Labor Law Review Atty V Duano

INTRODUCTION
LABOR means physical toil

SALARY came from the Greek word “Salarium” which means salt
LABOR STANDARDS – minimum requirements prescribed by existing laws, rules and regulations
relating to hours of work, cost of living allowance and other monetary and welfare benefits
including occupational, safety and health standards
LABOR RELATIONS
KINDS OF LABOR LAWS

I. LABOR STANDARDS LAWS
Laws, rules and regulations that set the minimum requirements for terms and
conditions of employment such as wages, hours of work, etc
II. LABOR LAWS & SOCIAL LEGISLATIONS

Laws, rules and regulations that promote welfare of all sectors of society. This
includes laws that provide particular kinds of protection or benefits to the
society, in furtherance of social justice.
Not all social legislation are labor laws.
SOURCES OF LABOR LAWS

I. 1987 Constitution
 Art II, Sec 10
Section 10. The State shall promote social justice in all phases of
national development.
 Art II, Sec 18

Section 18. The State affirms labor as a primary social economic force. It
shall protect the rights of workers and promote their welfare.
 Art XII, Sec 12

Section 12. The State shall promote the preferential use of Filipino labor,
domestic materials and locally produced goods, and adopt measures
that help make them competitive.
 Art XIII, Sec 1

Section 1. The Congress shall give highest priority to the enactment of
measures that protect and enhance the right of all the people to human
dignity, reduce social, economic, and political inequalities, and remove
cultural inequities by equitably diffusing wealth and political power for
the common good.
To this end, the State shall regulate the acquisition, ownership, use, and
disposition of property and its increments.
CHARINA FLOR A. CACHO LABOR LAW REVIEW 1

Atty Voltaire Duano
 Art XIII, Sec 3*
Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment
and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production
and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
*2009 Bar Exam Question

Policies which were not covered in the Labor Code:
 principle of shared responsibility between workers and employers and the
 preferential use of voluntary modes in settling disputes
 regulation of relations bet workers and employees
 creation of economic opportunities
*2006 Bar Exam Question

The purpose of labor legislation.
 Art XIII, Sec 14
Section 14. The State shall protect working women by providing safe and
healthful working conditions, taking into account their maternal
functions, and such facilities and opportunities that will enhance their
welfare and enable them to realize their full potential in the service of
the nation.
Constitutional Provisions are not self-executing.
Jurisprudence:
Agabon vs NLRC:
The constitutional mandates of protection to labor and security
of tenure may be deemed as self-executing in the senses that
these are automatically acknowledged and observed without
need for any enabling legislation. However to declare that the
constitutional provisions are enough to guarantee the full
exercise of the rights embodied therein, and the realization of
ideals therein expressed, would be impractical, if not unrealistic.

Atty Voltaire Duano
The espousal of such view presents dangerous tendency of
being overboard and exaggerated.
Serrano vs Gallant Maritime Services, Inc.

Thus Sec 3, Art XIII cannot be treated as a principal source of
direct enforceable rights, for the violation of which the
questioned case may be declared unconstitutional. It may
unwittingly risk opening the floodgates of litigation to every
worker or union over every conceivable violation of so broad a
concept as social justice for labor.
II. Civil Code

Art. 1700. The relations between capital and labor are not merely contractual. They are so
impressed with public interest that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and
similar subjects.
Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the
interest or convenience of the public.
Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in
favor of the safety and decent living for the laborer.
Art. 1703. No contract which practically amounts to involuntary servitude, under any guise
whatsoever, shall be valid.
Art. 1704. In collective bargaining, the labor union or members of the board or committee
signing the contract shall be liable for non-fulfillment thereof.
Art. 1705. The laborer's wages shall be paid in legal currency.
Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the
employer.
Art. 1707. The laborer's wages shall be a lien on the goods manufactured or the work done.
Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for
debts incurred for food, shelter, clothing and medical attendance.
Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging to
the laborer.
Art. 1710. Dismissal of laborers shall be subject to the supervision of the Government, under
special laws.

Atty Voltaire Duano
III. Revised Penal Code
Art. 288. Other similar coercions; (Compulsory purchase of merchandise and payment of
wages by means of tokens.) — The penalty of arresto mayor or a fine ranging from 200 to
500 pesos, or both, shall be imposed upon any person, agent or officer, of any association or
corporation who shall force or compel, directly or indirectly, or shall knowingly permit any
laborer or employee employed by him or by such firm or corporation to be forced or
compelled, to purchase merchandise or commodities of any kind.
The same penalties shall be imposed upon any person who shall pay the wages due a laborer
or employee employed by him, by means of tokens or objects other than the legal tender
currency of the laborer or employee.
BASES OF LABOR LAWS

I. POLICE POWER
It is the inherent power of the State to regulate rights and liberty for the common good.
Jurisprudence:
JMM vs CA:
The latin maxim salus populi est surprema lex embodies the character of the entire
spectrum of public laws aimed at promoting the general welfare of the people under the
State's police power. As an inherent attribute of sovereignty which virtually "extends to
all public needs," this "least limitable" 3 of governmental powers grants a wide panoply
of instruments through which the state, as parens patriae gives effect to a host of its
regulatory powers.
Assoc de Agricultures de Talisy-Silay vs Talisay-Silay Milling Co.Serrano:

True it is that, as counsel for the centrals contend, police power cannot be resorted to
just any time the legislature wishes, but it is not correct to say that it is indispensable
that exceptional circumstances must exist before police power can be exercised. As very
aptly pointed out by the able amicus curiae, Attys. Tanada Teehankee and Carreon, gone
are the days when courts could "be found adhering to the doctrine that interference with
contracts can only be justified by exceptional circumstances", for the "test of validity
today under the due process clause, even in the case of legislation interfering with
existing contracts, is reasonableness, as held by this Honorable Supreme Court in the
case of People vs. Zeta. In other words, freedom from arbitrariness, capriciousness and
whimsicality is the test of constitutionality." (p. 17, Brief of Amicus Cuiae in Behalf of
Silay-Saravia Planters' Association, Attys. Tanada Teehankee and Carreon.) And there is
not enough showing here of unreasonableness in the legislation in question. Quite to the
contrary, as win be discussed anon We find all the provisions of the impugned act to be
germane to the end being pursued.
But it is not police power alone that sustains the validity of the statutory provision in
dispute. Having in view its primary objective to promote the interests of labor, it can
never be possible that the State would be bereft of constitutional authority to enact
legislations of its kind. Here, in the Philippines, whenever any government measure
designed for the advancement of the working class is impugned on constitutional
Atty Voltaire Duano
grounds and shadows of doubt are cast over the scope of the State's prerogative in
respect thereto, the imperious mandate of the social justice Ideal consecrated in our
fundamental laws, both the old and the new asserts its majesty, upon the courts to
accord utmost consideration to the spirit animating the act assailed, not just for the sake
of enforcing the explicit social justice provisions of the article on "Declaration of
Principles and State Policies", but more fundamentally, to serve the sacred cause of
human dignity, which is actually what lies at the core of those constitutional precepts as
it is also the decisive element always in the determination of any controversy between
capital and labor.
II. SOCIAL JUSTICE

Promotion of the welfare of ALL THE PEOPLE
Those who have less in life shall have more in law.
Jurisprudence:
Calalang vs Williams:
"Social justice is 'neither communism, nor despositism, nor atomism nor anarchy,' but
the humanization of laws and the equalization of social and economic forces by the State
so that justice in its rational and objectively secular conception may at least be
approximated. Social justice means the promotion of the welfare of all the people, the
adoption by the Government of measures calculated to insure economic stability of all
the component elements of society, through the maintenance of a proper economic and
social equilibrium in the inter-relations of the members of the community,
constitutionally, through the adoption of measures legally justifiable, or extra-
constitutionally, through the exercise of powers underlying the existence of all
governments on the time-honored principle of salus populi est suprema lex."
.
PLDT vs NLRC, Aug 1988

The policy of social justice is not intended to countenance wrongdoing simply because it
is committed by the underprivileged. At best it may mitigate the penalty but it certainly
will not condone the offense. Compassion for the poor is an imperative of every humane
society but only when the recipient is not a rascal claiming an undeserved privilege.
Social justice cannot be permitted to be refuge of scoundrels any more than can equity
be an impediment to the punishment of the guilty. Those who invoke social justice may
do so only if their hands are clean and their motives blameless and not simply because
they happen to be poor. This great policy of our Constitution is not meant for the
protection of those who have proved they are not worthy of it, like the workers who have
tainted the cause of labor with the blemishes of their own character.

Atty Voltaire Duano
THE LABOR CODE OF THE PHILIPPINES
LABOR STANDARDS
Book I Pre Employment
Book II Human Resources Development
Book III Conditions of Employment
Book IV Health, Safety & Social Welfare Benefits
LABOR RELATIONS
Book V Labor Relations
Book VI Post Employment
Book VII Transitory & Final Provisions
SOCIAL LEGISLATIONS
13TH Month Pay Law
Social Security Act of 1997
PhilHealth
Employee’s Comensation Program
Solo Welfare Act of 2000
GSIS Law
R.A. 7699 Portability Law
R.A. 8042 Migrant Workers Act
R.A. 7796 Technical Education and Skills Development Authority
TESDA Law
R.A. 9442 Re special benefits of persons with Disabilities
Amending R.A. 7277
R.A. 9849 Re the Proclamation of Eidhl Adha as a National Holiday
R.A. 9492 Re the Declaration of Regular Holidays &
Nationwide Special Holidays
R.A. 6727 Wage Rationalization Act

Atty Voltaire Duano
R.A. 8282 SSS Law
R.A. 9710 Magna Carta for Women
R.A. 9262 Anti-Violence Against Women and their Children
R.A. 9995 Anti-Photo and Video Voyeurism Act of 2009
R.A. 7610 Special Protection of Children against Abuse,
Exploitation & Discrimination Act
R.A. 10150 Provisions re Nightworkers, Repealing Art 130 and 131

Atty Voltaire Duano
LABOR LAW REVIEW
A. FUNDAMENTAL PRINCIPLES & POLICIES

1. Constitutional Provisions
a. Article II
Section 9. The State shall promote a just and dynamic social order that
will ensure the prosperity and independence of the nation and free the
people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living, and an
improved quality of life for all.
Section 10. The State shall promote social justice in all phases of
national development.
Section 11. The State values the dignity of every human person and
guarantees full respect for human rights.
Section 13. The State recognizes the vital role of the youth in nation-
building and shall promote and protect their physical, moral, spiritual,
intellectual, and social well-being. It shall inculcate in the youth
patriotism and nationalism, and encourage their involvement in public
and civic affairs.
Section 14. The State recognizes the role of women in nation-building,

and shall ensure the fundamental equality before the law of women and
men.
Section 18. The State affirms labor as a primary social economic force. It
shall protect the rights of workers and promote their welfare.
Section 20. The State recognizes the indispensable role of the private
sector, encourages private enterprise, and provides incentives to needed
investments.
b. Article III
Section 1. No person shall be deprived of life, liberty, or property without

due process of law, nor shall any person be denied the equal protection
of the laws.

Atty Voltaire Duano
Section 4. No law shall be passed abridging the freedom of speech, of
expression, or of the press, or the right of the people peaceably to
assemble and petition the government for redress of grievances.
Section 8. The right of the people, including those employed in the public
and private sectors, to form unions, associations, or societies for
purposes not contrary to law shall not be abridged.
c. Article XIII
Section 1. The Congress shall give highest priority to the enactment of

measures that protect and enhance the right of all the people to human
dignity, reduce social, economic, and political inequalities, and remove
cultural inequities by equitably diffusing wealth and political power for
the common good.
To this end, the State shall regulate the acquisition, ownership, use, and
disposition of property and its increments.
Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment
and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective

bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between

workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.

Atty Voltaire Duano
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production
and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
2. New Civil Code
Art. 1700. The relations between capital and labor are not merely contractual. They are
so impressed with public interest that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor
and similar subjects.
Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the
interest or convenience of the public.
Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed
in favor of the safety and decent living for the laborer.
Art. 1703. No contract which practically amounts to involuntary servitude, under any
guise whatsoever, shall be valid.
Art. 1704. In collective bargaining, the labor union or members of the board or
committee signing the contract shall be liable for non-fulfillment thereof.
Art. 1705. The laborer's wages shall be paid in legal currency.
Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the
employer.
Art. 1707. The laborer's wages shall be a lien on the goods manufactured or the work
done.

Atty Voltaire Duano
Art. 1708. The laborer's wages shall not be subject to execution or attachment, except
for debts incurred for food, shelter, clothing and medical attendance.
Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging
to the laborer.
Art. 1710. Dismissal of laborers shall be subject to the supervision of the Government,
under special laws.
3. Labor Code
a. Article 3
Article 3. Declaration of basic policy. The State shall afford protection to

labor, promote full employment, ensure equal work opportunities regardless
of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization,
collective bargaining, security of tenure, and just and humane conditions of
work.
b. Article 211
Article 211. Declaration of Policy.
It is the policy of the State:
To promote and emphasize the primacy of free collective bargaining and

negotiations, including voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
To promote free trade unionism as an instrument for the enhancement of

democracy and the promotion of social justice and development;
To foster the free and voluntary organization of a strong and united labor
movement;
To promote the enlightenment of workers concerning their rights and

obligations as union members and as employees;
To provide an adequate administrative machinery for the expeditious

settlement of labor or industrial disputes;

Atty Voltaire Duano
To ensure a stable but dynamic and just industrial peace; and
To ensure the participation of workers in decision and policy-making

processes affecting their rights, duties and welfare.
To encourage a truly democratic method of regulating the relations between

the employers and employees by means of agreements freely entered into
through collective bargaining, no court or administrative agency or official
shall have the power to set or fix wages, rates of pay, hours of work or other
terms and conditions of employment, except as otherwise provided under
this Code. (As amended by Section 3, Republic Act No. 6715, March 21,
1989)
c. Article 212
Article 212. Definitions.
"Commission" means the National Labor Relations Commission or any of its

divisions, as the case may be, as provided under this Code.
"Bureau" means the Bureau of Labor Relations and/or the Labor Relations
Divisions in the regional offices established under Presidential Decree No. 1,
in the Department of Labor.
"Board" means the National Conciliation and Mediation Board established

under Executive Order No. 126.
"Council" means the Tripartite Voluntary Arbitration Advisory Council

established under Executive Order No. 126, as amended.
"Employer" includes any person acting in the interest of an employer,

directly or indirectly. The term shall not include any labor organization or any
of its officers or agents except when acting as employer.
"Employee" includes any person in the employ of an employer. The term

shall not be limited to the employees of a particular employer, unless the
Code so explicitly states. It shall include any individual whose work has
ceased as a result of or in connection with any current labor dispute or
because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
"Labor organization" means any union or association of employees which

exists in whole or in part for the purpose of collective bargaining or of
dealing with employers concerning terms and conditions of employment.
"Legitimate labor organization" means any labor organization duly registered

with the Department of Labor and Employment, and includes any branch or
local thereof.

Atty Voltaire Duano
"Company union" means any labor organization whose formation, function
or administration has been assisted by any act defined as unfair labor
practice by this Code.
"Bargaining representative" means a legitimate labor organization whether

or not employed by the employer.
"Unfair labor practice" means any unfair labor practice as expressly defined
by the Code.
"Labor dispute" includes any controversy or matter concerning terms and

conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in the
proximate relation of employer and employee.
"Managerial employee" is one who is vested with the powers or prerogatives

to lay down and execute management policies and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign or discipline employees.
Supervisory employees are those who, in the interest of the employer,
effectively recommend such managerial actions if the exercise of such
authority is not merely routinary or clerical in nature but requires the use of
independent judgment. All employees not falling within any of the above
definitions are considered rank-and-file employees for purposes of this
Book.
"Voluntary Arbitrator" means any person accredited by the Board as such or

any person named or designated in the Collective Bargaining Agreement by
the parties to act as their Voluntary Arbitrator, or one chosen with or without
the assistance of the National Conciliation and Mediation Board, pursuant to
a selection procedure agreed upon in the Collective Bargaining Agreement,
or any official that may be authorized by the Secretary of Labor and
Employment to act as Voluntary Arbitrator upon the written request and
agreement of the parties to a labor dispute.
"Strike" means any temporary stoppage of work by the concerted action of

employees as a result of an industrial or labor dispute.
"Lockout" means any temporary refusal of an employer to furnish work as a

result of an industrial or labor dispute.
"Internal union dispute" includes all disputes or grievances arising from any
violation of or disagreement over any provision of the constitution and by
laws of a union, including any violation of the rights and conditions of union
membership provided for in this Code.
"Strike-breaker" means any person who obstructs, impedes, or interferes

with by force, violence, coercion, threats, or intimidation any peaceful
picketing affecting wages, hours or conditions of work or in the exercise of
the right of self-organization or collective bargaining.

Atty Voltaire Duano
"Strike area" means the establishment, warehouses, depots, plants or
offices, including the sites or premises used as runaway shops, of the
employer struck against, as well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all points of entrance to and
exit from said establishment. (As amended by Section 4, Republic Act No.
6715, March 21, 1989)
d. Article 255
Article 255. Exclusive bargaining representation and workers’ participation

in policy and decision-making. The labor organization designated or
selected by the majority of the employees in an appropriate collective
bargaining unit shall be the exclusive representative of the employees in
such unit for the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time to present
grievances to their employer.
Any provision of law to the contrary notwithstanding, workers shall have the
right, subject to such rules and regulations as the Secretary of Labor and
Employment may promulgate, to participate in policy and decision-making
processes of the establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare. For this
purpose, workers and employers may form labor-management councils:
Provided, That the representatives of the workers in such labor-
management councils shall be elected by at least the majority of all
employees in said establishment. (As amended by Section 22, Republic Act
No. 6715, March 21, 1989)
B. RECRUITMENT & PLACEMENT

1. Recruitment of Local & Migrant Workers
a. Definition of Recruitment and Placement
Art 13b Labor Code. Recruitment and placement
Recruitment and placement refers to any act of canvassing, enlisting,

contracting, transporting, utilizing, hiring or procuring workers, and includes
referrals, contract services, promising or advertising for employment, locally or
abroad, whether for profit or not: Provided, That any person or entity which, in
any manner, offers or promises for a fee, employment to two or more persons
shall be deemed engaged in recruitment and placement.

Atty Voltaire Duano
CASE ASSIGNMENT:
People vs Hon. Domingo Panis
Facts: Serapio Abug was charged with illegal recruitment in 4 criminal

information. Abug filed a motion to quash these information, contending that
Art13b of the Labor codes provides that there shall be illegal recruitment only if
recruitment and placement was committed against two or more persons.
The Office of the Solicitor General argued that the requirement that
there should be two or more persons if the recruitment consists of an offer or
promise of employment to such persons and always for a fee.
Issue: Whether or not the clause “two or more persons” should be construed as a
requirement for the commission of illegal recruitment
Ruling: The SC held:

“xx The proviso merely lays down a rule of evidence that
where a fee is collected in consideration of a promise or
offer of employment to two or more prospective workers,
the individual or entity dealing with them shall be
deemed to be engaged in the act of recruitment and
placement. The words "shall be deemed" create that
presumption.”
Abug was convicted as charged.
a) License vs Authority
License is a document issued by the DOLE authorizing a person or entity

to operate a private recruitment employment agency. A licensee is
authorized to collect fees.
Authority is a document issued by the DOLE authorizing a person or

association to engage in recruitment and placement activities as a
private recruitment agency.
b) Essential Elements of Illegal Recruitment
“It is well settled that to prove illegal recruitment, it must be shown that
appellant gave complainants the distinct impression that he had the
power or ability to send complainants abroad for work such that the
latter were convinced to part with their money in order to be

Atty Voltaire Duano
employed. Appellant’s act of promising the private complainants that
they will be deployed abroad within three months after they have paid
the cash bond clearly shows that he is engaged in illegal recruitment.” –
People vs Gasacao
“To prove illegal recruitment, only two elements need to be shown: (1)
the person charged with the crime must have undertaken recruitment
activities and (2) the said person does not have a license or authority
to do so.” – People vs de Leon, Feb 7, 1997
“There is illegal recruitment when one gives the impression of aving

the ability to send a worker abroad.” –People vs Goce, Aug 29, 1995
Article 38. Illegal recruitment.
Any recruitment activities, including the prohibited practices

enumerated under Article 34 of this Code, to be undertaken by non-
licensees or non-holders of authority, shall be deemed illegal and
punishable under Article 39 of this Code. The Department of Labor and
Employment or any law enforcement officer may initiate complaints
under this Article.
Illegal recruitment when committed by a syndicate or in large scale shall

be considered an offense involving economic sabotage and shall be
penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by

a group of three (3) or more persons conspiring and/or confederating
with one another in carrying out any unlawful or illegal transaction,
enterprise or scheme defined under the first paragraph hereof. Illegal
recruitment is deemed committed in large scale if committed against
three (3) or more persons individually or as a group.
Article 34. Prohibited practices. It shall be unlawful for any individual,

entity, licensee, or holder of authority:
To charge or accept, directly or indirectly, any amount greater than that

specified in the schedule of allowable fees prescribed by the Secretary of
Labor, or to make a worker pay any amount greater than that actually
received by him as a loan or advance;
To furnish or publish any false notice or information or document in

relation to recruitment or employment;
Atty Voltaire Duano
To give any false notice, testimony, information or document or commit
any act of misrepresentation for the purpose of securing a license or
authority under this Code.
To induce or attempt to induce a worker already employed to quit his

employment in order to offer him to another unless the transfer is
designed to liberate the worker from oppressive terms and conditions of
employment;
To influence or to attempt to influence any person or entity not to

employ any worker who has not applied for employment through his
agency;
To engage in the recruitment or placement of workers in jobs harmful to

public health or morality or to the dignity of the Republic of the
Philippines;
To obstruct or attempt to obstruct inspection by the Secretary of Labor

or by his duly authorized representatives;
To fail to file reports on the status of employment, placement vacancies,

remittance of foreign exchange earnings, separation from jobs,
departures and such other matters or information as may be required by
the Secretary of Labor.
To substitute or alter employment contracts approved and verified by

the Department of Labor from the time of actual signing thereof by the
parties up to and including the periods of expiration of the same without
the approval of the Secretary of Labor;
To become an officer or member of the Board of any corporation

engaged in travel agency or to be engaged directly or indirectly in the
management of a travel agency; and
To withhold or deny travel documents from applicant workers before

departure for monetary or financial considerations other than those
authorized under this Code and its implementing rules and regulations.
R.A. 8042, as amended by RA 10022
Sec. 6. DEFINITIONS. For purposes of this Act, illegal recruitment shall

mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, procuring workers and includes referring, contact
services, promising or advertising for employment abroad, whether for
profit or not, when undertaken by a non-license or non-holder of

Atty Voltaire Duano
authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines.
Provided, that such non-license or non-holder, who, in any manner,
offers or promises for a fee employment abroad to two or more persons
shall be deemed so engaged. It shall likewise include the following acts,
whether committed by any persons, whether a non-licensee, non-holder,
licensee or holder of authority.
(a) To charge or accept directly or indirectly any amount greater than

the specified in the schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in

(c) To give any false notice, testimony, information or document or

commit any act of misrepresentation for the purpose of securing a
license or authority under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his

employment in order to offer him another unless the transfer is designed
to liberate a worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any persons or entity not to

employ any worker who has not applied for employment through his
agency;
(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 the
Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of

Labor and Employment or by his duly authorized representative;
(h) To fail to submit reports on the status of employment, placement

vacancies, remittances of foreign exchange earnings, separations from
jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment

contracts approved and verified by the Department of Labor and
Employment from the time of actual signing thereof by the parties up to
and including the period of the expiration of the same without the
approval of the Department of Labor and Employment;

Atty Voltaire Duano
(j) For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation engaged
in travel agency or to be engaged directly on indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before

authorized under the Labor Code and its implementing rules and
regulations;
(l) Failure to actually deploy without valid reasons as determined by the

Department of Labor and Employment; and
(m) Failure to reimburse expenses incurred by the workers in connection

with his documentation and processing for purposes of deployment, in
cases where the deployment does not actually take place without the
worker's fault. Illegal recruitment when committed by a syndicate or in
large scale shall be considered as offense involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate carried out by a

group of three (3) or more persons conspiring or confederating with one
another. It is deemed committed in large scale if committed against
three (3) or more persons individually or as a group.
The persons criminally liable for the above offenses are the principals,
accomplices and accessories. In case of juridical persons, the officers
having control, management or direction of their business shall be liable.
c) Simple Illegal Recruitment
Simple Illegal Recruitment is the act of recruiting and placing one or two
workers abroad without the required license or authority, committed by
one to two persons.
Penalty:
Imprisonment of not less than 12 yrs and 1 day to not more than 20 yrs;
and
Fine of not less than 1M to not more than 2M.
d) Illegal Recruitment in Large Scale

Atty Voltaire Duano
“Illegal recruitment is deemed committed by a syndicate if carried out by
a group of three (3) or more persons conspiring and/or
confederating with one another in carrying out any unlawful
or illegal transaction, enterprise or scheme defined under the first
paragraph hereof. Illegal recruitment is deemed committed in large
scale if committed against three (3) or more persons individually or as a
group.” –People vs Calonzo, February 27, 1996
Case Assignment:
People vs Hashim
Facts: Accused Hashim, Macky and a certain Tas, a certain Jun and Neneng were
charged with syndicated illegal recruitment committed against four women.
The latter were promised a decent job abroad but were instead brought to
Malaysia to work as prostitutes. Only Neneng and Hashim were arrested and
arraigned.
Accused Neneng contends that the charge should not be syndicated illegal
recruitment because there were only two of them and that the other accused
remain at large.
Issue: Whether or not the three accused should be arrested and arraigned in
order for syndicated illegal recruitment to propser
Ruling: The SC held that the

“xx it was established beyond reasonable doubt that accused-
appellant, together with at least two other persons, came to an
agreement to commit the felony and decided to commit it. It
is not necessary to show that two or more persons met
together and entered into an explicit agreement laying down
the details of how an unlawful scheme or objective is to be
carried out. Conspiracy may be deduced from the mode and
manner in which the offense was perpetrated; or from the acts
of the accused evincing a joint or common purpose and design,
concerted action and community of interest. xx”
e) Illegal Recruitment as Economic Sabotage
“Illegal recruitment is deemed committed in large scale if committed

against three or more persons individually or as a group. In this case,
five complainants testified against appellant’s acts of illegal recruitment,
Atty Voltaire Duano
thereby rendering his acts tantamount to economic sabotage. Under
Section 7 (b) of RA No. 8042, the penalty of life imprisonment and a fine
of not less than P500,000.00 nor more than P1,000.000.00 shall be
imposed if illegal recruitment constitutes economic sabotage.” –People
vs Gasacao
Penalty:
Life Imprisonment; and
f) Illegal Recruitment filed against employees (added based on the lecture)
Employees are liable as illegal recruiters when there is conspiracy to

recruit without the necessary license/authority.
In the case of People vs Cabais, the High Court held Cabais, an

employee and an applicant herself, liable. She acted directly and
participated in the recruitment activities of her employer RSEA which
did not have the necessary license to recruit. Cabais also represented
herself to the applicant that RSEA can send them abroad for work.
Case Assignment:
People vs Cabais
Facts: Accused Cabais was an employee of Red Sea Employment Agency, owned
by Anita Forneas. They, along with Harm Yong Ho, recruited without a
license/authority six individuals to be sent to Korea.
Cabais and Ho were arrested while Forneas remained at large. RTC
convicted them of syndicated illegal recruitment. Cabais, appealed the decision
contending that she was a mere employee of RSEA and should not be held liable
for illegal recruitment. She was just running the errands of her boss, Forneas.
Issue: Whether or not Cabais, being a mere employee, should not be held liable
for the illegal recruitment

Atty Voltaire Duano
Case Assignment:
People vs Cabais
Ruling: The SC held Cabais liable to wit:

“xx An employee of a company or corporation engaged in
illegal recruitment may be held liable as principal, together
with his employer, if it is shown that he actively and
consciously participated in illegal recruitment. 21Recruitment
is "any act of canvassing, enlisting, contracting, transporting,

utilizing, hiring or procuring workers, and includes referrals,
contract services, promising or advertising for employment,
locally or abroad, whether for profit or not: Provided, That any
person or entity which, in any manner, offers or promises for a
fee employment to two or more persons shall be deemed
engaged in recruitment and placement." In this case, evidence
showed that accused-appellant was the one who informed
complainants of job prospects in Korea and the requirements
for deployment. She also received money from them as
placement fees. All of the complainants testified that they
personally met accused-appellant and transacted with her
regarding the overseas job placement offers. Complainants
parted with their money, evidenced by receipts signed by
accused Cabais and accused Forneas. Thus, accused-appellant
actively participated in the recruitment of the complainants.
xx”
In the case of People vs Gamboa, the accused contended that she did
not give a misrepresentation to the applicant that she can send them
abroad. However, the High Court was quick to rule that it was not
required that there was a misrepresentation. It was enough that the
accused gave an impression that she can send them abroad for work.
Case Assignment:
People vs Gamboa
Facts: Accused Gamboa was an office assistant in a recruitment agency in

Ermita Manila. The agency operated without the required license. An
entrapment operation was conducted by the task force of Anti-Illegal
Recruitment leading to her arrest.

Atty Voltaire Duano
Case Assignment:
People vs Gamboa
Gamboa posits that she is merely a clerk who processes the papers at
the office. She interposed the defense of denial, as well as that she herself was an
applicant for placement abroad. People countered that Gamboa herself
conducted recruitment and placement activities. Gamboa was also not licensed
by the POEA to conduct said recruitment.
Issue: Whether or not Gamboa, being a mere office clerk, may be made liable for
illegal recruitment activities
Ruling: The SC held Gamboa liable to wit:

“xx Accused-appellant Lourdes Gamboa was the office
assistant who answered the queries of applicants and
performed clerical work. Conspiracy to defraud aspiring
overseas contract workers was evident from the acts of the
malefactors whose conduct before, during and after the
commission of the crime clearly indicated that they were one
in purpose and united in its execution. Direct proof of previous
agreement to commit a crime is not necessary as it may be
deduced from the mode and manner in which the offense was
perpetrated or inferred from the acts of the accused pointing
to a joint purpose and design, concerted action and
community of interest. xx”
“xx At any rate, the lack of criminal intent on the
part of an accused - assuming ex-gratia argumenti that
accused-appellant was indeed unaware of the illegal nature of
the recruitment business of her co-accused - is hardly a
defense in the prosecution for illegal recruitment. It must be
emphasized that Illegal Recruitment in Large Scale penalized
under The Migrant Workers and Overseas Filipinos Act of
1995, a special law, is malum prohibitum and not malum in se.
The criminal intent of the accused is not necessary and the fact
alone that the accused violated the law warrants her
conviction.”

Atty Voltaire Duano
Case Assignment:
People vs Gamboa
“xx Suffice it to say that an illegal recruiter need not

expressly represent to the victim that she has the ability to
send workers abroad. It is enough that she gives
the impression of her ability to enlist workers for job
placement abroad in order to induce them to tender payment
of fees, as what accused-appellant had done to the
complainants in this case. xx”
In the case People vs Goce, the Supreme Court reiterated the same
ruling from People vs Gamboa. It was the making of impression that is
enough to justify conviction of illegal recruitment.
Case Assignment:
People vs Spouses Goce
Facts: Nellie Agustin was charged with syndicated and llarge scale illegal
recruitment along with spouse Dan and Loma Goce. Agustin contended that she
merely introduced the applicants to the spouses and did not participate directly
in the recruitment activities. She posits that there was no conspiracy to recruit.
Issue: WON Agustin actively and directly recruited applicants for employment
abroad.
Ruling: The Supreme Court held that the act of introducing is included in the
definition of recruitment as making referrals, to wit:
“xx referral is the act of passing along or forwarding of an
applicant for employment after an initial interview of a
selected applicant for employment to a selected employer,
placement officer or bureau. There is illegal recruitment
when one gives the impression of having the ability to send a
worker abroad." It is undisputed that appellant gave
complainants the distinct impression that she had the power
or ability to send people abroad for work such that the latter
were convinced to give her the money she demanded in order
to be so employed. xx”
Agustin also received money from the applicants.

Atty Voltaire Duano
Case Assignment:
People vs Gallardo
Facts: Remedios Malapit, along with Nenita Gallardo, was charged with large-
scale illegal recruitment. Malapit contended that she did not convince nor
promise the applicants any employment abroad nor did she accept payments
from them.
Issue: WON Remedios Malapit committed any act of illegal recruitment.
Ruling: The Supreme Court convicted Malapit of large-scale illegal recruitment.

It held:
“xx , the evidence against accused-appellant has established
beyond a shadow of doubt that she actively collaborated with
co-accused Gallardo in illegally recruiting the complainants in
this case. As correctly pointed out by the trial court, the
private complainants in this case would not have been induced
to apply for a job in Canada were it not for accused-
appellant’s information, recruitment, and introduction of the
private complainants to her co-accused Gallardo.
Illegal recruitment is committed when it is shown that the
accused-appellant gave the private complainants the distinct
impression that she had the power or ability to send
complainants abroad for work such that the latter were
convinced to part with their money in order to be employed.
To be engaged in the practice and placement, it is plain that
there must at least be a promise or offer of an
employment from the person posing as a recruiter whether
locally or abroad. xx”
In the case of People vs Alforte, the Supreme Court likewise ruled that
in syndicated illegal recruitment, there is conspiracy to be established
among the recruiters. Each person plays a definite role such that
conviction for syndicated illegal recruitment is justified.

Atty Voltaire Duano
Case Assignment:
People vs Alforte
Facts: Dino Alforte and his group were charged with syndicated illegal
recruitment. They were alleged to have charged placement and processing fees
against their applicants but failed to provide the promised employment to
Saipan. It was found that the group did not have the necessary license or
authority to conduct illegal recruitment.
Issue: WON Alforte and his cohorts acted in conspiracy and confederated with
each other to commit syndicated illegal recruitment
Ruling: The Supreme Court held that there was conspiracy to wit:
“xx It was accused-appellant's assurances and promises of
employment abroad which had induced them to part with
large sums of money.
The five culprits including accused-appellant represented

themselves as a group; hence when private complainants paid
the sums of money to accused-appellant, the issuance of the
receipts by the other members would be entirely reasonable
and proper. In fact, this delineation of their respective roles
strongly shows that the group were acting in concert in the
defraudation of private complainants. xx”
In the case of People vs Chowdury, the Supreme Court held that an

employee who did not know that there the employer has no license or
that the employer did not register his name with POEA did not conspire
with the employer for the commission of the illegal recruitment.

Atty Voltaire Duano
Case Assignment:
People vs Chowdury
Facts: Bulu Chowdury was charged with illegal recruitment committed in a large
scale. The accused was a consultant for Craftrade Overseas Developers.
Chowdury denied having knowledge that the license of Craftrade has already
expired and that he was not registered with POEA. He also interposed the
defense that he was merely fulfilling his job as a consultant in the said office. it
was in his job description to interview applicants for abroad.
Issue: WON Chowdury knowingly and intentionally participated in the

commission of illegal recruitment
Ruling: The Supreme Court held that Chowdury was not aware of the fact that
Craftrade was no longer licensed to conduct recruitment. Thus,
“xx The obligation to register its personnel with the POEA
belongs to the officers of the agency.[32] A mere employee of
the agency cannot be expected to know the legal requirements
for its operation. The evidence at hand shows that accused-
appellant carried out his duties as interviewer of Craftrade
believing that the agency was duly licensed by the POEA and
he, in turn, was duly authorized by his agency to deal with the
applicants in its behalf. Accused-appellant in fact confined his
actions to his job description. He merely interviewed the
applicants and informed them of the requirements for
deployment but he never received money from them. Their
payments were received by the agency's cashier, Josephine
Ong. Furthermore, he performed his tasks under the
supervision of its president and managing director. Hence, we
hold that the prosecution failed to prove beyond reasonable
doubt accused-appellant's conscious and active participation
in the commission of the crime of illegal recruitment. His
conviction, therefore, is without basis. xx”
Ruling: The Supreme Court held that there was conspiracy to wit:
“xx It was accused-appellant's assurances and promises of
g) Illegal Recruitment vs Estafa
employment abroad which had induced them to part with
large sums of money.
RA 10022, AN ACT AMENDING REPUBLIC ACT NO. 8042
Sec 5. xx The five culprits including accused-appellant represented

themselves as a group; hence when private complainants paid
CHARINA FLOR A. CACHO LABOR
the sums of money to accused-appellant, the issuance LAW REVIEW 27
of the
Atty Voltaire Duano
receipts by the other members would be entirely reasonable
and proper. In fact, this delineation of their respective roles
strongly shows that the group were acting in concert in the
"The persons criminally liable for the above offenses are the principals,
accomplices and accessories. In case of juridical persons, the officers
having ownership, control, management or direction of their business
who are responsible for the commission of the offense and the
responsible employees/agents thereof shall be liable.
"In the filing of cases for illegal recruitment or any of the prohibited acts
under this section, the Secretary of Labor and Employment, the POEA
Administrator or their duly authorized representatives, or any aggrieved
person may initiate the corresponding criminal action with the
appropriate office. For this purpose, the affidavits and testimonies of
operatives or personnel from the Department of Labor and Employment,
POEA and other law enforcement agencies who witnessed the acts
constituting the offense shall be sufficient to prosecute the accused.
"In the prosecution of offenses punishable under this section, the public
prosecutors of the Department of Justice shall collaborate 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 POEA lawyers who
act as prosecutors in such cases shall be entitled to receive additional
allowances as may be determined by the POEA Administrator.
"The filing of an offense punishable under this Act shall be without

prejudice to the filing of cases punishable under other existing laws,
rules or regulations."1avvphi1
People vs Calonzo
“As regards the conviction of Calonzo for estafa on five (5) counts we
ruled in People v. Turda that recruitment of persons for overseas
employment without the necessary recruiting permit or authority from
the POEA constitutes illegal recruitment; however, where some other
crimes or felonies are committed in the process, conviction under the
Labor Code does not preclude punishment under other
statutes. In People v. Romero we said that the elements of estafa were:
(a) that the accused defrauded another by abuse of confidence or by
means of deceit, and (b) that damage or prejudice capable of pecuniary
estimation is caused to the offended party or third person.”
h) Liabilities
a. Local employment agency
b. Foreign Employer

Atty Voltaire Duano
i. Theory of Imputed Knowledge
The theory of imputed knowledge provides that
knowledge of matters pertaining to employment are
ascribed to the principal through the agent.
Case Assignment:
Sunace vs NLRC
Facts: Divina Montehermozowas deployed to Taiwan by Sunace Agency as a

domestic helper. The year was for a year only but she entered into another two
year contract after the expiration of the original one.
Upon her arrival n Manila, she filed a complaint against the Sunace
Agency before the NLC. She claims that she was underpaid and was imprisoned.
Sunace denied any liability on the ground that it did not know of the extension.
Also, the contract of agency between Suunace and Divina was already
extinguished.
Both the LA and the CA held Sunace to be liable based on the theory of
imputed knowledge.
Issue: Whether or not the doctrine of imputed knowledge can be applied in this
case
Ruling: The SC held that the doctrine of imputed knowledge was misapplied. It
was the agency who was supposed to know of the knowledge and the same is to
be ascribed to the principal.
In this case, Sunace, the agency, did not know of the extension of the
contract of Divina. For the theory of imputed knowledge to apply, the
employment matters should have been known to Sunace as the agency and the
same should be the ascribed to the principal. Thus:
“xx There being no substantial proof that Sunace knew of

and consented to be bound under the 2-year employment
contract extension, it cannot be said to be privy thereto.

Atty Voltaire Duano
Case Assignment:
Sunace vs NLRC
As such, it and its “owner” cannot be held solidarily liable

for any of Divina’s claims arising from the 2-year
employment extension. As the New Civil Code provides,
xx”
Contracts take effect only between the parties, their
assigns, and heirs, except in case w here the rights and
obligations arising from the contract are not
transmissible by their nature, or by stipulation or by
provision of law.
Sunace also averred that the contract of agency between it and Divina
was impliedly revoked. As such:
“xx Furthermore, as Sunace correctly points out, there

was an implied revocation of its agency relationship with
its foreign principal when, after the termination of the
original employment contract, the foreign principal
directly negotiated with Divina and entered into a new
and separate employment contract in Taiwan. Article
1924 of the New Civil Code reading
The agency is revoked if the principal directly manages

the business entrusted to the agent, dealing directly with
third persons.
i) Pretermination
thus applies. xx”
Jurisdiction Money Claims of OFW

Jurisdiction of money claims of OFWs was vested on Labor Arbiters by
virtue of RA 8042. This includes claims for damages arising out of
employer-employee relationship or by virtue of any law or contract
involving Filipino workers for overseas deployment, including actual,
moral, exemplary and other forms of damages. (Section 10, RA 8042)
The period to decide the cases shall be within 90 calendar days from
the filing of the complaint which shall commence to run upon
acquisition by the Labor Arbiter of jurisdiction over the respondents.
(Sec 13, Rule V, The 2005 Revised Rules of Procedure of the NLRC).
Award in case of premature termination:

Atty Voltaire Duano
 Full reimbursement of the OFWs placement fee with 12%
interest per annum; and
o If the contract is below one year, the salaries for the
RA 8042, 1995 entire unexpired portion of the contract shall be paid;
OR
In case of termination of overseas
employment without just, valid or
o If the contract was for one year and more, the salaries
authorized cause as defined by law or for the unexpired portion of the contract OR three (3)
contract, the workers shall be entitled to months pay for every year of the unexpired portion
the full reimbursement of his placement whichever is less.
fee with interest of twelve percent (12%)
per annum, plus his salaries for the NOTE: Accdg to our lecture, for this is to apply, the
unexpired portion of his employment contract was terminated after service of more than a
contract or for three (3) months for year.
every year of the unexpired term,
whichever is less. The following case are of worth to determine the
applicability of the provisions of RA 8042 in award of
money claims of preterminated OFWs:
 Marsaman Maritime Agency vs NLRC, Aug 1999

 Serrano vs Gallant Maritime Services, March
2009
 Yap vs Thenamaris Ship’s Mgt, 2011
 Skipper’s vs Sereno, February 2012
 PERT/CPM vs Venly, Sept 2011
RA 10022, 2009
"In case of termination of overseas employment

without just, valid or authorized cause as defined
by law or contract, or any unauthorized
deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement
if his placement fee and the deductions made with
interest at twelve percent (12%) per annum, plus
his salaries for the unexpired portion of his
employment contract or for three (3) months
for every year of the unexpired term, whichever is
less.

Atty Voltaire Duano
DATE OF WHAT WAS
CASE CONTRACT DATE OF
TERMINATION APPLIED AND WHY
TITLE DETAILS JUDGMENT
OF EMPLOYEE HOW
Terminated: Less August 1999 RA 8042. Because RA 8042 was effective
than 2 months after at that time Cajeras was
Wifredo Cajeras
being on board. Award for the dismissed.
Marsaman unexpired portion of
Contract Period: of
Maritime Sept 25, 1995 the contract because “We agree with petitioners
10 months
Agency vs the contract was less that Sec. 10, RA 8042, applies
NLRC than one year. in the case of private
respondent and to all overseas
contract workers dismissed on
or after its effectivity on 15 July
1995”
Antonio Serrano Terminated: 2 March 24, 2009 AWARDED his salaries The provision was declared
months and 7 days for the entire unexpired UNCONSTITUTIONAL because
Contract period: after being on portion of his it creates disparity among the
Serrano vs
1year board employment contract OFW with less than 1 year as
Gallant
consisting of nine against those for more than 1
Maritime
JD: Chief Officer but May 26, 1998 months and 23 days year. The provision was stated
Services
was downgraded to computed to be a suspect classification
second officer violative of the Constitutional
mandate of equal protection
clause.
Claudio Yap Terminated: Nov May 30, 2011 Serrano ruling was As a general rule, an
10, 2001 applied. unconstitutional act is not a
Contract Period: 1 law; it confers no rights; it
year from Aug 14, imposes no duties; it affords no
2001 protection; it creates no office;
it is inoperative as if it has not
JD: Electrician been passed at all.
The doctrine of operative fact

serves as an exception to the
aforementioned general rule.
The doctrine is applicable
when a declaration of
unconstitutionality will impose
an undue burden on those who
have relied on the invalid law.
Following Serrano, we hold
Yap vs
that this case should not be
Thenamaris
included in the
Ship’s Mgt
aforementioned exception.
After all, it was not the fault of
petitioner that he lost his job
due to an act of illegal
dismissal committed by
respondents. To rule otherwise
would be iniquitous to
petitioner and other OFWs,
and would, in effect, send a
wrong signal that
principals/employers and
recruitment/manning agencies
may violate an OFW’s security
of tenure which an
employment contract
embodies and actually profit
from such violation based on
an unconstitutional provision

Atty Voltaire Duano
of law.
Name: Napoleon O. January 28, 1999 Feb 8, 2012 Serrano Doctrine as Since the termination occurred
De Gracia against RA 8042, as on January 1999 before the
Contract Duration: UNAMENDED passage of the amendatory RA
10 months 10022, we shall apply RA 8042,
Contract Date: 17 as unamended, without
July 1998 touching on the
Position: constitutionality of Section 7 of
3rd Engineer RA 10022.
Name: Isidro L. Lata The declaration in March 2009

Duration: 12 of the unconstitutionality of
months the clause “or for three months
Skipper’s vs
Position: for every year of the unexpired
Sereno
4th Engineer term, whichever is less” in RA
Contract 8042 shall be given retroactive
Contract Date: 17 effect to the termination that
April 1998 occurred in January 1999
because an unconstitutional
Name: Charlie clause in the law confers no
A. Aprosta rights, imposes no duties and
Contract Duration: affords no protection. The
12 months Position: unconstitutional provision is
Third Officer inoperative, as if it was not
Contract Date: 17 passed into law at all.
April 1998
PERT/CPM vs
Venly

Atty Voltaire Duano
b. Illegal Recruitment, Art 38, Sec 6 Migrant Workers Act
Article 38. Illegal recruitment.
Any recruitment activities, including the prohibited practices enumerated under

Article 34 of this Code, to be undertaken by non-licensees or non-holders of
authority, shall be deemed illegal and punishable under Article 39 of this Code.
The Department of Labor and Employment or any law enforcement officer may
initiate complaints under this Article.
Illegal recruitment when committed by a syndicate or in large scale shall be

considered an offense involving economic sabotage and shall be penalized in
accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group

of three (3) or more persons conspiring and/or confederating with one another
in carrying out any unlawful or illegal transaction, enterprise or scheme defined
under the first paragraph hereof. Illegal recruitment is deemed committed in
large scale if committed against three (3) or more persons individually or as a
group.
R.A. 8042, as amended by RA 10022
Sec. 6. DEFINITIONS. For purposes of this Act, illegal recruitment shall mean any
act of canvassing, enlisting, contracting, transporting, utilizing, hiring, procuring
workers and includes referring, contact services, promising or advertising for
employment abroad, whether for profit or not, when undertaken by a non-
license or non-holder of authority contemplated under Article 13(f) of
Presidential Decree No. 442, as amended, otherwise known as the Labor Code of
the Philippines. Provided, that such non-license or non-holder, who, in any
manner, offers or promises for a fee employment abroad to two or more persons
shall be deemed so engaged. It shall likewise include the following acts, whether
committed by any persons, whether a non-licensee, non-holder, licensee or
holder of authority.
(a) To charge or accept directly or indirectly any amount greater than the
Labor and Employment, or to make a worker pay any amount greater than
that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation

to recruitment or employment;

Atty Voltaire Duano
(c) To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority
under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his

employment in order to offer him another unless the transfer is designed to
liberate a worker from oppressive terms and conditions of employment;
(e) To influence or attempt to influence any persons or entity not to employ any
worker who has not applied for employment through his agency;
(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 the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and

Employment or by his duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies,

remittances of foreign exchange earnings, separations from jobs, departures
and such other matters or information as may be required by the Secretary
of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts

approved and verified by the Department of Labor and Employment from
the time of actual signing thereof by the parties up to and including the
period of the expiration of the same without the approval of the Department
of Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an

officer or member of the Board of any corporation engaged in travel agency
or to be engaged directly on indirectly in the management of a travel
agency;
(k) To withhold or deny travel documents from applicant workers before

authorized under the Labor Code and its implementing rules and regulations;
(l) Failure to actually deploy without valid reasons as determined by the

Department of Labor and Employment; and
(m) Failure to reimburse expenses incurred by the workers in connection with his
documentation and processing for purposes of deployment, in cases where
the deployment does not actually take place without the worker's fault.
Illegal recruitment when committed by a syndicate or in large scale shall be
considered as offense involving economic sabotage.

Atty Voltaire Duano
Illegal recruitment is deemed committed by a syndicate carried out by a group of
three (3) or more persons conspiring or confederating with one another. It is
deemed committed in large scale if committed against three (3) or more persons
individually or as a group.
The persons criminally liable for the above offenses are the principals,
accomplices and accessories. In case of juridical persons, the officers having
control, management or direction of their business shall be liable.
c. Direct Hiring
Article 18. Ban on direct-hiring. No employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized by the
Secretary of Labor. Direct-hiring by members of the diplomatic corps,
international organizations and such other employers as may be allowed by the
Secretary of Labor is exempted from this provision.
Exceptions:
 Members of the Diplomatic Corps
 International Organizations
 Such other persons which the DOLE may authorize
 Name Hire or those persons who were able to secure employment
overseas without the assistance of any recruitment or placement
agency
2. Regulation and Enforcement
a. Remittance of Foreign Exchange earnings
Article 22. Mandatory remittance of foreign exchange earnings. It shall be

mandatory for all Filipino workers abroad to remit a portion of their foreign
exchange earnings to their families, dependents, and/or beneficiaries in the
country in accordance with rules and regulations prescribed by the Secretary of
Labor.
E.O. 857:
1. To protect the welfare of the families, dependents and other beneficiaries of

OFW;

Atty Voltaire Duano
2. To ensure that the remittances are channeled through authorized financial
institutions; and
3. To help the government in their economic development programs.
Rate of Remittances:
 Seafarers a d Mariners 80% of Basic salary

 Construction companies and workers 70% of Basic Salary
 Professional Workers 70% of Basic Salary
 Professional Workers w/o Board & Lodging 50% of Basic Salary
 Domestic & other service workers 50% of Basic Salary
 All other workers 50% of Basic Salary
Remittance Procedure
Open Bank Acct prior to departure.
Give the Account Number to POEA.

Direct payment to the
beneficiaries is allowed.
Licensed agency, construction,

contractor or manning agent of the
OFW must deposit to the account.
Proof of Compliance:
 Confirmed bank remittance form;

 Duly authenticated certification from the employer that the remittance
has been effected;
 Certification a to the surrender for pesos to the Philippine Banking
System and
 Receipt of the International Postal Money Order.
b. Prohibited Activities

Atty Voltaire Duano
Article 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:
 To charge or accept, directly or indirectly, any amount greater than that

Labor, or to make a worker pay any amount greater than that actually
received by him as a loan or advance;
 To furnish or publish any false notice or information or document in
 To give any false notice, testimony, information or document or commit
any act of misrepresentation for the purpose of securing a license or
authority under this Code.
 To induce or attempt to induce a worker already employed to quit his
employment in order to offer him to another unless the transfer is
designed to liberate the worker from oppressive terms and conditions of
employment;
 To influence or to attempt to influence any person or entity not to employ
any worker who has not applied for employment through his agency;
 To engage in the recruitment or placement of workers in jobs harmful to
public health or morality or to the dignity of the Republic of the
Philippines;
 To obstruct or attempt to obstruct inspection by the Secretary of Labor or
by his duly authorized representatives;
 To fail to file reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures
and such other matters or information as may be required by the Secretary
of Labor.
 To substitute or alter employment contracts approved and verified by the
Department of Labor from the time of actual signing thereof by the parties
up to and including the periods of expiration of the same without the
approval of the Secretary of Labor;
 To become an officer or member of the Board of any corporation engaged
in travel agency or to be engaged directly or indirectly in the management
of a travel agency; and
 To withhold or deny travel documents from applicant workers before
authorized under this Code and its implementing rules and regulations.
c. Regulatory and Visitorial Powers of the Secretary
Article 33. Reports on employment status. Whenever the public interest requires,
the Secretary of Labor may direct all persons or entities within the coverage of
Atty Voltaire Duano
this Title to submit a report on the status of employment, including job
vacancies, details of job requisitions, separation from jobs, wages, other terms
and conditions and other employment data.
Article 35. Suspension and/or cancellation of license or authority. The Minister

of Labor shall have the power to suspend or cancel any license or authority to
recruit employees for overseas employment for violation of rules and regulations
issued by the Ministry of Labor, the Overseas Employment Development Board,
or for violation of the provisions of this and other applicable laws, General
Orders and Letters of Instructions.
Article 36. Regulatory power. The Secretary of Labor shall have the power to
restrict and regulate the recruitment and placement activities of all agencies
within the coverage of this Title and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives and implement the
provisions of this Title.
Article 37. Visitorial Power. The Secretary of Labor or his duly authorized
representatives may, at any time, inspect the premises, books of accounts and
records of any person or entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any provisions of this Title.
d. Penalties for Illegal Recruitment
Penalty for Simple Illegal Recruitment:
 Imprisonment of not less than 12 yrs and 1 day to not more

than 20 yrs; and
 Fine of not less than 1M to not more than 2M.
Penalty for Illegal Recruitment Constituting Economic Sabotage:
 Imprisonment of not less than 12 yrs and 1 day to not more

than 20 yrs; and
e. Payment of Claims of OFWs in case of illegal termination
RA 8042 provides that the in case of illegal termination of OFW, the

award shall be:

Atty Voltaire Duano
Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
Intramuros, Manila
RULES AND REGULATIONS GOVERNING PRIVATE

RECRUITMENT AND PLACEMENT AGENCY
FOR LOCAL EMPLOYMENT
By virtue of the authority vested in the Secretary of Labor and Employment under Article 25 of the Labor
Code of the Philippines, as amended, the following revised rules and regulations are hereby promulgated
to govern and regulate the activities of all individuals and entities engaged in the recruitment and
placement of persons for local employment.
Rule I
DEFINITIONS OF TERMS
SECTION 1. Definition of Terms

a. Department – refers to the Department of Labor and Employment.
b. Secretary – refers to the Secretary of Labor and Employment.
c. Bureau – refers to the Bureau of Local Employment.
d. Regional Office – refers to the Regional Offices of the Department.
e. District/Provincial Office – refers to the extension offices of the Department.
f. Regional Director – refers to the Director of the Regional Office.
g. Private Recruitment and Placement Agency (PRPA) or Agency – refers to any
individual,` partnership, corporation or entity engaged in the recruitment and placement of
persons for local employment.
h. PRPA Branch – refers to any extension office of a licensed PRPA.
i. Representative – refers to a person acting as an agent of a licensed PRPA registered with
the Regional Office and granted Authority in the recruitment of persons for local
employment.
j. Recruitment and Placement – refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referrals, contract
services, promising or advertising for local employment, whether for profit or not;
provided, that any person or entity which in any manner, offers or promises employment
for a fee, to two or more persons shall be deemed engaged in recruitment and lacement.
k. Recruit – refers to any individual promised, contracted, or enlisted for employment for a
fee.
l. License – refers to the certificate issued by the Department authorizing an individual,
partnership, corporation, or entity to operate a private recruiment and placement agency.

Atty Voltaire Duano
m. Authority to Operate Branch Office – refers to the document granted by the Department
authorizing the licensed PRPA to establish and operate a branch office.
n. Authority to Recruit – refers to the document granted by the Regional Office authorizing
a person to conduct recruitment activities in the region.
o. Licensee – refers to any person or entity duly licensed and authorized by the Department
to operate a private recruitment and placement agency.
p. Recruitment Contract – refers to the agreement entered into between a licensed PRPA
or its authorized representative and a recruit stating clearly the terms and conditions of
the recruitment in a language known and understood by the recruit.
q. Employment Contract – refers to the agreement entered into between the employer and
a recruit stating clearly the terms and conditions of the employment in a language known
and understood by the recruit.
r. Placement Fee – refers to the amount charged by a PRPA from a recruit as payment for
placement services.
s. Service Fee – refers to the amount charged by a PRPA from an employer as payment for
employment services.
Rule II
APPLICATION / RENEWAL OF LICENSE OF PRIVATE RECRUITMENT AND PLACEMENT AGENCY
Section 2. Qualifications - An applicant for a license to operate a private recruitment and placement
agency must possess the following:
a. Must be a Filipino citizen, if single proprietorship. In case of partnership or a corporation, at
least seventy-five percent (75%) of the authorized capital stock must be owned and
controlled by Filipino citizens;
b. Must have a minimum networth of P200,000.00 in the case of single proprietorship and
partnership or a minimum paid-up capital of P500,000.00 in the case of a corporation.
c. The owner, partners or the officers of the corporation must be of good moral character and
not otherwise disqualified by law;
d. Must have an office space with a minimum floor area of fifty (50) square meters.
SECTION 3. Place to File application. Application for license shall be filed with the Regional Office
having jurisdiction over the place where the applicant wishes to establish its main office.

Atty Voltaire Duano
SECTION 4. Requirements for Application. The applicant for a license shall submit a duly
accomplished application form, and in support thereof, the following requirements:
a. A filing fee of One Thousand Pesos (P1000.00); if single proprietor; and P3,000 if
corporation or partnership;
b. Certified copy of the Certificate of Registration of firm or business name from the
Department of Trade and Industry (DTI), in the case of single proprietorship; or a certified
copy of the Articles of Partnership or Incorporation duly registered with the Securities and
Exchange Commission (SEC), in the case of a partnership or a corporation;
c. A sworn statement of assets and liabilities and/or a duly audited financial statement, as
the case may be;
d. Owner’s certificate/title of office location or contract of lease of office space for at least
two (2) years;
e. NBI clearance of the applicant, or the partners in the case of a partnership or all the
officers and members of the Board of Directors, in the case of a corporation;
f. Income Tax Returns for the last two (2) years;
g. A verified undertaking that the applicant shall:
(1) not engage in the recruitment of children below 15 years of age or place children
below 18 years old in hazardous occupation in accordance with Republic Act No.
7610 as amended by Republic Act No. 7658 and other related laws; and
(2) assume full responsibility for all claims and liabilities which may arise in connection
with the use of the license;
h. Organizational structure and list of all officers and personnel with their respective bio-
data, two (2) passport-size ID pictures and a detailed description of their duties and
responsibilities; and
i. Specific address and location map of the Office/proposed Office;
j. List of all authorized representatives, if any, who must be at least high school graduate,
with their corresponding bio-data, two (2) passport-size ID pictures, high school diploma or
other proof of educational attainment duly authenticated, NBI clearance and Special
Power of Attorney (SPA).
No application shall be accepted, unless all the requirements have been complied with.
SECTION 5. Action on the Application.

a. Upon receipt of the application, the Regional Director or his duly authorized
representative shall evaluate the documents submitted and conduct an ocular inspection
of the applicant’s office;

Atty Voltaire Duano
b. Within fifteen (15) working days after the ocular inspection, the Regional Director shall act
on the application, and immediately notify the applicant of the action taken; and
c. Application which do not meet the requirements set forth in these rules shall be denied.
SECTION 6. Posting of Cash and Surety Bonds and Payment of License Fee
Prior to the approval of the license, the applicant shall post cash and surety bonds of Twenty-Five
Thousand Pesos (P25,000.00) and One Hundred Thousand Pesos (P100,000.00) respectively, valid for
two (2) years and then pay a license of Six Thousand Pesos (P6,000.00). The bonds shall answer for all
valid and legal claims arising from the illegal use of the license and shall likewise guarantee compliance
with the provisions of the Labor Code and its implementing Rules. In case of loss of license, the licensee
shall pay Six Hundred Pesos (P600.00) as payment for the issuance of a certified copy of the license
upon presentation of proof of loss.
SECTION 7. Publication. The Agency shall publish once in a newspaper of general circulation the
license number of the agency, names and pictures of authorized representatives within fifteen (15) days
from the issuance of the license and shall submit a copy of said publication to the Department.
SECTION 8. Validity of the License. The license shall be valid all over the Philippines for two (2) years
from the date of issuance, upon submission of proof of publication unless sooner suspended, cancelled or
revoked by the Regional Director.
SECTION 9. Non-transferability. No license shall be transferred, conveyed or assigned to any other

person or entity.
SECTION 10. Display of License. The original license or a copy shall be displayed conspicuously at all
times in the office premises of the PRPA.
SECTION 11. Renewal of License. An application for renewal of license shall be filed not later than thirty
(30) days before expiration of the same. No agency shall be allowed to renew its license if it has been
convicted by the regular courts for violation of the Labor Code, as amended, and its implementing Rules,
or if its license has been previously revoked.
SECTION 12. Requirements for Renewal. The Agency shall submit its existing license together with the
requirement specified in Section 4 of this Rules.
SECTION 13. Change of Ownership. Any Agency which desires to transfer ownership shall surrender its
license to the issuing Regional Office.

Atty Voltaire Duano
SECTION 14. Changes of Business Address. An Agency which desires to transfer to a new business
address shall notify the Regional Office which issued the license at least thirty (30) working days prior to
the intended date of transfer. It shall likewise notify the Regional Office which has jurisdiction over the
new business address and submit a sketch of the new office and a copy of the contract of lease, if any.
RULE III
GRANTING/RENEWAL OF AUTHORITY TO RECRUIT, RECRUITMENT PROCEDURE, PLACEMENT
AND OTHER RELATED ACTIVITIES
SECTION 15. Authority to Recruit. A licensed Agency or its authorized representative shall secure an
authority to recruit from the Regional Office having jurisdiction over the place where recruitment activities
will be undertaken. Such authority shall be coterminous with the license unless sooner revoked/cancelled
by the issuing Regional Office or terminated by the Agency.
SECTION 16. Documents Required. The following documents shall be submitted by the
applicant/agency for the issuance/renewal of an Authority to Recruit:
a. Letter request by the agency;
b. Copy of current license;
c. Certification under oath of licensee of the proposed recruitment activities of the
representative;
d. NBI clearance and bio-data of the representative with two (2) ID pictures;
e. Clearance from previous agency, if applicable; and
f. Previous Authority to Recruit, in case of renewal.
No application shall be accepted unless all the requirements have been complied with.
SECTION 17. Action on the Application for the Issuance/Renewal of an Authority to Recruit
a. Within ten (10) working days from receipt of complete documents, the Regional Director
shall act on the application;
b. In case of denial, the Regional Director shall state the reasons for denial; A new
application/renewal may be denied on any of the following grounds:
- non compliance with the requirements;
- applicant’s record of unresolved illegal recruitment case; or
- presence of any pending case against the applicant and/or the agency

Atty Voltaire Duano
c. Upon approval of application/renewal, the applicant shall pay a fee of P1,500.00 to the
Regional Office concerned.
SECTION 18. Recruitment by Representative. Only representatives duly authorized to recruit and
whose names are registered with the Regional Office can engage in recruitment activities.
SECTION 19. Termination of Authority of Representatives. The authority of the representatives may
be revoked or terminated by the Agency or cancelled by the issuing Regional Office. The Agency shall
publish in a newspaper of general circulation the names and pictures of representatives whose authority
have been revoked or terminated and the Regional Office shall be furnished a copy of the said
publication. The Regional Office shall keep a record of the authorities issued, revoked or terminated and
furnish copy to the Bureau.
SECTION 20. Steps to be followed in the Recruitment of Persons. The following procedures shall be
followed by the licensed Agency or its duly authorized representative in the recruitment of persons;
a. The Agency or its duly authorized representative shall present to the PESO, Provincial
and District Office where the recruitment activity is to be undertaken, copy of existing
license, and original copy of authority to recruit issued by the Regional Office
concerned.
b. The representative shall require the recruit to submit a copy each of the following:
(1) birth certificate from the local civil registrar; and
(2) medical certificate issued by a government physician or by a reputable private
medical practitioner.
c. The Agency or its authorized representative and the recruit shall enter into a recruitment
contract, duly notarized a copy of which shall be submitted to the Regional Office where
recruitment activity was undertaken.
d. The Agency or its duly authorized representative shall submit a list of the names and
addresses of its recruits, together with copy of documents specified in procedure (b)
above, to the Regional Office or the appropriate Provincial/District Office where
recruitment was undertaken for appropriate authentication and validation; copies of
these documents shall be furnished the Regional Office of destination of the recruit.
e. After the recruitment activity, the Regional Office of origin shall issue a certification to
the Agency or its duly authorized representative that the recruitment activity has been in
accordance with this Rule, copy furnished the Marine Police/Coast Guard/Philippine
National Police, as the case may be.

Atty Voltaire Duano
f. Provide the recruit with a stamped envelope and form indicating the name, address of
recruit and the name, address, telephone number of his/her employer to be sent to the
parent.
g. Prior to deployment the Regional Office of origin shall notify the Regional Office of
destination of the arrival of the recruits, and the latter shall see to it that the terms and
conditions of the recruitment contract are followed strictly.
SECTION 21. Replacement of Worker Without Cost. An employer shall be entitled to replace a worker
without additional cost only once, within one (1) month from the first day the worker reported for work, on
any of the following grounds:
a. The worker is found to be suffering from an incurable or contagious disease as certified
by a competent physician;
b. The worker is physically or mentally incapable of discharging the minimum normal
requirements of the job, as specified in the employment contract; or
c. The worker abandons the job, voluntarily resigns, commits theft or any other prejudicial
to the employer.
SECTION 22. Refund of Service Fee. The employer is entitled to a refund of seventy five (75%) percent
of the service fee if the Agency failed to provide a replacement after a lapse of one (1) month from receipt
of the request for the replacement based on any of the grounds enumerated in the preceding Section.
SECTION 23. Forfeiture of Rights. The employer is deemed to have forfeited his right for a replacement
without cost or refund of the service fee, if he failed to avail of the same within one (1) month from the
date of engagement of the worker.
RULE IV
ESTABLISHMENT OF BRANCH OFFICE/RENEWAL OF AUTHORITY TO OPERATE BRANCH
OFFICE
SECTION 24. Establishment of Branch Office. The application to establish a branch office shall be filed
with the Regional Office having jurisdiction over the place where the branch office is to be established.
SECTION 25. Requirements. A licensee who desires to establish a branch office shall submit the
following requirements:
a. Filing fee of One Thousand Pesos (P1000.00);
b. Certified copy of the current license;

Atty Voltaire Duano
c. Organizational structure of the branch office, including duly notarized appointments;
d. NBI clearance, bio-data and two (2) passport-size ID pictures of the branch manager
and staff members;
e. Certification that the branch office has office space with a minimum floor area of fifty
(50) square meters;
f. Certification that the licensee has no pending case with the Regional Office issuing the
license or where it has established branch office; and
g. List of all authorized representatives, if any, who must be at least high school graduate,
with their corresponding bio-data, two (2) passport-size ID pictures, high school
diploma or other proof of educational attainment, NBI clearance and Special Power of
Attorney (SPA) issued by the licensee.
No application shall be accepted, unless all the requirements have been complied with.
SECTION 26. Action on the Application.

a. Upon receipt of the application, the Regional Director or his duly authorized
representative shall evaluate the documents submitted and conduct an ocular
inspection of the PRPA branch.
b. Within fifteen (15) working days from the date of filing, the Regional Director shall either
deny or approve the application and immediately notify the application of the action
taken.
SECTION 27. Posting of Additional Surety Bond and Payment of Registration Fee. Prior to approval
of the authority to establish a branch office, the licensee/applicant shall post an additional surety bond of
Fifty Thousand Pesos (P50,000.00) and pay a registration fee of Three Thousand Pesos (P3,000.00).
In case of loss, the licensee shall pay Six Hundred Pesos (P600.00) as payment for the issuance of a
certified copy of the authority upon presentation of proof of loss.
SECTION 28. Validity of the Authority. The authority to operate branch office shall be coterminous with
the validity of the license of the Agency subject for renewal upon submission of the original authority and
requirements provided for under Section 25 hereof as well as the original authority.
RULE V
PLACEMENT FEE, SERVICE FEE, AND OTHER CHARGES

Atty Voltaire Duano
SECTION 29. Placement Fee. A licensed PRPA may charge workers a placement fee which shall not
exceed twenty percent (20%) of the worker’s first month’s basic salary; in no case shall such fee be
charged prior to the actual commencement of employment.
SECTION 30. Service Fee. A licensed PRPA may charge employers a service fee which shall not
exceed twenty percent (20%) of the annual basic salary of the worker. In no case shall the service fee be
deducted from the worker’s salary.
SECTION 31. Transportation. Transportation expenses of the worker from the place of origin to the
place of work shall be charged against the employer, and shall in no case be deducted from the worker’s
salary.
SECTION 32. Issuance of Official Receipt. All payments made or fees collected by a licensed Agency
shall be covered by an official receipt indicating the amount paid and the purpose of such payment.
RULE VI
SUSPENSION, REVOCATION/CANCELLATION OF LICENSE
SECTION 33. Grounds for Suspension of a License. Any of the following shall constitute a ground for
suspension of a license:
a. violation of any of the provisions of Sections 7,13, or 14 of these Rules;
b. violation of Department Order No. 21, series of 1994 regarding publication of job
vacancies;
c. non-issuance of official receipt for every fee collected;
d. non-submission of monthly report as provided in Section 61 of these Rules;
e. charging or accepting directly or indirectly, any amount in excess of what is prescribed
by these Rules;
f. disregard of lawful orders and notices issued by the Secretary or his duly authorized
representative; or
g. non-observance of the procedures on recruitment as stated in Section 20 of these
Rules.
SECTION 34. Grounds for Cancellation/Revocation of a License. Any of the following shall constitute
a ground for the cancellation/revocation of license:
a. violation/s of the conditions of license;
b. engaging an act or acts of misrepresentation for the purpose of securing a license or
renewal thereof;

Atty Voltaire Duano
c. continuous operation despite due notice that the license has expired;
d. incurring two (2) suspensions by a PRPA based on final and executory orders;
e. engaging in labor-only contracting as defined in Article 106 of the Labor Code, as
amended;
f. recruitment and placement of workers in violation of Republic Act No. 7610 as amended
by Republic Act No. 7658;
g. transferring, conveying or assigning of license/authority to any person or entity other
than the one in whose favor it was issued;
h. violation of any of the provisions, particularly, Article 34 of the Labor Code, as
amended, and its Implementing Rules and Regulations.
SECTION 35. Table of Penalties and Fines. The commission of any of the aforecited grounds for
suspension, cancellation/revocation shall merit imposition of fine and penalties provided in the herein

Atty Voltaire Duano
Rules and Regulations :
The Agency is jointly and severally liable to any violation or illegal act committed by its
branch.
RULE VII
HEARING AND DISPOSITION OF RECRUITMENT VIOLATION AND RELATED CASES
SECTION 36. Complaints Against Agency. Complaints based on any of the grounds enumerated under
the previous Sections against a licensee/and or the authorized representative/s shall be filed in writing
and under oath with the Regional/District/Provincial Office having jurisdiction over the place where the
PRPA/Branch Office is located, or where the prohibited act was committed, or at complainant’s place of
residence, at the option of the complainant; provided, that the Regional Office which first acquires
jurisdiction over the case shall do so to the exclusion of the others.

Atty Voltaire Duano
SECTION 37. Caption and Title. The complaint shall be filed in accordance with the following caption:
Republic of the Philippines

Department of Labor and Employment
Regional Office No. ___
__________________________
Province/District
In the Matter of Violation of
Recruitment Rules and Regulations/Pertinent
Regulations Implementing the Labor
Code, as Amended
- versus - RO Case No. PRPA yr/mo/no. RV
_____________________
Respondent/s.
X--------------------x
11
SECTION 38. Contents of Complaint. All complaints shall be under oath to be administered by any
officer authorized by law and must contain, among others the following:
a. The name/s and address/es of the complainant/s;
b. The name/s and address/es of the respondent/s;
c. The nature of the complaint;
d. The substance, cause/grounds of the complaint;
e. When and where the action complained of happened;
f. The amount of claim, if any; and
g. The relief/s sought.
All pertinent papers or documents in support of the complaint must be attached whenever possible.
SECTION 39. Docket and Assignment of Cases. Complaints duly received shall be docketed and
numbered and shall be scheduled for hearing within ten (10) working days.
SECTION 40. Answer/Counter-Affidavit. Upon receipt of the complaint, the Regional Director shall
issue show cause order directing the respondent/s to file a verified Answer/Counter-Affidavit within ten
(10) working days and copy furnished the complaint/s and not a Motion to Dismiss, incorporating therein
all pertinent documents in support of its defense, and attaching thereto proof of service of a copy thereof

Atty Voltaire Duano
upon the complaint/s. The answer shall be deemed filed on the date of receipt stamped thereon, if filed
personally, or on the date indicated in the registry receipt, if filed by registered mail.
SECTION 41. Motion for Extension. Only one motion for extension of time to file answer shall be
allowed. The Regional Director, upon receipt of such motion may, upon meritorious grounds, grant a non-
extendible period not exceeding ten (10) working days. Rulings of the Regional Director on motions for
extension shall be sent by personal service or by registered mail.
SECTION 42. Failure to File Answer. Failure to file an answer/counter affidavit will constitute a waiver
on the part of the respondent.
SECTION 43. Service of Subpoena Duces Tecum and Subpoena Ad Testificandum. The Regional
Director shall issue sub-poena or sub-poena duces tecum. The process server who personally served the
subpoena duces tecum and/or subpoena ad testificandum, notice, order, resolution or decision shall
submit his return within five (5) working days from the date of his service thereof, stating legibly in his
return his name, the mode/s of service, the name/s of the other person/s served and the date/s of receipt.
If no service was effected, the serving officer shall state the reason therefor. The return shall form part of
the records of the case.
SECTION 44. Failure or Refusal to Obey Subpoena Duces Tecum and Subpoena Ad
Testificandum. The license of an agency who fails or refuses to obey the subpoena duces
tecum/subpoena ad testificandum, shall be suspended until compliance of the directive of the Regional
Director. This is without prejudice to the outcome of the investigation wherein the proper penalty may be
imposed.
SECTION 45. Proof and Completeness of Service. The return is prima facie proof of the facts stated
herein. Service by registered mail is completed upon receipt of the addressee or agent; but if the
addressee or agent fails to claim his mail from the post office within five (5) working days from date of last
notice of the postmaster, service shall take effect after such time.
SECTION 46. Authority to Initiate Clarifying Questions. At any stage of the proceedings and prior to
the submission by the parties of the case for resolution, the Regional Office may initiate clarificatory
questions to further elicit facts or information, including but not limited to the subpoena of relevant
documentary evidence.

Atty Voltaire Duano
SECTION 47. Summary Judgment. Should the Regional Director find upon consideration of the
answers, counter-affidavits and evidence submitted, that r esolution/decision may be rendered thereon,
the case shall be deemed submitted for decision.
SECTION 48. Nature of Proceedings. The proceedings before the Regional Office shall be non-litigious
in nature. Subject to the requirements of due process, the technicalities of and procedure and rules
obtaining in the courts of law shall not strictly apply thereto. The Regional Director may avail himself of all
reasonable means to ascertain the facts of the case, including ocular inspection, where appropriate, and
examination of informed persons.
SECTION 49. Effects of Withdrawal/Desistance. The withdrawal/desistance of the complaining witness

shall not bar the Regional Office from proceeding with the investigation on recruitment violation/s. The
Regional Office shall act on the case as may be merited by the results of the investigation and impose
such penalties on the erring Agency as may be deemed appropriate.
SECTION 50. Effects of Settlement. At any stage of the proceedings, the parties may submit a
Compromise Agreement subject to the approval of the Regional Office.
SECTION 51. Resolution of the Case. The conduct of hearings shall be terminated within fifteen (15)
working days from the first scheduled hearing. The Regional Director shall resolve the case within ten
(10) working days from the time the case is deemed submitted for decision.
SECTION 52. Suspension of License Pending Investigation. Pending investigation of a complaint

leading to the cancellation/revocation of license, the Regional Director, who is hearing the case, may
suspend the license of the PRPA concerned on any of the following grounds:
a. There exist reasonable grounds to believe that the continued operation of the Agency
will lead to further violation or exploitation of the workers being recruited;
b. Failure of the licensed PRPA to submit its Position Paper/Answer on the complaint
within the prescribed period;
c. Failure to attend the hearing despite due notice called by the Regional Office;
d. Failure or refusal to obey subpoena duces tecum and subpoena ad testificandum
issued by the Regional Director; and
e. Prima facie evidence shows that the Agency has violated and continues to violate any
of the provisions of the Labor Code, as amended, its Implementing
Rules and Regulations on the recruitment and placement of workers.

Atty Voltaire Duano
SECTION 53. Suspension/ Cancellation of License. - The Regional Director who issued the license
shall have the power to suspend/ cancel the license of the Agency.
SECTION 54. Effects of Orders of Suspension/Cancellation or Revocation. – An order of

suspension/cancellation or revocation shall have the effect of suspending or terminating all activities of
the Agency which fall under the definition of recruitment and placement. The Regional Office may seek
the assistance of other government institutions, agencies or offices to ensure that suspension or
cancellation orders are implemented.
SECTION 55. Suppletory Application of the Rules of Court. In the absence of any applicable
provisions of these Rules, the pertinent provisions of the Rules of Court may be applied in a suppletory
character.
SECTION 56. Appeal. Decision of the Regional Director is appealable to the Secretary within ten (10)
working days from receipt of a copy of the order, on any of the following grounds:
a. If there is prima facie evidence of abuse of discretion on the part of the Regional
Director;
b. If the decision and/or award was secured through fraud or coercion;
c. If made purely on questions of law; and/or
d. If serious errors in the findings of facts are raised which, if not corrected, would cause
grave or irreparable damage or injury to the appellant. The appeal shall be filed with the
Office of the Secretary, copy furnished the Regional Office, issuing the Order of
suspension or cancellation/revocation.
The Secretary shall have thirty (30) working days from receipt of the records to resolve the appeal. The
decision of the Secretary shall be final and inappealable.
RULE VIII
CESSATION OF OPERATION OF THE AGENCY/BRANCH
SECTION 57. Notice of Closure of the Agency or its Branch. The Agency or its branch office which
ceases to operate prior to the expiration of its license or its authority to operate shall notify the Regional
Office concerned, stating the justification for such closure, accompanied by the original receipt of cash
bond and the license, or the authority to operate, as the case may be.
SECTION 58. Refund of Cash Bond. An Agency which voluntarily surrender its license shall be entitled
to the refund of its deposited cash bond only after posting a surety bond of similar amount from a bonding
company accredited by the Insurance Commission. The surety bond is valid for three (3) years from
expiration of the license.

Atty Voltaire Duano
RULE IX
INSPECTORATE AND ENFORCEMENT FUNCTIONS
SECTION 59. Inspection Function. To ensure the effective supervision and regulation of the activities of
all licensees, the Regional Director or his duly authorized representative shall have access to the
licensee’s records and premises at any time of the day or night whenever work is being undertaken
therein, to determine violation or may aid in the enforcement of these Rules.
SECTION 60. Writ of Execution. The Regional Director shall issue writs of execution to the appropriate
authority for the enforcement of his/her Orders.
SECTION 61. Submission of Monthly Reports. All Agencies shall submit to the Regional Office, copy
furnished the Bureau, not later than the 5th working day of every month reports verified and confirmed by
the Regional Director or his duly authorized representative of their recruitment and placement activities
during the preceding month.
RULE X
REPEALING CLAUSE AND EFFECTIVITY DATE
SECTION 62. Repealing Clause. All rules and regulations, guidelines and issuances inconsistent
herewith are repealed or modified accordingly.
SECTION 63. Effectivity. The provisions of these Rules and Regulations shall take effect fifteen (15)
days after its publication in two (2) newspapers of general circulation.
Done in the City of Manila this 5th day of June 1997.

(Sgd.) LEONARDO A. QUISUMBING
Secretary
Refer to POEA Rules for Land-Based Overseas Workers

Refer to POEA Rules for Sea-Based Overseas Workers

Atty Voltaire Duano
C. LABOR STANDARDS
Art 82 of the Labor Code provides that the provisions of Book III shall apply to employees on
all establishments and undertakings whether for profit of not, but not to:
1. Government employees of GOCCs with original charter;

 For GOCCs with original charter, the Civil Service Commission has the
jurisdiction.
2. Managerial Employees (including supervisory employees);

 Those whose primary duty consists of the management of the establishment in
which they are employed or of a department or subdivision thereof;
 They customarily and regularly direct the works of two or more employees;
 They have the authority to hire or fire employees of lower rank; or their
suggestions and recommendations as to hiring and firing and as to the
promotion or any other change of status of other employed, are given
particular weight (Rule 1, Sec 2b, Implementing Rules and Regulations of Book
III, Labor Code)
Supervisory employees are Deemed Managerial Employees in view of Art 82 if:
 The primary duty consists of the performance of work directly related to

management policies of their employer;
 Customarily and regularly exercise discretion and independent judgment; and
(i) Regularly and directly assist a proprietor or a managerial employee

whose primary duty consists of the management of the
establishment in which he is employed or subdivision thereof; or
(ii) execute under general supervision work along specialized or

technical lines requiring special training experience or technical
lines requiring special training, experience, or knowledge, or
(iii) execute, under general supervision, special assignments and tasks.
 Who do not devote more than 20% of their hours worked in a work week to
activities which are not directly and closely related to the performance of the
work described in paragraphs (1), (2), and (3) above. (Rule 1, Sec 2c,
Implementing Rules and Regulations of Book III, Labor Code)
3. Field Personnel;

Atty Voltaire Duano
“Field personnel” is not merely concerned with the location where the employee
regularly performs his duties but also with the fact that the employee’s performance
is unsupervised by the employer…whose actual hours of work in the field cannot be
determined by reasonable certainty. –Autobus Transport Sys, Inc vs Bautista, May
16, 2005
“Fishermen employed by petitioner have no choice but to remain on board its vessel.
Although they perform non-agricultural work away from petitioner’s business offices,
the fact remains that throughout the duration of their work teu are under the
effective control and supervision of petitioner through the vessel’s patron or master
as the NLRC correctly held. –Mercidar Fishing Corporation vs NLRC, Oct 8, 1998
4. Members of the family of the employee solely dependent upon him for support;
They are not covered because their support may even exceed the benefits given
under Book III of the Labor Code.
5. Domestic helper/family drivers those in the personal service of the employer and
who cater to the comfort and the convenience of his family or household;
 Tasks are usually necessary and desirable in the maintenance or enjoyment of
the home; and
 Personal comfort, convenience and safety of the employer, as well as of the
members of the household.
6. Employees paid by result, piece rate workers, pakyaw basis, task basis or by
commission; and
 The basis of their compensation if work accomplished. The employer has no
control over their work
 Refer to Makati Haberdashery vs NLRC
7. Employees of retail establishments and service establishments employing not more

than 10 employees.
These employees are also not entitled to:
 Overtime pay;
 Premium pay for rest days and holidays;
 Night shift differential;
 Holiday pay;
 Service incentive leave; and
 Service charges.

Atty Voltaire Duano
1. Hours of Work
a. Coverage and Exclusions
Coverage: All employees of establishments and undertakings
Excluded: Refer to Art 82
1. Government employees of GOCCs with original charter;
2. Managerial Employees (including supervisory employees);
3. Field Personnel;
4. Members of the family of the employee solely dependent upon him
for support;
5. Domestic helper/family drivers those in the personal service of the
employer and who cater to the comfort and the convenience of his
family or household;
6. Employees paid by result, piece rate workers, pakyaw basis, task
basis or by commission; and
7. Employees of retail establishments and service establishments
employing not more than 10 employees.
b. Normal Hours of Work

Art 83. The normal hours of work shall not exceed 8 hrs a day.
For health personnel, it shall be 8hrs a day for 5days if the following requisites
are met:
 Cities and Municipalities with a population of 1M ; and
 Hospitals and clinics with at least 100 bed capacity.
Hours worked shall be compensable:
a) All time during which an employee is required to be on duty or to be at

the employer’s premises or to be prescribed to be on duty;
b) All time during which an employee is suffered or permitted to work (Sec
3, Rule I, LC, IRR, Bk III)
(Sec 4, Rule I, LC, IRR, Bk III)
c. Exceptions
Art 83. Except where the exigencies of the service require that such personnel
work for 6 days or 48 hours, in which case they shall be entitled to an additional
compensation of at least 30% of their regular wage for work on the 6th day.
d. Work interrupted due to brownouts
e. Meal Breaks
Atty Voltaire Duano
f. Idle time, waiting time, commuting time, travel time whether paid of hours of
work or not
g. Overtime work
h. Night work
i. CBA provisions vis-à-vis overtime work
j. Night Shift Differential
k. Holiday pay
l. Service Incentive Leaves
2. Wages
Wages are remuneration or earnings, however designated, capable of being expressed in
terms of money whether fixed or ascertained oon a time, task, piece or commission
basis, or other method of calculating the same, which is payable by an employer to
employee under a written or unwritten contract of employment for work done, or for
work to be done, or for service rendered or to be rendered. (Chavez vs NLRC)
a. No work , no pay principle

University of Pangasinan Faculty Union vs NLRC
b.Coverage and Exclusions
c. Facilities vs Supplements
Supplements constitute extra-remuneration or special priveleges or benefits
given to or received by the laborers over and above their ordinary earnings or
wages.
Facilities are items of necessary expenses for the laborer’s and his family’s
existence and subsistence so that by express provision of law, they form part of
the wage and when furnished by employer are deductible therefrom, since they
are not so furnished, the laborer would spend and pay for them just the same.
Note: Be prepared to be asked for various examples differentiating facilities

from supplements.
d.Wages vs Salaries
e. Wage Distortion
Wage distortion is a situation where an increase in the prescribed wage rates
results in the elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions embodied in such
Atty Voltaire Duano
wage structure based on skills, length of service or other logical bases of
differentiation (RA 6727, Metrobank Employees Union vs NLRC).
Note that wage distortion is a non-strikeable issue. The resolution for wage
distortion issue shall be sought by voluntary negotiation or arbitration and not
by strikes, or lockouts… (RA 6727, Ilaw at Buklod ng Manggagawa vs NLRC)
Elements of Wage Distortion (Prubankers Assoc vs Pru Bank & Trust Co):
1. There is hierarchy of positions with corresponding salary rates;
2. Significant change in the salary rate of a lower pay class without a
concomitant increase in the higher one;
3. Elimination of the distinction between the two levels; and
4. The existence of the distortion between the two levels in the same region
of the country.
f. CBA provisions vis-à-vis Wage Order, CBA creditability

The Credibility provision in Wage Order No. 6 is based on impt public policy, that
is, the encouragement of employers to grant wage and allowance increases to
their employees higher than the minimum rates of increases prescribed by the
statute or administrative regulation (Producers bank vs NLRC).
My take on this: In other words, the employees have the right to negotiate for a
higher salary than what the Regional Tripartite Wage Productivity Board or
similar agencies prescribe. Wage Order No 6 prevent the sanctioning of
employers who increase the wage of the employees without waiting for the
statutory prescribed increase in the latter’s salary. Rather, it encourages the
same as bargaining with the employer is a constitutional right and that wages is
included in the negotiation. In addition, CBA is the contract between the parties.
g. Non-dimunition of Benefits
Art 100. Prohibition of Elimination or Dimunition of Benefits
Art 127. Non-Dimunition of Benefits

No wage order issued by any regional board shall provide for wage rates lower
than the statutory minimum wage rates prescribed by the Congress (as
amended by RA 6727).
Versus Non-diminition of Benefits
h.Workers Preference in case of bankruptcy

Atty Voltaire Duano
Art 110, Sec 10 Rule VIII Implementing Rules and Regulations of Book III
i. Labor Code provisions for wage protections

Art 112 - 119
j. Allowable deductions without employee’s consent

Art 113.
Galvadores vs Trajano
k. Attorney’s fees and Union Service Fee in Labor Cases

Art 111.
l. Criteria / Factors for Wage Setting
3. Rest Day
a. Right to Weekly Rest Day
b. Preference of the Employee
c. When work on a rest day is authorized
4. Holidays
a. Right to Holiday Pay
b. Exclusions for Coverage
5. Leaves
a. Service Incentive Leave
b. Maternity Leave
c. Paternity Leave
d. Parental Leave
e. Leaves for victims of violence against women
6. Service Charges
a. Coverage
b. Exclusions
c. Distribution
d. Integration
7. 13th Month Pay and other Bonuses

a. Coverage
b. Exclusions ad Exemptions from Coverage
c. Nature of the 13th Month Pay
d. CBA vis-à-vis 13th Month Pay
Atty Voltaire Duano
8. Women Workers (RA 10151)
a. Discrimination
b. Stipulation against Marriage
c. Prohibited Acts
d. Classification of Certain Women Workers
e. Anti-Sexual Harassment Act
9. Minor Workers (RA 7610, as amended by RA 7678 and RA 9231)

a. Regulation of Working Hours of a Child
b. Employment of the child in public entertainment
c. Prohibition of employing minors n certain undertaking and certain
advertisements
10. Employment of Househelpers

a. Definition
b. Benefits accorded to Househelpers
c. Termination
d. Reliefs for Unjust Termination
11. Employment of Homeworkers

a. Definition
b. Rights and Benefits accorded to Homeworkers
c. Conditions for deduction from Homeworkers earnings
12. Apprentice and Learners

a. Distinctions between Learnership and Apprenticeship
13. Handicapped Workers ((RA 7277, as amended by RA 9242)

a. Definition of Handicapped Workeres
b. Rights of Disabled Workers
c. Prohibitions on Discrimintaion adgainst Disabled Persons
d. Incentives for Employers
D. TERMINATION OF EMPLOYMENT
1. Employer-Employee Relationship
a. 4-Fold Test
b. Probationary Employment
c. Kinds of Employment
1. Regular Employment
Reasonable Connection Rule

Atty Voltaire Duano
2. Project Employment
Indicators of Project Employment
3. Seasonal Employment
4. Casual Employment
5. Fixed Term Employment
Requisite for Validity
d. Job-Contracting and Labor-Only Contracting

1. When is there Job-Contracting?
2. When is there Labor-Only Contracting?
3. Conditions that must concur in legitimate job contracting
4. Effects of Finding that there is labor only contracting
2. Termination of Employment
a. Substantive Due Process
1. Just Causes
a) Serious Misconduct or Willful Disobedience
b) Gross and Habitual Neglect of Duties
c) Fraud or Willful Breach of Trust
d) Abandonment of Employment
e) Termination of Employment pursuant to a Union Security Clause
f) Totality of Infractions Doctrine
2. Authorized Causes
a) Redundancy /Retrenchment and Closure
i. Procedural Steps Required
ii. Requirements for Valid Retrenchment /redundancy
iii. Criteria for selecting employees for dismissal
iv. Standards to be followed
3. Disease or Illness
b.Procedural Due Process

1. Reinstatement Aspect
a) Immediately executor
i. Actual Reinstatement
ii. Payroll Reinstatement
2. Separation Pay in lieu of Reinstatement
a) Strained Relations Rule
3. Backwages

Atty Voltaire Duano
a) Components of the Amount of Backwages
4. Constructive Dismissal
5. Preventive Suspenion
6. Quitclaims
7. Termination of Employment by Employee
c. Reliefs for Illegal Dismissal
3. Retirement Pay Law

a. Coverage
b. Exclusions from Coverage
c. Components of Retirement Pay
d. Retirement Pay under RA 7641 vis-a-viis retirement benefits under SSS and GSIS
laws
E. MANAGEMENT PREROGATIVE
1. Discipline
2. Transfer of Employees
3. Productivity Standards
4. Grant of Bonus
5. Change of Working Hours
6. Marital Discrimination
7. Post-employment Ban
8. Limitations in its Exercise
F. SOCIAL LEGISLATION
1. SSS Law
a. Coverage
b. Exclusions from Coverrage
c. Benefits
d. Beneficiaries
2. GSIS Law
a. Coverage
b. Exclusions from Coverage
c. Benefits
d. Beneficiaries
3. Limited Portability Law

4. Employees Compensation Coverage

Atty Voltaire Duano
LABOR CASES: FLOWCHART OF FILING CASES
I. Cases falling under the Original Exclusive Jurisdiction of the Labor Arbiter
File the Labor Cases before the Labor Arbiter. Cases under its jurisdiction are enumerated
under Art 217. The following are also included:
 Money claims of OFWs are also included by virtue of RA 8042;

 Wage distortion in an unorganized establishments by virtue of RA 6727;
 Enforcement of compromise agreements (Art 227 of the Labor Code); and
 Cases arising out of the interpretation and implementation of the CBA by virtue of
Revised Rules of Procedures of the NLRC.
Note that the Labor Arbiters have the ancillary power to issue injunctions only as incidents to
cases pending before it in order to preserve the rights of the parties. This, however, does not
include injunction on strikes or lockouts. (Pondoc vs NLRC)
Note that the Labor Arbiter has 30 calendar days to hear and decide cases submitted before it.
File an Ordinary Appeal of the decision of the Labor Arbiter before the NLRC within 10
calendar days. The grounds for appeal are as follows:
1. If there is prima facie evidence of abuse of discretion on the part of the Labor
arbiter;
2. If the decision, order or award was secured through fraud, or coercion, including
graft and corruption;
3. If made purely on questions of law; and
4. If serious errors in the findings of facts are raised which would cause grave of
irreparable damage of injury to the appellant.
(Art 223)
The NLRC shall decide the cases within 20 calendar days from receipt of the answer of the
appellee. Its decision shall be final and executory after 10 calendar days from the receipt of
the parties.
Motion for Reconsideration
File a Petition for Certiorari under Rule 65 before the Court of Appeals within
_________________.
Rule 43 of the Rules of Court is not binding on Labor Cases (Rule 43, Sec 2).
File a Petition for Review on Certiorari under Rule 45 before the

Supreme Court within _________________.

Atty Voltaire Duano
II. Direct and Indirect Contempt Cases
III. Cases falling under the Original Exclusive Jurisdiction of the Regional Director
IV. Cases falling under the Original Exclusive Jurisdiction of the Bureau of Labor Relations
V. Cases falling under the Original Exclusive Jurisdiction of the NLRC

Atty Voltaire Duano

Labor Law Review Atty V Duano

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Labor Law Review Atty V Duano

Uploaded by

Copyright:

Available Formats

INTRODUCTION

LABOR means physical toil

KINDS OF LABOR LAWS

II. LABOR LAWS & SOCIAL LEGISLATIONS

Not all social legislation are labor laws.

SOURCES OF LABOR LAWS

 Art II, Sec 18

 Art XII, Sec 12

 Art XIII, Sec 1

CHARINA FLOR A. CACHO LABOR LAW REVIEW 1

*2009 Bar Exam Question

*2006 Bar Exam Question

Constitutional Provisions are not self-executing.

CHARINA FLOR A. CACHO LABOR LAW REVIEW 2

Serrano vs Gallant Maritime Services, Inc.

II. Civil Code

Art. 1705. The laborer's wages shall be paid in legal currency.

CHARINA FLOR A. CACHO LABOR LAW REVIEW 3

BASES OF LABOR LAWS

Assoc de Agricultures de Talisy-Silay vs Talisay-Silay Milling Co.Serrano:

II. SOCIAL JUSTICE

PLDT vs NLRC, Aug 1988

CHARINA FLOR A. CACHO LABOR LAW REVIEW 5

CHARINA FLOR A. CACHO LABOR LAW REVIEW 6

CHARINA FLOR A. CACHO LABOR LAW REVIEW 7

A. FUNDAMENTAL PRINCIPLES & POLICIES

Section 14. The State recognizes the role of women in nation-building,

Section 1. No person shall be deprived of life, liberty, or property without

CHARINA FLOR A. CACHO LABOR LAW REVIEW 8

Section 1. The Congress shall give highest priority to the enactment of

It shall guarantee the rights of all workers to self-organization, collective

The State shall promote the principle of shared responsibility between

CHARINA FLOR A. CACHO LABOR LAW REVIEW 9

2. New Civil Code

Art. 1705. The laborer's wages shall be paid in legal currency.

CHARINA FLOR A. CACHO LABOR LAW REVIEW 10

Article 3. Declaration of basic policy. The State shall afford protection to

Article 211. Declaration of Policy.

It is the policy of the State:

To promote and emphasize the primacy of free collective bargaining and

To promote free trade unionism as an instrument for the enhancement of

To promote the enlightenment of workers concerning their rights and

To provide an adequate administrative machinery for the expeditious

CHARINA FLOR A. CACHO LABOR LAW REVIEW 11

To ensure the participation of workers in decision and policy-making

To encourage a truly democratic method of regulating the relations between

Article 212. Definitions.

"Commission" means the National Labor Relations Commission or any of its

"Board" means the National Conciliation and Mediation Board established

"Council" means the Tripartite Voluntary Arbitration Advisory Council

"Employer" includes any person acting in the interest of an employer,

"Employee" includes any person in the employ of an employer. The term

"Labor organization" means any union or association of employees which

"Legitimate labor organization" means any labor organization duly registered

CHARINA FLOR A. CACHO LABOR LAW REVIEW 12

"Bargaining representative" means a legitimate labor organization whether

"Labor dispute" includes any controversy or matter concerning terms and

"Managerial employee" is one who is vested with the powers or prerogatives

"Voluntary Arbitrator" means any person accredited by the Board as such or

"Strike" means any temporary stoppage of work by the concerted action of

"Lockout" means any temporary refusal of an employer to furnish work as a

"Strike-breaker" means any person who obstructs, impedes, or interferes

CHARINA FLOR A. CACHO LABOR LAW REVIEW 13