Labor Law 1 Atty.

Ronic Treptor charged, directly or indirectly, from the workers or employers

Module 2: Recruitment and Placement of Workers or both.
4. “License” - a document issued by the Department of Labor
authorizing a person or entity to operate a private employment
General Provisions
agency.
A. Definition of Terms (Art. 13)
5. “Private recruitment entity” - any person or association engaged in
1. “Workers” - any member of the labor force, whether employed or
the recruitment and placement of workers, locally or overseas,
unemployed.
without charging, directly or indirectly, any fee from the
2. “Recruitment and placement” - any act of:
workers or employers.
a. canvassing,
6. “Authority” - a document issued by the Department of Labor
b. enlisting,
authorizing a person or association to engage in recruitment
c. contracting,
and placement activities as a private recruitment entity.
d. transporting,
7. “Seaman” - any person employed in a vessel engaged in maritime
e. utilizing,
navigation.
f. hiring or
8. “Overseas employment” - employment of a worker outside the
g. procuring workers, and includes
Philippines.
h. referrals,
9. “Emigrant” - any person, worker or otherwise, who emigrates to a
i. contract services,
foreign country by virtue of an immigrant visa or resident
j. promising or advertising for employment, locally or abroad,
permit or its equivalent in the country of destination.
…whether for profit or not: Provided that any person or entity which,
in any manner, offers or promises for a fee employment to two
License vs. Authority
or more persons shall be deemed engaged in recruitment and
A License is given to a Private fee-charging employment
placement. – Memorize this!
agency. An Authority is given to a Private recruitment agency.
Q: Is it required that the acts of recruitment and placement be
Private employment agency vs. Private recruitment entity
done to two or more persons to constitute recruitment
A private employment agency can charge a fee, whether
and placement?
directly or indirectly, from the workers or employers, or both.
A: No. The phrase “Provided, that any person or entity which,
A private recruitment entity cannot charge any fees. A private
in any manner, offers or promises for a fee
employment agency is issued a license, so it can operate. A
employment to two or more persons shall be deemed
private recruitment entity on the other hand is issued an
engaged in recruitment and placement.” does not give
authority.
an element of recruitment and placement.
…This phrase creates a presumption that such person or entity
B. Employment promotion (Art. 14)
is engaged in recruitment and placement. This is not an
…In accordance with the protection to labor clause in the Constitution
element. This presumption only arises if the offer for
employment is for a fee.
Power and Authority of the Secretary of Labor and Employment
3. “Private employment agency” - any person or entity engaged in the
1. Organize and establish new employment offices in addition to the
recruitment and placement of workers for a fee which is
existing employment offices under the Department of Labor as
the need arises;
2. Organize and establish a nationwide job clearance and information
system to inform applicants registering with a particular
employment office of job opportunities in other parts of the
country as well as job opportunities abroad;
3. Develop and organize programs that will facilitate occupational,
industrial and geographical mobility of labor and provide
assistance in the relocation of workers from one area to
another; and
4. Require any person, establishment, organization or institution to
submit such employment information as may be prescribed by
the Department of Labor and Employment.
Why is there a need for employment promotion?
1. To ensure that the protection to labor clause which provides that the
state shall promote full employment is implemented
2. If there is full employment, the citizens will be more productive
resulting to economic improvement of the individual which
will translate to the economic improvement of the state.
How is this implemented?
1. The DOLE is given the powers under Art.14 of the Labor Code
Ex: Require any person, establishment, organization or institution to
submit such employment information as may be prescribed by
the Department of Labor and Employment.
- for policy making; improvement of the workforce and
employment condition in the Philippines.
2.Under Sec. 9, Rule II, Book I of the IRR of the Labor Code: At the
end of each month, every employer with at least six (6)
employees shall submit to the nearest public employment
office the following:
a. List of existing job vacancies or openings;
b. List of new employees, if any;
c. Terminations, lay-offs or retirements;
d. Total number of employed workers for the period; and
e. Request for assistance, if needed, to fill
vacancies or openings.
* Bureau of Employment Services (Art. 15)
…This bureau was abolished by E.O. 797 which created the
Philippine Overseas Employment Administration.
…The functions of the Bureau of Employment Services were
transferred to the POEA and the Bureau of Local Employment.
C. Private recruitment (Art. 16)
…Except as provided in Chapter II of this Title, no person or entity,
other than the public employment offices and the OEDB for
overseas employment, shall engage in the recruitment and
placement of workers.
General Rule
- recruitment and placement activities are limited to public
employment offices
* It is the government that should engage in recruitment and
placement, subject to exceptions.
Exceptions?
1. Private fee charging employment agency,
2. Private recruitment entity.
D. POEA
…The office of the Overseas Employment Development Board
(Art. 17) is already abolished by the creation of the POEA
under E.O. 797. The powers and functions of the OEDB was
transferred to the POEA.
Powers and Functions of the POEA
1. Protection of the right of Filipino workers to fair and equitable
employment practices.
2. Regulation of private sector participation in the recruitment and
overseas placement of workers by setting up a licensing and
registration system.
3. Deployment of Filipino workers through Government to
Government hiring.
4. Formulation, implementation, and monitoring of overseas
employment of Filipino workers taking into consideration their
welfare and domestic manpower requirements.
5. Shall inform migrant workers not only of their rights as workers but
also of their rights as human beings, instruct and guide the
workers how to assert their rights and provide the available
mechanism to redress violation of their rights.
6. Implementation, in partnership with other law-enforcement
agencies, of an intensified program against illegal recruitment
activities (Sec. 14, R.A. 10022).
Adjudicatory functions of POEA
1. Administrative cases involving violations of licensing rules and
regulations and registration of recruitment and employment
agencies or entities.
2. Disciplinary action cases and other special cases which are
administrative in character involving employers, principals,
contracting partners and Filipino migrants (RA 8042, IRR,
Rule X, Sec. 6).
Powers of the POEA
1. Suspend or cancel licenses
2. Order the refund or reimbursement of illegally collected fees POEA
Recruitment and placement activities by POEA
1. This is limited to government-to-government arrangements.
- not with private sectors abroad
2. The POEA is empowered to assist in the processing of travel
documents that will be required of the worker.
3. Deployment of workers shall be allowed by the POEA only:
a. In countries where the rights of Filipino
migrant workers are protected.
b. To vessels navigating the foreign seas or to installations
located offshore or on high seas whose
owners/employers are compliant with international laws
and standards that protect the rights of migrant workers.
c. To companies and contractors with international operations:
Provided, that they are compliant with standards,
conditions and requirements, as embodied in the
employment contracts prescribed by the POEA and in
accordance with internationally-accepted standards.
What are the guarantees on the part of the receiving state that the
rights of Filipino migrant workers are protected?
…The government recognizes any of the following as a guarantee on
the part of the receiving country for the protection of the rights
of overseas Filipino workers:
1. It has existing labor and social laws protecting the rights of workers,
including migrant workers;
2. It is a signatory to and/or a ratifier of multilateral conventions,
declarations or resolutions relating to the protection of workers,
including migrant workers; and
3. It has concluded a bilateral agreement or arrangement with the
government on the protection of the rights of overseas Filipino
Workers
…In the absence of a clear showing that any of the guarantees exists in
the country of destination of the migrant workers, no permit for
deployment shall be issued by the POEA.
* However, the POEA may at any time terminate or impose a ban on
employment of migrant workers, to do so, in consultation with
the DFA based on the following grounds:
a. In pursuit of the national interest; or
b. When public welfare so requires (Sec. 4, R.A. 10022)
Ex: the POEA may impose a ban on employment of migrant
workers to a country with an ongoing widespread armed
conflict.
POEA ban on deployment of migrant workers to Northern Iraq.
* Office of Emigrant Affairs (Art. 19)
…This is already abolished by the creation of Commission on
Filipinos Overseas. This commission is tasked to promote and
uphold the interests, rights and welfare of overseas Filipinos
and strengthen their ties with the Motherland.
* National Seamen Board (Art. 20)
…This is repealed by EO 797 creating the POEA.
E. Ban on direct hiring (Art. 18)
…No employer may hire a Filipino worker for overseas employment
except through the Boards (now POEA) and entities authorized
by the Department of Labor and Employment.
…Direct hiring by members of the diplomatic service, officials and
employees of international organizations and such other
employers as may be allowed by the Department and Labor
and Employment is exempt from this provision.
General rule:
- No direct hiring of Filipino workers for jobs abroad.
Exceptions; as allowed by the DOLE:
1. Direct hiring by members of the diplomatic service
2. Direct hiring of officials and employees of international
organizations
3. Such other employers as allowed by the DOLE.
4. Name hires – direct hire
… individual workers who are able to secure contracts for
overseas employment opportunities with employers without the
assistance or participation of any agency.
…They are still required to pass through the POEA for processing
purposes and should be registered under POEA for protection.
(after they have acquired employment)
* Here, solidary liability of private employment liability is not
applicable because there is no agency involved in a name hire.
Why is there a ban on direct hiring?
…The purpose is to regulate employment of Filipinos abroad.
Why the need to regulate?
1. To ensure protection of Filipino workers abroad
2. To protect the labor supply of the Philippines abroad by ensuring
that those deployed abroad are possessed with the necessary
skills to perform the work they are hired to do. (export quality
labor)
3. To enforce compliance with the solidary liability of private
employment and recruitment agencies
4. To enforce the mandatory remittance requirement
F. Article 21
…another provision to ensure that the rights of Filipino workers
abroad are protected.
…It also requires the labor attaches, the labor reporting officers duly
designated by the Department of Labor and Employment and
the Philippine diplomatic or consular officials concerned to
make continuing studies and gather information regarding
situations of Filipino workers.
…This is to assist the DOLE in formulating policies concerning
Filipino workers abroad.
G. Mandatory remittance of foreign exchange earnings (Art. 22)
…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
and Employment.
…Force workers to send foreign remittances to boost our economy.
Obligation to remit
…SECTION 2 (Rule XIII, Book I, IRR of LC).
- It shall be mandatory for a worker or seaman to remit regularly a
portion of his foreign exchange earnings abroad to his
beneficiary, through the Philippine banking system. This
obligation shall be stipulated in the following documents:
1. Contract of employment and/or service between foreign based
employer and a worker;
2. Affidavit of undertaking whereby a worker obligates himself to
remit a portion of his earnings to his beneficiaries; and
3. Application for a license or authority to recruit workers.
- made by the agencies
Amount to be remitted
… (E.O. 857, as amended)
1. Seamen and mariners – 80% of the basic salary
2. Construction companies and their workers – 70%
3. Professional workers (doctors, nurses, teachers) whose employment
contract provide for free board and lodging – 70%
4. Professionals without free board and lodging – 50%
5. Domestic and other service workers – 50%
6. All other workers – 50%
What happens if the worker fails to remit?
1. Worker shall be suspended or excluded from the list of eligible
workers for overseas employment. Subsequent violations shall
warrant his repatriation.
2. Employers who fail to comply shall be excluded from the overseas
employment program.
3. Private employment agencies or entities shall face cancellation or
revocation of their licenses or authority to recruit, without
prejudice to other liabilities under existing laws and
regulations.
Exception to mandatory remittance
1. The worker’s immediate family members, beneficiaries and
dependents are residing with him abroad
2. Immigrants and Filipino professionals and employees working with
the UN agencies or specialized bodies
3. Filipino servicemen working in U.S. military installations
(Resolution No. 1- 83, Inter-Agency Committee for
Implementation of E.O. 857).
Regulation of Recruitment and Placement Activities
A. Participation of Private Sector in the recruitment and
placement of workers (Art. 25)
…Pursuant to national development objectives and in order to harness
and maximize the use of private sector resources and initiative
in the development and implementation of a comprehensive
employment program, the private employment sector shall
participate in the recruitment and placement of workers, locally
and overseas, under such guidelines, rules and regulations, as
may be issued by the Secretary of Labor and Employment.
Regulation of Recruitment and Placement Activities
Are private entities allowed to engage in recruitment and placement of
workers?
1. As a general rule, no. recruitment and placement activities can only
be done by public employment offices.
2. By way or exception, private entities are allowed subject to rules
and regulations as may be issued by the Secretary of Labor and
Employment.
- This is regulated by the issuance of licenses and authorities.
Requirements for private entities for the issuance of a license or
authority
1. Citizenship requirement
a. For individuals who want to engage in recruitment and
placement activities, that individual must be a Filipino.
b. For corporations or partnerships, at least 75% of the
authorized and voting capital stock of which must be
owned and controlled by Filipinos.
2. Capitalization requirement
a. For local employment, the capital requirement is
Php1,000,000.00 (Revised rules and regulations
governing recruitment and placement for local
employment; D.O. No. 141-14 series of 2014)
b. For overseas employment, the capital requirement is
Php5,000,000.00 (Revised POEA rules and regulations
governing the recruitment and employment of land
based overseas Filipino workers of 2016)
3. Should not be otherwise disqualified by law or other government
regulations to engage in the recruitment and placement of
workers for overseas employment
4. Payment of registration fees
a. Local employment = Php5,000
b. Overseas = Php25,000
5. Posting of surety or cash bonds (Art. 31: Bond Requirement)
- All applicants for license or authority shall post such cash and surety
bonds as determined by the Secretary of Labor, including
escrow deposits.
The Purpose of the Bond
1. to guarantee compliance with the prescribed recruitment procedures,
rules and regulations, and terms and conditions of employment.
2. for the protection of our citizens who are engaged for overseas
employment by foreign companies.
3. to ensure that if the rights of these overseas workers are violated by
their employers, recourse would still be available to them
against the local companies that recruited them for the foreign
principal. The foreign principal is outside the jurisdiction of
our courts and would probably have no properties in this
country against which an adverse judgment can be enforced.
This difficulty is corrected by the bond, which can be
proceeded against to satisfy that judgment.
…serves as security
The bond is exempted from garnishment
- Cash bond filed by applicants for license or authority is not subject to
garnishment by a judgment creditor of the agency. Should the
bond/deposit in escrow or any part thereof be garnished, the
same should be replenished by the agency within 15 days
from notice from the POEA. Failure to replenish the same
within the said period shall cause the suspension of the license.
ex. An employee was successful in a case against a foreign principal,
and the bond answered for the amount
(STRONGHOLD INSURANCE COMPANY, INC. vs. CA and
ADRIANO URTESUELA, G.R. No. 88050, January 30, 1992)
Persons and Entities Disqualified to Engage in the Business of
Recruitment and Placement of Workers
1. Travel agencies and sales agencies of airline companies (Art. 26)
2. Officers or members of the board of any corporation or members in
a partnership engaged in the business of a travel agency
3. Corporations and partnerships, when any of its officers, members of
the board or partners, is also an officer,
member of the board or partner of a corporation or partnership
engaged in the business of a travel agency
4. Persons, partnerships or corporations which have derogatory
records, such as but not limited to those:
a. Certified to have derogatory record or information by the
NBI or by the Anti-Illegal Recruitment Branch of the
POEA;
b. Against whom probable cause or prima facie finding of guilt
for illegal recruitment or other related cases exists;
c. Convicted for illegal recruitment or other related cases
and/or crimes involving moral turpitude;
d. Agencies whose licenses have been previously revoked or
cancelled by the POEA for violation of R.A.8042, P.D.
442 as amended and their IRRs.
e. Any official or employee of the DOLE, POEA, OWWA,
DFA and other government agencies directly involved
in the implementation of R.A. 8042 and/or any of
his/her relatives within the 4th civil degree of
consanguinity or affinity
f. Persons or partners, officers and directors of corporations
whose licenses have been previously cancelled or
revoked for violation of recruitment laws (Sec. 2, Rule
I, 2002 Rules and Regulations on the Recruitment and
Employment of Land- Based Workers).
Solidary liability of employment agency
- Local employment agencies are solidarily liable with their foreign
principal for any violation of the recruitment agreement and
violation of contracts of employment.
1. Before recruiting, the agency is required to submit a document
containing its power to sue and be sued jointly and solidarily
with the principal or foreign-based employer for any of the
violations of the recruitment agreement, and the contracts of
employment.
2. The recruitment agency may still be sued even if agency agreement
between recruitment agency and principal is already severed if
no notice of the termination was given to the employee based
on Art. 1921 of the New Civil Code
(Catan v. NLRC, GR No. 77297, April 15, 1988).
Exemption from solidary liability
1. Where the workers themselves insisted for the recruitment agency to
send them back to their foreign employer despite their
knowledge of its inability to pay their wages, the Court
absolved the agency from liability
(Feagle Construction Corp. v. Gayda, GR No. 82310, June 18, 1990).
…If the recruitment/placement agency is a juridical being, the
corporate officers, directors or partners as the case may be,
shall themselves be jointly and solidarily liable with the
corporation or partnership for the claims and damages
(Becmen Service Exporter and Promotion v. Cuaresma, G.R. Nos.
182978-79, April 7, 2009).
* A foreign employer which through unlicensed agents recruits
workers in the country may be sued in and found liable by
Philippine courts.
Theory of Imputed Knowledge
…ascribes the knowledge of the agent, to the principal employer not
the other way around.
…The knowledge of the principal foreign employer cannot, therefore,
be imputed to its agent.
Knowledge of the agent = knowledge of the principal. If the agent is
aware, the principal is deemed to be aware. But if the principal
is aware, the agent is not deemed aware.
(Sunace International Management Inc. vs. NLRC, G.R. No.
161757, January 25, 2006)
Relief in Pretermination of contract of migrant workers without just or
valid cause
1. Full reimbursement of his placement fee with 12% interest per
annum.
2. Plus salaries for the unexpired portion of his employment contract.
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:
1. the full reimbursement if his placement fee and the deductions made
with interest at twelve percent (12%) per annum,
2. 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.
…RA 8042 (Migrant Workers Act) - The three-month option is
declared unconstitutional for violating the equal protection
clause and the substantive due process rule in the Constitution
(Serrano vs. Gallant Maritime Services Inc. and Marlow Navigation
Company, Inc., GR 167614, March 24, 2009).
…However, in 2010, RA 10022 was passed, amending RA 8042. RA
10022 reiterated the provision concerned. Then the SC once
again declared the same provision as unconstitutional.
(Sammer Overseas Placement Agency, Inc. v. Cabiles, 2014)
B. Limitations on License or Authority (Art 29)
General Rule
…Once the license or authority is issued, the recruitment entity may
now engage in recruitment and placement activities.
Limitations of the Use of this license or authority
1. Can only be used by the person or entity in whose favor it was
issued
2. Can only be used in the place stated in the license
3. It cannot be transferred, conveyed, or assigned
4. Provincial recruitment and/or job fairs may be allowed only when
authorized by POEA in writing.
…Any transfer of business address, appointment or designation of any
agent or representative including the establishment of
additional offices anywhere shall be subject to the prior
approval of the Department of Labor
C. Prohibited Acts (Art. 34)
…It shall be unlawful for any individual, entity, licensee, or holder of
authority:
1. 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
(Overcharging)
2. To furnish or publish any false notice or Information or document in
relation to recruitment or employment
(False Notice)
3. 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
(Misrepresentation to Secure License)
4. 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
(Inducing Worker to Quit)
5. 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
(Inducement not to Employ);
6. 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
(Recruitment for Harmful Jobs)
7. To obstruct or attempt to obstruct inspection by the Secretary of
Labor or by his duly authorized representatives
(Obstructing Inspection)
8. 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
(Non-submission of Reports)
9. 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 Sec of Labor
(Contract Substitution)
10. 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
(Involvement in Travel Agency)
11. 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
(Withholding of Travel Documents)
12. Failure to actually deploy a contracted worker without valid reason
as determined by the Department of Labor and Employment
(Failure to Deploy)
13. Failure to reimburse expenses incurred by the worker in
connection with his documentation and processing for purposes
of deployment, in cases where the deployment does not
actually take place without the worker's fault. Illegal
recruitment when committed by a syndicate or in large scale
shall be considered an offense involving economic sabotage
(Failure to Reimburse)
14. Allowing a non-Filipino citizen to head or manage a licensed
recruitment/manning agency
(Non-Filipino Manager) (as amended by RA 10022).
Additional Prohibited Acts (RA 10022)
1. Granting a loan to an OFW which will be used for payment of legal
and allowable placement fees;
2. Refusing to condone or renegotiate a loan incurred by an OFW after
his employment contract has been prematurely terminated
through no fault of his or her own
(Non-Renegotiation of Loan);
3. For a suspended recruitment/manning agency to engage in any kind
of recruitment activity including the processing of pending
workers' applications
(Violation of Suspension)
4. For a recruitment/manning agency or a foreign principal or
 employer to pass on the OFW or deduct from his or her salary
the payment of the cost of insurance fees, premium or other
insurance related charges, as provided under the compulsory
worker's insurance coverage
(Collection of Insurance Premium)
5. Imposing a compulsory and exclusive arrangement whereby an
OFW is required to:
a) Avail a loan only from specifically designated institutions,
entities or persons (Specifying a Loan Entity).
b) To undergo health examinations only from specifically
designated medical, entities or persons, except seafarers
whose medical examination cost is shouldered by the
shipowner (Specifying a Medical Entity).
c) To undergo training of any kind only from designated
institutions, entities or persons, except for
recommendatory trainings mandated by principals or
shipowners (Specifying a Training Entity)
(Sec. 6, R.A. 8042, Migrant Workers and Overseas Filipino Act, as
amended by R.A. 10022).
D. Suspension or Cancellation of License or Authority (Art. 35)
…The Secretary of Labor and Employment 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 Secretary of Labor and Employment, the
Overseas Employment Development Board, and the National
Seamen Board, or for violations of the provisions of this and
other applicable laws, General Orders and Letters of
Instructions. Suspension or Cancellation of License or
Authority
Grounds for cancellation
1. Incurring an accumulated 3 counts of suspension by an agency
based on final and executory orders within the period of
validity of its license;
2. Violations of the conditions of license;
3. Engaging in acts of misrepresentation for the purpose of securing a
license or renewal; and
4. Engaging in the recruitment or placement of workers to jobs
harmful to the public health or morality or to the dignity of the
country
(Sec. 3, Rule I, Book VI, Rules and Regulations Governing
Overseas Employment).
Grounds for suspension or cancellation
1. Commission of prohibited acts under Art. 34 of LC
2. Publishing job announcements w/o POEA’s approval
3. Charging a fee which may be in excess of the authorized amount
before a worker is employed
4. Deploying workers w/o processing through POEA
5. Recruitment in places outside its authorized area
(Sec. 4, Rule II, Book IV, POEA Rules).
Who suspends or cancels the license or authority?
1. The Secretary of Labor and Employment is empowered to suspend
or cancel a license or authority.
2. Overseas employment: SOLE and POEA can suspend or cancel.
*There must be a hearing before the cancellation or suspension of the
license or authority to observe due process.
* Regulatory power (Art. 36)
…The Secretary of Labor and Employment 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.
* Visitorial power (Art. 37)
- The Secretary of Labor and Employment 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 violations of any provision of this Title.
E. Illegal Recruitment
Definition
1. Any act of canvassing, enlisting, contracting, transporting, utilizing,
hiring, or procuring workers and includes referring, contract
services, promising or advertising for employment abroad,
whether for profit or not, when undertaken by non-licensee or
non-holder of authority: Provided, that any such non-licensee
or non-holder who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed so
engaged (RA 10022, Sec. 5).
…Performing recruitment and placement activities without a license or
authority.
2. It shall likewise include the following acts, whether committed by
any person, whether a non-licensee, non-holder, licensee or
holder of authority: (see prohibited activities)
…Performing the prohibited activities whether you have or you do not
have a license or authority. (authority/license is immaterial)
Elements
1. 1st kind
a. The offender is not a holder of a license of
authority
b. He performs any of the act of
recruitment and placement
nd
2. 2 kind
a. The offender performs any of the
prohibited activities
b. The offender has either authority or
license or has no A/L
Types of illegal recruitment
1. SIMPLE illegal recruitment
– no qualifying circumstance
(not economic sabotage)
* Penalty – 12y1d to 20y and a fine of 1M to 2M
*Prescription of the offense – 5 years
2. Illegal recruitment as ECONOMIC SABOTAGE –
a. Syndicated – carried out by a group of 3 or more persons in
conspiracy or confederation with another.
b. Large scale or qualified – committed against 3 or more persons
individually or as a group.
*Prescription of the offense – 20 years
*Penalty – life Imprisonment and a fine of 2M to 5M Illegal
Recruitment
*Aggravating circumstance: The maximum penalty shall be imposed
if the person illegally recruited is less than 18 years of age OR
if committed by a non-licensee or non-holder of authority.
Persons criminally liable
1. The persons criminally liable for the above offenses are the
principals, accomplices and accessories.
2. In case of juridical persons, the officers having control, management
or direction of their business shall be liable (Sec. 6, R.A. 8042).
Consequence of Conviction
1. Automatic revocation of the license or authority
2. Forfeiture of the cash and surety bonds
3. Conviction for the crime of estafa, if found guilty therefor.
…It is important that there must at least be a promise or offer of an
employment from the person posing as a recruiter, whether
locally or abroad (People v. Laogo, G.R. no. 176264)
Illegal recruitment vs. Estafa
IR ESTAFA
Malum prohibitum Malum in se
It is not required that it Accused defrauded another by abuse of
be shown that the confidence or by means of deceit.
recruiter wrongfully
represented himself as a
licensed recruiter
Ex: accused represents that he is a
 license holder to deceive his victims to
part with their money to process their
employment abroad. It must be shown
that the reason why the victims parted
with their money is because of the
misrepresentations of the accused.
* Illegal recruitment and estafa cases may be filed simultaneously or
separately. The filing of charges for illegal recruitment does
not bar the filing of estafa, and vice versa.
F. Employment Permit of Non- Resident Aliens (Art. 40)
Alien Employment Permit
is a document issued by the DOLE which authorizes a foreign
national to work in the Philippines
…Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign employer
who desires to engage an alien for employment in the PH shall
obtain an employment permit from the DOLE.
…The employment permit may be issued to a non-resident alien or to
the applicant employer after a determination of the non-
availability of a person in the Philippines who is competent,
able and willing at the time of application to perform the
services for which the alien is desired.
* For an enterprise registered in preferred areas of investments, said
employment permit may be issued upon recommendation of
the government agency charged with the supervision of said
registered enterprise.
Persons not required to acquire an Alien Employment Permit
1. Members of the diplomatic services and foreign government
officials accredited by the Philippine government;
2. Officers and staff of international organizations of which the
Philippine government is a cooperating member, and their
legitimate spouses desiring to work in the Philippines;
3. Foreign nationals elected as members of the Governing Board who
do not occupy any other position, but have only voting rights in
the corporation;
4. All foreign nationals granted exemption by special laws and all
other laws that may be promulgated by the Congress;
5. Owners and representative of foreign principals, whose companies
are accredited by the Philippine Overseas Employment
Administration (POEA), who come to the Philippines for a
limited period solely for the purpose of interviewing Filipino
applicants for employment abroad;
6. Foreign nationals who come to the Philippines to teach, present
and/or conduct research studies in universities and colleges
provided that the exemption is on a reciprocal basis;
7. Resident foreign nationals and temporary or probationary resident
visa holders employed or seeking employment in the
Philippines (DO 97-09, Series of 2009).
Prohibition against transfer of employment
…After the issuance of an employment permit, the alien shall not
transfer to another job or change his employer without prior
approval of the Secretary of Labor.
…Any non-resident alien who shall take up employment in violation
of the provision of this Title and its implementing rules and
regulations shall be punished in accordance with the provisions
of Articles 289 and 290 of the Labor Code. In addition, the
alien worker shall be subject to deportation after service of his
sentence.
Duration of Permit
…1 year, unless if the employment contract provides
otherwise, but it cannot exceed 5 years.