count of illegal recruitment for defrauding the six (6)
complainants, Meris townmates in Pampanga and relatives in large
Labor And Social Legislation; Labor Code; Illegal Recruitment; scale in the amount of P30,000.00 each for five complainants and
Case at Bar. Although accused-appellant was not an employee one complainant for P20,000.00 for alleged overseas employment
of the alleged illegal recruiter Julie Micua, the evidence show that which did not materialize.
abroad. It was through her that they met Julia Micua. This is
Meris, who voluntarily appeared in court, pleaded not guilty to the clearly an act of referral. Worse, accused-appellant declared that
charges and actively participated in her defense. She interposed she was capable of placing them in jobs overseas. Suffice it to say
the defense of denial claiming that she merely introduced that complainants recruitment would not have been consummated
complainants to Julie Micua, her recruiter in Manila, with whom were it not for the direct participation of accused-appellant in the
complainants transacted with for their employment abroad upon recruitment process.
payment of placement fees denied having represented herself as
having the capacity to deploy workers abroad. PEOPLE vs. FORTUNA, 395 SCRA 354 (03)
FACTS: Ganot, Magpayo, Andasan, De Leon, Nuque and Salvador
Evidence for the prosecution, however, disclosed, that met Fortuna in a seminar on Tupperware products. Fortuna took
complainants would not have known Julie Micua were if not for the occasion to converse with private complainants, along with
appellant who even accompanied them to Manila to see Julie some of the attendees, offering job placements in Taiwan.
Micua. It was appellant and her husband who received almost all Convinced, they each gave her the amount of P5,400.00 to take
the payments of complainants and who issued receipts signed by care of the processing fee for medical examination and other
Julie Micua. Certification from the POEA showed that Meris and expenses for securing their respective passports. Weeks went by
Julie Micua were not licensed to recruit workers for overseas but the promised departure had not materialized.
employment.
Suspecting that something was not right, they finally demanded
In this appeal, appellant assailed the lack of jurisdiction of the trial that Fortuna return their money. Fortuna, in the meanwhile, went
court over his person because of the warrantless arrest and its into hiding.After having later learned that Fortuna had neither a
findings of fact. license nor an authority to undertake recruiting activities, Magpayo
filed a complaint which, in due time, ultimately resulted in the
ISSUE: W/N Meris committed the crimes large-scale illegal indictment of Fortuna for illegal recruitment. During the
recruitment and estafa? preliminary investigation, as well as later at the trial, Fortuna gave
assurance to have the money she had received from private
HELD: complainants returned to them but was unable to make good her
Yes, The prosecution undoubtedly proved that Meris, without promise.
license or authority, engaged in recruitment and placement
activities. This was done in collaboration with Julie Micua, when Dominga Fortuna, in her testimony, admitted having attended the
they promised complainants employment in Hong Kong. Art. 13, seminar where she then met Nuque,De Leon, Andasan,
par. (b) of the Labor Code defines recruitment and placement as Salvador,Magpayo and Ganot. During the seminar, she purchased
any act of canvassing enlisting, contracting, transporting, Tupperware products from private complainants after she was
utilizing, hiring or procuring workers, and includes referrals, convinced to be their sub-agent. Initially, she was able to remit
contract services, promising or advertising for employment, locally payments to private complainants on her sales but, when she
or abroad, whether for profit or not; Provided that any person or failed to make subsequent remittances, she was threatened with
entity which, in any manner, offers or promises for a fee criminal prosecution. In order to settle the matter, she executed
employment to two or more persons shall be deemed engaged in separate promissory notes. When she again failed to pay, private
recruitment and placement. complainants filed the case for illegal recruitment against her.
Originally, there were six private complainants but eventually only
Although Meris was not an employee of the alleged illegal recruiter three of them pursued the case because the others were finally
Julie Micua, the evidence show that she was the one who able to leave for abroad.
approached complainants and prodded them to seek employment
The RTC held Fortuna guilty of Illegal Recruitment in Large Scale. apply for overseas employment in Dubai. Rodolfo, being their
Hence, the appeal to the SC. neighbor, Ferre and Corpus agreed and went to the formers office.
The office bore the business name Bayside Manpower Export
ISSUE: W/N Fortuna is guilty of said crime? Specialist. In that office, Ferre gave P1,000.00 as processing fee
and another P4,000.00. Likewise, Corpus gave Rodolfo P7,000.00.
HELD: Rodolfo then told Ferre and Corpus that they were scheduled to
Yes, Fortuna is guilty of the said crime. leave for Dubai. However, private complainants and all the other
The Court finds the information which has charged appellant with applicants were not able to depart on the scheduled date as their
the offense of Illegal Recruitment in Large Scale, defined and employer allegedly did not arrive. Thus, their departure was
penalized in Republic Act No. 8042, to be sufficient in form and rescheduled, but the result was the same. Suspecting that they
substance. While the information cited Section 6, paragraph (m), were being hoodwinked, Ferre and Corpus demanded of Rodolfo to
of Republic Act No. 8042, its factual averments, however, are return their money. Except for the refund of P1,000.00 to Ferre,
sufficient to constitute the crime of Illegal Recruitment in Large Rodolfo was not able to return Ferres and Corpus money. Ferre,
Scale under the aforequoted provisions of the law. It is not the Corpus and three others then filed a case for illegal recruitment in
specific designation of the offense in the information that controls large scale with the Regional Trial Court (RTC) against Rodolfo.
but it is the allegations therein contained directly apprising the
accused of the nature and cause of the accusation against him that The RTC rendered judgement against Rodolfo but in imposing the
matter. penalty, the RTC took note of the fact that while the information
reflected the commission of illegal recruitment in large scale, only
The requisites constituting the offense of Illegal Recruitment in the complaint of two (Ferre and Corpus) of the five complainants
Large Scale have sufficiently been proven by the prosecution. First, was proven. Rodolfo appealed to the Court of Appeals (CA). The
appellant, undeniably, has not been duly licensed to engage in CA dismissed the petition but modified the penalty imposed by the
recruitment activities; second, she has engaged in illegal trial court. The CA also dismissed Rodolfos Motion for
recruitment activities, offering private complainants employment Reconsideration.
abroad for a fee; and third, she has committed the questioned
illegal recruitment activities against three or more persons. Illegal ISSUE: W/N Rodolfo is guilty of illegal recruitment in large scale?
recruitment in large scale (when committed against three or more
persons), like illegal recruitment committed by a syndicate (when HELD:
carried out by a group of three or more persons), would be The elements of the offense of illegal recruitment, which must
deemed constitutive of economic sabotage carrying a penalty, concur, are: (1) that the offender has no valid license or authority
under section 7, paragraph (b), of Republic Act 8042, of life required by law to lawfully engage in recruitment and placement of
imprisonment and a fine of not less than five hundred thousand workers; and (2) that the offender undertakes any activity within
(P500,000.00) pesos nor more than one million (P1,000,000.00) the meaning of recruitment and placement under Article 13(b), or
pesos. The sentence imposed by the trial court thus accords with any prohibited practices enumerated under Article 34 of the Labor
the penalty prescribed by law. Code. If another element is present that the accused commits the
act against three or more persons, individually or as a group, it
RODOLFO vs. PEOPLE, G.R. 146964, (06), 498 SCRA 377 becomes an illegal recruitment in a large scale.
FACTS: Promises or offers for a fee employment is sufficient to
warrant conviction for illegal recruitment. Article 13 (b) of the Labor Code defines recruitment and
placement as [a]ny act of canvassing, enlisting, contracting,
Petitioner Rosa C. Rodolfo approached private complainants transporting, utilizing, hiring or procuring workers, and includes
Necitas Ferre and Narciso Corpus individually and invited them to
referrals, contract services, promising or advertising for reasonable doubt of Illegal Recruitment in Large Scale constituting
employment, locally or abroad, whether for profit or not. economic sabotage under Sec. 6 (l) and (m) in relation to Sec.
7(b) of R.A. No. 8042, otherwise known as the Migrant Workers
That the first element is present in the case at bar, there is no and Overseas Filipinos Act of l995, and sentencing her to life
doubt. Jose Valeriano, Senior Overseas Employment Officer of the imprisonment and to pay a fine of P500,000.00.
Philippine Overseas Employment Administration, testified that the
records of the POEA do not show that Rodolfo is authorized to FACTS: In June 1998, private complainants Belinda Cabantog,
recruit workers for overseas employment. A Certification to that Concepcion San Diego, Erlinda Pascual and Restian Surio went to
effect was in fact issued by Hermogenes C. Mateo, Chief of the Alga-Moher International Placement Services Corporation at 1651
Licensing Division of POEA. San Marcelino Street, Malate, Manila to apply for employment as
factory workers in Taiwan.
The second element is doubtless also present. The act of referral,
which is included in recruitment, is the act of passing along or They were accompanied by a certain Aling Josie who introduced
forwarding of an applicant for employment after an initial interview them to the agencys President and General Manager Mrs. Evelyn
of a selected applicant for employment to a selected employer, Gloria H. Reyes.
placement officer or bureau. Rodolfos admission that she brought
private complainants to the agency whose owner she knows and Mrs. Reyes asked them to accomplish the application forms.
her acceptance of fees including those for processing betrays her Thereafter, they were told to return to the office with P10,000.00
guilt. each as processing fee.

Rodolfo issued provisional receipts indicating that the amounts she On July 30, 1998, private complainants returned to the agency to
received from the private complainants were turned over to pay the processing fees.
Luzviminda Marcos and Florante Hinahon does not free her from
liability. For the act of recruitment may be for profit or not. It is Mrs. Reyes was not at the agency that time, but she called
sufficient that the accused promises or offers for a fee accused CORPUZ (secretary) on the telephone to ask her to
employment to warrant conviction for illegal recruitment. receive the processing fees.
Parenthetically, why Rodolfo accepted the payment of fees from
the private complainants when, in light of her claim that she Thereafter, CORPUZ advised them to wait for the contracts to
merely brought them to the agency, she could have advised them arrive from the Taiwan employers.
to directly pay the same to the agency, she proferred no
explanation. Two months later, nothing happened to their applications.

On Rodolfos reliance on Seoron, true, the Court held that Thus, private complainants decided to ask for the refund of their
issuance of receipts for placement fees does not make a case for money from CORPUZ who told them that the processing fees they
illegal recruitment. But it went on to state that it is rather the had paid were already remitted to Mrs. Reyes.
undertaking of recruitment activities without the necessary license
or authority that makes a case for illegal recruitment. When they talked to Mrs. Reyes, she told them that the money she
received from CORPUZ was in payment of the latters debt.
CASES: EMPLOYEES;
PEOPLE vs. CORPUZ, 412 SCRA 479 (03) On January 13, 1999, private complainants filed their complaint
Nature: This is an appeal from the decision of the Regional Trial with the National Bureau of Investigation which led to the arrest
Court of Manila finding appellant Elizabeth Corpuz guilty beyond and detention of CORPUZ.
DOCTRINES used in the CASE
CORPUZ contends that she is not liable for the foregoing illegal An employee of a company or corporation engaged in
recruitment activities considering that she was merely an illegal recruitment may be held liable as principal, together with his
employee having no control over the recruitment business of the employer, if it is shown that he actively and consciously
Alga-Moher International Placement Services Corporation and that participated in illegal recruitment.
she did not actually recruit the private complainants. Moreover, Settled is the rule that the existence of the corporate
she did not appropriate for her own use the processing fees she entity does not shield from prosecution the corporate agent who
received and she had no knowledge that the agencys license was knowingly and intentionally causes the corporation to commit a
suspended by the POEA. crime. The corporation obviously acts, and can act, only by and
through its human agents, and it is their conduct which the law
ISSUE/S: must deter. The employee or agent of a corporation engaged in
1. W/N accused CORPUZ is criminally liable despite the fact that unlawful business naturally aids and abets in the carrying on of
she was merely an employee of the recruitment agency. NO. such business and will be prosecuted as principal if, with
knowledge of the business, its purpose and effect, he consciously
2. WON accused Corpuz knowingly and intentionally participated in contributes his efforts to its conduct and promotion, however slight
the commission of the crime charged. NO. his contribution may be. The law of agency, as applied in civil
cases, has no application in criminal cases, and no man can escape
HELD: punishment when he participates in the commission of a crime
1. NO, From the testimonial evidence presented, it is clear that all upon the ground that he simply acted as an agent of any party.
appellant did was receive the processing fees upon instruction of The culpability of the employee therefore hinges on his
Mrs. Reyes. She neither convinced the private complainants to knowledge of the offense and his active participation in its
give their money nor promised them employment abroad. commission. Where it is shown that the employee was merely
acting under the direction of his superiors and was unaware that
Moreover, as stated in the last sentence of Section 6 of RA 8042, his acts constituted a crime, he may not be held criminally liable
the persons who may be held liable for illegal recruitment are the for an act done for and in behalf of his employer.
principals, accomplices and accessories. In case of juridical
persons, the officers having control, management or direction of 2. NO, In the appreciation of evidence in criminal cases, it is a
their business shall be liable. basic tenet that the prosecution has the burden of proof in
establishing the guilt of the accused for the offense with which he
In the case at bar, we have carefully reviewed the records of the is charged.
case and found that the prosecution failed to establish that
CORPUZ, as secretary, had control, management or direction of In the case at bar, the prosecution failed to adduce sufficient
the recruitment agency. evidence to prove CORPUZ active participation in the illegal
recruitment activities of the agency.
Appellant started her employment with the agency on May 1, 1998
and she was tasked to hold and document employment contracts As already established, CORPUZ received the processing fees of
from the foreign employers. She did not entertain applicants and the private complainants for and in behalf of Mrs. Reyes who
she had no discretion over how the business was managed. The ordered her to receive the same. She neither gave an impression
trial courts finding that CORPUZ, being the secretary of the that she had the ability to deploy them abroad nor convinced them
agency, had control over its business, is not only non sequitur but to part with their money. More importantly, she had no knowledge
has no evidentiary basis. that the license was suspended the day before she received the
money.
for employment, locally or abroad, whether for profit or not:
PEOPLE vs. SAGAYAGA, 423 SCRA 468 (04) Provided, That any person or entity which, in any manner, offers
or promises for a fee employment to two or more persons, shall be
PEOPLE vs. GUTIERREZ, 422 SCRA 32 (04) deemed engaged in recruitment and placement.
FACTS: With the promises of jobs abroad unfulfilled,
complainants decided to verify if the accused was a licensed The crime becomes Illegal Recruitment in Large Scale when the
recruiter. Upon learning from the POEA that she was not so two elements concur, with the addition of a third element: the
licensed, they proceeded to the Philippine Anti-Crime Commission recruiter committed the same against three or more persons,
(PACC) to execute their respective affidavits. The investigator individually or as a group. As found by the trial court, the
confirmed with the POEA that the accused was not licensed or evidence on record, notably appellants own version, indicates that
authorized to recruit overseas contract workers. The accused was she was running her own labor recruitment business.
arrested on an entrapment operation.
Appellant cannot escape liability by claiming that she was not
In her defense, the accused claimed that as an employee of a aware that before working for her employer in the recruitment
duly licensed agency who was tasked to recruit and offer job agency, she should first be registered with the POEA. Illegal
placements abroad, she could not be held liable for illegal recruitment in large scale is malum prohibitum, not malum in se.
recruitment. She admitted that she had no authority to recruit in Good faith is not a defense. As appellant committed illegal
her personal capacity, but that her authority emanated from a recruitment against three or more persons, she is liable for Illegal
Special Power of Attorney (SPA) and a Certification issued by a Recruitment in Large Scale.
licensed agency. At the time complainants applied for overseas
employment, the accused was employed as a Marketing 2.08 ENFORCEMENT AND SANCTIONS ART. 36 39,
Directress of Sarifudin Manpower and General Services, a duly LABOR CODE; SEC. 7 R.A. 10022
licensed agency with License No. OS-91-LB-61193-NL issued by
the Department of Labor and Employment.[58] A Special Power of Chapter III
Attorney (SPA) from Sarifudin, dated May 1, 1994, states that she MISCELLANEOUS PROVISIONS
was authorized. Accused Flor Gutierrez filed the present appeal
seeking the reversal of her conviction. Art. 36. Regulatory power. The Secretary of Labor shall have the
power to restrict and regulate the recruitment and placement
ISSUE: W/N the conviction of the accused should be upheld even activities of all agencies within the coverage of this Title and is
though she is licensed recruiter. hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the
HELD: provisions of this Title.
Illegal recruitment is committed when two elements concur,
namely: (1) the offender has no valid license or authority required Art. 37. Visitorial Power. The Secretary of Labor or his duly
by law to enable one to lawfully engage in recruitment and authorized representatives may, at any time, inspect the premises,
placement of workers; and (2) he undertakes either any activity books of accounts and records of any person or entity covered by
within the meaning of recruitment and placement defined under this Title, require it to submit reports regularly on prescribed
Art. 13(b), or any of the prohibited practices enumerated under forms, and act on violation of any provisions of this Title.
Art. 34 of the Labor Code. Art. 13(b) of the Labor Code defines
recruitment and placement as any act of canvassing, enlisting, Art. 38. Illegal recruitment.
contracting, transporting, utilizing, hiring, or procuring workers, Any recruitment activities, including the prohibited practices
and includes referrals, contract services, promising or advertising enumerated under Article 34 of this Code, to be undertaken by
non-licensees or non-holders of authority, shall be deemed illegal Any person who is neither a licensee nor a holder of authority
and punishable under Article 39 of this Code. The Department of under this Title found violating any provision thereof or its
Labor and Employment or any law enforcement officer may initiate implementing rules and regulations shall, upon conviction thereof,
complaints under this Article. 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
Illegal recruitment when committed by a syndicate or in large scale than P100,000 or both such imprisonment and fine, at the
shall be considered an offense involving economic sabotage and discretion of the court;
shall be penalized in accordance with Article 39 hereof. If the offender is a corporation, partnership, association or entity,
the penalty shall be imposed upon the officer or officers of the
Illegal recruitment is deemed committed by a syndicate if carried corporation, partnership, association or entity responsible for
out by a group of three (3) or more persons conspiring and/or violation; and if such officer is an alien, he shall, in addition to the
confederating with one another in carrying out any unlawful or penalties herein prescribed, be deported without further
illegal transaction, enterprise or scheme defined under the first proceedings;
paragraph hereof. Illegal recruitment is deemed committed in
large scale if committed against three (3) or more persons In every case, conviction shall cause and carry the automatic
individually or as a group. revocation of the license or authority and all the permits and
privileges granted to such person or entity under this Title, and the
The Secretary of Labor and Employment or his duly authorized forfeiture of the cash and surety bonds in favor of the Overseas
representatives shall have the power to cause the arrest and Employment Development Board or the National Seamen Board, as
detention of such non-licensee or non-holder of authority if after the case may be, both of which are authorized to use the same
investigation it is determined that his activities constitute a danger exclusively to promote their objectives.
to national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the search of Section 7. Section 10 of Republic Act No. 8042, as amended,
the office or premises and seizure of documents, paraphernalia, is hereby amended to read as follows:
properties and other implements used in illegal recruitment
activities and the closure of companies, establishments and SEC. 10. Money Claims. Notwithstanding any provision of law to
entities found to be engaged in the recruitment of workers for the contrary, the Labor Arbiters of the National Labor Relations
overseas employment, without having been licensed or authorized Commission (NLRC) shall have the original and exclusive
to do so. jurisdiction to hear and decide, within ninety (90) calendar days
after the filing of the complaint, the claims arising out of an
Art. 39. Penalties. employer-employee relationship or by virtue of any law or contract
The penalty of life imprisonment and a fine of One Hundred involving Filipino workers for overseas deployment including claims
Thousand Pesos (P1000,000.00) shall be imposed if illegal for actual, moral, exemplary and other forms of damage.
recruitment constitutes economic sabotage as defined herein; Consistent with this mandate, the NLRC shall endeavor to update
Any licensee or holder of authority found violating or causing and keep abreast with the developments in the global services
another to violate any provision of this Title or its implementing industry.
rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than two years nor more than The liability of the principal/employer and the
five years or a fine of not less than P10,000 nor more than recruitment/placement agency for any and all claims under this
P50,000, or both such imprisonment and fine, at the discretion of section shall be joint and several. This provision shall be
the court; incorporated in the contract for overseas employment and shall be
a condition precedent for its approval. The performance bond to de
filed by the recruitment/placement agency, as provided by law,
shall be answerable for all money claims or damages that may be (c) Dismissal from the service with disqualification to hold any
awarded to the workers. If the recruitment/placement agency is a appointive public office for five (5) years.
juridical being, the corporate officers and directors and partners as
the case may be, shall themselves be jointly and solidarily liable Provided, however, That the penalties herein provided shall be
with the corporation or partnership for the aforesaid claims and without prejudice to any liability which any such official may have
damages. incured under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.
Such liabilities shall continue during the entire period or duration
of the employment contract and shall not be affected by any CASE: EXECUTIVE SECRETARY vs. CA, 429 SCRA 81 (04)
substitution, amendment or modification made locally or in a
foreign country of the said contract. 2.09 LIABILITY OF AGENCY;

Any compromise/amicable settlement or voluntary agreement on CASE:


money claims inclusive of damages under this section shall be paid G & M (PHIL.) INC. vs. BATO MALAQUZ, 461 SCRA 111
within thirty (30) days from approval of the settlement by the (05)
appropriate authority. FACTS: Abdul Aziz Abdullah Al Muhaimid Najad Car Maintenance
Association (Abdul Aziz) hired Willie Batomalaque as car painter
In case of termination of overseas employment without just, valid through a recruiter and agent petitioner G & M Phil., Inc. (G&M).
or authorized cause as defined by law or contract, or any Their contract is for 2 years.
unauthorized deductions from the migrant workers salary, the
worker shall be entitled to the full reimbursement if his placement Batomalaque started working on March 10, 1992, but on June 7,
fee and the deductions made with interest at twelve percent (12%) 1994, he was repatriated. He then filed a complaint against G&M,
per annum, plus his salaries for the unexpired portion of his Abdul Aziz and Country Empire Insurance Company for non-
employment contract or for three (3) months for every year of the payment and underpayment of salaries and damages with the
unexpired term, whichever is less. Philippine Overseas Employment Administration (POEA). The Labor
Arbiter (LA) credited Batomalaques complaint for underpayment of
In case of a final and executory judgement against a foreign salaries during the first year of his contract but denied his other
employer/principal, it shall be automatically disqualified, without claims, and ordered G&M and other defendants to pay
further proceedings, from participating in the Philippine Overseas Batomalaque. On appeal, the National Labor Relations Commission
Employment Program and from recruiting and hiring Filipino affirmed the decision of the LA.
workers until and unless it fully satisfies the judgement award.
ISSUE: W/N G&M has the obligation to prove that Batomalaque
Noncompliance with the mandatory periods for resolutions of case was paid his salaries in full
provided under this section shall subject the responsible officials to
any or all of the following penalties: HELD:
Specifically with respect to labor cases, the burden of proving
(a) The salary of any such official who fails to render his decision payment of monetary claims rests on the employer, the rationale
or resolution within the prescribed period shall be, or caused to be, being that the pertinent personnel files, payrolls, records,
withheld until the said official complies therewith; remittances and other similar documents which will show that
overtime, differentials, service incentive leave and other claims of
(b) Suspension for not more than ninety (90) days; or
workers have been paid are not in the possession of the worker (b) The State shall afford full protection to labor, local and
but in the custody and absolute control of the employer. overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
Aside, however, from its bare allegation that its principal Abdul Towards this end, the State shall provide adequate and timely
Aziz had fully paid Batomalaques salaries, G&M did not present social, economic and legal services to Filipino migrant workers.
any evidence, e.g., payroll or payslips, to support its defense of
payment. G&M thus failed to discharge the onus probandi. G&M, as (c) While recognizing the significant contribution of Filipino migrant
the recruiter and agent of Abdul Aziz, is thus solidarily liable with workers to the national economy through their foreign exchange
the latter for the unpaid wages of Batomalaque. remittances, the State does not promote overseas employment as
a means to sustain economic growth and achieve national
On repeated occasions, the Court ruled that the debtor has the development. The existence of the overseas employment program
burden of showing with legal certainty that the obligation has been rests solely on the assurance that the dignity and fundamental
discharged by payment. To discharge means to extinguish an human rights and freedoms of the Filipino citizens shall not, at any
obligation, and in contract law discharge occurs either when the time, be compromised or violated. The State, therefore, shall
parties have performed their obligations in the contract, or when continuously create local employment opportunities and promote
an event the conduct of the parties, or the operation of law the equitable distribution of wealth and the benefits of
releases the parties from performing. Thus, a party who alleges development.
that an obligation has been extinguished must prove facts or acts
giving rise to the extinction. (d) The State affirms the fundamental equality before the law of
women and men and the significant role of women in nation-
The fact of underpayment does not shift the burden of evidence to building. Recognizing the contribution of overseas migrant women
Batomalaque because partial payment does not extinguish the workers and their particular vulnerabilities, the State shall apply
obligation. Only when the debtor introduces evidence that the gender sensitive criteria in the formulation and implementation of
obligation has been extinguished does the burden of evidence shift policies and programs affecting migrant workers and the
to the creditor who is then under a duty of producing evidence to composition of bodies tasked for the welfare of migrant workers.
show why payment does not extinguish the obligation.
(e) Free access to the courts and quasi-judicial bodies and
DATUMAN vs. FIRST COSMOPOLITAN MANPOWER AND adequate legal assistance shall not be denied to any persons by
PROMOTION SERVICES INC., G.R. 156029, (08), 571 SCRA reason of poverty. In this regard, it is imperative that an effective
41 mechanism be instituted to ensure that the rights and interest of
distressed overseas Filipinos, in general, and Filipino migrant
2.10 MIGRANT WORKERS ACT R.A. 8042, SECS. 2,4,6 & workers, in particular, documented or undocumented, are
10; adequately protected and safeguarded.
SEC. 2. DECLARATION OF POLICIES--
(f) The right of Filipino migrant workers and all overseas Filipinos
(a) In the pursuit of an independent foreign policy and while to participate in the democratic decision-making processes of the
considering national sovereignty, territorial integrity, national State and to be represented in institutions relevant to overseas
interest and the right to self-determination paramount in its employment is recognized and guaranteed.
relations with other states, the State shall, at all times, uphold the
dignity of its citizens whether in country or overseas, in general, (g) The State recognizes that the ultimate protection to all
and Filipino migrant workers, in particular. migrant workers is the possession of skills. Pursuant to this and as
soon as practicable, the government shall deploy and/or allow the transporting, utilizing, hiring, procuring workers and includes
deployment only to skilled Filipino workers. referring, contact services, promising or advertising for
employment abroad, whether for profit or not, when undertaken
(h) Non-governmental organizations, duly recognized as by a non-license or non-holder of authority contemplated under
legitimate, are partners of the State in the protection of Filipino Article 13(f) of Presidential Decree No. 442, as amended,
migrant workers and in the promotion of their welfare, the State otherwise known as the Labor Code of the Philippines. Provided,
shall cooperate with them in a spirit of trust and mutual respect. that such non-license or non-holder, who, in any manner, offers or
promises for a fee employment abroad to two or more persons
(I) Government fees and other administrative costs of shall be deemed so engaged. It shall likewise include the following
recruitment, introduction, placement and assistance to migrant acts, whether committed by any persons, whether a non-licensee,
workers shall be rendered free without prejudice to the provision non-holder, licensee or holder of authority.
of Section 36 hereof.
(a) To charge or accept directly or indirectly any amount greater
Nonetheless, the deployment of Filipino overseas workers, than the specified in the schedule of allowable fees prescribed by
whether land-based or sea-based by local service contractors and the Secretary of Labor and Employment, or to make a worker pay
manning agencies employing them shall be encouraged. any amount greater than that actually received by him as a loan or
Appropriate incentives may be extended to them. advance;

I. DEPLOYMENT (b) To furnish or publish any false notice or information or


document in relation to recruitment or employment;
SEC. 4. Deployment of Migrant Workers - The State shall deploy
overseas Filipino workers only in countries where the rights of (c) To give any false notice, testimony, information or document or
Filipino migrant workers are protected. The government recognizes commit any act of misrepresentation for the purpose of securing a
any of the following as guarantee on the part of the receiving license or authority under the Labor Code;
country for the protection and the rights of overseas Filipino
workers: (d) To induce or attempt to induce a worker already employed to
quit his employment in order to offer him another unless the
(a) It has existing labor and social laws protecting the rights of transfer is designed to liberate a worker from oppressive terms
migrant workers; and conditions of employment;

(b) It is a signatory to multilateral conventions, declaration or (e) To influence or attempt to influence any persons or entity not
resolutions relating to the protection of migrant workers; to employ any worker who has not applied for employment
through his agency;
(c) It has concluded a bilateral agreement or arrangement with the
government protecting the rights of overseas Filipino workers; and (f) To engage in the recruitment of placement of workers in jobs
harmful to public health or morality or to dignity of the Republic of
(d) It is taking positive, concrete measures to protect the rights of the Philippines;
migrant workers.
(g) To obstruct or attempt to obstruct inspection by the Secretary
II. ILLEGAL RECRUITMENT of Labor and Employment or by his duly authorized representative;
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting, contracting,
(h) To fail to submit reports on the status of employment, persons, the officers having control, management or direction of
placement vacancies, remittances of foreign exchange earnings, their business shall be liable.
separations from jobs, departures and such other matters or
information as may be required by the Secretary of Labor and SEC. 10. MONEY CLAIMS. - Botwithstanding any provision of law to
Employment; the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the priginal and exclusive
(i) To substitute or alter to the prejudice of the worker, jurisdiction to hear and decide, within ninety (90) calendar days
employment contracts approved and verified by the Department of after filing of the complaint, the claims arising out of an employer-
Labor and Employment from the time of actual signing thereof by employee relationship or by virtue of any law or contract involving
the parties up to and including the period of the expiration of the Filipino workers for overseas deployment including claims for
same without the approval of the Department of Labor and actual, moral, exemplary and other forms of damages.
Employment;
The liability of the principal/employer and the
(j) For an officer or agent of a recruitment or placement agency to recruitment/placement agency for any and all claims under this
become an officer or member of the Board of any corporation section shall be joint and several. This provisions shall be
engaged in travel agency or to be engaged directly on indirectly in incorporated in the contract for overseas employment and shall be
the management of a travel agency; a condition precedent for its approval. The performance bond to be
filed by the recruitment/placement agency, as provided by law,
(k) To withhold or deny travel documents from applicant workers shall be answerable for all money claims or damages that may be
before departure for monetary or financial considerations other awarded to the workers. If the recruitment/placement agency is a
than those authorized under the Labor Code and its implementing juridical being, the corporate officers and directors and partners as
rules and regulations; the case may be, shall themselves be jointly and solidarily liable
with the corporation or partnership for the aforesaid claims and
(l) Failure to actually deploy without valid reasons as determined damages.
by the Department of Labor and Employment; and
Such liabilities shall continue during the entire period or
(m) Failure to reimburse expenses incurred by the workers in duration of the employment contract and shall not be affected by
connection with his documentation and processing for purposes of any substitution, amendment or modification made locally or in a
deployment, in cases where the deployment does not actually take foreign country of the said contract.
place without the worker's fault. Illegal recruitment when
committed by a syndicate or in large scale shall be considered as Any compromise/amicable settlement or voluntary
offense involving economic sabotage. agreement on money claims inclusive of damages under this
section shall be paid within four (4) months from the approval of
Illegal recruitment is deemed committed by a syndicate carried out the settlement by the appropriate authority.
by a group of three (3) or more persons conspiring or
confederating with one another. It is deemed committed in large In case of termination of overseas employment without
scale if committed against three (3) or more persons individually just, valid or authorized cause as defined by law or contract, the
or as a group. workers shall be entitled to the full reimbursement of his
placement fee with interest of twelve percent (12%) per annum,
The persons criminally liable for the above offenses are the plus his salaries for the unexpired portion of his employment
principals, accomplices and accessories. In case of juridical contract or for three (3) months for every year of the unexpired
term, whichever is less.
However, when he was deployed to Taipei as part of a crew of the
Non-compliance with the mandatory periods for fishing vessel FV Tsang Cheng 66, he found out that there were
resolutions of cases provided under this section shall subject the only 5 crew members and that he had to buy food. Worse, the
responsible officials to any or all of the following penalties: master of the vessel, gave orders that Donato couldnt
understandwhich caused the master to be enraged and to hit
(a) The salary of any such official who fails to render his Donato. Lolita talked to the master of the vessel and when they
decision or resolutions within the prescribed period shall be, or were docked at the airport, Donato was told that he was going to
caused to be, withheld until the said official complies therewith; eb repatriated.

(b) Suspension for not more than ninety (90) days; or When Donato arrived at the Philippines, he reported to Fluorish
Maritime and was declared fit for work. He was promised that the
(c) Dismissal from the service with disqualifications to was going to be redeployed, but it turned out that it was no longer
hold any appointive public office for five (5) years. possible because he was 49 years oldallegedly no longer fit for
work.
Provided, however, that the penalties herein provided
shall be without prejudice to any liability which any such official Donato filed a complaint for illegal dismissal for the unexpired
may have incurred under other existing laws or rules and portion of his employment contract, earned wages, moral and
regulations as a consequence of violating the provisions of this exemplary damages, and attorneys fees.
paragraph.
Petitioners, on the other hand, said that Donato voluntarily
CASES: resigned, that he failed to comply with the machinery and
arbitration clause in the employment contract, and that he failed to
FLOURISH MARITIME SHIPPING vs. ALMANZOR, 548 SCRA discharge the burden of proof of illegal dismissal.
713 (08)
RATIO DECIDENDI: In case of unjust, invalid or unauthorized Labor Arbiter Held that respondents were guilty of illegal
termination of overseas employment, where the term of the dismissal and entitled to six months total of salary
employment contract is at least one year or more, the worker shall (NT95,040,000).
be entitled to a salary of three months for ever year of the
unexpired term, in accord with Section 10 of RA 8042. NLRC: Affirmed in toto the Labor Arbiters decision

FACTS:.Donato (respondent) was a fisherman illegally dismissed. CA: Upheld the decision and Labor Arbiter and the NLRC, and
The monetary award, which was increased by the CA, is also increased the monetary award, due to the interpretation of Section
questioned by the petitioner. 10 of RA8042.

Name of Petitioner: Flourish Maritime Shipping and Lolita Uy Section 10, RA 8042: Money Claims. In case of termination of
Name of Respondent: Donato Almanzor (employee) overseas employment without just, valid or authorized cause as
defined by law or contract, the worker shall be entitled to the full
49-yo Donato entered into a 2-year employment contract with reimbursement of his placement fee with interest at twelve percent
petitioner Flourish Maritime Shipping as a fisherman, with a (12%) per annum, plus his salaries for the unexpired portion of his
monthly salary of NT15,8400 including free meals everyday. employment contract or for three (3) months for every year of the
unexpired term, whichever is less.
According to the NLRC and Labor Arbiter, Donato was entitled to Employ Services and Resource (PSRI), a domestic corp engaged in
six months because the contract covered a two-year period and he the recruitment and deployment of ofws. They paid 19000 each as
was dismissed only after 26 days of actual work. The CA, on the placement fee and then they executed a one-year contract
other hand, said that he actually worked for 26 days, so the employment with employer Taiwan Kuan Yuan Fiber with a
unexpired portion of the contract was actually 1 yr, 11 months, monthly salary of NTS$15,360. They were deployed but upon their
and 4 days. The CA held that he was entitled to full compensation arrival, they discovered that their quarters had no beddings,
for 11 months and 4 days of the first year, with a total salary pillows and blankets. There was also a mandatory imposition of
equivalent of 14 months and 4 days. overtime work exceeding 10 hrs without just overtime
compensation, and there were irregular deductions amounting to
400 NT for littering violation of only one employee.
ISSUES:
1. W/N respondent was illegally dismissed from employment They brought their problems to the attention of the management.
2. W/N the award of the Court of Appeals was correct However, the manager of PSRI cautioned them not to air their
complaints and just forget about their plans. Disappointed, they
DECISION: The SC partially granted the petition in that the contacted OWWA but their requests were not favorably acted
monetary award should be lessened. upon. Respondent Navarra was repatriated without being informed
of the cause, and worse, he was escorted by the police to the
HELD: airport. The other respondents decided to go home, however, they
1. were informed that they should pay to their employer NT$30k,
No, The LA and the NLRC correctly concluded, as affirmed by the otherwise they cannot go home. They failed to pay.
CA, that respondent was not actually redeployed for work, in
violation of their employment contract. The respondent failed give Then the management gave them two options, imprisonment or
conclusive evidence that respondent voluntarily resigned from signing separate agreement authorizing the employer to deduct
employment, that respondent was not physically fit to perform the 30k from their salaries and another 10k as bond. However,
work due to his old age and that the employment contract they were still not repatriated. Conditions in the workplace
provided a grievance machinery. Therefore, the termination of worsened. Respondent Paramio got ill as a result of the employers
respondents services was without valid cause. Further, the Court failure to give breakfast and dinner the night before but he was
is not a trier of facts, and factual issues have been resolved still ordered to go to work.
already by the Labor Arbiter and NLRC, as affirmed by the CA.
2. He was made to carry a container weighing 30kg. Due to his
No, The correct interpretation of Section 10, RA 802 has already condition, the container slipped from his hands and he injured his
been resolved in Marsaman Manning Agency, Inc. vs. NLRC. The thumb. The employer told him to return to the philippines, then
provision comes into play only when the employment contract has the Taiwanese Labor Dept intervened and told them that employer
a term of at least 1 year or more. In this case, the contract was for had no right to repatriate him as the injury happened at the
two years, and the overseas contract worker actually worked for workplace. When Paramio reported for work, after recuperating
only 26 days prior to the dismissal. Thus, the three months salary from may 14 to june 30, he was given the second hardest job and
rule applies. then later, he was assigned to the hardest, carry 200m of maong.
There was also a deduction in his salary.
PHIL. EMPLOY SERVICES, ETC. vs. PARAMIO, 427 SCRA 732
(04) As to the other respondents, they could no longer bear the
FACTS: Respondents Paramio, Navarra, Sarmiento, Guillermo, worsening working conditions. they decided to go home. Their
Bautista and Curameng applied for employment in Taiwan witg Phil employer agreed to have them repatriated and to return their
respective bonds, but required them to write letters of resignation. contractus (the law of the place where the contract is made)
All of them were repatriated but they paid for their own plane governs. Therefore, the Labor Code, its implementing rules and
ticket. regulations, and other laws affecting labor, apply in this case.
When they returned, the six respondents filed complaints before In order to effect a valid dismissal of an employee, the law
NLRC for illegal dismissal, refund of placement fees and plane requires that there be just and valid cause as provided in Article
fares and litigation expenses. 282 and that the employee was afforded an opportunity to be
heard and to defend himself. Applying the law and the rule, the
The respondents argued that under Section 10, Republic Act No. employer is burdened to prove that the employee was suffering
8042, otherwise known as the Migrant Workers and Overseas from a disease which prevented his continued employment, or that
Filipinos Act of 1995, PSRI was solidarily liable with Kuan Yuan for the employees wound prevented his continued employment.
their claims. Since they were repatriated prior to the expiration of
their respective contracts for no valid reason, PSRI was liable to In the case at bar, the petitioner did not adduce in evidence a
pay their salaries for the unexpired portion of their contracts. certification from a public authority to the effect that respondent
The petitioner denied any liability on the respondents claims and Paramio had been heavily wounded. It also failed to show that by
asserted that the latter were validly dismissed. reason of his thumb injury, he lost the ability to work. Respondent
Paramio was not, for a time, able to perform the backbreaking
It averred that since complainant Paramio could no longer do his tasks required by his manager.
job because of his thumb injury, the termination of his contract
was valid, and his dismissal proper. Anent respondent Navarras However, despite his injury, he managed to perform the other
claim, the petitioner PSRI ratiocinated that the termination of his tasks assigned to him.
services was for a valid cause because of an altercation he had
with his supervisor. As for the claims of the other respondents, the The claim of petitioner that respondent Navarra shouted invectives
petitioner alleged that the respondents Guillermo, Bautista and against his supervisor was, likewise, unsubstantiated. The
Curameng, Jr. voluntarily resigned. petitioner did not even present an affidavit of the superior with
whom the respondent reportedly fought. As to the other
On October 29, 1998, Labor Arbiter Felipe P. Pati rendered a respondents, the petitioner alleges that they refused to go to work
decision declaring that the dismissal of the respondents was illegal and, in fact, voluntarily resigned. We do not agree. The records
and awarded the salaries due them for the unexpired portion of reveal that the three respondents agreed to execute the foregoing
their contracts, as well as the refund of their plane fare. NLRC because they could no longer bear the working conditions in their
reversed. CA reinstated the decision of Labor Arbiter however it place of employment. there can be no other conclusion than that
reduced the award of refund of placement fee from 75k to 19k. the aforementioned respondents were illegally dismissed, and their
employment contract illegally terminated.
ISSUE: W/N the respondents were illegally dismissed?
Under Section 10, paragraph 5 of Rep. Act No. 8042, respondents
HELD: Sarmiento, Bautista, Curameng and Guillermo are entitled to the
SC ruled that the respondents dismissal was not based on just, full reimbursement of their placement fees. Since each of the
valid and legal grounds. Preliminarily, it bears stressing that the respondents remitted only P19,000 to the petitioner, each of them
respondents who filed complaints for illegal dismissal against the is entitled to P19,000, plus 12% interest per annum. According to
petitioner were overseas Filipino workers whose employment Section 10, paragraph 2 of Rep. Act No. 8042, the agency which
contracts were approved by the Philippine and Overseas deployed the employees whose employment contract were
Employment Administration (POEA) and were entered into and adjudged illegally terminated, shall be jointly and solidarily liable
perfected here in the Philippines. As such, the rule lex loci with the principal for the money claims awarded to the aforesaid
employees. Consequently, the petitioner, as the agency of the It is understood that the terms and conditions stated in this
respondents, is solidarily liable with its principal Kuan Yuan for the Employment Contract are in conformance with the Standard
payment of the salaries due to the respondents corresponding to Employment Contract for Entertainers prescribed by the POEA
the unexpired portion of their contract, as well as the under Memorandum Circular No. 2, Series of 1986. Any alterations
reimbursement of their placement fees. or changes made in any part of this contract without prior approval
by the POEA shall be null and void;
PETITION OF PSRI DENIED. PAY RESPONDENTS THEIR
RESPECTIVE SALARIES CORRESPONDING TO THE UNEXPIRED The side agreement which reduced Chavezs basic wage is null and
PORTION OF RESPECTIVE CONTRACTS. 4,300 FOR EXPENSE void for violating the POEAs minimum employment standards, and
INCURRED AND RETURN PLACEMENT FEE. for not having been approved by the POEA. Here, both Centrum
Placement and Jaz Talents are solidarily liable.
CHAVEZ vs. BONTO PEREZ, 242 SCRA 73 (95)
FACTS: Labor Standards Standard Employment Contract for Laches does not apply in the case at bar. In this case, Chavez filed
Entertainers Laches her claim well within the three-year prescriptive period for the
filing of money claims set forth in Article 291 of the Labor Code.
Chavez is a dancer who was contracted by Centrum Placement & For this reason, laches is not applicable.
Promotions Corporation to perform in Japan for 6 months. The
contract was for $1.5k a month, which was approved by POEA. PLACEWELL INTL. SERVICES CORP. vs. CAMOTE, 492 SCRA
After the approval of said contract, Chavez entered into a side 761 (06)
contract reducing her salary with her Japanese employer through FACTS: Petitioner Placewell International Services Corporation
her local manager-agency (Jaz Talents Promotion). The salary was (PISC) deployed respondent Ireneo B. Camote to work as building
reduced to $500 and $750 was to go to Jaz Talents. In February carpenter for SAAD Trading and Contracting Co. (SAAD) at the
1991 (two years after the expiration of her contract), Chavez sued Kingdom of Saudi Arabia (KSA) for a contract duration of two
Centrum Placement and Jaz Talents for underpayment of wages years, with a corresponding salary of US$370.00 per month. At the
before the POEA. job site, respondent was allegedly found incompetent by his
foreign employer; thus the latter decided to terminate his services.
The POEA ruled against her. POEA stated that the side agreement However, respondent pleaded for his retention and consented to
entered into by Chavez with her Japanese employer superseded accept a lower salary of SR 800.00 per month. Thus, SAAD
the Standard Employment Contract; that POEA had no knowledge retained respondent until his return to the Philippines two years
of such side agreement being entered into; that Chavez is barred after.
by laches for sleeping on her right for two years.
On November 27, 2001, respondent filed a sworn Complaint for
ISSUE: W/N Chavez is entitled to relief? monetary claims against petitioner alleging that when he arrived at
the job site, he and his fellow Filipino workers were required to
HELD: sign another employment contract written in Arabic under the
Yes, The SC ruled that the managerial commission agreement constraints of losing their jobs if they refused; that for the entire
executed by Chavez to authorize her Japanese Employer to deduct duration of the new contract, he received only SR 590.00 per
her salary is void because it is against our existing laws, morals month; that he was not given his overtime pay despite rendering
and public policy. It cannot supersede the standard employment nine hours of work everyday; that he and his co-workers sought
contract approved by the POEA with the following stipulation assistance from the Philippine Embassy but they did not succeed in
appended thereto: pursuing their cause of action because of difficulties in
communication.
She was eventually employed and was issued an employment
ISSUE: W/N there is estoppel by laches? pass. In her job offer, it was stated, among others, that she was to
be put on probation for 3 months and termination of her
HELD: employment may be made by either party after 1 day notice while
R.A. No. 8042 explicitly prohibits the substitution or alteration to on probation, and 1 month notice or 1 month pay in lieu of notice
the prejudice of the worker, of employment contracts already upon confirmation. She accepted the terms and was issued an OEC
approved and verified by the Department of Labor and by the POEA. She was commended for her good work. However,
Employment (DOLE) from the time of actual signing thereof by the she was informed by Ruben Tobias, the bank president, that she
parties up to and including the period of the expiration of the same would have to resign in line with some cost cutting and
without the approval of the DOLE. The subsequently executed side realignment measures of the company. She refused but was
agreement of an overseas contract worker with her foreign informed by Tobias that if she does not resign, he will terminate
employer which reduced her salary below the amount approved by her instead.
the POEA is void because it is against our existing laws, morals
and public policy. The said side agreement cannot supersede her ISSUES:
standard employment contract approved by the POEA. 1. W/N the arbitration branch of the NLRC has jurisdiction
2. W/N the arbitration of the NLRC in the NCR is the proper venue
Petitioners contention that respondent is guilty of laches is without 3. W/N Cabansag was illegally dismissed
basis. Laches has been defined as the failure of or neglect for an
unreasonable and unexplained length of time to do that which by HELD:
exercising due diligence, could or should have been done earlier, Labor arbiters have original and exclusive jurisdiction over claims
or to assert a right within reasonable time, warranting a arising from employer-employee relations including termination
presumption that the party entitled thereto has either abandoned disputes involving all workers, including OFWs. Here, Cabansag
it or declined to assert it. Thus, the doctrine of laches presumes applied for and secured an OEC from the POEA through the
that the party guilty of negligence had the opportunity to do what Philippine Embassy. The OEC authorized her working status in a
should have been done, but failed to do so. Conversely, if the said foreign country and entitled her to all benefits and processes under
party did not have the occasion to assert the right, then, he can our statutes. Although she may been a direct hire at the
not be adjudged guilty of laches. Laches is not concerned with the commencement of her employment, she became an OFW who was
mere lapse of time; rather, the party must have been afforded an covered by Philippine labor laws and policies upon certification by
opportunity to pursue his claim in order that the delay may the POEA. When she was illegally terminated, she already
sufficiently constitute laches. possessed the POEA employment certificate.

In the instant case, respondent filed his claim within the three- A migrant worker refers to a person who is to be engaged, is
year prescriptive period for the filing of money claims set forth in engaged or has been engaged in a remunerated activity in a state
Article 291 of the Labor Code from the time the cause of action of which he or she is not a legal resident; to be used
accrued. Thus, we find that the doctrine of laches finds no interchangeably with overseas Filipino worker. Here, Cabansag
application in this case. was a Filipino, not a legal resident of Singapore, and employed by
petitioner in its branch office in Singapore. She is clearly an
PNB vs. CABANSAG, 460 SCRA 514 (05) OFW/migrant worker. Thus, she has the option where to file her
FACTS: Florence Cabansag went to Singapore as a tourist. While Complaint for illegal dismissal. She can either file at the Regional
she was there, she looked for a job and eventually applied with the Arbitration Branch where she resides or the RAB where the
Singapore Branch of the Philippine National Bank. PNB is a private employer is situated. Thus, in filing her Complaint before the RAB
banking corporation organized and existing under Philippine laws. office in Quezon City, she has made a valid choice of proper venue.
The appellate court was correct in holding that respondent was Equitable PCI-Bank countered that at the time Sim withdrew said
already a regular employee at the time of her dismissal, because amount, the radio program was already off the air. She is a
her three-month probationary period of employment had already managerial employee. Thus, loss of trust and confidence is a valid
ended. This ruling is in accordance with Article 281 of the Labor ground for her dismissal.
Code: An employee who is allowed to work after a probationary
period shall be considered a regular employee. Indeed, petitioner ISSUE/S:
recognized respondent as such at the time it dismissed her, by 1. W/N the Labor Relations System of the Philippines has
giving her one months salary in lieu of a one-month notice, extraterritorial jurisdiction
consistent with provision No. 6 of her employment Contract.
2. W/N the National Labor Relations Commission has jurisdiction
SIM vs. NLRC, 543 SCRA 515 (07) over overseas Filipino workers

FACTS: Corazon Sim filed a case for illegal dismissal with the HELD:
Labor Arbiter, alleging that she was initially employed by Equitable Yes to both issues, The Labor relations system in the Philippines
PCI-Bank in 1990 as Italian Remittance Marketing Consultant to has extra-territorial jurisdiction and the Labor Arbiters of the
the Frankfurt Representative Office. National Labor Relations Commission (NLRC) have jurisdiction to
hear and decide, within the claims arising out of an employer-
Eventually, she was promoted to Manager position, until employee relationship or by virtue of any law or contract involving
September 1999, when she received a letter from Remegio David - Filipino workers for overseas deployment including claims for
- the Senior Officer, European Head of PCIBank, and Managing actual, moral, exemplary and other forms of damages.
Director of PCIB- Europe -- informing her that she was being
dismissed due to loss of trust and confidence based on alleged Article 217 of the Labor Code provides for the jurisdiction of the
mismanagement and misappropriation of funds. Labor Arbiter and the National Labor Relations Commission, viz.:

Equitable PCI Bank denied any employer-employee relationship ART. 217. Jurisdiction of Labor Arbiters and the Commission.
between them, and sought the dismissal of the complaint.
(a) Except as otherwise provided under this Code the Labor
The Labor Arbiter rendered its Decision dismissing the case for Arbiters shall have original and exclusive jurisdiction to hear and
want of jurisdiction and/or lack of merit. According to the Labor decide, within thirty (30) calendar days after the submission of the
Arbiter: It should be stressed at this juncture that the labor case by the parties for decision without extension, even in the
relations system in the Philippines has no extra-territorial absence of stenographic notes, the following cases involving all
jurisdiction. It is limited to the relationship between labor and workers, whether agricultural or non-agricultural:
capital within the Philippines. 1. Unfair labor practice cases;
2. Termination disputes;
Sim was accused of withdrawing P3,000,000.00 lire from the 3. If accompanied with a claim for reinstatement, those
bank's account. cases that workers may file involving wage, rates of pay,
hours of work and other terms and conditions of
Sim does not deny withdrawing the said amount. What she employment;
submits is that she used said amount for the Radio Pilipinas sa 4. Claims for actual, moral, exemplary and other forms of
Roma radio program of the company. damages arising from the employer-employee relations;
5. Cases arising from any violation of Article 264 of this State assures the basic rights of all workers to self-organization,
Code, including questions involving the legality of strikes collective bargaining, security of tenure, and just and humane
and lockouts; and conditions of work [Article 3 of the Labor Code of the Philippines;
6. Except claims for Employees Compensation, Social See also Section 18, Article II and Section 3, Article XIII, 1987
Security, Medicare and maternity benefits, all other claims, Constitution]. This ruling is likewise rendered imperative by Article
arising from employer-employee relations, including those 17 of the Civil Code which states that laws "which have for their
of persons in domestic or household service, involving an object public order, public policy and good customs shall not be
amount of exceeding five thousand pesos (P5,000.00) rendered ineffective by laws or judgments promulgated, or by
regardless of whether accompanied with a claim for determination or conventions agreed upon in a foreign country."
reinstatement.
(b) The commission shall have exclusive appellate jurisdiction over DISPOSITIVE: Petition was denied due to procedural issues. The
all cases decided by Labor Arbiters. CA did not commit any error in dismissing the petition before it for
failure to file a prior motion for reconsideration with the NLRC. The
Moreover, Section 10 of Republic Act (R.A.) No. 8042, or the Labor Arbiter and the NLRC's factual findings as regards the
Migrant Workers and Overseas Filipinos Act of 1995, provides: validity of petitioner's dismissal are accorded great weight and
respect and even finality when the same are supported by
SECTION 10. Money Claims. Notwithstanding any provision of substantial evidence.
law to the contrary, the Labor Arbiters of the National Labor
Relations Commission (NLRC) shall have the original and exclusive DOCTRINE: Labor arbiters have original and exclusive jurisdiction
jurisdiction to hear and decide, within ninety (90) calendar days over claims arising from employer-employee relations, including
after the filing of the complaint, the claims arising out of an termination disputes involving all workers, among whom are
employer-employee relationship or by virtue of any law or contract overseas Filipino workers.
involving Filipino workers for overseas deployment including claims
for actual, moral, exemplary and other forms of damages. SERRANO vs. GALLANT MARITIME SERVICES, INC. G.R.
167641 (09), 582 SCRA 254
Also, Section 62 of the Omnibus Rules and Regulations By way of Petition for Review under Rule 45 of the Rules of Court,
Implementing R.A. No. 8042 provides that the Labor Arbiters of petitioner assails the Decision and Resolution of the Court of
the NLRC shall have the original and exclusive jurisdiction to hear Appeals (CA).
and decide all claims arising out of employer-employee relationship
or by virtue of any law or contract involving Filipino workers for FACTS: Petitioner was hired by Gallant Maritime Services, Inc. and
overseas deployment including claims for actual, moral, exemplary Marlow Navigation Co., Ltd. (respondents) under a Philippine
and other forms of damages, subject to the rules and procedures Overseas Employment Administration (POEA)-approved Contract of
of the NLRC. In Philippine National Bank v. Cabansag, the Court Employment with the following terms and conditions:
pronounced:
Duration of contract 12 months
Whether employed locally or overseas, all Filipino workers enjoy
the protective mantle of Philippine labor and social legislation, Position Chief Officer
contract stipulations to the contrary notwithstanding. This
pronouncement is in keeping with the basic public policy of the Basic monthly salary US$1,400.00
State to afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race or creed, Hours of work 48.0 hours per week
and regulate the relations between workers and employers. For the
Overtime US$700.00 per month In awarding petitioner a lump-sum salary of US$8,770.00, the LA
based his computation on the salary period of three months only
Vacation leave with pay 7.00 days per month rather than the entire unexpired portion of nine months and 23
days of petitioners employment contract applying the subject
On March 19, 1998, the date of his departure, petitioner was clause. However, the LA applied the salary rate of US$2,590.00,
constrained to accept a downgraded employment contract for the consisting of petitioners [b]asic salary, US$1,400.00/month +
position of Second Officer with a monthly salary of US$1,000.00, US$700.00/month, fixed overtime pay, + US$490.00/month,
upon the assurance and representation of respondents that he vacation leave pay = US$2,590.00/compensation per month.
would be made Chief Officer by the end of April 1998.
Respondents appealed to the National Labor Relations Commission
Respondents did not deliver on their promise to make petitioner (NLRC) to question the finding of the LA that petitioner was
Chief Officer. Hence, petitioner refused to stay on as Second illegally dismissed.
Officer and was repatriated to the Philippines on May 26, 1998.
The NLRC modified the LA Decision and corrected the LAs
Petitioners employment contract was for a period of 12 months or computation of the lump-sum salary awarded to petitioner by
from March 19, 1998 up to March 19, 1999, but at the time of his reducing the applicable salary rate from US$2,590.00 to
repatriation on May 26, 1998, he had served only two (2) months US$1,400.00 because R.A. No. 8042 does not provide for the
and seven (7) days of his contract, leaving an unexpired portion of award of overtime pay, which should be proven to have been
nine (9) months and twenty-three (23) days. actually performed, and for vacation leave pay.

Petitioner filed with the Labor Arbiter (LA) a Complaint against Petitioner filed a Motion for Partial Reconsideration, but this time
respondents for constructive dismissal and for payment of his he questioned the constitutionality of the subject clause. The NLRC
money claims in the total amount of US$26,442.73. denied the motion.

The LA rendered a Decision dated July 15, 1999, declaring the Petitioner filed a Petition for Certiorari with the CA, reiterating the
dismissal of petitioner illegal and awarding him monetary benefits, constitutional challenge against the subject clause. After initially
to wit: dismissing the petition on a technicality, the CA eventually gave
due course to it, as directed by this Court in its Resolution which
WHEREFORE, premises considered, judgment is hereby rendered granted the petition for certiorari,filed by petitioner.
declaring that the dismissal of the complainant (petitioner) by the
respondents in the above-entitled case was illegal and the The CA affirmed the NLRC ruling on the reduction of the applicable
respondents are hereby ordered to pay the complainant salary rate; however, the CA skirted the constitutional issue raised
[petitioner], jointly and severally, in Philippine Currency, based on by petitioner.
the rate of exchange prevailing at the time of payment, the
amount of EIGHT THOUSAND SEVEN HUNDRED SEVENTY U.S. His Motion for Reconsideration having been denied by the CA,
DOLLARS (US $8,770.00), representing the complainants salary petitioner brings his cause to this Court on the following grounds:
for three (3) months of the unexpired portion of the aforesaid
contract of employment. The Court of Appeals and the labor tribunals have decided the case
in a way not in accord with applicable decision of the Supreme
The claims of the complainant for moral and exemplary damages Court involving similar issue of granting unto the migrant worker
are hereby DISMISSED for lack of merit. back wages equal to the unexpired portion of his contract of
employment instead of limiting it to three (3) months.
of their contract, deprives them of equal protection and denies
Even without considering the constitutional limitations [of] Sec. 10 them due process.
of Republic Act No. 8042, the Court of Appeals gravely erred in law
in excluding from petitioners award the overtime pay and vacation The Arguments of Respondents
pay provided in his contract since under the contract they form
part of his salary. Respondents contend that the constitutional issue should not be
entertained, for this was belatedly interposed by petitioner in his
The Court now takes up the full merit of the petition mindful of the appeal before the CA, and not at the earliest opportunity, which
extreme importance of the constitutional question raised therein. was when he filed an appeal before the NLRC.40

ISSUES: The Arguments of the Solicitor General

W/N Section 10 (par 5) of RA 8042 is unconstitutional The Solicitor General (OSG)41 points out that as R.A. No. 8042
Proper computation of the Lump-sum salary to be awarded to took effect on July 15, 1995, its provisions could not have impaired
petitioner by reason of his illegal dismissal petitioners 1998 employment contract. Rather, R.A. No. 8042
Whether the overtime and leave pay should form part of the salary having preceded petitioners contract, the provisions thereof are
basis in the computation of his monetary award deemed part of the minimum terms of petitioners employment,
especially on the matter of money claims, as this was not
The unanimous finding of the LA, NLRC and CA that the dismissal stipulated upon by the parties.
of petitioner was illegal is not disputed. Likewise not disputed is
the salary differential of US$45.00 awarded to petitioner in all The Courts Ruling:
three fora.
First Issue
Applying the subject clause, the NLRC and the CA computed the
lump-sum salary of petitioner at the monthly rate of US$1,400.00 Does the subject clause violate Section 1, Article III of the
covering the period of three months out of the unexpired portion of Constitution, and Section 18, Article II and Section 3, Article XIII
nine months and 23 days of his employment contract or a total of on Labor as protected sector?
US$4,200.00.
The answer is in the affirmative.
Impugning the constitutionality of the subject clause, petitioner
contends that, in addition to the US$4,200.00 awarded by the Section 1, Article III of the Constitution guarantees:
NLRC and the CA, he is entitled to US$21,182.23 more or a total of
US$25,382.23, equivalent to his salaries for the entire nine No person shall be deprived of life, liberty, or property without due
months and 23 days left of his employment contract, computed at process of law nor shall any person be denied the equal protection
the monthly rate of US$2,590.00.31 of the law.

Arguments of the Petitioner Section 18, Article II and Section 3, Article XIII accord all
members of the labor sector, without distinction as to place of
For Antonio Serrano (petitioner), a Filipino seafarer, the last clause deployment, full protection of their rights and welfare.
in the 5th paragraph of Section 10, Republic Act (R.A.) No. 8042,
violates the OFWs constitutional rights in that it impairs the terms To Filipino workers, the rights guaranteed under the foregoing
constitutional provisions translate to economic security and parity:
all monetary benefits should be equally enjoyed by workers of Prior to R.A. No. 8042, a uniform system of computation of the
similar category, while all monetary obligations should be borne by monetary awards of illegally dismissed OFWs was in place. This
them in equal degree; none should be denied the protection of the uniform system was applicable even to local workers with fixed-
laws which is enjoyed by, or spared the burden imposed on, others term employment.
in like circumstances.
The subject clause does not state or imply any definitive
Imbued with the same sense of obligation to afford protection to governmental purpose; and it is for that precise reason that the
labor, the Court in the present case also employs the standard of clause violates not just petitioners right to equal protection, but
strict judicial scrutiny, for it perceives in the subject clause a also her right to substantive due process under Section 1, Article
suspect classification prejudicial to OFWs. III of the Constitution.

Upon cursory reading, the subject clause appears facially neutral, The subject clause being unconstitutional, petitioner is entitled to
for it applies to all OFWs. However, a closer examination reveals his salaries for the entire unexpired period of nine months and 23
that the subject clause has a discriminatory intent against, and an days of his employment contract, pursuant to law and
invidious impact on OFWs jurisprudence prior to the enactment of R.A. No. 8042.

The subject clause does not state or imply any definitive Third Issue
governmental purpose; and it is for that precise reason that the
clause violates not just petitioners right to equal protection, but Petitioner contends that his overtime and leave pay should form
also her right to substantive due process under Section 1, Article part of the salary basis in the computation of his monetary award,
III of the Constitution. because these are fixed benefits that have been stipulated into his
contract.
Second Issue
Petitioner is mistaken.
It is plain that prior to R.A. No. 8042, all OFWs, regardless of
contract periods or the unexpired portions thereof, were treated The word salaries in Section 10(5) does not include overtime and
alike in terms of the computation of their monetary benefits in leave pay. For seafarers like petitioner, DOLE Department Order
case of illegal dismissal. Their claims were subjected to a uniform No. 33, series 1996, provides a Standard Employment Contract of
rule of computation: their basic salaries multiplied by the entire Seafarers, in which salary is understood as the basic wage,
unexpired portion of their employment contracts. exclusive of overtime, leave pay and other bonuses; whereas
overtime pay is compensation for all work performed in excess of
The enactment of the subject clause in R.A. No. 8042 introduced a the regular eight hours, and holiday pay is compensation for any
differentiated rule of computation of the money claims of illegally work performed on designated rest days and holidays.
dismissed OFWs based on their employment periods, in the
process singling out one category whose contracts have an In the same vein, the claim for the days leave pay for the
unexpired portion of one year or more and subjecting them to the unexpired portion of the contract is unwarranted since the same is
peculiar disadvantage of having their monetary awards limited to given during the actual service of the seamen.
their salaries for 3 months or for the unexpired portion thereof,
whichever is less, but all the while sparing the other category from WHEREFORE, the Court GRANTS the Petition. The subject clause
such prejudice, simply because the latters unexpired contracts fall or for three months for every year of the unexpired term,
short of one year. whichever is less in the 5th paragraph of Section 10 of Republic
Act No. 8042 is DECLARED UNCONSTITUTIONAL; and the
December 8, 2004 Decision and April 1, 2005 Resolution of the Donato filed a complaint for illegal dismissal for the unexpired
Court of Appeals are MODIFIED to the effect that petitioner is portion of his employment contract, earned wages, moral and
AWARDED his salaries for the entire unexpired portion of his exemplary damages, and attorneys fees.
employment contract consisting of nine months and 23 days
computed at the rate of US$1,400.00 per month. Petitioners, on the other hand, said that Donato voluntarily
resigned, that he failed to comply with the machinery and
2.11 PRE TERMINATION; arbitration clause in the employment contract, and that he failed to
FLOURISH MARITIME SHIPPING vs. ALMANZOR, 548 SCRA discharge the burden of proof of illegal dismissal.
713 (08)
RATIO DECIDENDI: In case of unjust, invalid or unauthorized Labor Arbiter Held that respondents were guilty of illegal
termination of overseas employment, where the term of the dismissal and entitled to six months total of salary
employment contract is at least one year or more, the worker shall (NT95,040,000).
be entitled to a salary of three months for ever year of the
unexpired term, in accord with Section 10 of RA 8042. NLRC: Affirmed in toto the Labor Arbiters decision

FACTS:.Donato (respondent) was a fisherman illegally dismissed. CA: Upheld the decision and Labor Arbiter and the NLRC, and
The monetary award, which was increased by the CA, is also increased the monetary award, due to the interpretation of Section
questioned by the petitioner. 10 of RA8042.

Name of Petitioner: Flourish Maritime Shipping and Lolita Uy Section 10, RA 8042: Money Claims. In case of termination of
Name of Respondent: Donato Almanzor (employee) overseas employment without just, valid or authorized cause as
defined by law or contract, the worker shall be entitled to the full
49-yo Donato entered into a 2-year employment contract with reimbursement of his placement fee with interest at twelve percent
petitioner Flourish Maritime Shipping as a fisherman, with a (12%) per annum, plus his salaries for the unexpired portion of his
monthly salary of NT15,8400 including free meals everyday. employment contract or for three (3) months for every year of the
unexpired term, whichever is less.
However, when he was deployed to Taipei as part of a crew of the
fishing vessel FV Tsang Cheng 66, he found out that there were According to the NLRC and Labor Arbiter, Donato was entitled to
only 5 crew members and that he had to buy food. Worse, the six months because the contract covered a two-year period and he
master of the vessel, gave orders that Donato couldnt was dismissed only after 26 days of actual work. The CA, on the
understandwhich caused the master to be enraged and to hit other hand, said that he actually worked for 26 days, so the
Donato. Lolita talked to the master of the vessel and when they unexpired portion of the contract was actually 1 yr, 11 months,
were docked at the airport, Donato was told that he was going to and 4 days. The CA held that he was entitled to full compensation
eb repatriated. for 11 months and 4 days of the first year, with a total salary
equivalent of 14 months and 4 days.
When Donato arrived at the Philippines, he reported to Fluorish
Maritime and was declared fit for work. He was promised that the
was going to be redeployed, but it turned out that it was no longer ISSUES:
possible because he was 49 years oldallegedly no longer fit for 1. W/N respondent was illegally dismissed from employment
work. 2. W/N the award of the Court of Appeals was correct
DECISION: The SC partially granted the petition in that the
monetary award should be lessened.

HELD:
1.
No, The LA and the NLRC correctly concluded, as affirmed by the
CA, that respondent was not actually redeployed for work, in
violation of their employment contract. The respondent failed give
conclusive evidence that respondent voluntarily resigned from
employment, that respondent was not physically fit to perform
work due to his old age and that the employment contract
provided a grievance machinery. Therefore, the termination of
respondents services was without valid cause. Further, the Court
is not a trier of facts, and factual issues have been resolved
already by the Labor Arbiter and NLRC, as affirmed by the CA.
2.
No, The correct interpretation of Section 10, RA 802 has already
been resolved in Marsaman Manning Agency, Inc. vs. NLRC. The
provision comes into play only when the employment contract has
a term of at least 1 year or more. In this case, the contract was for
two years, and the overseas contract worker actually worked for
only 26 days prior to the dismissal. Thus, the three months salary
rule applies.