LABOR 1 REVIEWER On the other hand, Labor Standards law focuses on the terms and conditions of
employment of employees as individual employees or those legal provisions dealing with wages,
Article 1.
Q. What are the books covered by Labor Standards?
0. 1.Book One Pre-employment
2.Book Two- Human Resources Development Program
3.Book Three Conditions of Employment
4.Book Four Health , Safety and Social Welfare Benefits.
What is LABOR LAW?
Labor law is the body of laws, rules and regulations enacted or issued by the state to promote the
welfare of employees and regulate their relations with their employers. It also includes all judicial
decisions interpreting said laws, rules and Regulations.
1995 Bar Q. No.1: Is there any distinction between labor legislation and social legislation? Explain?
ANSWER: Labor legislation consist of statutes, regulations, and jurisprudence governing the relation
between capital and labor, by providing for employment standards and a legal framework for
negotiating, adjusting and administering those standards and other incidents of employment. Social
legislation include laws that provide particular kings of protection or benefits to society or segments
thereof in furtherance of social justice.
2006 Bar Q. No.I(2): What is the purpose of labor legislation?
ANSWER: The purpose of labor legislation is to implement the state policies in the Labor Code and
the Constitution. Such as those provided in Article 3 of the Labor Code, Article II, section 18 and
Article XIII, section 3 of the 1987 Constitution.
2004 Bar Q. No. II: Distinguish clearly but briefly between Social security and union security.
ANSWER:
2003 Bar Q. No. XI: How do the provisions of the law on labor relations interrelate, if at all, with the
provisions pertaining to labor standards?
ANSWER: Labor Relations law focuses its provisions on the collective aspects of employer-employee
relationship. Its legal provisions deal with employees organizing unions and how through these
unions, employees are able to have collective bargaining with their employer.
 
hours of work and other terms and conditions of employments.
1997 Bar Q. No. I: Differentiate labor standards law from labor relations law. Are the two mutually
exclusive?
ANSWER: Labor Standard law is that labor law which prescribes terms and conditions of
employment like in Book IV, Title I AND Book VI of the Labor Code. These Books of the Labor Code
deal with working conditions, wages, working conditions for women, minors, househelpers and
home-workers, medical and dental services, occupational health and safety, termination and
retirement.
On the other hand, Labor Relations law is that which regulates the relations between
employers and workers like Book V of the Labor Code which deals with labor organizations,
collective bargaining, unfair labor practices and strikes and lockouts.
Labor standards laws and labor relations laws are not mutually exlcusive; they are
complement to each other. Thus, the law on strikes and lockouts which is an example of labor
relations law includes some provisions on the security of tenure of workers who are locked out.
These provisions are examples of labor standards law.
1995 BAR Q. NO I (1): What are the three general classifications of labor statutes? Describe each
classification.
ANSWERS: The three general classifications of labor statutes are:
0. Labor Relations Law;
a. Labor Standards Laws; and
b. Social Security Laws.
Labor Relations Laws are those labor statutes that deal with the relations of labor and management,
like the law on unions, collective bargaining, unfair labor practices, strikes, lockouts and picketing.
Labor Standard are those labor statutes that prescribe standards relating to terms and conditions of
employment for compliance by employers, like in the laws on hours of work, weekly rest periods,
holiday pay, wages, and laws dealing with women, minors, house-helpers, and industrial home-
workers.
Social Security Laws are those labor statutes that provide protection not only to a worker but also to
members of his family in case of loss of income or when there is need for medical care brought
about by contingencies like sickness, disability, death, and old age. Examples of social security laws
are the Social Security Law, Review Government Services Insurance Act, the Articles of the Labor
Code on Employees Compensation, the laws are social legislation, but not all social legislation is
labor law.

LABOR STANDARDS LAW
-It refers to the minimum requirements prescribed by existing laws, rules, and regulations and other
issuances relating to wages, hours of work, cost of living allowances and other monetary and welfare
benefits, including those set by occupational safety and health standards.
SOCIAL SECURITY LAW
Those laws that provide for income security and/or medical care for contingencies such
as: sickness, maternity, invalidity, old age, death of a bread winner; unemployment; emergency
expenses; and employment injuries.
LABOR RELATIONS LAW
Defines the status, rights and duties, and the institutional mechanisms, that govern the
individual and collective interactions of employers, employees or their representatives.  that those who have less in life shall have more in law (PAL v. SANTOS, G.R. No. 77875, February 4,
ART 2. DATE OF EFFECTIVITY
 
When did the the Labor Code took effect?
 President Ferdinand Marcos promulgated the PD 442 on May 1, 1974, it took effect 6
months  thereafter. Or on November 1, 1974. ( The field of personnel and Human
Resources Management, Perfecto S. Sison, Page 25)
Q: Who is considered as the Father Labor Code?
A: The writing of the labor code began under the leadership of then Minister of Labor, Mr. Blas
Ople, who deserves to be regarded as the “Father of the Labor Code”.
ART 3. Declaration  of Basic Policy
Q: What are the basic policy under the Labor Code?
A: The declared policy of the Labor code, which the state guarantees, are the following:
   a.) Afford Protection to Labor
b.) Promote full employment
c.) Ensure equal work opportunities regardless of sex, race, or creed.
d.) Regulate the relations between workers and employers
e.) Assure the rights between of workers to self-organization, collective
bargaining,security of   Tenure, and just and Humane conditions of work ( Article 3 of Labor Code)
Q: Which is not a constitutional right of the workers? (2012 Bar)
a. The right to engage in peaceful concerted activities
b. The right to enjoy security of tenure
c. The right to return on investment
d. The right to receive a living wage.
A: Answer: c. The right to return on investment (1987 Constitution, Art. XIII, Sec. 3)
ART 4. CONSTRUCTION IN FAVOR OF LABOR
Q: What is the concept of liberal approach in interpreting the Labor Code and its Implementing Rules
and Regulations in favor of labor?
A: The workers’ welfare should be the paramount consideration in interpreting the Labor Code and
its Implementing Rules and Regulations. This is rooted in the Constitutional mandate to afford full
protection to labor. Article 4 of the Labor Code provides that “all doubts in the implementation and
interpretation of the provisions of the Labor Code including its implementing rules and regulations
shall be resolved in favor of labor” (PLOT v. NLRC G.R. No. 111933, July 23,1997). It underscores the
police of social justice to accommodate the interests of the working class on the humane justification
1993).
Q: What is the quantum of evidence required in labor case? (2012 Bar)
A. Such amount of relevant evidence which a reasonable mind might accept as adequate to justify a
conclusion. (Tancirco v. GSIS, G.R. No. 132916, November 16, 2001)
Q: What is CONSTRUCTION In favor of labor?
A: It is a basic and irrefregable rule that in carrying out and in interpreting the provisions of the labor
code and its implementing regulations, THE WORKINGMAN’S WELFARE SHOULD BE THE
PRIMODRIAL AND PARAMOUNT CONSIDERATION. The interpretation herein gives meaning and
substance to the libreal and compassionate spirit of the law enunciated in art 4 of the labor code.
(Salinas, Jr. NLRC)
Q: What is Management prerogative?
A: Right of an employer to regulate all aspect of employment, such as the freedom to prescribe work
assignments, working methods,, processes to be followed, regulation regarding transfer of
employees, supervision of their work, lay-off and discipline, and dismissal and recall of work ( BayBay
water district v COA, G.R. No., 147248-49, Jan 23,2002.)
Q: An exclusive school for girls, run by a religious order, has a policy of not employing unwed
mothers, women with live-in partners, and lesbians. Is the policy violative of any provision of the
Labor Code on employment of women?
A: No, the policy does not violate the Labor Code. The practice is a valid exercise of management
function. Considering the nature and reason for existence of the school, it may adopt such policy as
will advance its laudable objectives. In fact, the police accords with the constitutional precept of
inculcating ethical and moral values in schools. The school policy does not discriminate against
women solely on account of sex (Art. 135, Labor Code) nor are the acts prohibited under Art. 137 of
the Labor Code.
BONUS
Q: Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay, the
company has been awarding him and his other co-employees a two to three months bonus for the
last ten (10) years. However, because of poor over-all sales performance for the year, the company
unilaterally decided to pay only a one month bonus in 2013. Is Lito’s employer legally allowed to
reduce the bonus?
A: Yes. A bonus is an act of generosity granted by an enlightened employer to spur the employee to
greater efforts for the success of the business and realization of bigger profits. The granting of a
bonus is a management prerogative, something given in addition to what is ordinarily received by or
strictly due the recipient. Thus, a bonus is not a demandable and enforceable obligation, except
when it is made part of the wage, salary or compensation of the employee. It may, therefore, be
withdrawn, unless they have been made a part of the wage or salary or compensation of the
employees, a matter which is not in the facts of the case (American Wire and Cable Daily Rated
Employees Union v. American Wire and Cable Co., Inc., G.R. No. 155059, April 29, 2005).
CHANGE OF WORKING HOURS
Q: What is the extent of the exercise of this prerogative?
A: Employers have the freedom and prerogative, according to their discretion and best judgment, to
regulate and control the time when workers should report for work and perform their respective
functions.
POST-EMPLOYMENT BAN, NON-INVOLVEMENT CLAUSE OR NON-COMPETE CLAUSE
A post-retirement  competitive employment restriction is designed to protect the employer against
competition by former employees who may retire and obtain retirement or pension benefits and, at
the same time, engage in competitive employment. (Van Pelt v. Berefco, Inc., 208 N.E.2d 858,
865[1965])
Q: What are the aspects Management prerogative?
A: 1. Employee Selection
    2. Discipline 
    3. Transfer/ Promote employees
    4. Productivity Standards
    5. Grand of bonus 
    6. Change of working hours
    7. Post-employment ban
    8. Marital discrimination.
Q: What is Employee selection?
A: In the exercise of  its prerogative to select his employees, the employer can not be compelled to
hire somebody against its will. In this regard, the supreme court declared that since the employer is
generally responsible for the damages caused by his employees it is logical and just that he be the
one exclusively entitled to freely select them. (manila Chauffeurs’ league v Bachrach Motor Co., INc)
Q: What is the aspect of Discipline in Management prerogatives?
A: Xxx this right, aptly called management prerogative, gives employers the freedom to regulate,
according to their discretion and best judgement, all aspect of employment, including work
assignment, working methods, processes to be followed, working regulations transfer of of
employees, worki supervision, lay-off of workers and the discipline, dismissal and recall of workers.
In General, management has the prerogative to discipline its employees and to impose
appropriate penalties on erring workers pursuant to company rules and regulations.
( Deles, Jr. v NLRC) 
Q: What is Right to prescribe reasonable rules and regulations?
A: What should not be overlooked is the prerogative of an employer company to prescribe
reasonable rules and regulations necessary for the proper conduct of its business and to provide
certain disciplinary measures in order to implement said rules to assure that the same would be
complied with. ( SOCO v MERCANTILE CORPORATION OF DAVAO)
Q: What is Security of tenure?
A: Where it was held that security of tenure is correlative to the right to reasonable returns on
investments and does not give them vested to their positions to the extent of depriving
management of its prerogative to change their assignments or to transfer them. 
TEST ON VALIDITY OF COMPANY POLICY ON MARITAL DISCRIMINATION
In the Star Paper case the employees were terminated on various occasions, on the basis of the
following company policy:
1. New applicants will not be allowed to be hired if in case he/she has a relative, up to the
3rd degree of relationship, already employed by the company.
2. In case two of our employees (both singles, one male and another female) developed a
friendly relationship during the course of their employment and then decided to get
married, one of them should resign to preserve the policy stated above.
According to the employer, said rule is only intended to carry out its no-employment-for-relatives-
within-the-third-degree-policy which is within the ambit of the prerogatives of management. 
The Court did not find a reasonable business necessity in the policy. Respondents were hired after
they were found fit for the job, but were asked to resign when they married a co-employee.
Petitioner failed to show how the marriage could be detrimental to their business operations. The
policy is premised on the mere fear that employees married to each other will be less efficient. If the
questioned rule is upheld without valid justification, the employer can create policies based on an
unproven presumption of a perceived danger at the expense of an employee’s right to security of
tenure.
ARTICLE 5. Rules and regulations of ( the Department of Labor and other government agencies
charged with the administration and enforcement of.
-  The Department of Labor and other government agencies charged with the administration and
enforcement of this Code or any of its parts shall promulgate the necessary implementing
rules and regulations. Such rules and regulations shall become effective fifteen (15) days after
announcement of their adoption in newspapers of general circulation.
 Rule - making power of the DOLE or Department of Labor and Employment: 
Q: What are the requisites for a valid exercise of rule-making power?
A: (Pagpalain Hauler, Inc. v Trajano, Gr. 133215, July 15, 1999)
a.     Must be issued on the authority of law
b.     It must not be contrary to the law and Constitution
 
Q: When does rules and regulations becomes invalid?
A: A rule or regulation promulgated by an administrative body, such as the Department of Labor, to
implement a law, in excess of its rule-making authority, is void.  (2) Closed Career position which are scientific or highly technical
     e.g. For instance, the Rules and Regulations implementing Article 94 of the Labor Code, and the
accompanying Policy Instructions No. 9 limited the entitlement to holiday pay to daily-paid
employees only thereby excluding monthly-paid employees. But the law itself states that “every
worker” shall be entitled to holiday pay.
Q: When is the effectivity of rules and regulations?
A: Rules and regulations shall become effective fifteen (15) days after announcement of their
adoption in the newspapers of general circulation.  Department Service and other officers of equivalent rank as may
ARTICLE 6. Applicability - All rights and benefits granted to workers under this code shall, except as
may otherwise be provided herein, apply alike to all workers, whether agricultural or non-
agricultural. (As amended by Presidential Decree No. 570-A, Nov 1, 1974).
COVERAGE OF CIVIL SERVICE
SCOPE: Provided under Article IX-B, Section 2(1) of the 1987 Constitution.  3
TWO CLASSES OF CORPORATIONS RECOGNIZED UNDER THE 1987 CONSTITUTION
  First:  Private corporations created under general law.
Second:  Government-owned and controlled corporations with original charters.
TEST TO DETERMINE GOCC IS SUBJECT TO CIVIL SERVICE LAW
The manner of its creation such that government corporations created by special charter
are subject to its provisions while those incorporated under the general Corporation Law are not
within its coverage. However, it should be noted that even if an entity is under the civil service law it
is not completely beyond the scope of labor laws.
 
Coverage of civil service
Scope of the Civil Service. — (1) The Civil Service embraces all branches, subdivisions,
instrumentalities, and agencies of the Government, including government-owned or controlled
corporations with original charters; (2) Positions in the Civil Service shall be classified into career
service and noncareer service.
 
Career Service. — The Career Service shall be characterized by (1) entrance based on merit and
fitness to be determined as far as practicable by competitive examination, or based on highly
technical qualifications; (2) opportunity for advancement to higher career positions; and (3) security
of tenure.
The Career Service shall include:
(1) Open Career positions, appointment to which prior qualification
in an appropriate examination is required;
in nature; these include the faculty and academic staff of state
colleges and universities, and scientific and technical positions
in scientific or research institutions which shall establish and
maintain their own merit systems;
(3) Positions in the Career Executive Service, namely, Undersecretary,
Assistant Secretary, Bureau Director, Assistant Bureau Director,
Regional Director, Assistant Regional Director, Chief of
be identified by the Career Executive Service Board, all of whom
are appointed by the President;
(4) Career officers other than those in the Career Executive Service,
who are appointed by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs;
(5) Commission officers and enlisted men of the Armed Forces
which shall maintain a separate merit system;
(6) Personnel of government-owned or controlled corporations,
whether performing governmental or proprietary functions, who
do not fall under the non-career service; and
(7) Permanent laborer, whether skilled, semi-skilled, or unskilled.
 Classes of Positions in the Career Service. — (1) Classes
positions in the career service, appointment to which requires examinations
shall be grouped into three major levels as follows:
(a) The first level shall include clerical, trades, crafts, and custodial
service positions which involve non-professional or subprofessional work in a non-supervisory or
supervisory capacity
requiring less than four years of collegiate studies;
(b) The second level shall include professional, technical and scientific
positions which involve professional, technical or scientific work
in a non-supervisory or supervisory capacity requiring at least
four years of college work up to Division Chief level; and
(c) The third level shall cover positions in the Career Executive
Service.
(2) Except as herein otherwise provided, entrance to the first two levels shall
be through competitive examinations, which shall be open to those
inside and outside the service who meet the minimum qualification
requirements. Entrance to a higher level does not require previous
qualification in the lower level. Entrance to the third level shall be
prescribed by the Career Executive Service Board.
(3) Within the same level, no civil service examination shall be required
for promotion to a higher position in one or more related occupational
groups. A candidate for promotion should, however, have previously
passed the examination for that level.
SEC. 9. Non-Career Service. — The Non-Career Service shall be
characterized by (1) entrance on bases other than those of the usual tests
of merit and fitness utilized for the career service; and (2) tenure which is
limited to a period specified by law, or which is coterminous with that of
the appointing authority or subject to his pleasure, or which is limited to the
duration of a particular project for which purpose employment was made.
The Non-Career Service shall include:
(1) Elective officials and their personal or confidential staff;
(2) Secretaries and other officials of Cabinet rank who hold their
positions at the pleasure of the President and their personal or
confidential staff(s);
(3) Chairman and members of commissions and boards with fixed
terms of office and their personal or confidential staff;
(4) Contractual personnel or those who employment in the
government is in accordance with a special contract to undertake
a specific work or job, requiring special or technical skills not
available in the employing agency, to be accomplished within
a specific period, which in no case shall exceed one year, and
performs or accomplishes the specific work or job, under his own
responsibility with a minimum of direction and supervision form
the hiring agency; and
(5) Emergency and seasonal personnel.
  
Test to determine whether a GOCC is subject to Civil Service Law
-The test in determining whether a government-owned or controlled corporation is subject to the
Civil Service Law is the manner of its creation such that government corporations created by special
charter are subject to its provisions while those incorporated under the general Corporation Law are
not within its coverage.( PHILIPPINE NATIONAL OIL COMPANY-ENERGY DEVELOPMENT
CORPORATION, vs HON. VICENTE T. LEOGARDO, DEPUTY MINISTER OF LABOR AND VICENTE D.
ELLELINA)
Corporations governed by the Labor Code
Clark Development Corporation
Clark Development Corporation a government-owned or -controlled corporation without an original
charter, was incorporated under the Corporation Code.(CDC vs CA)
The Philippine Tuberculosis Society
The Philippine Tuberculosis Society, Inc. (PTSI) belongs to the latter category and, therefore, covered
by Rep. Act No. 7641 which is an amendment to the Labor Code. (Postigo v Philippine Tuberculosis
Society, Inc)
National Housing Corporation
National Housing Corporation is a government owned corporation organized in 1959 in accordance
with Executive Order No. 399, otherwise known as the Uniform Charter of Government Corporation
dated January 1, 1959. Its shares of stock are and have been one hundred percent (100%) owned by
the Government from its incorporation under Act 1459, the former corporation law.( Juco v NLRC)
 
BLISS DEVELOPMENT CORPORATION
BDC is a government-owned corporation created under the Corporation Law. It is without a charter,
governed by the Labor Code and not by the Civil Service Law hence, Executive Order No. 180 does
not apply to it.( BLISS DEVELOPMENT CORPORATION EMPLOYEES UNION (BDCEU)-SENTRO NG
DEMOKRATIKONG MANGGAGAWA (SDM) v. HON. PURA FERRER CALLEJA and BLISS DEVELOPMENT
CORPORATION)
Philippine Veterans Bank 
Constitution provides in its Article IX-B, Section 2(1) that "the Civil Service embraces all branches,
subdivisions, instrumentalities, and agencies of the Government, including government-owned or
controlled corporations with original charters." As the Bank is not owned or controlled by the
Government although it does have an original charter in the form of R.A. No. 3518, it clearly does
not fall under the Civil Service and should be regarded as an ordinary commercial corporation

National Service Corporation
The 1987 Constitution governs the instant case because it is the constitution in place at the time of
decision thereof. The NLRC has jurisdiction to accord relief to the parties. As an admitted subsidiary
of the NIDC, in turn a subsidiary of the PNB, the NASECO is a government-owned or controlled
corporation without original charter (Naseco v NLRC)
 Corporations covered by the Civil Service Law.
Philippine Casino Operator Corporation
The Court collectively referred to all respondent corporations, including PCOC and PSSC, and held
that in accordance with the Constitution and jurisprudence, corporations with original charter "fall
under the jurisdiction of the Civil Service Commission and not the Labor Department." The Court
stated further that P.D. 1869 exempts casino employees from the coverage of Labor Code provisions
and although the employees are empowered by the Constitution to form unions, these are "subject
to the laws passed to regulate unions in offices and corporations governed by the Civil Service Law."
Thus, in dismissing the petition, the ruling of the Third Division was clear - - - it is the Civil Service
Commission, and not the NLRC, that has jurisdiction over the employer-employee problems in
PAGCOR, PCOC and PSSC.
Duty Free Philippines
Since DFP is under the exclusive authority of the PTA, it follows that its officials and employees are
likewise subject to the Civil Service rules and regulations. Clearly then, Mojica’s recourse to the
Labor Arbiter was not proper. He should have followed the procedure laid down in DFP’s merit
system and the Civil Service rules and regulations.
 
Leyte Metropolitan Water District
Obviously, LWDs are not private corporations because they are not created under the Corporation
Code. LWDs are not registered with the Securities and Exchange Commission. Section 14 of the
Corporation Code states that "[A]ll corporations organized under this code shall file with the
Securities and Exchange Commission articles of incorporation x x x." LWDs have no articles of
incorporation, no incorporators and no stockholders or members. There are no stockholders or
members to elect the board directors of LWDs as in the case of all corporations registered with the
Securities and Exchange Commission. The local mayor or the provincial governor appoints the
directors of LWDs for a fixed term of office. This Court has ruled that LWDs are not created under the
Corporation Code. (Felciano v Commission on Audit)
 
EMPLOYERS WITH IMMUNITY FROM SUIT
 
ASIAN DEVELOPMENT BANK
Being an international organization that has been extended diplomatic status, the ADB is
independent of the municipal law. 10 In Southeast Asian Fisheries Development Center vs. Acosta.
11 The Court has cited with approval the opinion 12 of the Minister of justice; thus —
One of the basic immunities of an international organization is immunity from local jurisdiction, i.e.,
that it is immune from the legal writs and processes issued by the tribunals of the country where it is
found. (See Jenks, Id., pp. 37-44). The obvious reason for this is that the subjection of such an
organization to the authority of the local courts would afford a convenient medium thru which the
host government may interfere in their operations or even influence or control its policies and
decisions of the organization; besides, such subjection to local jurisdiction would impair the capacity
of such body to discharge its responsibilities impartially behalf of its member-states. 13
International Rice Research Institute
IRRI did not waive its immunity, ordered the aforesaid decision of the Labor Arbiter set aside and the
complaint dismissed. Hence, this petition where it is contended that the immunity of the IRRI as an
international organization granted by Article 3 of Presidential Decree No. 1620 may not be invoked
in the case at bench inasmuch as it waived the same by virtue of its Memorandum on "Guidelines on
the handling of dismissed employees in relation to P.D. 1620."
 
UNITED NATIONS REVOLVING FUND FOR NATURAL RESOURCES EXPLORATION (UNRFNRE)
Private respondent is not engaged in a commercial venture in the Philippines. Its presence here is by
virtue of a joint project entered into by the Philippine Government and the United Nations for
mineral exploration in Dinagat Island. Its mission is not to exploit our natural resources and gain
pecuniarily thereby but to help improve the quality of life of the people, including that of petitioners.
This is not to say that petitioner have no recourse. Section 31 of the Convention on the Privileges
and Immunities of the Specialized Agencies of the United Nations states that "each specialized
agency shall make a provision for appropriate modes of settlement of: (a) disputes arising out of
contracts or other disputes of private character to which the specialized agency is a party."
 SEAFDEC is an international agency enjoying diplomatic immunity. This, we have already held in
Southeast Asian Fisheries Development Center-Aquaculture Department vs. National Labor Relations
Commission, G.R. No. 86773, 206 SCRA 283/1992; see also Lacanilao v. de Leon, G.R. No. 76532, 147
SCRA, 286/1987/, where we
 
Southeast Asian Fisheries Development Center 
Being an intergovernmental organization, SEAFDEC including its Departments (AQD), enjoys
functional independence and freedom from control of the state in whose territory its office is
located.
Permanent international commissions and administrative bodies have been created by the
agreement of a considerable number of States for a variety of international purposes, economic or
social and mainly non-political. Among the notable instances are the International Labor
Organization, the International Institute of Agriculture, the International Danube Commission. In so
far as they are autonomous and beyond the control of any one State, they have a distinct juridical
personality independent of the municipal law of the State where they are situated. As such,
according to one leading authority they must be deemed to possess a species of international
personality of their own. (Salonga and Yap, Public International Law, 83 [1956 ed.]
Pursuant to its being a signatory to the Agreement, the Republic of the Philippines agreed to be
represented by one Director in governing SEAFDEC Council (Agreement Establishing SEAFDEC, Art. 5,
Par. 1,. . .), and that its national laws and regulations shall apply only insofar as its contributions to
SEAFDEC of "an agreed amount of money, movable and immovable property and services necessary
for the establishment and operation of the Center" are concerned (Art. 11, ibid). It expressly waived
the application of the Philippine laws on the disbursement of funds of petitioner SEAFDEC-AQD
(Section 2, P.D. No. 292).
 
EXCLUSION UNDER ART. 82
Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial employees,
field personnel, members of the family of the employer who are dependent on him for support,
domestic helpers, persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.
As used herein, “managerial employees” refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a department or subdivision
thereof, and to other officers or members of the managerial staff.
“Field personnel” shall refer to non-agricultural employees who regularly perform their duties away
from the principal place of business or branch office of the employer and whose actual hours of work
in the field cannot be determined with reasonable certainty.
 
EMANCIPATION OF TENANTS (ARTs. 7-11)
Q: When is a tenant-farmer deemed an owner of a portion of land? (Art. 8)
A: Tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of
share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of a
portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if
irrigated.
Q: How do you determine the cost of land to be transferred to a tenant-farmer? (Art. 9)
A: For the purpose of determining the cost of the land to be transferred to the tenant-
farmer, the value of the land shall be equivalent to two and one-half (2-1/2) times the
average harvest of three (3) normal crop years immediately preceding the promulgation
of Presidential Decree No. 27 on October 21, 1972.  delivery of agrarian justice to Agrarian Reform Beneficiaries.
The total cost of the land, including interest at the rate of six percent (6%) per annum,
shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations.  A: The modes of acquisition shall be limited to: (1) voluntary offer to sell; and (2)
Q: When can a title to a land be issued to a tenant-farmer? (Art 10)
A: A land title shall be issued to the tenant-farmer when he has become a full-fledged
member of a duly recognized farmers’ cooperative.
Q: Can a title to land be transferable? (Art 10)
A: The general rule is that a title to the land acquired pursuant to Presidential Decree No.
27 or the Land Reform Program of the Government shall not be transferable.
EXCEPTIONS: by hereditary succession or to the Government in accordance with the
provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing
laws and regulations.
Q: Who is the implementing agency on the provisions under Chapter 2 of this Book? (Art
11)
A: The Department of Agrarian Reform shall promulgate the necessary rules and
regulations to implement the provisions of this Chapter.
Q: What is CARP?
A: Comprehensive Agrarian Reform Program, is a government initiative that aims to grant
landless farmers and farmworkers ownership of agricultural lands.
Q: What is the basis for CARP?
A: CARL has the mandate of the Constiturion. Section 21, Art. II asserts that the State shall
promote comprehensive rural development and agrarian reform.
Q: What is agrarian reform?
A. Agrarian reform, according to Section 3 of RA 6657 is the redistribution of lands,
regardless of crops or fruits produced to farmers or regular farmworkers who are landles,
irrespective of tenurial arrangement, to include the totality of factors and support services
designed to lift the economic status of the beneficiaries and all other arrangements
alternative to the physical redistribution of lands, such as production, profit-sharing, labor
administration, and the distribution of shares of stocks, which will allow beneficiaries to
receive a just share of the fruits of the lands they work.
REPUBLIC ACT 9700
Q: What is the purpose of enacting this Act?
A: This Act provides for the continuing acquisition and distribution of agricultural lands
covered under the Comprehensive Agrarian Reform Program (CARP) for a period of five
years under various phases, and the simultaneous provision of support services and the
Q: What are the modes of acquisition under this Act?
compulsory acquisition. Voluntary land transfer shall be allowed only for landholdings
submitted as of June 30, 2009.
Q: What are the lands covered by the CARP?
A. Under the Comprehensive Agrarian Reform Law of 1988, the following are the lands
covered by the CARP:
 1. All alienable and disposable lands of the public domain devoted to or suitable
for agriculture. Those reclassified by the Congress/law as a part of the public
domain;
2. All lands of the public domain in excess of the specific limits as determined by
Congress in the preceding paragraph;
3. All other lands owned by the Government devoted to or suitable for agriculture;
and
4. All private lands devoted to or suitable for agriculture regardless of the
agricultural products raised or that can be raised thereon.
Q: What are the retention limits as provided for by law?
A: Except as otherwise provided in this Act, no person may own or retain, directly or
indirectly, any public or private agricultural land, the size of which shall vary according to
factors governing a viable family-size farm, such as commodity produced, terrain,
infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council
(PARC) created hereunder, but in no case shall retention by the landowner exceed five (5)
hectares. Three (3) hectares may be awarded to each child of the landowner, subject to
the following qualifications: (1) that he is at least fifteen (15) years of age; and (2) that he
is actually tilling the land or directly managing the farm: Provided, That landowners whose
lands have been covered by Presidential Decree No. 27 shall be allowed to keep the areas
originally retained by them thereunder: Provided, further, That original homestead
grantees or their direct compulsory heirs who still own the original homestead at the time
of the approval of this Act shall retain the same areas as long as they continue to cultivate
said homestead.
Q: What lands are exempted or excluded from the coverage of the Act?
A: Lands actually, directly and exclusively used and found to be necessary for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds,
and mangroves, national defense, school sites and campuses including experimental farm
stations operated by public or private schools for educational purposes, seeds and
seedlings research and pilot production centers, church sites and convents appurtenant
thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds
and cemeteries, penal colonies and penal farms actually worked by the inmates,
government and private research and quarantine centers and all lands with eighteen
percent (18%) slope and over, except those already developed shall be exempt from the
coverage of this Act.
Q: Who are those exempted to the five-hectare retention limit provided by this Act?
A: Provincial, city and municipal government units acquiring private agricultural lands by
expropriation or other modes of acquisition to be used for actual, direct and exclusive
public purposes, such as roads and bridges, public markets, school sites, resettlement
sites, local government facilities, public parks and barangay plazas or squares, consistent
with the approved local comprehensive land use plan.
Q: How do you determine just compensation?
A: The cost of acquisition of the land, the value of the standing crop, the current value of
like properties, its nature, actual use and income, the sworn valuation by the owner, the
tax declarations, the assessment made by government assessors, and seventy percent
(70%) of the zonal valuation of the Bureau of Internal Revenue (BIR), translated into a
basic formula by the DAR shall be considered, subject to the final decision of the proper
court. 
Additional factors: The social and economic benefits contributed by the farmers and the
farmworkers and by the Government to the property as well as the nonpayment of taxes
or loans secured from any government financing institution on the said land
Q: What will happen after the awarded land is given to the beneficiaries?
A. The rights and responsibilities of the beneficiaries shall commence from their receipt of
a duly registered emancipation patent or certificate of land ownership award and their
actual physical possession of the awarded land.
Q: What is the process of registration of the awarded land?
A. The Registry of Deeds shall register the title of the land in the name of the Republic of
the Philippines, after the Land Bank of the Philippines (LBP) has certified that the
necessary deposit in the name of the landowner constituting full payment in cash or in
bond with due notice to the landowner and the registration of the certificate of land
ownership award issued to the beneficiaries, and to cancel previous titles pertaining
thereto.
Q: What is a landless beneficiary?
A. Under this Act, a landless beneficiary is one who owns less than three (3) hectares of
agricultural land.
Q: Who are qualified beneficiaries?
A.The lands covered by the CARP shall be distributed as much as possible to landless
residents of the same barangay, or in the absence thereof, landless residents of the same
municipality in the following order of priority: 
(a) agricultural lessees and share tenants; 
(b) regular farmworkers; 
(c) seasonal farmworkers; 
(d) other farmworkers; 
(e) actual tillers or occupants of public lands; 
(f) collectives or cooperatives of the above beneficiaries; and 
(g) others directly working on the land.
PRE-EMPLOYMENT (Art. 12)
ART. 12. Statement of objectives. - It is the policy of the State:
a) To promote and maintain a state of full employment through improved manpower
training, allocation and utilization;  sensitive criteria in the formulation and implementation of policies and programs affecting
b) To protect every citizen desiring to work locally or overseas by securing for him the
best possible terms and conditions of employment; 
c) To facilitate a free choice of available employment by persons seeking work in
conformity with the national interest;
d) To facilitate and regulate the movement of workers in conformity with the national
interest;
e) To regulate the employment of aliens, including the establishment of a registration
and/or work permit system;
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers, locally
and overseas, to serve national development objectives;  democratic decision-making processes of the State and to be represented in institutions
g) To insure careful selection of Filipino workers for overseas employment in order to
protect the good name of the Philippines abroad.
Q: What is the declaration of policies under Migrant Workers and Overseas Filipino Act
of 1995?
A: RA 8042 sec. 2 s amended by RA10022
(a) In the pursuit of an independent foreign policy and while considering national
sovereignty, territorial integrity, national interest and the right to self-determination
paramount in its relations with other states, the State shall, at all times, uphold the dignity
of its citizens whether in country or overseas, in general, and Filipino migrant workers, in
particular, continuously monitor international conventions, adopt/be signatory to and
ratify those that guarantee protection to our migrant workers, and endeavor to enter into
bilateral agreements with countries hosting overseas Filipino workers
(b) 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. Towards this end, the State shall provide adequate and timely social, economic and
legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the
national economy through their foreign exchange remittances, the State does not promote
overseas employment as a means to sustain economic growth and achieve national
development. The existence of the overseas employment program rests solely on the
assurance that the dignity and fundamental human rights and freedoms of the Filipino
citizens shall not, at any time, be compromised or violated. The State, therefore, shall
continuously create local employment opportunities and promote the equitable
distribution of wealth and the benefits of development.
  (d) The State affirms the fundamental equality before the law of women and men and the
significant role of women in nation-building. Recognizing the contribution of overseas
migrant women workers and their particular vulnerabilities, the State shall apply gender
migrant workers and the composition of bodies tasked for the welfare of migrant workers.
  (e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall
not be denied to any person by reason of poverty. In this regard, it is imperative that an
effective mechanism be instituted to ensure that the rights and interest of distressed
overseas Filipinos, in general, and Filipino migrant workers, in particular, whether
regular/documented or irregular/undocumented, are adequately protected and
safeguarded.
  (f) The right of Filipino migrant workers and all overseas Filipinos to participate in the
relevant to overseas employment is recognized and guaranteed.
  (g) The State recognizes that the most effective tool for empowerment is the possession of
skills by migrant workers. The government shall provide them free and accessible skills
development and enhancement programs. Pursuant to this and as soon as practicable, the
government shall deploy and/or allow the deployment only of skilled Filipino workers.
  (h) he State recognizes non-governmental organizations, trade unions, workers
associations, stakeholders and their similar entities duly recognized as legitimate, are
partners of the State in the protection of Filipino migrant workers and in the promotion of
their welfare. The State shall cooperate with them in a spirit of trust and mutual respect.
The significant contribution of recruitment and manning agencies shall from part this
partnership.
  (I) Government fees and other administrative costs of recruitment, introduction,
placement and assistance to migrant workers shall be rendered free without prejudice to
the provision of Section 36 hereof.
  Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-
based by local service contractors and manning agencies employing them shall be
encouraged. Appropriate incentives may be extended to them.
Q: What is the policy on the Deployment of Migrant Workers
A:  RA 8042 sec. 4 as amended by RA 10022
The State shall allow the deployment of overseas Filipino workers only in countries where 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:
"(a) It has existing labor and social laws protecting the rights of workers, including migrant workers;
"(b) 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
"(c) It has concluded a bilateral agreement or arrangement with the government on the protection of
the rights of overseas Filipino Workers:
Provided, That the receiving country is taking positive, concrete measures to protect the rights of
migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b) and (c) hereof.
"In the absence of a clear showing that any of the aforementioned guarantees exists in the country of
destination of the migrant workers, no permit for deployment shall be issued by the Philippine
Overseas Employment Administration (POEA).
"The members of the POEA Governing Board who actually voted in favor of an order allowing the
deployment of migrant workers without any of the aforementioned guarantees shall suffer the
penalties of removal or dismissal from service with disqualification to hold any appointive public
office for five (5) years, Further, the government official or employee responsible for the issuance of
the permit or for allowing the deployment of migrant workers in violation of this section and in direct
contravention of an order by the POEA Governing Board prohibiting deployment shall be meted the
same penalties in this section.
"For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a
certification to the POEA, specifying therein the pertinent provisions of the receiving country's
labor/social law, or the convention/declaration/resolution, or the bilateral agreement/arrangement
which protect the rights of migrant workers.
"The State shall also allow the deployment of overseas Filipino workers 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.
"The State shall likewise allow the deployment of overseas Filipino workers 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."
Q: What is the policy on Termination or Ban on Deployment?
A: RA 8042 sec. 5 as ammended by RA 10022
Notwithstanding the provisions of Section 4 hereof, in pursuit of the national interest or
when public welfare so requires, the POEA Governing Board, after consultation with the
Department of Foreign Affairs, may, at any time, terminate or impose a ban on the
deployment of migrant workers.
RECRUITMENT and PLACEMENT of WORKERS (Art. 13)
Q: What are the laws governing recruitment and placement?
A: The following laws regulate the recruitment and placement activities for local and overseas
employment: 
(a) Book I, Labor Code of the Philippines; 
(b) Rules to Implement Book I of the Labor Code of the Philippines; (c) RA No. 8042 known
as the Migrant Workers and Overseas  Filipinos Act of 1995, as amended by RA No. 10022,
and their implementing rules;
(d) Revised Rules and Regulations Governing Recruitment and Placement and Local
Employment (D.O. No. 141-14), November 20, 2014;
(e) Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Landbased Overseas Filipino Worker of 2016;
(f) 2016 Revised POEA Rules and Regulations Governing the Recruitment and Employment
of Employment of Seafarers;
(g) Numerous Policy Instructions, Circulars and Department Orders issued by the DOLE
Secretary in the exercise of the  regulatory power under the Labor Code;
(h) 1987 Constitution;
(i) Supreme Court decisions on Recruitment and Placement Activities.
Q: What does Article 13(b) of the Labor Code provide?
A: Recruitment and placement. It 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.
 
Q:  What does Article 13(c) of the Labor Code provide?
A: Private fee-charging employment agency. It means any person or entity engaged in recruitment
and placement of workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
 
Q: What does Art. 13(d) of the Labor Code provide?
A: License. It means a document issued by the Department of Labor authorizing a person or entity to
operate a private employment agency.
Q: What does Art. 13(e) of the Labor Code provide?
A: Private recruitment entity. It means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the
workers or employers.
Q: What does Article 13(f) of the Labor Code provide?
A: Authority. It means a document issued by the Department of Labor authorizing a person or
association to engage in recruitment and placement activities as a private recruitment entity.
Q: What happened in the case of People vs. Panis in relation to the interpretation of Article  13(b)
of the Labor Code?
A: Four information were filed before CFI alleging that private respondent Serapio Abug, "without
first securing a license from the Ministry of Labor as a holder of authority to operate a fee-charging
employment agency, did then and there wilfully, unlawfully and criminally operate a private fee
charging employment agency by charging fees and expenses (from) and promising employment in
Saudi Arabia" to four separate individuals. Abug filed a motion to quash contending that he cannot
be charged for illegal recruitment because according to him, Article 13(b) of the Labor Code says
there would be illegal recruitment only "whenever two or more persons are in any manner promised
or offered any employment for a fee.”
In the instant case, the view of the private respondents is that to constitute recruitment and
placement, all the acts mentioned in this article should involve dealings with two or more persons as
an indispensable requirement. On the other hand, the petitioner argues that the requirement of two
or more persons is imposed only where the recruitment and placement consists of an offer or
promise of employment to such persons and always in consideration of a fee.
 
The Court ruled that neither interpretation is acceptable. We fail to see why the proviso should
speak only of an offer or promise of employment if the purpose was to apply the requirement of two
or more persons to all the acts mentioned in the basic rule. For its part, the petitioner does not
explain why dealings with two or more persons are needed where the recruitment and placement
consists of an offer or promise of employment but not when it is done through "canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers.
As we see it, the proviso was intended neither to impose a condition on the basic rule nor to provide
an exception thereto but merely to create a presumption. The presumption is that the individual or
entity is engaged in recruitment and placement whenever he or it is dealing with two or more
persons to whom, in consideration of a fee, an offer or promise of employment is made in the course
of the "canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers. "
 
The number of persons dealt with is not an essential ingredient of the act of recruitment and
placement of workers. Any of the acts mentioned in the basic rule in Article 13(b) win constitute
recruitment and placement even if only one prospective worker is involved. 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.
Q: What does DO No. 141-14 contemplate?
A: It provides for the Rules and Regulations Governing Private Recruitment and Placement   for Local
Employment pursuant to Articles 5, 13, 25, and 39 of the Labor Code of the Philippines as amended.
Q:   How does DO No. 141-14 define Private Employment Agency or Agency?
A: Private employment agency or agency refers to any person, partnership or corporation engaged in
the recruitment and placement of workers for local employment. It also refers to any individual,
partnership, corporation or entity licensed by the Department of Labor and Employment to engage
in the recruitment and placement of Kasambahay for local employment.
 
Q: How does DO No. 141-14 define  License?
A: License refers to a document issued by the Secretary through the Regional Director authorizing a
person, partnership or corporation to operate a private employment agency.
 
Q: How does DO No. 141-14 define “Authority to operate branch”?
A: Authority to Operate Branch refers to a document issued by the Secretary through the Regional
Director authorizing a private employment agency to establish and operate a branch office.
 
Q: How does DO No. 141-14 define “Authority to recruit”?
A: Authority to recruit refers to a document issued by the Secretary through the Regional Director
authorizing a person to conduct recruitment activities for local employment on behalf of a private
employment agency.
 
Q: How does DO No. 141-14 define Representative?
A: Representative refers to a person acting as an agent of a private employment agency registered
with the Regional Office and granted Authority to Recruit.
 
Q: How does DO No. 141-14 define “Domestic Seafarer”?
A: Domestic Seafarer refers to any person who is employed or engaged to work in any capacity on
board ship as defined herein.
 
Q: What is “ship” under DO No. 141-14?
A: Ship refers to any Philippine registered ship or vessel which navigates within the territorial
jurisdiction of the Philippines or closely adjacent to, sheltered areas where port regulations apply.
 
Q: What is “Public Employment Service Office or PESO” under DO No. 141-14?
A: Public Employment Service Office refers to a non-fee charging multi-employment service facility
or entity established, recognized or accredited pursuant to RA 8759 or the PESO Act of 1999 and its
implementing rules and regulations.
 
Q: How does DO 141-14 define “Recruit”?
A: Recruit refers to any Filipino individual promised, contracted, or enlisted for employment.

Q: Who is/are “Domestic Worker/Kasambahay” under DO. 141-14?
A: Domestic Worker or Kasambahay refers to any person engaged in domestic work within an
employment relationship, whether on a live in or live out arrangement, such as, but not limited to
general househelp, yaya, cook, gardener, or laundry person, but shall exclude service providers,
family drivers, children who are under foster family arrangement, or any person who performs
domestic work only occasionally or sporadically and not on occupational basis.
 
Q: What does “Recruitment Contract” mean in DO 141-14?
A: Recruitment Contract refers to the agreement entered into between a private employment
agency or its representative and a recruit stating the terms and conditions of the recruitment in a
language known and understood by the recruit.
 
Q: What is an “Employment Contract” as defined in DO No. 141-14?
A: Employment Contract refers to the individual written agreement between the employer and the
worker stating clearly the terms and conditions of employment in a language known and understood
by the worker.
Q: What about a “Service Contract” as defined in DO No. 141-14?
A: Service Contract refers to the agreement entered into between the employer and the private
employment agency stating clearly the terms and conditions of the service.
 
Q: What does “Service Fee” mean?
A: Service Fee refers to the amount charged by a private employment agency to a local employer as
payment for actual services rendered in relation to the recruitment and placement of workers.
 
Q: What about “Deployment Expenses” under DO No. 141-14?
A: Deployment Expenses refer to the expenses that are directly used for the transfer of the
Kasambahay from the place of origin to the place of work covering the cost of transportation, meals,
communication expense, and other incidental expenses. Advances or loans by the Kasambahay are
not included in the definition of deployment expenses.
 
Q: Who is an “employer” in DO No. 141-14?
A: Employer refers to any person, partnership, corporation or any entity engaging services of a
worker through the private employment agency, and who is a part to the employment contract with
the worker. It also refers to any person who engages and controls the services of a Kasambahay and
is a party to the employment contract.
 
Q: What does “Non-license or non-holder of authority” mean?
A: It refers to any person, partnership or corporation who has not been issued a license or authority
to recruit, or whose license or authority to recruit has been revoked or cancelled by the Regional
Director.
Q: How does the Migrant Workers and Filipino Act of 1995, as amended define Authority?
A: Authority refers to a document issued by the Secretary of Labor and Employment authorizing the
officers, personnel, agents or representative of a licensed recruitment/manning agency to conduct
recruitment and placement of activities in a place stated in the license or in a specified place.
Q: Who are Direct Hires under the Migrant Workers and Filipino Act of 1995, as amended?
A: They are workers directly hired by employers for overseas employment as authorized by the
Secretary of Labor and Employment and processed by the POEA, including:
1.       Those hired by international organizations
2.       Those hired by members of the diplomatic corps.
3.  Name hires or workers who are able to secure overseas employment opportunities
with an employer without the assistance or participation of any agency.
 
Q: What are the two types of Employment Contract under the Migrant Workers and Filipino Act of
1995, as amended?
A: 1.   For land-based workers hired by private recruitment/employment agencies –
an individual written agreement between the foreign principal/employer and the worker based on
the master employment contract approved by the Administration; and
              2.   For seafarers – written standard, POEA-approved employment contract stipulating a 
specific period of employment and formulated through tripartite consultation, individually adopted
and agreed upon by the principal/employer and the seafarer.
Q: What does Gender Sensitivity mean under the Migrant Workers and Filipino Act of 1995, as
amended?
A: Gender Sensitivity refers to the cognizance of the inequalities and inequities prevalent in society
between  men and women and a commitment to address issues with concern for the respective
interest of the sexes. 
Q: How does Migrant Workers and Filipino Act of 1995, as amended define “Head” or “Manage”? 
A: It refers to any of the following acts: (1) Control and supervise the operations of the
recruitment/manning agency or branch thereof; (2) Exercise the authority to fire employees and lay
down and execute management policies of the recruitment/manning agency or branch thereof.
Q: What does joint and several liability mean under the Migrant Workers and Filipino Act of 1995,
as amended?
A: Refers to the liability of the principal/the employer and the recruitment/manning agency, for any
and all claims arising out of the implementation of the employment contract involving Filipino
workers for overseas deployment. If the recruitment/manning agency is a juridical being the
corporate officers, directors and partners, as the case may be, shall themselves be jointly and
severally liable with the corporation or partnership for the aforesaid claims and damages.
Q: Who are Irregular/Undocumented Filipino migrant workers under the Migrant Workers and A: Any and all amounts charged by a private recruitment agency from a worker for its recruitment
Filipino Act of 1995, as amended? and placement services as prescribed by the Secretary of Labor and Employment.
A: (1) Those who acquired their passports through fraud or misrepresentation; (2) Those who
possess expired visas or permits to stay; (3) hoe who have no travel document whatsoever; (4) Those Q: Who is a Principal under the Migrant Workers and Filipino Act of 1995, as amended?
who have valid but inappropriate visas; (5) Those whose employment contracts were not processed A: An employer or foreign placement agency hiring or engaging Filipino workers for overseas
by the POEA or subsequently verified and registered on-site by the POLO, or if required by law or employment through a licensed private recruitment/manning agency 
regulation.  
Q: What is a Private Recruitment/Employment Agency under the Migrant Workers and Filipino Act
Q: How does the Migrant Workers and Filipino Act of 1995, as amended define License?  of 1995, as amended?
A: License refers to the document issued by the Secretary of Labor and Employment authorizing a A: Refers to any person, partnership or corporation duly licensed by the Secretary of Labor and
person partnership, or corporation to operate a private recruitment/manning agency. Employment to engage in the recruitment and placement of workers for overseas employment for a
fee which is charged, directly or indirectly, from workers who renewed their employment contracts
Q: What is Manning Agency under the Migrant Workers and Filipino Act of 1995, as amended? with the same principal. 
A: Manning Agency refers to any person, partnership or corporation duly licensed by the Secretary of
Labor and Employment to engage in the recruitment and placement of seafarers for ships plying Q: Who are Rehires under the Migrant Workers and Filipino Act of 1995, as amended?
international waters and for related maritime activities.  A: Land-based workers who renewed their employment contracts with the same principal

Q: Who is a Non-Licensee under the Migrant Workers and Filipino Act of 1995, as amended? Q: Who are Regular/Documented Filipino Migrant Workers under the Migrant Workers and
A: Any person, partnership, or corporation with no valid license to engage in recruitment and Filipino Act of 1995, as amended?
placement of overseas Filipino workers or whose license is revoked, cancelled, terminated, expired A: (1) Those who possess valid passports and appropriate visas or permits to stay and work in the
or otherwise delisted from the roll of licensed recruitment/manning agencies registered with POEA.  receiving country; and (2) Those whose contracts of employment have been processed by the POEA,
or subsequently verified and registered on-site by the POLO, if required by law or regulation.
Q: Who are Overseas Filipinos under the Migrant Workers and Filipino Act of 1995, as amended?
A: Those migrant workers, other Filipno nationals and their dependents abroad Q: Who is a Seafarer under the Migrant Workers and Filipino Act of 1995, as amended?
A: Any person who is employed or engaged in overseas employment in any capacity on board a ship
Q: Who is an Overseas Filipino in distress under the Migrant Workers and Filipino Act of 1995, as other than a government ship used for military or non commercial purposes. 
amended? They include fishermen, cruise ship personnel and those serving on mobile offshore and drilling units
A: An Overseas Filipino who has a medical, psycho-social or legal assistance problem requiring in the high seas.
treatment, hospitalization, counseling, legal representation as specified in Rule IX of these Rules or
any other kind of intervention with the authorities in the country where he or she is found.  Q: Who are Skilled Filipino Workers under the Migrant Workers and Filipino Act of 1995, as
amended?
Q: Who is an Overseas Filipino or Migrant Worker under the Migrant Workers and Filipino Act of A: They refer to those who have obtained an academic degree, qualification, or experience, or those
1995, as amended? who are in possession of an appropriate level of competence, training and certification, for the job
A: Any person who is to be engaged, is engaged, or has been engaged in a remunerated activity in a they are applying, as may be determined by the appropriate government agency. 
state of which he or she is not a citizen or on board a vessel navigating the foreign eas other than a
government ship used for military or non-commercial purposes, or on an installation located Q: Who are Underage Migrant Workers under the Migrant Workers and Filipino Act of 1995, as
offshore or on the high seas.  amended?
A: Those who are below 18 years or below the minimum age requirement for overseas employment
Q: Who is “a person to be engaged in a remunerated activity”?  as determined by the Secretary of Labor and Employment.
A:   An applicant worker who has been promised or assured employment overseas
Q: How does Authority and License differ under the Labor Code?
Q: What are Placement Fees as defined under the Migrant Workers and Filipino Act of 1995, as A: Both License and Authority are documents issued by the Department of Labor authorizing a
amended? person or entity or association, the difference lies in their purpose. License is an authority to operate
a private employment agency while Authority is an authority to engage in recruitment and
placement activities as a private recruitment agency.
 
Q: How does Authority and License differ under the Migrant Workers and Overseas Filipino Act of
1995, as amended by RA No. 10022?
A: Authority and License under the said law are both documents issued by the Department of Labor
and Employment.   Employment.
Authority authorizes the officers, personnel, agents or representatives of a licensed
recruitment/manning agency to conduct recruitment and placement activities in a place state in the
license or in a specified place.
License, on the other hand, authorizes a person, partnership or corporation to operate a private
recruitment/manning agency.
A licensed recruitment/manning agency is required to obtain an authority for its officers, personnel,
agents, or representatives to conduct recruitment and placement activities in a place stated in the
license or in a specified place and a license to operate a private recruitment/manning agency.
 
Q: What are the distinctions between private fee-charging employment agency and private
recruitment agency under the Labor Code?
A: Private fee-charging employment agency means any person or entity engaged in recruitment and
placement of workers for a fee which is charged directly or indirectly from the workers or employers
or both. The authority of this kind of employment agency to recruit and place workers is derived
from a document known as the license. Private fee-charging employment agency is engaged in
overseas recruitment.
Private recruitment entity means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly any fee from the
workers or employees. This type of employment agency’s authority to recruit and place workers is  
derived from a document known as the authority. Privat recruitment agency is engaged in the
recruitment and placement of workers locally or overseas.
 
Article 14 - EMPLOYMENT PROMOTION
Q: What are the powers and authority of the Secretary of Labor?
A:  A: General rule, no person or entity shall engage in the recruitment and placement of workers
(a) To organize and establish new employment offices in addition to existing employment offices
under the Department of Labor as the need arises;
(b) To organize and establish 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;
(c) To develop and organize a program that will facilitate, occupational, industrial and geographical
mobility of labor and provide assistance in the relocation of workers from one area to another; and
(d) To require any person, establishment, organization or institution to submit such employment
information as may be prescribed by the Secretary of Labor.
Article 15 - BUREAU OF EMPLOYMENT SERVICES
Q: Does the Bureau of Employment Services still exist?
A: No. E.O. No. 797n abolished the Bureau of Employment Services. It created the Bureau of Local
 
Q: What are the mandates and functions of the Bureau of Local Employment?
A: The Bureau shall:
0. Formulate policies, standards and procedures on productive manpower resources,
development, utilization and allocation;
a. Establish and administer a machinery for the effective allocation of manpower resources
for maximum employment and placement;
b. Develop and maintain a responsive vocational guidance and testing system in aid of
proper human resources allocation;
c. Regulate and supervise a private sector participation in the recruitment and placement of
workers locally under such rules and regulations as may be issued by the Secretary;
d. Establish and maintain a registration or work permit system to regulate employment of
aliens;
e. Develop and maintain a labor market information system in aid of proper manpower and
development planning;
f. Formulate employment programs designed to benefit disadvantaged groups and
communities and;
g. Perform other functions as may be provided by law.
Q: Which agency assumed the overseas functions of the  Bureau of Employment Services?
A: The Philippine Overseas Employment Administration assumed the overseas function for overseas
employment of the BES
ART. 16. - Private Recruitment
Q: Who are persons or entities engaged in the recruitment and placement of workers?
except the following:
0. Public employment offices;
a. (repealed)
b. POEA (E.O. 797);
c. Private recruitment offices;
d. Private employment agencies;
e. Shipping or manning agents or representatives; and
f. Such other persons or entities as may be authorized by the Secretary. 
 c. National Seamen Board
Q: Who are the public employment offices that can engage in recruitment and placement of d. Overseas Employment Development Board
workers? e. Population/ Family Planning Office
A: These public employment offices are the following:
0. Bureau of Local Employment (BLE); Q: The EO 797 abolished the existence of the Overseas Employment Development Board, what
a. Public Employment Service Office (PESO); and then was established to assumed the functions of those under its scope?
b. The Philippine Overseas Employment Agency (POEA). A: Section 4 of the EO 797 provided for the creation of Philippine Overseas Employment
Administration (POEA). It assumed the functions of the Overseas Employment Development Board,
Q: Enumerate those private sector who participate in the recruitment and placement activities. the National Seamen Board, and the overseas employment functions of the Bureau of Employment
A: Article 25 of the Labor Code authorized such activities and they are the following: Services. 
0. Private employment agency;
a. Filipino Service Contractor, Manning Agency, Principal, and Private Recruitment/ Q: What are powers and functions of the Philippine Overseas Employment Administration (POEA)?
Employment Agency: A: Section 3 of EO No. 247 provides the following powers and functions of the POEA
b. Principal, License Manning Agency: and 0. Regulate private sector participation in the recruitment and overseas placement of
c. Foreign Placement Agency of FPA, Foreign Service Contractor/ Staffing Agency, Licensed workers by setting up a licensing and registration system; 
Recruitment Agency and Principal. a. Formulate and implement, in coordination with appropriate entities concerned, when
necessary, a system for promoting and monitoring the overseas employment of Filipino
Art. 17 - Overseas Employment Development Board workers taking into consideration their welfare and domestic manpower requirements;
Q: What are the laws relevant to overseas employment? b. Protect the rights of Filipino workers for overseas employment to fair and equitable
A:  recruitment and employment practices to ensure their welfare;
0. The Labor Code; and c. Exercise original and exclusive jurisdiction to hear and decide all claims arising out of an
a. Migrant Workers and Overseas Filipinos Act of 1995 [R.A. No. 8042], as amended by R.A. employer-employee relationship or by virtue of any law or contract involving Filipino
No. 10022. workers for overseas employment including the disciplinary case; and all pre-employment
cases which are administrative in character involving or arising out of violation of
Q: What are the power and duty of the Overseas and Employment Development Board (OEDB)? requirement laws, rules and regulation including money claims arising therefrom, or
A:  According to Article 17 of the Labor Code, the following are the power and duty of the Overseas violation of the conditions for issuance of license or authority to recruit workers. All
and Employment Development Board (OEMB):  prohibited recruitment activities and practices which are penal in character as
1. To promote the overseas employment of Filipino workers thorough comprehensive enumerated and defined under and by virtue of existing laws, shall be prosecuted in
market promotion and development program;  regular courts in close coordination with the appropriate Departments and agencies
2. To secure the best possible terms and conditions of employment of Filipino contract concerned; 
workers on a government-to-government basis and to ensure compliance therewith;  d. Maintain a registry of skills for overseas placement;
3. To recruit and place workers for overseas employment on  government-to-government e. Recruit and place workers to service the requirements for trained and competent Filipino
arrangement and in such other sectors as policy may dictate; and workers by foreign governments and their instrumentalities and such other employers as
4. To act as secretariat for the Board of Trustees of the  Welfare and Training Fund for public interest may require;
Overseas Workers.  f. Promote the development of skills and careful selection of Filipino workers;
g. Undertake overseas market development activities for placement of Filipino workers;
Q: What are the agencies abolished when the EO 797  (Reorganizing the Ministry of Labor and h. Secure the best terms and conditions of employment of Filipino contract workers and
Employment, Creating Philippine Overseas Employment Administration, and For Other Purposes? ensure compliance therewith;
A: According to Section 10 of EO 797, the following agencies are abolished however, their personnel i. Promote and protect the well-being of Filipino workers overseas; 
will be transferred to the appropriate units of Department of Labor and Employment (DOLE): j. Develop and implement programs for the effective monitoring of returning contract
0. Bureau of Employment Services workers, promoting their re-training and re-employment or their smooth re-integration
a. Bureau of Apprenticeship into the mainstream of national economy in coordination with other government
b. Free Legal Assistance Office agencies;
 k. Institute a system for ensuring fair and speedy disposition of cases involving violation or
recruitment rules and regulations as well as violation of terms and conditions of overseas
employment;
l. Establish a system for speedy and efficient enforcement of decisions laid down through
the exercise of its adjudicatory function;
m. Establish and maintain close relationship and enter into joint projects with the
Department of Foreign Affairs, Philippine Tourism Authority, Manila International Airport
Authority, Department of Justice, Department of Budget and Management and other
relevant government entities, in the pursuit of its objectives. The Administration shall also
establish and maintain joint projects with private organizations, domestic or foreign, in the
furtherance of its objectives.
Q: Provide the limitation which the POEA can only engage in recruitment and placement of
overseas workers.
A: The POEA may only engage in recruitment and placement of overseas workers on a government-
to-government arrangement.
As provided in the Section 23, par. b.1, RA 8042 as amended by RA 10022, the Administration shall
deploy only to countries where the Philippines has conclude bilateral labor agreements or
arrangements: Provided, That such countries shall guarantee to protect the rights of Filipino migrant
workers; and Provided, further, That such countries shall observe and/or comply with the
international laws and standard for migrant workers.
Q: What are additional powers and functions of the POEA to secure and preserve the rights of
migrant workers?
A: 1. The Administration 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 as human
beings and provide the available mechanism to redress violation of their rights.
2. Be responsible for the implementation, in partnership with other law-enforcement agencies, of an
intensified program against illegal recruitment activities. 
Q: What cases can POEA exercise exclusive and original jurisdiction?
A: The POEA shall exercise original and exclusive jurisdiction to hear and decide:
0. All pre-employment/recruitment violation cases which are administrative in character,
involving or arising out of violations of Rules and Regulations relating to licensing and
registration, including refund of fees collected from the workers or violation of the
conditions for issuance of license or authority to recruit workers; and 
a. Disciplinary action cases and other special cases, which are administrative in character,
involving employers, principals, contracting partners and OFWs processed by the POEA.  Prescription Period
(Section 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022)
Q: What are the administrative aspect of recruitment violation cases:
A: The administrative aspect of recruitment violation cases are the following:
1. Those involving or arising out of violations of Rules and Regulations relating to licensing
and registration, including refund of fees collected from workers; or 
2. Those violation of the conditions for issuance of license or authority to recruit workers.
(Sec. 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and
Overseas Filipinos Act of 1995, as amended by RA No. 10022)
3. The disciplinary action cases and other special cases, which are administrative in
character, are those involving:
0. Employers;
a. Principals;
b. Contracting partners; and
c. OFWs processed by the POEA
(Sec. 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022)
Q: Where can you file a complaint on the cases where POEA has jurisdiction over?
A: Pre-employment/recruitment violation cases may be filed with the POEA Adjudication Office or at
any DOLE/POEA regional office of the place where the complaint applied or was recruited, at the
option of the complainant. The office where the complaint was first filed shall take cognizance of the
case. 
Disciplinary action cases and other special cases shall be filed with the POEA Adjudication Office.
(Sec. 7, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022)
Q: Who may file a complaint on violations of POEA Rules and Regulations and Labor Code and
other issuances?
A: Any aggrieved person may file a complaint in writing and under oath for violation of the Labor
Code and POEA Rules and Regulations and other issuances.
However, the Administration, on its own initiative, may conduct proceedings based on reports of
violations or any of the grounds for disciplinary actions provided in the POEA Rules and Regulations
and other issuances on overseas employment, subject to preliminary evaluation. 
(Sec. 8, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022)
The violation and disciplinary action cases shall be barred if not commenced or filed with the POEA
within three (3) years after such cause of action accrued. (Sec. 9, Rule X, Omnibus Rules and
Regulations Implementing The Migrant Workers and Overseas Filipinos Act of 1995, as amended by
RA No. 10022)

Q: What are the penalties that may be imposed by the POEA on erring private recruitment sector
and/or employers and/or workers?
A: For pre-employment/ recruitment violation cases, the Administrator, in the exercise of
adjudicatory power, may impose the penalty of reprimand, suspension, or cancellation or revocation
of license. Where the penalty of suspension is imposed, the Administrator shall, in appropriate cases,
allow the lifting of suspension of erring recruitment/manning agencies upon the payment of Fifty
Thousand Pesos (P50,000.00) for every month of suspension. 
For disciplinary action cases against employers, the Administrator may impose disqualification from
the overseas employment program.  Q: Does the Office of Emigrant Affairs in the Ministry of Labor and Employment still exist?
For disciplinary action cases against workers, the Administrator may likewise impose suspension or
disqualification.
(Sec. 10, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022)
Article 18 - Ban on Direct-Hiring
Q: Is the direct-hiring of Overseas Filipino Workers (OFWs) allowed?
A: As a general rule, direct-hiring of Overseas Filipino Workers is not allowed. Pursuant to Article 18
of the Labor Code, no employer may hire a Filipino worker for overseas employment except through
the Boards and entities authorized by the Secretary of Labor. The reason for the ban is that, a
Filipino worker hired directly by a foreign employer without government intervention, may not be
assured of the best possible terms and conditions of employment. As the Filipino worker may be
over-eager to find employment abroad, government intervention is necessary to protect him from
exploitation by foreign employers.  (PrimeMinister) shall designate the chairman and the vice-chairman of the Commission from among
Q: Who are the direct hires under the Omnibus Rules of R.A. 8042, as amended by R.A. 10022 
Direct Hires are workers directly hired by employers for overseas employment as authorized by the
Secretary of Labor and Employment and processed by the Philippine Overseas Employment Agency
(POEA), including: 
1. Those hired by international organizations
2. Those hired members of the diplomatic corps
3. Name hires or workers who are able to secure overseas employment opportunities with
an employer without the assistance of participation of any agency. [Labor Code, POEA
Rules] (Section 1(i), Rule II, Omnibus Rules and Regulations Implementing The Migrant
Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022)
Note: The direct hires are exceptions to the ban on direct-hiring under Article 18 of the Labor Code. 
Q: Who are exempted from the ban on direct-hiring under the Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers
of 2016?
A: (a) Members of the diplomatic corps
    (b) International organizations
    (c)Heads of state and government officials with the rank of at least deputy minister or
    (d) Other employers as may be allowed by the Secretary of Labor and Employment. 
Article 19- Office of Emigrant Affairs
A: No. Batas Pambansa Blg. 79 abolished the Office of Emigrant Affairs by creating the Commission
on Filipinos Overseas and For Other Purposes.
Q: What are the pertinent functions transferred to the Commission on Filipino Overseas?
A: The pertinent functions transferred to the Commission on Filipino Overseas include applicable
funds, records, property and equipment and the necessary personnel  that have been allotted as
assigned to the Office of Emigrant Affairs from the Ministry of Labor and Employment (now DOLE).
Q: What is the composition of the Commission on Filipino Overseas?
A: Section 1 of Batas Pambansa Blg. 79 provides that  a Commission on Filipinos Overseas, referred
to as the Commission, created under the Office of the President shall be composed of five (5)
members to be appointed by the President (Prime Minister) of the Philippines, one of whom shall be
the Minister of Foreign Affairs, as ex-officio member: Provided, That the President (Prime Minister)
may appoint other ministries as ex-officio members: Provided, further, That in the absence of any ex-
officio member, said member may designate his deputy to act in his stead. The President
its members.
Q:  What are the powers and functions of the Commission on Filipino Overseas?
A:  a. Provide advice and assistance to the President (Prime Minister) of the Philippines and the
Batasang Pambansa in the formulation of policies and measures affecting Filipinos overseas; 
b. Formulate, in coordination with agencies concerned, an integrated program for the promotion of
the welfare of Filipinos overseas for implementation by suitable existing agencies; 
c. Coordinate and monitor the implementation of such an integrated program; 
d. Initiate and directly undertake the implementation of special projects and programs, whenever
necessary, to promote the welfare of Filipinos overseas with respect to their interests and activities
in the Philippines; 
e. Serve as a forum for preserving and enhancing the social, economic and cultural ties of Filipinos
overseas with their motherland;  Employment Administration (POE). Petitioner was to be deployed on board the "MSV Seaspread"
f. Provide liaison services to Filipinos overseas with appropriate government and private agencies in
the transaction of business and similar ventures in the Philippines;  might be considered for deployment at some future date.
g. Promulgate rules and regulations to carry out the objectives of this Act;  Petitioner filed a complaint for illegal dismissal, damages, and attorney's fees against the
h. Call upon any agency of the Government, including government-owned or controlled
corporations, to render whatever assistance is needed in the pursuance of the objectives of this Act;
and  commencement of the employer-employee relationship. The perfection of the contract, (which in
i. Perform such other related functions as may be directed by the President (Prime Minister) or
assigned by law.
 Article 20- National Seamen Board
Q: Does the National Seamen Board still exist?
A: No. Executive Order 797abolished the National Seamen Board abolished the National Seamen
Board by creating the Philippine Overseas Employment Association that assumed the functions of
the Overseas Employment Development Board, the National Seamen Board and the overseas
employment functions of the Bureau of Employment Services.
Q: What are the other entities abolished by E.O No. 97?
A:  (1) Bureau of Employment Services
(2) Bureau of Apprenticeship
(3) Free Legal Assistance Office
(4) National Seamen Board
(5) Overseas Employment Development Board
(6) Population/ Family Planning Office
Q: What are the prevailing laws regarding Article 20(3B)?
A: Republic Act No. 8042  as amended by Republic Act No. 10022 repealed Article 30 (3B). Labor
Arbiters of the National Labor Relations Commissions have jurisdiction over claims (1) arising out of
an employer-employee relationship or (2) by virtue of any law or contract involving Filipino workers
for overseas deployment (3) including claims for actual, moral, exemplary and other forms of
damages.
The Supreme Court sustained the jurisdiction of NLRC despite the absence of employee-employer
relationship in Santiago v. CF Sharp Crew Management Inc., G.R No. 162419, July 10, 2007.
Facts: Paul V. Santiago had been working as a seafarer for Smith Bell Management, Inc. for about
five years. On 3 February 1998, petitioner signed a new contract of employment with respondent,
with the duration of nine months. The contract was approved by the Philippine Overseas
which was scheduled to leave the port of Manila Canada on February 13, 1998. On February 9, 1998,
petitioner was  told that he would not be leaving for Canada anymore, but he was reassured that he
respondent.
Ruling: The Supreme Court distinguished the perfection of the employment contract and the
this case coincided with the date of execution), occurred when the petitioner and respondent agreed
on the object and the cause, and terms and conditions therein. The commencement of the
employer-employee relationship, would have taken place had petitioner been actually deployed
from the point of hire. Even before the start of any employer-employee relationship,
contemporaneous with the perfection of the employment contract was the birth of certain rights
and obligations, the breach of which may give rise to a cause of action against erring party. Thus, if
the reverse had happened, that is the seafarer failed or refused to be deployed as agreed upon he
would be liable for damages.
Despite the absence of an employer-employee relationship between petitioner and respondent, the
Court rules the NLRC has jurisdiction over petitioner’s complaint. The jurisdiction of labor arbiters is
not limited to claims arising from employer-employee relationships. Section 10 of R.A. No. 8042
(Migrant Workers Act), provides that:
Sec. 10. Money Claims. – Notwithstanding any provision of law to the contrary, the Labor Arbiters of
tNational Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to
hear and decide, within ninety (90) calendar days after the filing of the complaint, the claims arising
out of an employer employee relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral, exemplary and other forms of
damages. x x x [Emphasis supplied]
Since the present petition involves the employment contract entered into by petitioner for overseas
employment, claims are cognizable by the labor arbiters of the NLRC.
Article 28- Capitalization
Q: Art. 28. Capitalization
A: All applicants for authority to hire or renewal of license to recruit are required to have such
substantial capitalization as determined by the Secretary of Labor.
Q: Who may participate?
A: Any Filipino citizen acting as a sole proprietor or a partnership, or a corporation.
Q: Required Capitalization?
A: At least 75% of the authorized and voting capital stock of which is owned and controlled by
Filipino citizens, may engage in the business of recruitment and placement of Filipino workers.
SOLE PROPRIETOR AND PARTNERSHIP SHALL HAVE 5 MILLION PESOS MINIMUM CAPITALIZATION IN
CASE OF CORPORATION A MINIMUM PAID UP CAPITAL OF 5 MILLION PESOS
Q: Requirement on increasing of capitalization or paid-up capital
A: Those with existing licenses shall, within 4 years from effectivity can increase their capitalization
or paid up capital  to 5 million pesos at the rate of 750,000.00 every year.
Q: Prohibition on non-Filipino Citizen to head/manage a licensed agency
A: Section 143 I(K), Rule 3, Part VI, of the Revised POEA Rules and Regulations Governing the
Recruitment and Employment of Land based Overseas Filipino Worker of 2016
Allowing a non-Filipino citizen to head or manage, directly or indirectly, a licensed recruitment
agency. For this purpose, “heading or managing” a licensed recruitment agency shall refer to:
1. controlling and supervising the operations of the licensed recruitment agency or any
branch thereof; or
2. exercising the authority to hire or fire employees and to lay down and execute
management policies of the licensed recruitment agency or branch thereof.
Penalty: Cancellation of License
Section 123 A (8) of the Revised POEA Rules and Regulations Governing the Recruitment and
Employment of Seafarers
8. Allowing a non-Filipino citizen to head or manage a licensed manning agency.
Penalty: Cancellation of License
Qualification for local recruitment and placement
 A:  The applicant for a license to operate a private employment agency must possess the following:
a.) Filipino citizens for single proprietorship and 75% of the authorized capital stock is
owned and controlled by Filipino citizens for partnership and corporation.
b.) Minimum net worth of 1million in case of single proprietorship and a minimum paid up
capital of 1million in case of partnership and corporation; and
c.) Not otherwise disqualified by law or other government rules and regulations to engage
in the business of recruitment and placement of workers for local employment.
2002 BAR Q: Is a corporation, seventy percent (70%) of the authorized and voting capital of which
is owned and controlled by Filipino citizens, allowed to engage in the recruitment and placement
of workers, locally or overseas? Explain briefly.
A: No. A corporation, seventy percent (70%) of the authorized and voting capital stock of which is
owned and controlled by Filipino citizens cannot be permitted to participate in the recruitment and
placement of workers, locally or overseas, because Art 27 of the Labor Code requires at least seventy
five percent.
Article 29. Non-transferability of license or authority
Q: How much is the required amount of bank deposit for proof of financial capacity in the
application for license for overseas recruitment and placement of landbased and seafarer overseas
filipino workers?
A: At least Five Million Pesos (P5,000,000) (Section 4, Rule II, Part II, Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workerd of
2016)
Q: How much is the filing fee fee to be paid for the application of license and is it refundable?
A: The required payment is a non-refundable filing fee of Twenty Five Thousand Pesos (Php25,000).
(Section 5, Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
Employment of Landbased Overseas Filipino Workers of 2016)
Q: What is the purpose of an escrow deposit?
A: It shall answer for all valid and legal claims arising from contracts of employment and violations of
the conditions for the grant and use of the license, including fines imposed by the Administration.
And shall likewise guarantee compliance with prescribed recruitment procedures, rules and
regulations, appropriate terms and conditions of employment and relevant issuances of DOLE.
(Section 9, Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
Employment of Landbased Overseas Filipino Workers of 2016)
Q: How long is the validity of a provisional license?
A: It shall be valid within a non-extendible period of two (2) years from date of issuance. (Section II,
Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Land based Overseas Filipino Workers of 2016)
Q: When can you apply for a renewal of license for local recruitment and placement?
A: It must be filed not earlier than sixty (60) days but not later than thirty (30) days before its
expiration. (Section 13, Revised Rules and Regulations Governing Recruitment and Placement for
Local Employment [Department Order No. 141-14 Series of 2014] issued on November 20, 2014
1998 Bar Question: A recruitment and placement agency declared voluntary bankruptcy. Among
its assets is its license to engage in business. Is the license of the bankrupt agency an asset which
can be sold in public auction by the liquidator?
A: No. The license is personal to the business. As stated in Article 29, no license shall be transferred,
conveyed or assigned to any other person or entity. Any transfer of ownership must apply for a new
license.
Article 30. Registration fees
Q: Art. 30. Registration fees
A: The Secretary of Labor shall promulgate a schedule of fees for the registration of all applicants for
license or authority.
Article 31. Bonds
Q: Art. 31. Bonds
A: All applicants for license or authority shall post such cash and surety bonds as determined by the
Secretary of Labor to guarantee compliance with prescribed recruitment procedures, rules and
regulations, and terms and conditions of employment as may be appropriate.
Q: Maintenance of Escrow Deposit
A: A licensed recruitment agency shall maintain at all times its escrow deposit in the minimum
amount of One Million Pesos (PhP1,000,000.00). In case the licensed recruitment agency is required
an additional escrow pursuant to Section 15, it shall maintain the escrow deposit of One Million
Pesos (PhP1,000,000.00) plus the additional escrow.
Q: What is the purpose of bonds and escrow?
A: The escrow deposit shall answer for all valid and legal claims arising from contracts of
employment and violations of the conditions for the grant and use of the license, including fines
imposed by the Administration. The escrow shall likewise guarantee compliance with prescribed
recruitment procedures, rules and regulations, appropriate terms and conditions of employment,
and relevant issuances of the DOLE. The escrow deposit shall not be sourced from the capitalization
requirement.
Q: What is the effect of escrow deposit as garnished?
A:    1.) In case the escrow deposit has been garnished, the licensed recruitment agency shall
replenish the escrow deposit within fifteen (15) days from receipt of the Notice to Replenish Escrow
Deposit. Failure to comply with such notice will result in the suspension of the license of the
recruitment agency. Within the same fifteen (15) day period, the licensed recruitment agency may
explain why it should not be suspended for such failure to comply. The Administration shall ensure
compliance with the increased escrow deposit as provided in this Rule.
  2.) In case the escrow deposit has been garnished, the Administration shall serve the
licensed manning agency a Notice to Replenish its Escrow Deposit within fifteen (15) days from
receipt thereof. Failure to comply with such notice will result in the suspension of the license of the
manning agency. Within the same fifteen (15) day period, the licensed manning agency shall explain
why it should not be suspended for such failure to comply.
Q: Release of Deposit in Escrow
A:    1.) The deposit in escrow of a licensed recruitment agency that voluntarily surrenders its
license or has not renewed its license shall be released upon submission of the following:
a. Copy of the duly executed/signed escrow agreement;
b. Bank certification on the status of escrow deposit;
c. Certificate of No Pending Case from the NLRC;
d. Clearance from the Adjudication Office;
e. Notarized Board Resolution/Partnership Resolution duly received by the SEC on the
decision to withdraw escrow deposit, indicating the name of the person to process and
receive the check representing the escrow deposit;
f. Surety bond equivalent to the amount of the escrow deposit valid for four (4) years from
expiration of the license, if applicable.
2.) The deposit in escrow of a licensed manning agency that voluntarily surrenders its license or has
not renewed its license shall be released upon submission of the following:
a. Copy of the duly executed/signed escrow agreement;
b. Bank certification of the status of escrow deposit;
c. Certificate of No Pending Case from the NLRC;
d. Clearance from the POEA Adjudication Office;
e. Decision to withdraw the escrow deposit through written notice of the Single Proprietor
duly received by the DTI or notarized Partnership or Board Resolution duly received by the
SEC, indicating the name of the person to process and receive the check representing the
escrow deposit;
f. Surety bond equivalent to the amount of the escrow deposit valid for four (4) years from
expiration of the license, if applicable.
Q: What is the purpose of cash and surety bond as distinguished from appeal bond?
A: The Supreme Court explained it in this manner:
The POEA Rules are clear. A reading thereof readily shows that in addition to the cash and surety
bonds and the escrow money, an appeal bond in an amount equivalent to the monetary award is
required to perfect an appeal from a decision of the POEA. Obviously, the appeal bond is intended to
further insure the payment of the monetary award in favor of the employee if it is eventually
affirmed on appeal to the NLRC.
It is true that the cash and surety bonds and the money placed in escrow are supposed to guarantee
the payment of all valid and legal claims against the employer, but these claims are not limited to
monetary awards to employees whose contracts of employment have been violated. The POEA can
go against these bonds also for violations by the recruiter of the conditions of its license, the
provisions of the Labor Code and its implementing rules, E.O. 247 (reorganizing POEA) and the
POEA Rules, as well as the settlement of other liabilities the recruiter may incur.
As for the escrow agreement, it was presumably intended to provide for a standing fund, as it were,
to be used only as a last resort and not to be reduced with the enforcement against it of every claim
of recruited workers that may be adjudged against the employer. This amount may not even be
enough to cover such claims and, even if it could initially, may eventually be exhausted after
satisfying other subsequent claims.
Q: Posting of bonds and payment of license fee
A: Upon approval of application, the applicant shall pay a license fee of P15,000.00. It shall also post
a cash bond in the amount of P50,000.00 and surety bond in the sum of P100,000.00.
Q: What is the purpose of the bond?
A: The bond shall answer for all valid and legal claims arising from the use of license. It shall likewise
guarantee compliance with the provisions of the Labor Code, its implementing riles and relevant
issuances of the Department on recruitment and placement.
Article 32. Fees to be paid by workers
Q: Fees to be paid by workers
A: Any person applying with a private fee-charging employment agency for employment assistance
shall not be charged any fee until he has obtained employment through its efforts or has actually
commenced employment. Such fee shall be always covered with the appropriate receipt clearly
showing the amount paid. The Secretary of Labor shall promulgate a schedule of allowable fees.
(Article 32 of the Labor Code)
Q: Fees, and Costs Chargeable to the Landbased Overseas Filipino Workers
A: The Overseas Filipino Worker shall pay the following fees and costs:
a. Documentation costs:
1. Passport;
2. NBI/Police/Barangay Clearance;
3. NSO authenticated birth certificate;
4. Transcript of Records and diploma issued by the school, certified by the CHED and
authenticated by the DFA;
5. Professional license issued by the PRC, authenticated by the DFA;
6. Certificate of Competency issued by TESDA or other competent certifying body for the
job applied for; and
7. DOH prescribed medical/health examination, based on the host country medical
protocol.
b. Membership with Philhealth, Pag-Ibig and the Social Security System.
(Section 50, Rule V, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
Employment of Landbased Overseas Filipino Workers of 2016)
Q: Placement fees and Exception
A: A placement fee may be charged against the Overseas Filipino Worker equivalent to one (1)
month basic salary specified in the POEA approved contract, except for the following:
a. Domestic workers; and
b. Workers to be deployed to countries where the prevailing system, either by law, policy
or practice do not allow, directly or indirectly, the charging and collection of
recruitment/placement fee.
The worker shall pay the placement fee to the licensed recruitment agency only after signing the
POEAapproved contract. The agency must issue a BIR-registered receipt stating the date of payment
and the exact amount paid. (Section 51, Rule V, Part II, Revised POEA Rules and Regulations
Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of 2016)
Q: Payment Insurance Premium
A: The licensed recruitment agency shall be responsible for the payment of the premium for the
compulsory insurance coverage under Section 37- A of RA 8042, as amended. (Section 52, Rule V,
Part II, Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Landbased Overseas Filipino Workers of 2016)
Q: Costs and Fees Chargeable Against the Principal/Employer
A: The costs of recruitment and placement shall be the responsibility of principal/employer, which
cover payment for the following:
a. Visa, including the stamping fee;
b. Work permit and residence permit;
c. Round trip airfare;
d. Transportation from the airport to the jobsite;
e. POEA processing fee;
f. OWWA membership fee; and
g. Additional trade test/assessment, if required by the principal/employer.
(Section 53, Rule V, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
Employment of Landbased Overseas Filipino Workers of 2016)
Q:  Prohibition Against Charging of Other Fees
A: No other charges in whatever amount, form, manner or purpose shall be charged against the
Overseas Filipino Worker, except those specified in this Rule. (Section 54, Rule V, Part II, Revised
POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Overseas
Filipino Workers of 2016)
Q: Service Fees
A: Licensed recruitment agencies shall charge principals/employers service fees commensurate to
the fair market value of their services. (Section 55, Rule V, Part II, Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of
2016)
Q: Fees Chargeable to Principal/ Employer of a Seafarer OWF
A: a.)Manning Fees
          -  Processing Fees
However, in case of seafarer’s failure or unjustified refusal to join the ship after all processing fees
have been incurred by the principal/ employer, the said fees shall be refunded by the seafarer within
30days from demand.
Q: Cost Chargeable to the Seafarer
A: Documentation cost of all statutory requirements such as, but not limited to passport, seafarer’s
identification and record book (SIRB), NBI/ police/ barangay clearance, Seafarer’s Registration
Certificate (SRC) and birth certificate. (Section 50, Rule V, Part II, Revised POEA Rules and Regulations
Governing the Recruitment and Employment of Seafarers)
Q: Prohibition on charging and collecting of other fees
A: No other charges in whatever form, manner or purpose, shall be imposed on and be paid by the
seafarer, unless otherwise provided by law. (Section 52, Rule V, Part II, Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Seafarers)
Q: Exemption from travel tax documentary stamp and airways fee
A: All laws contrary notwithstanding, the migrant workers shall be exempt from the payment of
travel tax and airport-fee upon proper showing of proof entitlement by the POEA. (Section 35,
Republic Act 8042, as amended by RA 10022)
Q: Non-increase of fees; abolition of repatriation bond
A: Upon approval of this act, all fees being charged by any government office on migrant workers
shall remain at their present levels and the repartition bond shall be abolished. (Section 36, RA 8042)
Q: Government fees, administrative costs and taxes
A: All fees for services being charged by any government agency on migrant workers prevailing at the
time of the effectivity of this Rule shall not be increased. All other services rendered by the DOLE and
other government agencies in connection with the recruitment and placement of and assistance to
migrant workers shall be rendered free. The administrative cost thereof shall not be borne by the
worker.
The migrant worker shall be exempt from the payment of travel tax and airport fee upon proper
showing of the Overseas Employment Certificate (OEC) issued by the POEA. The remittances of all
OFWs, upon showing of the OEC or valid OWWA Membership Certificate by the OFW beneficiary or
recipient, shall be exempt from the payment of documentary stamp tax (DST) as imposed under
Section 181 of the National Internal Revenue Code, as amended.
In addition to the original copy, a duplicate copy or a certified true copy of the valid proof of
entitlement referred to above shall be secured by the OFW from the POEA or OWWA, which shall be
held and used by his/her beneficiary in the availment of the DST exemption.
In case of OFWs whose remittances are sent through the banking system, credited to beneficiaries or
recipient’s account in the Philippines and withdrawn through an automatic teller machine (ATM), it
shall be the responsibility of the OFW to show the valid proof of entitlement when making
arrangement for his/her remittance transfers.
A proof of entitlement that is no longer valid shall not entitle an OFW to DST payment exemption.
The Bureau of Internal Revenue (BIR), under the Department of Finance, may promulgate revenue
regulations deemed necessary and appropriate for the effective implementation of the exemption of
OFWs from DST and travel tax. (Section 4, Rule XVII, Omnibus Rule and Regulations Implementing
the Migrant Workers and Overseas Filipinos Act of 1995, as amended by RA No. 10022)
Q: Effect of charging o accepting excessive fees under RA No. 8042 as amended
A: It is illegal recruitment to charge or accept directly or indirectly any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment.
Q: Fees and Charges for Local recruitment and employees
Answer: No fees whatsoever shall be collected neither deducted from salaries or wages of the
workers. An agency may charge the following:
a.) Service Fee
b.) Transportation Expenses
Q: Insurance of official receipt
A: All payments or fees made to or collected by an agency shall be evidenced by an official receipt
indicating the amount paid and the purpose of such payment. (Section 36, Revised Rules and
Regulations Governing Recruitment and Placement for Local Employment)
Q: Replacement of workers without cost
A: An employer shall be entitled to a replacement of a worker without additional cost or a refund
of 75% of the service fee and transportation expenses subject to the following conditions:
a. If the worker is certified by a competent/government physician to be suffering from a medical
or mental illness within one (1) month from the first day of work rendering him incapable of
discharging the minimum requirements of the job; or
b. If the worker abandons the job, voluntarily resigns, commits theft or any other acts prejudicial
to the employer or his family within three (3) months from the first day of his work.
If the request for a preplacement is beyond the abovementioned periods, the employer shall pay
an additional service fee as agreed by both parties. (Section 37, Revised Rules and Regulations
Governing Recruitment and Placement for Local Employment)
Q: Refund of service fee
A: The employer is entitled to a refund of seventy five (75%) percent of the service fee if the
agency failed to provide a replacement of worker based on any grounds enumerated in the
preceding section after the lapse of one (1) month from receipt of the request unless the parties
agreed on a longer period. (Section 38, Revised Rules and Regulations Governing Recruitment and
Placement for Local Employment)
Q: Forfeiture or rights
A: The employer is deemed to have forfeited his right for a replacement of the worker without
cost or a refund of the service fee, if he failed to avail of the same within thirty (30) days after the
lapse of one (1) month or three (3) months as the case may be, as provided in Section 37 unless
otherwise agreed by the parties. (Section 39, Revised Rules and Regulations Governing
Recruitment and Placement for Local Employment)
Q: Effect of charging or accepting excessive fees under the Labor Code
A: Under Article 34 (a) of the Labor Code, ) it is prohibited practice 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.
This act is illegal recruitment when committed by non-licensees or non-holders of authority under
Article 38(a) in relation to Article 34 and punishable under Article 39(c) of the Labor Code.
Section 42(a) Revised Rules and Regulations Governing Recruitment and Placement for Local
Employment, also declared it unlawful act, committed by any person whether or not a holder of a
license or authority, to charge or accept directly or indirectly any amount or to make a worker pay
the agency or its representatives any amount greater than that actually loaned or advanced to
him.

Article 33. Reports on employment status

Q: Reports on employment status

A: Whenever the public interest requires, the Secretary of Labor may direct all persons or entities
within the coverage of 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. (Section 33 of the Labor Code)

Q: Effect of failure to submit report

A: It is illegal recruitment under Section 6(h) of RA No. 8042, as amended by RA No. 10022 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.
However, under Section 34(h) of the Labor Code, it is a prohibited practice 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. This act will only constitute illegal recruitment for local employment when it is
committed by non-licensees or non-holders of authority under Article 38(a) in relation to Article 34
and punishable under Article 39(c) of the Labor Code.

Article 34. Prohibited Practices

  Illegal Recruitment under RA 10022 Prohibited Practice under article 34 of
Labor code

Applicability Overseas Recruitment Labor Recruitment

Unlawful Acts To charge or accept directly or
indirectly , any amount greater
than that specified in the schedule
ad allowable fees prescribed by
secretary of labor, 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.
 
C. . To give any false notice,
testimony, information or
document or commit any act of
misrepresentation for purpose of
securing a license or authority
under the labor code, or for the
purpose of documenting hired
poea, which include  the act of
reprocessing  workers  through a
job order that pertains to non-
existent  work, work different from
the actual overseas work or work
with different employer whether
registered or not with POEA
 
D. to induce or attempt to induce a.
Worker already employer  to quit
his employment in order to offer  another  unless  the transfer is
him another  unless  the transfer is
designed to liberate a worker from
oppressive terms and conditions of
employment
 
E. To influence  or attempt to
influence any person to entity not
to employ any worker who has  not
applied for employment through
his agency or who has formed,
joined or supported  or has
To charge or accept directly or Committed by By any person, whether a not Non-licensee, non holder of
indirectly , any amount greater than whom licensee, non holder of authority, authority(art 38. Labor code) or
that specified in the schedule ad licensee or holder authority, sec.6 licensee or holder of authority ( art. 34
allowable fees prescribed by secretary RA 10022 of labor code)
of labor, or to make a worker pay any
amount greater than that actually
received by him as a loan or advance.
  When it is It is illegal recruitment, committee ✓When committed by non licensee or
B. To furnish or publish any false notice considered as by any person , whether a license  non holder of authority
or information or document in relation illegal or holder of authority( sec 6 ra +++Illegal recruitment
to recruitment or employment. recruitmentn 10022) ✓when commited by license authority 
  or holder authority
C. . To give any false notice, testimony, +++ It is not illegal hut a  plain
information or document or commit prohibited practices declared unlawful
any act of misrepresentation for by art. 34 punishable under article 294
purpose of securing a license or
authority under this code.
 
 
 
 
 
 
 
 
 
 
 
D. to induce or attempt to induce a.
Worker already employer  to quit his
employment in order to offer  him
designed to liberate a worker from
oppressive terms and conditions of
employment.
 
E. To influence  or attempt to influence
any person to entity
not to employ any worker who has  not
applied for employment through his
agency or who has formed, joined or
supported  or has contracted  or is
supported by any union  or workers
Penalty ✓ simple illegal recruitment
+++Imprisonment of not less than
12yrs 1day but not more than 20
years.
Fine 1million but not more 2
million pesos
✓ as economic sabotage
+++Life imprisonment and fine not
less than 2 million and not more
than 5 million
 
✓ when committed by non licensee Addition to If offender is an alien, he shall in ✓when committed  by non licensee
,non holder of authority. penalties addition to the penalties be +++ If such is an alien, shall be deported
+++ Imprisonment of jot less than 4yrs deported without further without further procedures.
and not more than 8 years. proceedings , in every case, ✓ when committed by licensee
Fine of 20,000- 100,000 pesos plus if  conviction shall cause and carry +++ If such officer is an alien, he shall
punishable under article 34 fine of 1000 automatic revocation of license or be deported without further
– 10,000 and imprisonment of 3month- registration of recruitment proceedings.
3 years /manning agency, lending
✓ when committed by licensee, holder institution, training school or
with authority medical clinics.
+++Imprisonment of 2 yrs-5yrs and fine
of 10,000 – 50,000
If punishable under art 34, additonal
fine of 1,000-10,000 and 3months to 3
yrs imprisonment.
Jurisdiction Rtc ✓ based on penalty under art.39
+++ Rtc
✓ based on penalty under art 39 and
295
+++ Municipal trial court
 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
Q1. Who has Jurisdiction to suspend or cancel licenses or authority to recruit employees for
overseas employment?
ANSWER: The Secretary of Labor (Article 35) and POEA (Section 1, Rule II, Book VI of the New Rules
on Overseas Employment) CONCURRENTLY
Jurisprudence:
Under Article 35 of the Labor Code, the Secretary of Labor and Employment (Trans Action Overseas
Corporation v. The Honorable Secretary of Labor, G.R. No. 109583, September 5, 1997)
Pursuant to the rule-making power granted to the Secretary of Labor and Employment (Secretary),
the Secretary gave the POEA, (Section 1, Rule II, Book VI of the New Rules on Overseas Employment)
on its own initiative or upon filing of a complaint or report or upon request for investigation by any
aggrieved person, x x (authority to) conduct the necessary proceedings for the suspension or
cancellation of the license or authority of any agency or entity for certain offenses x x x (Eastern
Assurance and Surety Corp. VS. Secretary of Labor 181 SCRA 110 (1990)
2012 Bar Examination
1. Concurrent Jurisdiction of DOLE/POEA under Article 35
2012 Bar Q. NO.19: The power to suspend or cancel a license to recruit employees is vested on: a.
The Secretary of Labor and Employment, B. The POEA, c. A and B concurrently, d. Neither of them.
ANSWER: c. A and B concurrently (Eastern Assurance and Surety Corp. VS. Secretary of Labor 181
SCRA 110 (1990)
2. Rules on recruitment violations and disciplinary action cases under POEA Rules of Landbased
and Seafarer Overseas Filipino Worker (Revised POEA Rules and Regulations Governing the
Recruitment and Employment of Landbased Overseas Filipino Workers/Seafarers of 2016)
Q2.1 What is the Jurisdiction of the POEA on administrative sanctions involving licensed manning
agency and private recruitment/ employment agency?
ANSWER: The Administration (POEA) shall exercise original and exclusive jurisdiction to hear and
decide:
1.All cases which are administrative in character, involving or arising out of violations of recruitment
rules and regulations, including refund of fees collected from Overseas Filipino Workers
(OFWs/Seafarers) and (any) violation of the condition for the issuance of the license to recruit OFWs.
2.Disciplinary action cases against OFWs and principals/employers that are administrative in
character, excluding money claims.
Q2.2 Is there a need for mandatory conciliation of complaints before the same is filed with the POEA
or Philippine Overseas Labor & Office (POLO)?
ANSWER: YES.  agreement? (Landbased and Seafarers)
a)For Administrative complaint involving seafarer, licensed manning agency, or principal/employer
relating to overseas employment): The Administration or the POLO shall mandatorily conciliate any
complaint. Should there be money claims, the same shall be conciliated with the Single-Entry
Approach (SEnA).
Q2.3 Effect of failure to settle?
ANSWER: It shall cause the endorsement of the complaint to the appropriate office
Q2.4 What are the cases not subject to SEnA?
a)Cases referred by the POLO or any other government agency
b)Cases initiated by the Administration
c)Cases involving acts of misrepresentation for the purpose of securing a license
Q2.5 When to Set Conciliation Proceedings?
ANSWER: Within 5 days upon receipt of the complaint, the Administration shall notify the
respondent and schedule a conference between the parties to discuss the possibility of arriving at an
amicable settlement
Q.6 What is the effect when an amicable settlement is reached?
ANSWER: The Administration shall approve the same and the settlement shall be final and binding
upon the parties
Q2.7 What is the effect when efforts for amicable settlement fail?
ANSWER: The conciliation proceedings shall be terminated and the complaint shall be referred to
the appropriate office immediately
Q2.8. Effect of UNJUSTIFIED FAILURE to abide with the settlement?
ANSWER:
Unjustified failure by the:
a)Licensed recruitment agencies, principal/employer, OFW – suspension from participation in the
overseas employment program of the entity/person, until compliance with or satisfaction of the
approved settlement
b)Licensed manning agency, principal/employer, seafarer – Issuance of a Writ of Execution for the
Enforcement of the settlement agreement
- the Administration, upon motion of the aggrieved party or on its own initiative, shall issue a Writ of
Execution for the Enforcement of the settlement agreement
Q2.9 What is the effect when any of the parties to the settlement fail to comply with the settlement
ANSWER: Issuance of a Writ of Execution for the Enforcement of the settlement agreement
- The Administration, upon motion of the aggrieved party or on its own initiative, shall issue a Writ of
Execution for the Enforcement of the settlement agreement
Q2.10 What is the nature of conciliation proceedings?
ANSWER: Confidential in nature. No evidence or testimony introduced therein shall be admissible
as evidence in any other proceedings.
3. RECRUITMENT VIOLATION CASES, CLASSIFICATION OF OFFENSES AND SCHEDULE OF PENALTIES
UNDER POEA RULES FOR LANDBASED OVERSEAS FILIPINO WORKERS  months
((Revised POEA Rules and Regulations Governing the Recruitment and Employment of Landbased
Overseas Filipino Workers/Seafarers of 2016))
(For 3.1 – 6.9, please refer to page 183 onwards for the schedule of penalties table)
3.1 Grounds for Imposition of Administrative Sanctions Against a Licensed Recruitment Agency
Commission of offenses by a Licensed Recruitment Agency:
Classification of Offenses:
I.SERIOUS OFFENSE – punishable by cancellation of license
II.LESS SERIOUS OFFENSE –punishable by the penalty of suspension to cancellation of license
III.LIGHT OFFENSES – punishable by reprimand to suspension of license
3.2 Grounds for Disciplinary Action Against Principals/Employers and Penalties
Commission of offenses by principals/employers:
SERIOUS OFFENSES – 
Permanent Disqualification and delisting from the roster of accredited principals/employers
LESS SERIOUS OFFENSES
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1
Year)
b)2nd Offense – Permanent Disqualification and delisting from the roster of accredited
principals/employers
3.3 Disciplinary Action Against Landbased Overseas Filipino Workers, and Penalties
Commission of offenses by an OFW:
I. SERIOUS OFFENSES –  c)3rd Offense — Suspension of License (One year and One day to Two years)
A. Pre-Employment Offenses and Offenses during Employment
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1
Year)
b)2nd Offense – Suspension from participation in the overseas employment program (1 Year and one
day – 2 Years)
c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
II. LESS SERIOUS OFFENSES - 
a)1st Offense – Suspension from participation in the overseas employment program (2 months – 6
b)2nd Offense – Suspension from participation in the overseas employment program (6 months and
1 day – 1 year)
c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
4. Classification of Offenses and Schedule of Penalties under POEA Rules for Seafarer OFWs
Commission of offenses by Licensed Manning Agencies:
4.1 Classification of offenses and penalties
I. SERIOUS OFFENSES – Generally, cancellation/revocation of license
Except:
1. Attempting to deploy or deploying a seafarer who is below 18 years old or below the minimum
age requirement for overseas employment. 
Penalty: Cancellation/revocation of license plus a fine of not less than Five Hundred Thousand Pesos
(PhP500,000.00) but not more than One Million Pesos (PhP1,000,000.00)
7. Charging or accepting directly or indirectly any amount of money, goods or services, or any fee or
bond for any purpose from an applicant seafarer. 
Penalty: Cancellation of License plus refund of fee or bond collected
10. Collecting any amount as payment for processing, or documentation costs not prescribed by the
rules, or an amount greater than the actual documentation costs, as covered by official receipts
issued by entities where payments were made. 
Penalty: Cancellation of license plus refund of excess processing or documentation costs.
II. LESS SERIOUS OFFENSES – Generally,
a)1st Offense — Suspension of License (Two Months to Six Months) 
b)2nd Offense — Suspension of License (Six Months and One day to One year) 
 
d)4Th Offense — Cancellation of License
III. LIGHT OFFENSES – Generally,
a)1st Offense — Reprimand 
b)2nd Offense — Fine of PhP20,000.00 
c)3rd Offense — Suspension of License (1-3 months) 
d)4th Offense onwards — Suspension of License (3-6 months)
Q4.2 How much is the fine in lieu of the penalty of suspension of license? Q1. Who may file a complaint?
ANSWER: P50,000/month of suspension ANSWER: An aggrieved person

Q4.3 What is the penalty for cases involving five or more complainants? Requirements:
ANSWER: Cancellation of license a)In writing
b)Under oath for violation of laws, rules and regulations and other issuances relating to overseas
Q4.4 How is a Motion for Reconsideration treated? employment
ANSWER: Appeal
Q1.2 Who is an aggrieved person? 
4.5 Grounds for Disciplinary Action against Principal/Employer of Seafarers ANSWER: One who is prejudiced by the commission of a violation in the POEA Rules and Regulations

Commission of offenses by a principal/employer of Seafarers: Q1.3 Can the Administration, in its own initiative, conduct proceedings based on reports of violations
of the aforementioned rule?
I.SERIOUS OFFENSE – 
Permanent Disqualification and delisting from the roster of accredited principals/employers ANSWER: Yes. 
The Administration may, in its own initiative, conduct proceedings based on reports of
II.LESS SERIOUS OFFENSE – violations of these Rules and other issuances on overseas employment, subject to preliminary
a)1st Offense — Fine of P50,000 investigation.
b)2nd Offense — Fine of P100,000
c)3rd Offense — Suspension from participation in the overseas employment program (6 months and Q1.4 Who shall investigate the said reports?
1 day – 1 year) ANSWER: The Adjudication Office or the POEA regional center/extension units
d)4th Offense onwards — Permanent Disqualification and delisting from the roster of accredited
principals/employers 2. On-Site Complaints for Violation of the POEA Rules and Regulations
Q2.1 What Procedure shall be observed for on-site complaints?
ANSWER: The procedures under Department Order No. 87-08 and/or Manual of Operations of the
POLO
4.6 Grounds for disciplinary action against seafarer and their penalties
Q2.2 What shall be the form of the complaint?
Commission of offenses by Seafarers:
ANSWER (ADCP):
A. Pre-Employment Offenses and Offenses During Employment
a)It shall be in affidavit form and subscribed and sworn before ta consular official of the Philippines
Embassy
Generally,
b)It shall be Accompanied by available supporting documents and a Certification of Non-Forum
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1
Shopping and Certificate of Failure to Conciliate
Year)
c)It shall be filed with the POLO that has jurisdiction over the worksite of the complainant
b)2nd Offense – Suspension from participation in the overseas employment program (1 Year and 1
Day – 2 years)
Q2.3 Who shall the POLO endorse the complaint filed on-site?
c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
ANSWER: To the Administration, together with the available supporting documents for
investigations.
5. Filing of complaints and venue of action for Landbased and Seafarer Overseas Filipino Workers 

5.1 Rules for filing of complaints

3. Venue
Q. Where shall the complaint against a licensed recruitment agency (license manning agency)
arising out of a recruitment violation/violation of the conditions of the license be filed?
ANSWER: Adjudication Office or with the POEA Regional Centers/Extension Units having jurisdiction
over the place where the complainant resides or was recruited.  closed and no notice of change of address has been filed.
Q. How about a complaint against an OFW (seafarer)?
ANSWER: Same as above, Adjudication Office or with the POEA Regional Centers/Extension Units
Q. Who between the Adjudication Office or POEA Regional Centers/Extension Units shall take
cognizance of the case?
ANSWER: The Office where the complaint was first filed
4. Change of Venue
Q4.1 Can a complaint before the Adjudication office be transferred to the POEA Regional
Center/Extension Units?
ANSWER: Yes, it may be transferred before the respondent files the Answer, and upon motion of
either party and on meritorious grounds, subject to the approval by the Administration
5. Referral to the POEA Regional Center/Extension Unit for Reception of Documentary Evidence
Q. Can the Adjudication Office refer to the POEA Regional Center/Extension Unit the reception of
documentary evidence?
ANSWER: Yes, upon request of the parties. The Regional Center/Extension Unit shall endorse the
received evidence to the Adjudication Office for inclusion in the case record.
Q6. When shall the Administration issue a Show Cause Order/Summons?
ANSWER: Upon receipt of the duly docketed complaint/report. The Show Cause Order/Summons
directs the respondent to file a verified Answer and not a motion to dismiss within 10 days from
receipt.
Q7. What is the Effect of failure to file an Answer?
ANSWER: The assigned Overseas Employment Adjudicator (OEA) shall proceed with the
investigation/hearing of the cause. The Answer filed out of time cannot be admitted except on
meritorious grounds, upon motion.  Q17. What is the effect when the complainant withdraws the complaint?
In case of the respondent principal/employer or OFW (seafarer), the case shall be archived and the
respondent shall be temporarily disqualified from participating in the overseas employment
program.
Q8. How many Motion for Extension may be filed?
ANSWER: Only one motion for extension of time may be filed, and it may only be granted upon
meritorious grounds, for a non-extendible period of 10 calendar days. If the complaint refers to facts
which occurred in abroad, a longer period not exceeding 15 days may be granted.
Q9. When is the Service of Summons completed?
ANSWER: Service by registered mail or through courier – upon receipt by the addressee
Service made at the last known address – in case the office of the licensed recruitment agency is
Q10. What is the nature of the proceedings?
ANSWER: It shall comply with the requirements of due process without strictly adhering to the
technical rules of procedure and evidence applicable to judicial proceedings
Q11. May the Overseas Employment Adjudicator (OEA) conduct a preliminary hearing?
ANSWER: Yes, with due notice to the parties.
Q12. What is the effect of non-appearance of the respective parties in hearings?
ANSWER: 
Non-appearance of complainant - complaint shall be dismissed without prejudice to the re-filing of
the complaint within the prescriptive period
Non-apperance of respondent – the complaint shall be resolved based on the evidence on record
Non-apperance of both parties – outright dismissal of the complaint without prejudice
Q13. May the OEA ask clarificatory questions?
ANSWER: Yes. To further elicit relevant facts or information.
Q14. Does the Administration have the power to order the production of documents?
ANSWER: Yes, through the issuance of an Order
Q15. What is the effect when the parties fail to comply with the Order without justifiable reason?
ANSWER: Such failure shall be deemed a waiver of their right to present evidence
Q16. May the OEA render Summary Judgment/Judgment on the Pleadings?
ANSWER: Yes. Should the OEA find, motu proprio or upon motion that decision may be rendered on
the basis of the complaint, answer, and evidence presented. 
ANSWER: The withdrawal shall not bar the Administration from proceeding with the investigation of
the recruitment violations
Q18. What is the timeframe by which the OEA shall decide upon the case?
ANSWER: Within 6 months from the date of filing of the complaint.
Q18.1 How about the Administrator?
ANSWER: Within 2 months from receipt of the decision/findings and recommendations
Q19. Can the Administration/OEA preventively suspend the parties?
ANSWER: Yes. Pending investigation of the recruitment violation/disciplinary action case, the license
of the respondent recruitment agency or principal/ employer, or the processing of documents of the
OFW (seafarer), may be suspended.
Q20. What are the grounds for the Issuance of Order of Preventive Suspension?
ANSWER: Common ground – when evidence of guilt is strong (Please refer to page 216)
Q21. What is the Effect of an Order of Preventive Suspension and Suspension/Cancellation of
license?
ANSWER: It shall have the effect of suspending/terminating all activities which fall under the
definition of recruitment and placement.
Q22. How much is the Fine which may be imposed by the Administration
ANSWER: P50,000 for every month of suspension
Q23. What is the penalty when the case involves five or more worker?
ANSWER: Cancellation of license
Q24. How is a Motion for Reconsideration treated?
ANSWER: Appeal
Q25. What is the effect when a respondent principal/employer or an OFW (seafarer)  ANSWER: Docket and Enforcement Division of the Administration
fails to submit to the jurisdiction of the POEA through an answer?
ANSWER: Disqualification from participating in the overseas employment program, until the
respondent files an Answer
Q26. Can a principal/employer be automatically disqualified?
ANSWER: Yes, in cases when a final and executory judgment issued by the NLRC against the
principal/employer shall not have been satisfied.
Q26.1 When can the automatic disqualification be lifted?
ANSWER: Upon full satisfaction of the judgment award
Q27. What are the grounds for temporary disqualifications of principal/employer and OFW to the
overseas employment program
ANSWER:
a)Principal/employer who refuses to honor the medical result of a DOH-accredited medical clinic
b)OFW – when a Warrant of Arrest or Hold Departure Order was issued by a competent authority
Q28. What is the effect when the principal/employer is imposed the penalty of disqualification
through an Order?
ANSWER: Disqualification from participating in the overseas employment program
Q29. Does the Administration have the power to grant clemency to principal/employer or OFWs?
ANSWER: Yes, upon motion by the principal/employer or OFW.
Q30. Who has Exclusive Jurisdiction to act on appeals from the Orders of the Administration?
ANSWER: Office of the DOLE Secretary
Q31. What is the Period to Appeal?
ANSWER: Within 15 calendar days from receipt of the copy of the decision. Failure to file an appeal
within such period shall render the decision of the Administration final and executory.
Q32. When shall the Entry of Judgment be issued?
ANSWER: Upon failure to file an appeal within the reglementary period
Q33. What are the Requirements to File an Appeal?
ANSWER: 
a)Notice of Appeal
b)Appeal Memorandum
In case a fine and/or monetary award is imposed, the appealing party shall also file a
supersedeas bond.
Q34. To whom shall the Notice of Appeal and Appeal Memorandum be Filed?
 
Q35. Within how many days shall the Docket and Enforcements Division of the Administration
transmit the records of the case to the Office of the Secretary?
ANSWER: Within 5 days from receipt of the appeal seasonably filed with the requirements
Q36. Is the Order of the Administration stayed during appeal?
ANSWER:
General Rule – Yes.
Exceptions:
a)when the penalty imposed is suspension of license for twelve (12) months or more; 
b)when the penalty imposed is cancellation of license; or 
c)when the penalty imposed is permanent disqualification against the principal/employer.
Q37. When shall the Writ of Execution be Issued?
ANSWER: After the Order of the Administration has become final and executory, and requiring the
Enforcement Officer to enforce the award and/or fine imposed in the decision
Q38. Is a Motion to Cancel/Quash Writ of Execution Allowed?
ANSWER: Yes. The Judgment debtor, within 5 days from receipt of a copy of Writ of Execution, file a
Motion to Cancel/Quash the Writ of Execution on meritorious grounds.

Q39. How shall a party appear in the proceedings?
ANSWER: Personally, in his/her own behalf or through a duly authorized representative.
Q40. When shall a consolidation of cases be done?
ANSWER: When there are 2 or more cases pending before different OEA, involving the same
respondents and issues, the case which was filed last may, upon written motion and with notice to
all parties, be consolidated with the first to avoid cost and delay.
Q41. Who may issue Orders?
ANSWER: The POEA Administrator
Q42. What Orders can the Administrator issue?
ANSWER:
a)suspension of documentary processing
b)preventive suspension
c)suspension
d)cancellation or revocation of license
e)dismissal of the case, lifting of penalties  on any of the grounds enumerated under Section 51 of the Rules (D.O. 141-14) be filed?
f)and all other Orders as may be necessary
Q43. What is the prescriptive period to file an action under the Rules?
ANSWER: Within 3 years after such cause of action accrued.
Q44. What is the Applicability of the Rules of Court?
ANSWER: Suppletory, in similar or analogous character 
Q45. What is the Responsibility of the Administration to OFWs (Seafarers)?
ANSWER: It shall ensure that they are amply protected, and their interest, well-being, and welfare
are promoted
Q46. Can the Administration take cognizance of any request for assistance from the OFW (seafarer)
or his/her family?
ANSWER: Yes, on matters relating to overseas employment, or it may refer them to the proper
government agencies or the licensed recruitment agencies.
Q47. May the Licensed recruitment agencies be held administratively liable for failure to act on
requests for assistance?
ANSWER: Yes, imposition of such sanctions as the Administration may deem appropriate
48. Other administrative sanctions under the Omnibus Rules of RA 8042, as amended
Q48.1 What is the effect of failure to provide ticket/secure exit visa in case of repatriation?
ANSWER: 
If the employment agency fails to provide the ticket or PTA within 48 HOURS from receipt of the
notice, the POEA shall suspend the documentary processing of the agency or impose sanction. 
If the principal/employer or agency fails to do so within 15 days, from receipt of the POEA notice, the
POEA shall suspend the employer from participating in the overseas employment program, and
impose sanctions.
Q48.2 What is the effect of deploying underage migrant worker on the license of agency
ANSWER: The responsible officers of the Foreign Service shall without delay repatriate said workers.
It shall be the recruitment/manning agency who shall pay or reimburse the costs of repatriation.
Q48.3 What is the effect if a migrant worker paid the premium/cost of insurance coverage?
ANSWER: The licensed recruitment/manning agency shall lose its license
6. Administrative sanctions on recruitment and placement for local employment under D.O. 141-
14, Series of 2014
6.1 Jurisdiction on administrative offenses under D.O. No. 141-14, Series of 2014
Q. Where shall the written complaints against an agency and/or authorized representative/s based
ANSWER: It shall be filed with the Regional/Field Office having jurisdiction over the place where:
a)the agency or branch office is located
b)where the prohibited act was committed,
c)at the complainant’s place of residence, at the option of the complainant; 
Provided that the Regional Office/Field Office which first acquired jurisdiction over the
case shall act on the complaint to the exclusion of others.
6.2 Classification of offenses (Please refer to the table at page 231)
1.Serious Offenses
a.1st Offense – Cancellation of license/authority
2.Less serious Offenses
a.1st Offense - Suspension of license (2 months – 6 months)
b.2nd Offense - Suspension of license (6 months – 1 year)
c.3rd Offense – Cancellation of License
3.Light Offenses
Q6.2.1 Who shall impose the appropriate administrative penalties in every recruitment violation?
ANSWER:The Regional Director
6.3 Fines
Q. Who has the power to impose fines? How much?
ANSWER: The Regional Director shall have the power to impose a fine of P10,000 for every count of
offense, in addition to the penalty of suspension of license

Q6.4 What is the penalty for cases involving five or more complainants?
ANSWER: Cancellation of license
Q6.5 What is the effects of withdrawal/desistance of the complaining witness?
ANSWER: It shall not bar the Regional Office from proceeding with the investigation or recruitment
violation
Q6.6 Suspension of license pending investigation
Who issues the suspension of license pending investigation?
ANSWER: The Regional Director, base on the following grounds:
a)Reasonable grounds to believe that the continued operation of the agency will lead to exploitation
of workers
b)Failure of the agency to submit its position paper/answer within 10 days from notice
c)Failure to attend the hearing on two occasions despite due notice
6.7 Appeal from the order of suspension/cancellation
Q. To whom shall the decision of the Regional Director be appealed?
ANSWER: To the Secretary, by filing a notice of appeal with the appropriate Regional office within 10
days
Q6.8 Motion for Reconsideration
When can a motion for reconsideration of the decision of the Secretary be filed?
ANSWER: Within 10 days after receipt of such decision. Only one motion for reconsideration may be
entertained. Within 10 days from finality of the decision, the Regional Director shall issue the Writ of
Execution.
Q6.9 Is Notice to the Regional Office required when an agency or its branch office ceases to operate
prior to expiration of its license?
ANSWER: Yes, and stating the reason for such closure
Q7. Denial of application for new license or renewal for local employment
7.1 What are the grounds for denial of application for a new license or its renewal?
ANSWER:
a)Non-compliance with any of the requirements provided under the Rules;
b)Pendency of a case for violation of the Labor Code, its IRRs and issuances
c)Conviction of a crime involving illegal recruitment, trafficking in persons or violation of anti-child
labor laws or crimes involving moral turpitude by the applicant. Any of its officers or authorized
representatives; or
d)License to operate or authority to recruit has been previously redocked or cancelled
Q7.2 Can the Order of the denial of an application for the issuance of license be appealed?
ANSWER: Yes, it may be appealed to the Office of the Secretary within 10 days from receipt of the
order. 
Q7.2.1 Within how many days shall the Office of the Secretary resolve the appeal?
ANSWER: Within 10 days from receipt of the notice of appeal
Q7.2.2 When does the decision of the Secretary become final and executory?
ANSWER: Within 10 days from receipt of the resolution
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.
Q1. What is the Regulatory power of the Secretary of Labor and Employment (SOLE)?
ANSWER:  In the exercise of this power to restrict and regulate the recruitment and placement
activities, the SOLE can issue rules and regulations.
Some noted rules and regulations issued by the SOLE:
a)Omnibus Rules and Regulations Implementing RA 8042, as amended by RA 10022
b)Revised Rules and Regulations Governing Recruitment and Placement for Local Employment (D.O.
No. 141-14, Series of 2014)
c)Revised POEA Rules and Regulations Governing the Recruitment and Employment of Landbased
Overseas Filipino Workers of 2016
d)Revised POEA Rules and Regulations Governing the Recruitment and Employment of Seafarers 
e)Various issuances relative to labor laws
Q2. Is the Regulatory power of the SOLE a valid exercise of police power?
ANSWER: Yes. The power to restrict and regulate conferred by Article 36 of the Labor Code involves
a grant of police power.
In Philippine Association of Service Exporters, Inc. v. Torres, G.R. No. 101279, August 6,
1992, the petitioner filed a petition to prohibit and enjoin DOLE and POEA from enforcing and
implementing DOLE Department Order and POEA Memorandum Circulars, as it temporarily suspends
the recruitment by private employment agencies of Filipino domestic helpers for Hong Kong and
vesting the DOLE, through the facilities of POEA, the task of processing and deploying such workers.
The petition assailed DOLE and POEA circulars as contrary to the Constitution, unreasonable, unfair
and oppressive.
In this case, the High Court affirmed the power to restrict and regulate recruitment and
placement activities (regulatory powers) by the DOLE and POEA. The assailed circulars do not
prohibit the petitioner from engaging in the recruitment and deployment of Filipino landbased
workers for overseas employment. To regulate means the power to protect, promote, and control
with due regard to the interests of the public.
Q3. What is the Rule on regulation of private sector?
ANSWER: The regulation of private sectors is subject to the regulatory powers of the POEA. This is
reflected on RA 9422 which provides that: “the Administration (POEA), shall regulate private sector
participation in the recruitment and overseas placement of workers by setting up a licensing and
registration system.”
authority, who in any manner, offer or promises for free employment to two or more persons shall
be deemed so engage. 
Q: What is illegal recruitment by a  syndicate or in a large-scale under the labor code?
A: Illegal recruitment is deemed committed by a syndicate if carried out by a group of three or more
persons conspiring and/or confederating with one another in carrying out any unlawful or illegal
transaction, enterprise or scheme and it is deemed committed in large-scale if committed against
three or more persons individually or as a group.

2011 Bar Examination Q: What is the meaning of the terms “committed against three (3) or more persons individually or
Q. Which of the following acts is NOT part of the regulatory and visitorial power of the Secretary of as a group to qualify illegal recruitment in a large scale?
Labor and Employment over recruitment and placement agencies? 
ANSWER: The power to (A) order arrest of an illegal recruiter (B) inspect premises, books and A: When the labor code speaks of illegal recruitment committed against three (3) or more persons
records (C) cancel license or authority to recruit (D) garnish recruiter's bond. individually or as a group, it must be understood as referring to the number of complainants in each
case who are complainants therein, otherwise, prosecutions for single crimes of illegal recruitment
can be cummulated  to make out a case of large scale illegal recruitment. In other words, a
Article 37. Visitorial Powers
conviction for large scale illegal recruitment must be based on finding in each case of illegal
The Secretary of Labor or his duly authorized representatives may, at any time:
recruitment of three or more persons whether individually or as a group.
Inspect the premises, books of accounts, and records of any person or entity covered by this Title
(Recruitment and Placement of Workers);
Q: What are the distinctions of illegal recruitment under RA 8042 as amended by RA 10022 and the
Require it to submit reports regularly on prescribed forms; and
labor code?
Act on violation of any provisions of this Title
A: Illegal recruitment under Section RA 8042 Migrant Workers and Overseas Filipinos Act of 1995 as
amended by RA 10022 broaden the concept of illegal recruitment, as it includes the commission of
Q: What is the effect of obstruction or attempt to obstruct inspection?
acts (letters a to n in the second sentence of the first par. Of Section 6 of RA 8042, as amended)
A: Illegal recruitment under section 6(g) of RA 8042, as amended by RA 10022; and
whether committed by any person whether non-licensee, not holder of authority, licensee or holder
Prohibited Practices under article 34(g), in relation to article 38(a) and article 303 of the Labor Code
of authority, and provided for stiffer penalties, while illegal recruitment as defined by Article 38 (a)  
in relation to Article 13 (b) and 34 of the Labor code is committed only by an non-licensees or non-
Q: What is the difference of Illegal recruitment punishable under RA 8042 from the Labor Code?
holders of authority.
A: Illegal recruitment under RA 8042 is committed by a licensee or holder of authority, or non-
licensee or non-holder of authority, while the Labor Code punishes those committed by non-
Q: Why article 38 © of the labor code declared unconstitutional?
licensees or non-holders of authority.
A: In the case of salazar v.  Achacoso, concerns the validity of the power of the Secretary of Labor to
issue warrants of arrest and seizure under Art. 38 of the labor code, prohibiting illegal recruitment.  
Art. 38. Illegal Recruitment
In deciding the issue, the SC held that we reiterate that the secretary of labor not being a judge, may
no longer issue search  or arrest warrants. Hence, those must go through the judicial process. To that
Q: What is illegal recruitment?
extent, we declare Art. 38 paragraph (c) of the labor code unconstitutional and of no force and
A: Any recruitment activities including the prohibited practices enumerated under article 34 of this
effect.
code to be undertaken by non-licenses or non-holders of authority shall be deemed illegal and
punishable under article 39 of the code.
Q: What are the remedies to victims of illegal recruitment for local employment?
Q: What are the acts constituting illegal recruitment under the rules for local employment?
A: (1) Anti illegal recruitment program
A: Legal recruitment shall mean any act of canvassing, enlisting, contracting utilizing or hiring or
procuring workers and includes referrals contract services promising or advertising for local
The rules mandates the DOLE to adopt and implement programs, policies, rules and procedure
employment weather for profit or not, when undertaken by a non-licensee or non-holder of
toward the eradication of illegal recruitment activities such as, but not limited to the following:

(a) Providing legal assistance to victims of illegal recruitment and related cases;
(b) Assistance in the prosecution of suspected illegal recruiters;
(c) Special operations such as surveillance of persons and entities allegedly engaged in illegal
recruitment activities; and  charge of the establishment subject thereof.
(d) Information and education campaign.  7. Execution report
Whenever necessary the department shall coordinate with other appropriate agencies/entities in
the implementation of said programs.
2. Legal assistance
The Department may provide free legal assistance to victims of illegal recruitment and related cases
including but not limited to, legal advice, assistance in the preparation of complaints and supporting
documents, institution of criminal actions whenever necessary provide, counseling during
preliminary investigation and hearings.
3. Where to file complaint for illegal recruitment
Thee victim of illegal recruitment or other related illegal acts or his parents or legal guardians may
file a written report or complaint under oath with the Regional offices or Field Office   having
jurisdiction over the place where the illegal act was committed.
4. Surveillance  undertaken by non-licensee or non-holders of authority but also by licensees or holders of
The Regional Director or his authorized representative may motu proprio conduct, surveillance on
reported illegal recruitment activities.
5. Issuance of closure order
The regional director or his duly authorized representative shall conduct a preliminary examination
to determine whether the activities of a non-licensee constitute a danger to life, limb, property or
public order or will lead to further exploitation of job seekers.
If upon the preliminary examination or surveillance, the Regional Director is satisfied that danger or
exploitation exists, a written order shall be issued for the closure of the establishment being used for
such recruitment activity.
In case of a business establishment whose license or permit to operate a business was issued by the
local government, the Regional Director concerned shall likewise recommend recommend to the
granting authority the immediate cancellation or revocation of the license or permit to operate its
business.
6. Execution of cease and desist order 
A cease and desist order shall be served by the donor sheriff upon the offender or the person in
 
Within 24 hours from the date of implementation thereof, the dole Sheriff shall submit to the
Regional Director a written report under oath and execution of the cease and desist order.
8 Institution of criminal action 
The Regional Director concerned or his/ her duly authorized representative or any aggrieved person,
may initiate filing of appropriate criminal action with the office of the prosecutor.
Q: What is illegal recruitment for overseas employment under RA 8042 as amended?
A: Illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing,
hiring, or procuring workers and includes referring, contract services promising or advertising for
employment abroad whether for profit or not, when undertaken by non-licensee or non-holder of
authority contemplated under Article 13 (f) of the P.D No. 442, as amended, otherwise known as the
Labor Code of the Philippines.
Unlike illegal recruitment as defined under the labor code which is limited to recruitment activities
authority.  
Q: Does illegal recruitment by a syndicate or in a large-scale defines illegal recruitment?
A: No, Illegal recruitment by a syndicate and illegal recruitment in a larger-scale does not define
illegal recruitment. They are qualifying circumstances to constitute an offense involving economic
sabotage.
Q:How illegal recruitment by a syndicate committed?
A: Illegal recruitment is deemed committed by a syndicate if carried out by a group of three or more
persons conspiring or confederating with one another.
Q: What are the elements of illegal recruitment by a syndicate
A: The elements are the following:
1.The accused have no valid license or authority required by law to enable them to lawfully engage
in the recruitment and placement of workers;

2.The accused engaged in this activity of recruitment and placement by actually recruiting, deploying
and transporting; and
3.Illegal recruitment was committed by three persons conspiring and confederating with one
another.
Q: How many offenders are in illegal equipment by a syndicate?
 A: The law requires that the number of offenders in illegal recruitment by a large scale is three or
more persons conspiring or confederating with one another.
Q: How illegal recruitment in a large-scale committed?
A: if committed against three or more persons individually or as a group.
Q: Does the law require that at least 3 victims testify at the trial?  employment contracts has been adopted by the Department of Labor however there is no
A: No, the law does not require that at least three victims testify at the trial, it is necessary that there
is sufficient evidence from proving that the offense was committed against three or more persons.
Q: Is the number of victims a determinative in illegal recruitment?
A: It is evident that in illegal recruitment cases, the number of persons victimized is determinative.
Where illegal recruitment is committed against a lone victim, the accused may be convicted of
simple illegal recruitment which is punishable with a lower penalty.  Where the offence is committed
against three or more persons it is qualified to illegal recruitment in large scale which provides a
higher penalty. 
Q: What is distinction of illegal recruitment by a syndicate and illegal recruitment in a large scale?
A: The distinction between the two lies with the elements involving the number of recruiters and
recruits. Thus, the number of persons victimized is not material to qualify the illegal recruitment by a
syndicate. However, iin illegal recruitment in a large-scale there must be sufficient evidence on the
number of persons against whom the offense was committed to qualify the offense to   illegal
recruitment in a large scale.  employees/agents thereof shall be liable.
Q: What are the common elements of illegal recruitment by a  syndicate and illegal recruitment in
a large scale?
A: The common elements of illegal recruitment by a syndicate and illegal recruitment in a large scale
are the offenders has no valid license or another authority required by law to enable them to engage
in recruitment and placement of workers and undertakes any of the activities within the meaning of
recruitment and placement.
Q: Is illegal recruitment by way of substitution/alteration of employment contract allowed?
A: No,  it is now allowed. In the case of Placewell International Services Corporation v. Camote it was
held that are RA No. 8042 explicitly prohibits the substitution or alteration to the prejudice of the
worker, of employment contracts already approved and verified by DOLE from the time of actual
signing thereof by the parties up to and including the period of the expiration of the same without
approval of DOLE. 
In Chavez v. Bonto-Perez that the subsequently executed side agreement  of an overseas contract
worker with her foreign employer which reduced her salary below the amount approved by the
POEA is void because it is against our existing laws morals and public policy. The said side agreement
cannot supersede her standard employment contract approved by the POEA 
Q: Effect of stipulation of more benefits to employee than required by law 
A: The reason why the law requires that the POEA should approve and verify a contract under Art.  
34 (i) of the Labor Code is to ensure that the employee shall not thereby be placed in this
advantageous position and that the same time are within the minimum standards of the terms and
condition of such employment contract set by the POEA.  This is why a standard format for
prohibition against stipulating in a contract more benefits to the employee than those required by
law.
Q: What is non-licensee or non-holder of authority?
A: A non-licensee or non-holder of authority is any person, corporation, or entity which has not been
issued a valid license or authority to engage in recruitment and placement by the Secretary of labor
or whose license or authority has been suspended, revoked or canceled by the POEA or the
Secretary. 
Q: Who are the persons criminally liable for illegal recruitment?
A: The persons criminally liable for illegal recruitment are the following:
 
1.The principals, accomplices and accessories;
2.In case of juridical persons the officers having ownership, control management or the direction of
their business who are responsible for the commission of the offense and the responsible
 
Q: What is the effect of lack of criminal intent in illegal recruitment in a large scale
A: The lack of criminal intent on the part of an excuse assuming that the accused-appellant was
indeed unaware of the illegal nature of the recruitment business of her co-accused is hardly a
defense in the prosecution of illegal recruitment. 
Illegal recruitment in large scale is 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 accused violated the law warrants her conviction. 
Q: Employees culpability hinges on his active participation in the commission
A: In People v. Chowdery in resolving the fundamental issue of whether accused-appellant knowingly
and intentionally participated in the commission of the crime charged. The Court declared that he
did not. The corporation also includes criminal liability for the act of its employee or agent if (1) the
employee or agent committed the offense when acting within the scope of his employment and (2)
the offense was committed with at least some intend to benefit the employer. 
The liability is imputed to the corporation not because it actively participated in the malice or fraud
but because the act is done for the benefit of the corporation whilel the employee or agent was
acting within the scope of his employment in the business of the corporation and justice requires
that the latter shall be held liable for damages to the individual who suffered by such conduct.
Rule on distinct impression on the power or ability to send abroad for work.
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 the workers for job
placement abroad in order to induce them to tender payment of fees.  than P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the
To be engaged in the practice of recruitment and placement it is plain that there must, at least, be a
promise or an offer of employment from the person posing as a recruiter whether locally or abroad.  upon the officer or officers of the corporation, partnership, association or entity responsible for
Q: What is the effect of failure to present receipts in illegal recruitment?
A: In the case of Romero v. People, the Court ruled that in illegal recruitment cases, the failure to
present receipts for money that was paid in connection with the recruitment process will not affect
the strength of the evidence presented by the prosecution as long as the payment can be proved
through clear and convincing testimonies of credible witnesses
Q: What is the effect of accepting payments after expiration of license?
A: The payments for services rendered are necessary consequences of the application for overseas
employment.However, it is asking too much to expect a licensed agency to absolutely at the stroke
of midnight stop all transactions on the day its license expires and refuse to accept carry-over
payments after the agency is closed. In any business, there has  to be a winding-up after it ceases
operations. The collection of unpaid accounts should not be the basis of a criminal prosecution.
Q: When evidence of certification on license to recruit is not required
A: A certification on whether a person had a license to recruit or not is inconsequential in   illegal
recruitment under section 6 (m) of R.A. 9262.
In People v. Ocden, the Court ruled that it is not necessary for the prosecution to present a
certification that Ocden is a non-licensee or non-holder of authority to lawfully engage in the
recruitment and placement of workers.
Q: POEA must authorized the agents or representatives appointed by a licensee 
A: In the case of  People v. Fajardo, an appellant cannot escape liability by claiming that she was not
aware that before working for her employer in the recruitment agency, she should first be registered
with the POEA. Illegal recruitment in large scale is malum prohibitum not malum in se. Good faith is
not a defense.
Art. 39. Penalties.
a. The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P100,000.00) shall
be imposed if illegal recruitment constitutes economic sabotage as defined herein;
b. Any licensee or holder of authority found violating or causing another to violate any provision of
this Title or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty
of imprisonment of not less than two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment and fine, at the discretion of the court;
c. Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than four years nor more than eight years or a fine of not less
court;
d. If the offender is a corporation, partnership, association or entity, the penalty shall be imposed
violation; and if such officer is an alien, he shall, in addition to the penalties herein prescribed, be
deported without further proceedings;
e. In every case, conviction shall cause and carry the automatic revocation of the license or authority
and all the permits and privileges granted to such person or entity under this Title, and the forfeiture
of the cash and surety bonds in favor of the Overseas Employment Development Board or the
National Seamen Board, as the case may be, both of which are authorized to use the same
exclusively to promote their objectives.
I.Penalties for Illegal Recruitment Under the Labor Code
a)If illegal recruitment constitutes economic sabotage
Life imprisonment; and
Fine of 100,000.00.
b)Any licensee or holder of authority found violating or causing another to violate any provision of
this Title or its IRR
Imprisonment of not less than two years nor more than five years; or
Fine of not less than P10,000 nor more than P50,000; or 
Both. 
c)Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its IRR
Imprisonment of not less than four years nor more than eight years; or 
Fine of not less than P20,000 nor more than P100,000; or 
Both.
II.Who are liable  (Section 7 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Section 6 of R.A. No. 10022)
If the offender is a corporation, partnership, association or entity- penalty shall be imposed upon the
officer or officers of the corporation, partnership, association or entity responsible for violation; and  VII.Offender is a corporation, partnership, association or entity- who shall be liable
If such officer is an alien, he shall, in addition to the penalties herein prescribed, be deported without The officers having ownership, control, management or direction if their business who are
further proceedings. responsible for the commission of the offense and the responsible employees/agents thereof. 

III.Administrative Sanctions -  (Section 6 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Automatic revocation of the license or authority and all the permits and privileges granted to such Section 5 of R.A. No. 10022 and Section 2, Rule IV, Omnibus Rules and Regulations Implementing the
person or entity under this Title; and  Migrant Workers and Overseas Filipinos Ac of 1995, as amended by R.A. No. 10022)
The forfeiture of the cash and surety bonds in favor of the Overseas Employment Development
Board or the National Seamen Board. ART. 40. Employment Permit of Non-resident Aliens

IV.Prescription of Illegal Recruitment Under the Labor Code-  Q: Who are the coverage of alien employment permit?
Offenses penalized under this Code all rules and regulations issued oursuant thereto shall prescribe A; Any alien seeking admission to the Philippines for employment purposes and any domestic or
in 3 years. (Art. 305, Labor Code) foreign employer who desires to engage an alien for employment in the philippines shall obtain an
employment permit from the Department of Labor and Employment. (Art. 40, par. 1 of Labor Code)
V.Penalties of Illegal Recruitment under R.A. No. 8042, as amended by R.A. No. 10022
a.Penalty For (simple) illegal recruitment-  Q: When to issue an alien employment permit?
Imprisonment of not less than twelve (12) years and one (1) day but not more than twenty (20) A: The employment permit may be issued to a non-resident alien or to the applicant employer after
years; and  a determination of the non-availability of a person in the Philippines who is competent, able and
Fine of not less than One million pesos (P1,000,000.00) nor more than Two million pesos willing at the time of application to perform the services for which the alien is desired
(P2,000,000.00).
b.Penalty for any of the prohibited acts-  For an enterprise registered in preferred areas of investment, the employ permit of the government
Imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years; charged with the supervision of said registered enterprised. 
and  
Fine of not less than Five hundred thousand pesos (P500,000.00) nor more than One million pesos Q: Is the alien employment permit an exclusive authority for a foreign national to work in the
(P1,000,000.00). Philippines?
c.Penalty if Illegal Recruitment constitutes an economic sabotage-  A: No, it is just one of the requirements in the issuance of a work visa to legally engaged in gainful
Life imprisonment; and  employment in the country. The foreign national must obtain the required Special Temporary Permit
Fine of not less than Two million pesos (P2,000,000.00) nor more than Five million pesos (STP) from the Professional Regulation Commission (PRC) in case the employment involves practice
(P5,000,000.00)  of profession and authority to employ alien from the Department of Justice (DOJ) where the
d.Penalty if the person illegally recruited is less than eighteen (18) years of age or committed by a employment is in a nationalized industry and Department of Environment and National Resources
non-licensee or non-holder of authority and the offender is an alien (DENR) in case of mining. 
The maximum penalty shall be imposed.
If the offender is an alien- additional penalty of deportation without further proceedings.  Q: Who are exempted from the coverage?
A: The following categories of foreign nationals are exempt from securing an employment permit:
(Section 7 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Section 6 of R.A. No. 10022) 1.All members of the diplomatic service and foreign government officials accredited by and with
reciprocity arrangement with the Philippine government;
VI.Administrative Sanctions in case of conviction for Illegal Recruitment
Automatic revocation of the license or registration of the recruitment/manning agency, lending 2.Officers and staff of international organizations of which the Philippine government is a member,
institutions, training school or medical clinic. and their legitimate spouses desiring to work in the Philippines;
3.Owners and representatives of foreign principals whose companies are accredited by POEA, who
come to the Philippines for a limited period and Solely for the purpose of interviewing Filipino
applicants for employment abroad;
4.Foreign nationals who come to the Philippines to teach, present and/or conduct research studies
in universities and colleges as visiting, exchange or adjunct professors and under formal agreements
between the universities or colleges in the Philippines and foreign government: provided that the
exemption is on a reciprocal basis.
5.Permanent resident foreign nationals and probationary or temporary resident visa holders under
section 13 (a-f) of the Philippine Immigration Act of 1940 and Section 3 of the Alien Social Integration
Act of 1995;
6.Refugees and Stateless Persons recognized by DO pursuant to Article 17 of the UN Convention and
Protocol Relating to status of Refugees and Stateless Persons; and
7.All foreign nationals granted exemption by law.  a)After the issuance of an employment permit, the alien shall not transfer to another job or change
Q: What is the Processing Period of AEP
A: Applications for new AEP shall be processed and an AEP shall be issued within 3 working days
after publication and payment of required fees and fines, if there are any.
Applications for renewal of AEP shall be processed within 1 day after receipt.
Validity of AEP
The AEP shall be valid  for a period of one (1)  year unless the employment contract or other modes
of engagement provides otherwise, which in no case shall exceed three (3) years
Renewal
 An application for renewal of AEP shall be filed not earlier than sixty (60) days before its expiration.
Q: Can AEP be cancelled or revoked?  officers of such corporation, trust, firm, partnership, association or entity.
A: Yes, the Regional Director may, motu propio or upon petition, cancel, or revoke an AEP after due
process.  Question: Does the action for such violation prescribe?
Q: What is the  effect of denial or cancellation or revocation of AEP
A: A foreign national whose AEP has been denied or cancel is disqualified to re-apply within a period
of  ten (10) years in case the grounds for denial or cancellation is any of the following:
1.Conviction of criminal offense or fugitive from justice in the country or abroad; or
2.Grave misconduct in dealing with or ill treatment of workers,
Q: What is the penalty of working without AEP
A: The Regional Director shall impose a fine of Ten Thousand Pesos (10,000) for every year or a
fraction thereof to foreign national found working without a valid AEP. Employers found employing
foreign nationals without a valid AEP shall also pay a fine of Ten Thousand Pesos (10,000) for every
year or a fraction thereof. 
Q:  is hiring of a foreign national is an employer's prerogative?
A: No, under article 40 of the labor code an employer seeking employment of an alien must first
obtain and employment permit from the Department of Labor. In the case of General Milling
Corporation v. Torres, petitioner GMC’s right to choose whom to employ, is of course, limited by
statutory requirement of an alien employment permit.
Article 41. Prohibition against transfer of employment.
his employer without prior approval of the Secretary of Labor.
b)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.
Question: Can an alien transfer to another job or change his employer after the issuance of an
employment permit?
Answer: Yes
Question: Is there any requirement?
Answer: Yes. The alien must obtain the approval of the Secretary of Labor.
Question: Who may be liable other than the non-resident alien who violate the prohibition against
transfer of employment?
Answer: Article 289 provides that if the offense is committed by a corporation, trust, firm,
partnership, association or any other entity, the penalty shall be imposed upon the guilty officer or
Answer: Yes. The action shall prescribe in 3 years (Article 290)
Article 42. Submission of list
Any employer employing non-resident foreign nationals on the effective date of this Code shall
submit a list of such nationals to the Secretary of Labor within thirty (30) days after such date
indicating their names, citizenship, foreign and local addresses, nature of employment and status of
stay in the country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.

Question: When must an employer submit a list to the Secretary of Labor of their non-resident
foreign national employees?
Answer: Within 30 days after employing such non-resident foreign nationals.

Question: What should be indicated in the list?

Answer: Names, citizenship, foreign and local addresses, nature of employment and status of stay in
the country of the non-resident foreign employees.