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ARTICLE 1. Name of Decree. - This Decree shall be known as the Labor Code of the Philippines, ART. 2. Date of effectivity. - This Code shall take effect six months after its promulgation.

governments, on the time honored principle of salus populi est suprema lex.(Calalang v Williams) In particular reference to labor, Section 3 says that 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. Constitutional Rights and Mandates If there should be conflict between constitutional provisions and those of the Labor Code, the constitution shall prevail, as it is the highest law of the land. The constitution commands that the State shall afford protection to labor . The 1987 Constitution declares as state policy: The state affirms as a primary social economic force. It shall protect the right of workers and promote their welfare.

Labor Legislation consists of statutes, regulations and jurisprudence governing the relations between capital and labor, by providing for certain employment standards and a legal framework for negotiating, adjusting and administering those standards and other incidents. Labor Standards Laws are the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost-of-living allowance, and other monetary and welfare benefits, including occupational, safety, and health standards. Labor Relations law is that which defines the status , rights and duties, and the institutional mechanisms that govern the individual and collective interactions of employers, employees or their representative. Social Legislation are those laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. Social Justice as the aim Social Justice is neither communism, nor despotism, nor atomism nor anarchy, but the humanization of laws and the equalization of social and economic forces by the State so that justice in its rational and objectively secular conception may at least be approximated. Social Justice means the promotion of the welfare of all the people, the adoption by the Government of measures calculated to insure economic stability of all the component elements of society through the maintenance of proper economic and social equilibrium in the interrelations of the members of the community, constitutionally, through the adoption of measures legally justifiable, or extra-constitutionally, through the exercise of powers underlying the existence of all

Balancing of Rights; the Constitutional Principle of Shared Responsibility the state recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments. Police Power as the Basis While social justice is the reason of labor laws, their basis or foundation is the police power of the state. It is the power of the government to enact laws, within constitutional limits, to promote the order, safety, health, morals and general welfare of society. Birth of the Labor Code -51 amendments 20 Presidential Decree Principles Underlying the Code 1) Labor relations must be made both responsive and responsible to national development.

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2) Labor laws or labor relations during a period of national emergency must substitute rationality for confrontation; therefore strikes or lockouts give way to a rational process which is arbitration. 3) Laggard justice in the labor field is injurious to the workers, the employers and the public; labor justice can be made expeditious without sacrificing due process. 4) Manpower development and employment must be regarded as a major dimension of labor policy, for there can be no real equality of bargaining power under conditions of severe mass unemployment. 5) There is a global labor market available to qualified Filipinos, especially those who are unemployed or whose employment is tantamount to unemployment because of their very little earnings. 6) Labor laws must command adequate resources and acquire capable machinery for effective and sustained implementation, otherwise, they merely breed resentment not only of the workers but also of the employers. When labor laws cannot be enforced, both the employers and the workers are penalized, and only a corrupt few those who are in charge of implementation may get the reward they do not deserve. 7) There should be popular participation in national policy-making through what is now called triaprtism. Civil Code It is the Civil Code, not the Labor Code, that describes the nature of labor management relations. It states that: The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining,

strikes and lockouts, closed shpor, wages, working conditions, hours of labor and similar subjects. (Art. 1700) This being so, neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public. (Art. 1701) No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall be valid. (Art 1703) The Revised Penal Code Article 289 of the Revised Penal Code punishes the use of violence or threats by either employer or employee. It says The penalty of arresto mayor and a dine not exceeding P300 pesos shall be imposed upon any person who, for the purpose of organizing, maintaining or preventing coalitions of capital or labor, strike or labourers or lockout of employers in the free and legal exercise of their industry or work, if the act shall not constitute a more serious offense in accordance with the provisions of this Code.
ART. 3. Declaration of basic policy. - The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure and just and humane conditions of work.

Labor Laws and Social Economic Goals The goals of the national economy, says the Constitution, are a more equitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an explaining productivity as the key to the raising the quality of life for all, especially the underprivileged. Those goals are the route to social life for all, especially the underprivileged. Those goals are the route to social justice, a route directed by laws, especially those about labor and employment.
ART. 4. Construction in favor of labor. - All doubts in the implementation and interpretation of the provisions of this

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Code, including its implementing rules and regulations, shall be resolved in favor of labor.

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. In all cases, the landowner may retain an area of not more than seven hectares if such landowner is cultivating such area or will now cultivate it. ART. 9. Determination of land value. - For the purpose of determining the cost of the land to be transferred to the tenantfarmer, the value of the land shall be equivalent to two and one-half (2 ) times the average harvest of three (3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. 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. In case of default, the amortizations due shall be paid by the farmers cooperative of which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him. The government shall guarantee such amortizations with shares of stock in government-owned and governmentcontrolled corporations. ART. 10. Conditions of ownership. - No title to the land acquired by the tenant-farmer under Presidential Decree No. 27 shall be actually issued to him unless and until he has become a full-fledged member of a duly recognized farmers cooperative. Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government in accordance with the provisions of Presidential

If there is no doubt and law is definite this provision will not apply.

Interpretation and Construction The working man s welfare should be the primordial and paramount consideration.
ART. 5. Rules and regulations. - The Department of Labor and Employment 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 days after announcement of their adoption in newspapers of general circulation.

The Labor Code itself in Article 5 vests the Department of labor and Employment with rule making powers in the enforcement thereof.

ART. 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.

Government corporations created by special (original) charter from Congress are subject to Civil Service rules, while those incorporated under the general Corporation Law are covered by the Labor Code.

CHAPTER II Emancipation of Tenants ART. 7. Statement of objectives. - Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation with the emancipation of the tiller of the soil from his bondage. ART. 8. Transfer of lands to tenant workers. - Being a vital part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of

Decree No. 27, the Code of Agrarian Reforms and other existing laws and regulations. ART. 11. Implementing agency. - The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this chapter.

y y

5 hectares = not irrigated 3 hectares = if irrigated

Requisites of Tenancy Relationship 1) The parties are the landowner and the tenant

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2) 3) 4) 5) 6)

The subject matter is agricultural land There is consent between the parties The purpose is agricultural production There is personal cultivation by tenant There is sharing of the harvest between parties.
BOOK ONE Pre-Employment

to two or more persons shall be deemed engaged in recruitment and placement. (c) Private employment agency means any person or entity engaged in the recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or both. (d) License means a document issued by the Department of Labor authorizing a person or entity to operate a private employment agency. (e) 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 employers. (f) Authority 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. (g) Seaman means any person employed in a vessel engaged in maritime navigation. (h) Overseas employment means employment of a worker outside the Philippines. (i) Emigrant means any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination.

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; (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; (g) To insure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippines abroad. Title I Recruitment and Placement of Workers * CHAPTER I General Provisions ART. 13. Definitions. - (a) Workers means any member of the labor force, whether employed or unemployed. (b) Recruitment and placement refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee employment

People V Panis: The court ruled that the number of persons is not an essential ingredient of the act of recruitment and placement of workers. 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, and offer or promise of employment is made in the course of the canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers. People v Goce: it must be shown that the accused gave the complainant the distinct impression that she had the power or ability to send the complainant abroad for work, such that the latter was convinced to part with her money in order to be so employed. Where such act or representation is not proven, there is no recruitment

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activity and conviction for illegal recruitment has no basis.


ART. 15. Bureau of Employment Services. - (a) The Bureau of Employment Services shall be primarily responsible for developing and monitoring a comprehensive employment program. It shall have the power and duty: 1. To formulate and develop plans and programs to implement the employment promotion objectives of this Title; 2. To establish and maintain a registration and/or licensing system to regulate private sector participation in the recruitment and placement of workers, locally and overseas, and to secure the best possible terms and conditions of employment for Filipino contract workers and compliance therewith under such rules and regulations as may be issued by the Minister of Labor; 3. To formulate and develop employment programs designed to benefit disadvantaged groups and communities; 4. To establish and maintain a registration and/or work permit system to regulate the employment of aliens; 5. To develop a labor market information system ind of proper manpower and development planning; 6. To develop a responsive vocational guidance and testing system ind of proper human resources allocation; and 7. To maintain a central registry of skills, except seamen. (b) The regional offices of the Ministry of Labor shall have the original and exclusive jurisdiction over all matters or cases involving employer-employee relations including money claims, arising out of or by virtue of any law or contracts involving Filipino workers for overseas employment except seamen: Provided, That the Bureau of Employment Service may, in the case of the National Capital Region, exercise such power, whenever the Minister of Labor deems it appropriate. The decisions of the regional offices or the Bureau of Employment Services if so authorized by the Secretary of Labor and Employment as provided in this Article, shall be appealable to the National Labor Relations Commission upon the same grounds provided in Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and unappealable.(Superseded by Exec. Order 797.) (c) The Minister of Labor shall have the power to impose and collect fees, based on rate recommended by the Bureau of Employment Services. Such fees shall be deposited in the National Treasury as a special account of the General Fund,

for the promotion of the objectives of the Bureau of Employment Services, subject to the provisions of Section 40 of Presidential Decree No. 1177.

ART. 16. Private recruitment. - Except as provided in Chapter II of this Title, no person or entity, other than the public employment offices, shall engage in the recruitment and placement of workers.

The following entities are authorized to recruit and place workers for local or overseas employment: a) b) c) d) e) f) Public employment offices Private recruitment entities Private employment agencies Shipping or manning agents or representatives The POEA Construction contractors if authorized to operate by DOLE and the Construction Industry Authority g) Members of the diplomatic corps although hirings done by them have to be processed through the POEA h) Other persons or entities as may be authorized by the DOLE
ART. 17. Overseas Employment Development Board. [Art. 17 and Art. 20 (National Seamen Board) were repealed by Executive Order 797, May 1, 1982 and Executive Order No. 247, July 24, 1987. Exec. Order 797 created the Philippine Overseas Employment Administration which assumed the functions of the OEDB and NSB and the overseas employment functions of the Bureau of Employment Services, which were abolished. Exec. Order 247 provided for the following POEA functions (Sec. 3): (a) Regulate private sector participation in the recruitment and overseas placement of workers by setting up a licensing and registration system; (b) Formulate and implement, in coordination with appropriate entities concerned, when necessary, a system for promoting and monitoring the overseas employment of Filipino workers taking into consideration their welfare and the domestic manpower requirements;

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(c) Protect the rights of Filipino workers for overseas employment to fair and equitable recruitment and employment practices and ensure their welfare; (d) Exercise original and exclusive jurisdiction to hear and decide all claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas employment including the disciplinary cases; and all pre-employment cases which are administrative in character involving or arising out of violation of requirement laws, rules and regulations including money claims arising therefrom, or violation of the conditions for issuance of license or authority to recruit workers. All prohibited recurrent activities and practices which are penal in character as enumerated and defined under Administrative shall also establish and maintain joint projects with private organizations, domestic or foreign, in the furtherance of its objectives.]

of recruitment and employment agencies or entities; and (b) Disciplinary action cases and other special cases which are administrative in character, involving employers, principals, contracting partners and Filipino migrant workers. Outside of POEA Jurisdiction (1) The POEA has no jurisdiction to hear and decide a claim for enforcement of a foreign judgment. Such claim must be brought before the regular courts. (2) No jurisdiction over torts.
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the diplomatic corps, international organizations and such other employers as may be allowed by the Secretary of Labor is exempt from this provision.

THE POEA Philippine Overseas Employment Administration s principal function are the formulation, implementation, and monitoring of the overseas employment of Filipino workers and the protection of their rights to far and equitable employment practices. Direct hiring of Filipino workers by a foreign employer is not allowed except direct hiring by members of the diplomatic corps and others mentioned in this article. Name Hirees those individual workers who are able to secure contracts for overseas employment on their own efforts and representation without the assistance or participation of any agency.

Overseas Filipino Worker is understood as a Filipino worker who is to be engaged, is engaged, or has been engaged in a remunerated activity in a country of which he/she is not a legal resident. **to be engaged promised or assured of employment overseas, he already parted money. Jurisdiction Retained with the POEA Even after the passage of RA 8042, the POEA retains original and exclusive jurisdiction to hear and decide: (a) All cases which are administrative in character, involving or arising out of violations of rules and regulations relating to licensing and registration

ART. 20. National Seamen Board. (a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive program for Filipino seamen employed overseas. It shall have the power and duty: 1. To provide free placement services for seamen; 2. To regulate and supervise the activities of agents or representatives of shipping companies in the hiring of seamen for overseas employment; and secure the best possible terms or employment for contract seamen workers and secure compliance therewith; (b) The Board (POEA) shall have original and exclusive jurisdiction over all matters or cases including money

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claims, involving employer-employee relations, arising out of or by virtue of any law or contracts involving Filipino seamen for overseas employment. The decisions of the Board (POEA) shall be appealable to the National Labor Relations Commission upon the same grounds provided in Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and unappealable.

Freedom to Sripulate Parties to overseas employment contracts are allowed to stipulate other terms and conditions and other benefits not provided under these minimum requirements; provided the whole employment package should be more beneficial to the worker than the minimum provided that the same shall not be contrary to law, public morals and policy.
ART. 21. Foreign service role and participation. - To provide ample protection to Filipino workers abroad, the labor attaches, the labor reporting officers duly designated by the Secretary of Labor and the Philippine diplomatic or consular officials concerned shall, even without prior instruction or advice from the home office, exercise the power and duty: (a) To provide all Filipino workers within their jurisdiction assistance on all matters arising out of employment; (b) To insure that Filipino workers are not exploited or discriminated against; (c) To verify and certify as requisite to authentication that the terms and conditions of employment in contracts involving Filipino workers are in accordance with the Labor Code and rules (d) and To regulations of the Overseas or Employment and Development Board and the National Seamen Board (POEA); make continuing studies researches recommendations on the various aspects of the employment market within their jurisdiction; (e) To gather and analyze information on the employment situation and its probable trends, and to make such information available ; and (f) To perform such other duties as may be required of them from time to time. ART. 22. Mandatory remittance of foreign exchange earnings. - It shall be mandatory for all Filipino workers abroad to remit a portion of their foreign exchange earnings to their families, dependents, and/or beneficiaries in the country in accordance with rules and regulations prescribed by the Secretary of Labor. ART. 23. Composition of the Boards. - (Repealed by Executive Order No. 247, July 24, 1987, Section 4 of which provides as follows: Structural Organizations. - The Administration shall consist of the Governing Board, the Office of the Administrator, the

Minimum Employment Conditions The POEA Regulations Governing Overseas Employment (amended in 2002) in Part V, Rule 1, Section 2 prescribes the following minimum provisions of employment contracts: a. Guaranteed wages for regular working hours and overtime pay, as appropriate, which shall not be lower than the prescribed minimum wage in the host country nor lower than the appropriate minimum wage standard set forth in bilateral agreement or international convention duly ratified by the host country and the Philippines or not lower than the minimum wage in the Philippines, whichever is the highest. b. Free transportation to and from the worksite, or offsetting benefit; c. Free food and accommodation, or offsetting benefit; d. Just/authorized causes for termination of the contract or of the services of the workers taking into consideration the customs, laws and social legislations of the host country. e. The Administration may also consider the following as basis for other provisions of the contract: 1. Existing labor and social laws of the host country 2. Relevant agreements, conventions, delegations or resolutions; 3. Relevant bilateral and multilateral agreements or arrangements with the host country; and 4. Prevailing condition/realities in the market.

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Offices of such number of Deputy Administrators as may be necessary, Office of the Director for each of the principal subdivisions of its internal structure. (a) The governing Board shall be composed of the Secretary of Labor and Employment as Chairman, the Administrator and a third member, considered well-vested in the field of overseas employment who shall be appointed by the President to serve for a term of two (2) years; (b) The Administrator and such Deputy Administrator and Directors as may be necessary shall be appointed by the President upon recommendation of the Secretary; (c) The functional structure of the Administration shall be established Each of along the areas of: market development, of the

In addition to those mentioned in this Article, the POEA Rule also disqualify: 1. Persons with derogatory records a. Convicted for illegal recruitment b. Or other crimes involving moral turpitude 2. Any official or employee of DOLE, POEA. OWWA, DFA and other government agencies or their relatives within the fourth civil degree.

ART. 27. Citizenship requirement. - Only Filipino citizens or corporations, partnerships or entities at least 75 percent of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas. ART. 28. Capitalization. - 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. ART. 29. Non-transferability of license or authority. - No

employment, welfare, licensing, regulation and adjudication. the principal substantive subdivisions Administration shall be headed by a Director and shall have such departments and units as may be necessary.) ART. 24. Boards to issue rules and collect fees. - The Boards shall issue appropriate rules and regulations to carry out their functions. They shall have the power to impose and collect fees from employers concerned, which shall be deposited to the respective accounts of said Boards and be used by them exclusively to promote their objectives.

CHAPTER II Regulation of Recruitment and Placement Activities ART. 25. Private sector participation in the recruitment and placement of workers. - Pursuant to national development objectives and in order to harness and maximize the use of private sector resources and initiative in the development and implementation of a comprehensive employment program, the private employment sector shall participate in the recruitment and placement of workers, locally and overseas, under such guidelines, rules and regulations, as may be issued by the Secretary of Labor. ART. 26. Travel agencies prohibited to recruit. - Travel agencies and sales agencies ofrline companies are prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether for profit or not.

license or authority shall be used directly or indirectly by any person other than the one in whose favor it was issued at any place other than that stated in the license or authority, nor may such license or authority be transferred, conveyed or assigned to any other person or entity. Any transfer of business address, appointment or designation of any agent or representative including the establishment of additional offices anywhere shall be subject to the prior approval of the Department of Labor.

Place of Recruitment Licenses or holders of authority or their duly authorized representatives may, as a rule, undertake recruitment and placement activity only at their authorized official addresses. Under existing regulations, they may be allowed to conduct provincial recruitment only upon written authority of the POEA.

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A copy of authority shall be presented to DOLE/Regional Director concerned. The recruitment activities are conducted under the supervision of a DOLE employee or officer designated by the Regional Director.
ART. 30. Registration fees. - The Secretary of Labor and Employment shall promulgate a schedule of fees for the registration of all applicants for license or authority. ART. 31. Bonds. - All applicants for license or authority shall post such cash and surety bonds as determined by the Secretary of Labor and Employment to guarantee compliance with prescribed recruitment procedures, rules and regulations, and terms and conditions of employment as may be appropriate. ART. 32. Fees to be paid by workers. - 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 his efforts or has actually commenced employment. Such fee shall be always covered with appropriate receipt clearly showing the amount paid. The Secretary of Labor and Employment shall promulgate a schedule of allowable fees. ART. 33. Reports on employment status. - Whenever the public interest so 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. ***ART. 34. Prohibited practices. - It shall be unlawful for any individual, entity, licensee or holder of authority: (a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor, 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 or misrepresentation for the purpose of securing a license or authority under this Code; (d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless

the transfer is designed to liberate the worker from oppressive terms and conditions of employment; (e) To influence or to attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency; (f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines; (g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives; (h) 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; (i) To substitute or alter employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor. (j) To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency; (k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementing rules and regulations.

ART. 35. Suspension and/or cancellation of license or authority. - The Secretary 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 Secretary of Labor, the Overseas Employment Development Board, and the National Seamen Board, or for violations of the provisions of this and other applicable laws, General Orders and Letters of Instructions.

CHAPTER III Miscellaneous Provisions ART. 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

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rules and regulations to carry out the objectives and implement the provisions of this Title.

procuring workers and includes referring contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-license or non-holder of authority. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Illegal exaction False information False statements Pirating Influencing not to employ Harmful jobs Obstruct inspection Failure to comply with rules and regulations Alteration of contracts Travel agency officers recruiting Withholding travel documents.
Title II Employment of Non-Resident Aliens ART. 40. Employment permit of non-resident aliens. Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the Department of Labor and Employment. The employment permit may be issued to a non-resident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired. For an enterprise registered in preferred areas of investments, said employment permit may be issued upon recommendation of the government agency charged with the supervision of said registered enterprise. ART. 41. Prohibition against transfer of employment. (a) After the issuance of employment permit, the alien shall not transfer to another job or change his employer without prior approval of 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.

ART. 37. Visitorial power. - The Secretary of Labor or his duly authorized representatives may, at any time, inspect the premises, books of accounts and records of any person or entity covered by this Title, require it to submit reports regularly on prescribed forms, and act on violations of any provisions of this Title. ***ART. 38. Illegal Recruitment. - (a) Any recruitment activities, including the prohibited practices enumerated under Article 34 of this Code, to be undertaken by non-licensees or non-holders of authorities shall be deemed illegal and punishable under Article 39 of this Code. The Ministry of Labor and Employment or any law enforcement officer may initiate complaints under this Article. (b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage and shall be penalized in accordance with Article 39 hereof. Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction , enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is deemed committed in large scale if committed against three (3) or more persons individually or as a group. (c) The Minister of Labor and Employment or his duly authorized representatives shall have the power to cause the arrest and detention of such non-licensee or non-holder of authority if after investigation it is determined that his activities constitute a danger to national security and public order or will lead to further exploitation of job-seekers. The Minister shall order the search of the office or premises and seizure of documents, paraphernalia, properties and other implements used in illegal recruitment activities and the closure of companies, establishments and entities found to be engaged in the recruitment of workers for overseas employment, without having been licensed or authorized to do so.

Illegal Recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or

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In addition, the alien worker shall be subject to deportation after service of his sentence. ART. 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 and Employment within 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 and Employment shall then determine if they are entitled to an employment permit.

7. Resident foreign nationals.

Coverage: All foreign nationals who intend to engage in gainful employment in the Philippines shall apply for Alien Employment Permit (AEP) Exceptions: 1. All members of the diplomatic services and foreign government officials accredited by and with reciprocity arrangement with the Philippine Government; 2. Officers and staff of international organizations of which the Philippine government is a member, and their legitimate spouses desiring to work in the Philippines; 3. Foreign nationals elected as members of the Governing Board who do not occupy any other position, but have only voting rights in the corporation. 4. All foreign nationals granted exemption by law 5. Owners and representatives of foreign principals whose companies are accredited by POEA 6. Foreign nationals who come to the Philippines to teach, present or conduct research studies in universities and colleges as visiting, exchange or adjunct professors under formal agreement